The Political Economy of Innovation Development

Breaking the Vicious Cycle of Economic Theory

Iurii Bazhal

• Publisher: Palgrave Macmillan
• Year: 2017
• ISBN:
  9783319548524
• Topic: Economics
• Subtopic: Development Economics
• Index: Economics

This book finds that the R&D and technological innovation of a country is not a result, but a factor, of sustained economic growth. Bazhal develops Schumpeter's theory to argue that genuine economic growth - especially in transitioning and developing countries - is only possible with innovation. With a particular focus on the work of Ukrainian economists, Tugan-Batanobvsky and Vernadsky, the text seeks to move the discipline forward and explain why innovation has become a primary factor of economic development in recent decades and why its role will become even more dominant in the future.
Chapters interrogate whether modern economic theory can explain how we ensure the effective functioning of the market economy. The book shows that explanations of economists and politicians regarding the nature of the current economic and financial crisis, and the causes of huge gaps in levels of wealth in market economies, demonstrates that there are not enough satisfactory answers to this question.

Table of contents

• The Political Economy of Innovation Development
• 1 Introduction
• 2 Innovations: A known Unknown Phenomenon of Economy
• 3 Key Features of Schumpeter’s Theory of Economic Development
• 4 “Vicious Cycle” of Political Economy Without “Innovations”
• 5 Innovation Development Versus Re-industrialization
• 6 Evaluating Innovations Impact on Economy
• 7 Human Capital and Innovation Development
• Index