THE DEVELOPMENT OF GLOBALITY OF INNOVATIVE MODIFICATIONS

Анотація

Relevance. This research becomes relevant because global information modifications dramatically change current socio-economic relations marked by doctrines of world economy at each stage of social progress.  Purpose. This paper addresses some of the modifications that have gained greatest recognition in recent decades and are most closely associated with innovation developments in society. Methods. The method of historical economic progression and a synthesis of methodological approaches have identified underlying patterns in society’s global innovation-based economic growth. Findings. The research has found that the theory of innovation society can and must be considered as an integral part of the post-industrial theory. It has proved, however, that ‘new economy’ is the hallmark of society at its current stage. It offers an essentially new approach to the mechanisms and a rate of information-based dissemination of innovations.  Four factors have been determined to serve as background for the transition to a new economy (knowledge economy), such as market liberalization, an increase in capital mobility, market globalization, the emergence of the digital environment as a common communication network. In estimating the effect of global innovation modifications, it has been identified that industrialized countries enjoy greatest benefits from contributing to the global reach of innovations in information economy, which enables them to reduce costs of production and focus on the output of most profitable high technology products, and outsource labor- and pollution-intensive industries to developing countries. The industrialized world, however, could also be affected by integrated global innovation processes which, unless controlled, would increase unemployment and make financial markets more volatile. This is what has been happening at present in the acute migration and critical financial processes. Practical significance. The paper concludes that in order to conduct an effective economic policy, any government should thoroughly consider major factors of global innovation modifications, such as production, science and technology, business, economic, information, politics, society and culture.

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