Tag: O38

A NOTE ON SCHUMPETERIAN COMPETITION IN THE CREATIVE CLASS AND INNOVATION POLICY

Amitrajeet A. BATABYAL

Department of Economics, Rochester Institute of Technology, 92 Lomb Memorial Drive, Rochester, NY 14623-5604, USA.

aabgsh@rit.edu

Seung JICK YOO

Corresponding Author. Graduate School of International Service, Sookmyung Women’s University, 100 Cheongpa-ro 47-gil, Yongsan-gu, Seoul, Republic of Korea.

sjyoo@sookmyung.ac.kr

Abstract

We study innovation policy in a region in which the members of the creative class engage in Schumpeterian competition and thereby extend aspects of the recent analysis in Batabyal and Yoo (2017). Using the language of these researchers, the creative class is broadly composed of existing and candidate entrepreneurs. In contrast to these researchers, we suppose that R&D by candidate entrepreneurs does not generate any negative externalities. In this setting, we analyze the impact that taxes and subsidies on R&D by existing and candidate entrepreneurs have on R&D expenditures and regional economic growth.

Keywords: Creative Class, Creative Destruction, Economic Growth, Innovation Policy, R&D

JEL classification: R11, O31, O38
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MOVING REGIONAL ECONOMIC POLICY MODERNIZATION AHEAD: SYSTEMS BASIS FOR ORGANIZATIONAL AND DEBLOCKING MECHANISMS IN PRESENT-DAY UKRAINE

Igor DUNAYEV

PhD in PA, associate professor, post-doctoral fellow, Kharkiv regional institute of public administration of the National academy of public administration by the President of Ukraine

Igor.dunayev@gmail.com

Abstract

The paper objective is to provide rationale for the systems basis for organizational and deblocking mechanisms of a discrete regional modernization process. Basing on methodology of systems analysis, the paper offers an author’s conceptualization of a systemic regional economic policy modernization in the present-day Ukraine. The author’s original contribution is his profound idea of the modernization process being discrete, non-linear, and following a changeable trajectory. These properties of the system have influenced considerably the interpretation and revaluation of the current state of the modernization process and its “tension lines”. Starting out from the properties of “system material” and the author’s general concept of the regional economic policy modernization in Ukraine, the paper identifies two actual mechanisms for ensuring stability of a desired modernization trajectory – a mechanism of modernization process organization, and a mechanism deblocking the process of modernization. For each of them, the reasons for existence and “tension lines” are determined and rationalized. Finally, an important conclusion is drawn that the proposed logic of analyzing the mechanisms to support regional modernization can be applied both in Ukraine and in other counties, providing a way to purposefully affect the procedure and structure of governance mechanisms in accordance with the set priorities.

Keywords: regional economic policy, systems approach, mechanisms, Ukrainian modernization

JEL classification: O38, R58, R50

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