Research of the synergetic Effects of the Impact of Innovative and Related Macroeconomic Factors on Economic Growth

This article examines the main mechanisms and tools for implementing innovation policy in countries with fastgrowing economies such as China and India. The study aims to explore the causal relationship between innovation, key macroeconomicvariables and economic growth.The author applies the entropy method and adapts the Graymodel to build a system of indices for assessing the coordination of the interaction of technological innovation, financial development and economic growth. The results show that the degree of integration of the financial system into innovation processes has a significant positive impact on the success of innovation, which is measured by patent activity. Our research proves that innovation indirectly affects economic growth through quality of life, infrastructure efficiency, employment, and rade openness. The findings of the research reveal that both economic growth and innovation tend to depend on a number of conjugate variables in the long run: capital, labor, etc. The author concludes that a comprehensive analysis of technological innovation, financial development and economic growth shows that the three-factor relationship has great potential for coordinated development, as a result of which, according to the calculated forecasts, economic growth in fast-growing economies will significantly accelerate its pace in the next five years. The subject of further research may be an analysis of whether the degree of conjugation of connectivity and coordination between the three systems will maintain stable growth at high values and whether they will be able to reach the stage of transformation.

1. Borisov V. N. et al. Modernization of industry and development of high-tech industries in the context of “green growth”. Moscow: Nauchnyi konsul’tant; 2017. 434 p. (In Russ.).

2. Bloom N., Schankerman M., Van Reenen J. Identifying technology spillovers and market rivalry. Econometrica. 2013;81(4):1347-1393. DOI: 10.3982/ECTA9466

3. Castellacci F., Natera J. M. The dynamics of national innovation systems: A panel cointegration analysis of the coevolution between innovative capability and absorptive capacity. Research Policy. 2013;42(3):579-594. DOI: 10.1016/j.respol.2012.10.006

4. Maskus K. E., Neumann R., Seidel T. How national and international financial development affect industrial R&D. European Economic Review. 2012;56(1):72-83. DOI: 10.1016/j.euroecorev.2011.06.002

5. Chowdhury R. H., Maung M. Financial market development and the effectiveness of R&D investment: Evidence from developed and emerging countries. Research in International Business and Finance. 2012;26(2):258-272. DOI: 10.1016/j.ribaf.2011.12.003

6. Zhang Q. X., Feng L. Financial development and enterprise technology innovation — based on the empirical analysis of listed companies in China’s share market. Statistics & Information Forum. 2019;(5):25-33. (In Chinese).

7. Bravo-Ortega C., Marín Á. G. R&D and productivity: A two way avenue? World Development. 2011;39(7):1090-1107. DOI: 10.1016/j.worlddev.2010.11.006

8. Lichtenberg F. R. R&D investment and international productivity differences. NBER Working Paper. 1992;(4161). URL: https://www.nber.org/system/files/working_papers/w4161/w4161.pdf

9. Howitt P., Mayer-Foulkes D. R&D, implementation and stagnation: A Schumpeterian theory of convergence clubs. Journal of Money, Credit and Banking. 2005;37(1):147-177. DOI: 10.1353/mcb.2005.0006

10. Atkinson A. B., Stiglitz J. E. A new view of technological change. Economic Journal. 1969;79(315):573-578. DOI: 10.2307/2230384

11. Xiao J. The economic growth effect of US technological innovation and its inspiration. Taxation and Economics. 2019;(5):55-61. (In Chinese).

12. Li L. L., Zhou L. B. Research on the impact of regional technological innovation capability on economic growth — based on the cross-sectional data of 31 provinces in China. Shopping Mall Modernization. 2019;(16):111-113. (In Chinese).

13. Wang F. Y., Zheng J. Technological innovation, financial development and real economic growth: Analysis of dynamic spatial model based on the Yangtze River Economic Belt. Economic Survey. 2019;(4):157-164. (In Chinese).

14. Rousseau P. L., Wachtel P. Equity markets and growth: Cross-country evidence on timing and outcomes, 1980-1995. Journal of Banking & Finance. 2000;24(12):1933-1957. DOI: 10.1016/S0378-4266(99)00123-5

15. Ilyina A., Samaniego R. M. Technology and finance. IMF Working Paper. 2008;(182). URL: https://www.researchgate.net/publication/5125470_Technology_and_Finance

16. Rajan R. G., Zingales L. Financial dependence and growth. The American Economic Review. 1998;88(3):559-586.

17. Cetorelli N., Gambera M. Banking market structure, financial dependence and growth: International evidence from industry data. The Journal of Finance. 2001;56(2):617-648. DOI: 10.1111/0022-1082.00339

18. Yang S., Huang T. T. Regional financial development and economic growth in China: An empirical analysis based on OLG theory with production and panel data. Journal of Nanjing Audit University. 2019;(2):68-79. (In Chinese).

19. He X. Technological innovation and quality of Chinese economic growth: An empirical analysis based on provincial panel data. Forum on Science and Technology in China. 2019;(10):24-32,58. (In Chinese).

20. Matrizaev B. D. Research of the three-factor convergence between innovation and monetary policy, and labor productivity. Innovatsionnoe razvitie ekonomiki = Innovative Development of Economy. 2018;(6-2):42-56.