The Study of Specific Empirical Patterns of the Influence of State Macrofinancial Policy on Stimulating Innovation Activity Within the Framework of Endogenous Growth Theory

The subject of the study is the empirical patterns of the influence of the state macrofinanciaL policy on stimulating innovation activity within the framework of the endogenous theory of growth. The purpose of the paper is to propose an approach aimed at ensuring direct market competition between several firms in each industry, which combines the concept of endogenous growth with a dynamic industry model of ideal Kurnout - Nash equilibrium. The scientific contribution and novelty of the research Lies in the development of new and improvement of key methodological approaches already used to assess the impact of R&D subsidies on endogenous productivity growth. In particular, new key characteristics of competition through R&D are introduced, which are usually absent in most endogenous growth models, including: 1) deterministic entry and exit from the market; 2) the distribution of firm sizes; and 3) more complex market structures that vary by industry and over time. The main conclusion is the fact that the results obtained by the author confirm the correctness of using the proposed methodological approach. The summary results confirm the existence of partial equilibrium conditions for a particular industry, demonstrating how growth-stimulating subsidies for R&D change the endogenously determined structure of the market. R&D subsidies “stretch” the distribution of market shares by increasing the number of firms in the market, but at the same time increase the differences in market shares between firms. The new methodological approach proposed by the author provides an important step towards the study of a more formalized apparatus for studying the dynamic industry model of ideal equilibrium.

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