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Media type:
E-Article
Title:
COMMERCALIZATION OF KNOWLEDGE INTO INNOVATION IN THEORY OF ECONOMIC GROWTH AND DEVELOPMENT
Contributor:
Cvetanović, Slobodan;
Novaković, Igor
imprint:
Institute of Knowledge Management, 2019
Published in:Knowledge International Journal
Language:
Not determined
DOI:
10.35120/kij3301015c
ISSN:
1857-923X;
2545-4439
Origination:
Footnote:
Description:
<jats:p>Theoretical explications of the category of economic development imply the application of research methods that touch not only the economic but also the numerous political, demographic, ethical and environmental dimensions of development. Primarily because of this fact, theoretical explications of economic development can be very imprecise in form and sometimes of a very extensive nature, despite the fact that a descriptive method in the study of particular economic phenomena can significantly replace analytical precision. In any case, logical consistency in qualifying the phenomena characteristic of the theoretical explication of economic development plays an extremely important role and importance. If the content of the theory of economic development is understood in this way, it can also be interpreted as its effort to determine the conditions conducive to achieving a high rate of economic growth over a long period. This is why economic development theorists use a far broader and more diverse analytical ways in their research compared to researchers interested solely in economic growth issues.In addition to standard factors of production (land, labor and capital), neoclassical theory of economic growth also recognized production factors of intangible character in the form of residuals, that is, innovations understood in the broadest sense of the word. This fact can be marked as a key change in economic science related to economic development research. However, a major drawback of the neoclassical theory of economic development is the neglect of explaining the drivers of innovation as a key factor in economic growth. Relying, at the same time, on the dominant linear model of innovation, neoclassical theory states that knowledge commercialized into innovation is by far the most significant driver of economic growth. However, neoclassical models assume that innovations occur spontaneously and that they represent a logical response to market stimuli, that is, they possess traits of the public good, which was basically the greatest weakness of this theoretical direction.Endogenous growth models in conceptual terms have succeeded in overcoming the stagnant neoclassical economic theory theorem that economic growth, in the absence of knowledge valorized in innovation, is a time-limited process. The key drivers of knowledge in new theories of economic growth and development are endogenous and crucial in the process of creating new value. They account for the manifestation of external effects, that is, they explain the possibility of declining returns on production factors at the aggregate level due to the unlimited possibilities of commercialization of knowledge into innovation.</jats:p>