Page 36 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.76, # 1, 2019, pp. 34-47

business cycles began to be formed based on the works of M. Tugan -Baranovskyi
and his progress was obtained with the intelligence of A. Spithof, G. Haberler, M.
Kondratyev (the role of innovations in the cyclical fluctuation of macroeconomic
indicators of the countries was determined), J. Schumpeter (famous work: "Business
cycles"). Interestingly the translation of the term "innovation" from English
"innovation" in their writings is interpreted by scientists in different ways. In
language dictionaries we find that this means "introduction of innovations" or
"introduction of new" that is it involves the use of innovation and "from the moment
of adoption to the spread of innovation acquires a new quality and becomes an
innovation." Thus the term "innovation" is defined as the transformation of the
potential of "scientific and technological progress into real achievement, embodied
in new products and technology" [4]. In scientific use the concept of "innovation"
was introduced in the 19th century in the theory of anthropology and ethnography,
in defining the processes of change and interpenetration of cultures of different
people.

However, this concept was widely used in economy in the 20th century after the
publication of J. Schumpeter's works on "new combinations" which are the
generator of entrepreneurial profits and the factor of influence on cyclic crises and
which the scientist interpreted as "innovations".

According to J. Schumpeter's identification new combinations determine the
progress of production through the application of some new combination of
resources and new ideas that produces innovation.

FORMULATING THE GOALS OF THE ARTICLE
The object of the study is the management of innovation and financial processes and
phenomena in the banking and agrarian sector. The subject of the research is the
theoretical and practical principles of management of innovation and financial
technologies of banks in the agrarian sector.

RESEARCH METHODS
The theoretical and methodological basis of the research is general scientific
postulates of fundamental theories of innovation and finance, management,
publication of leading domestic and foreign scientists on the management of
innovative and financial technologies of banks in the agrarian sector.

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