Page 58 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.79, # 1, 2022, pp. 50-68

The economic dynamics of the United States according to mass statistics were
analyzed as part of the third factor of the neoclassical model, and it was determined
that technical advancement has made a substantial contribution to growth in
different times.

As it is known, in pre-industrial and industrial societies, national wealth is expressed
in material form, but in an innovative economy, national wealth means the
inexhaustible growth of demand, the intellectual and spiritual development of man,
and the acquisition of intellectual property. At the current stage of development, the
fundamental sciences play a key role in production, consumption, and saving time.
In the reproduction process, the role of human capital is related to fundamental
scientific knowledge, which includes the implementation of new scientific
discoveries, ideas, and new technologies in the production method. With scientific,
technological, technical, organizational and managerial bases, human capital is
directed to a new cyclical turnover. In this regard, Scientific and Technical Progress
is considered as a new requirement and skill based on scientific knowledge. It can be
concluded that the main priority of the state is the implementation of scientific
activities and the application of their results in production. It is known that the
function of education is the rate of acquisition of intellectual property and the rise of
the intellectual and educational level of society, which must be passed from one
generation to another. Here I can conclude that the dynamic development of the
economy is impossible without effective economic growth based on innovation,
education, and science, which are the main sources of various innovations. So, the
right innovation policy should be implemented in the country, the National
Innovation System (NIS) and innovation infrastructure should be improved and
developed as the main directions for the development of science, education, and the
formation of innovative economic growth. The state's innovation policy, like its
economic policy as a whole, is based on general principles. These principles include:
natural resource potential, geographical location, nature of economic development,
foreign policy directions, etc.

The economic and financial instruments of the state innovation policy are: the
implementation of funding for scientific and technological R&D due to their
competitiveness; supporting the transfer of technology and the reduction of
patenting costs; grants for joint scientific and technical research projects to
strengthen ties between science and industry; Clustering policy and application of
innovation vouchers; risk sharing in the financing of scientific and technical research
projects and activities of the private sector, the introduction of guaranteed lending
and subsidy mechanisms; the application of tax concessions for private companies
for their innovations; State support for venture capitalization and initial financing.

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