Ensuring Innovative Development of Enterprises in the Context of Reduced Government Support

Abstract

Innovative development supposes significant positive changes in the economic system’s qualitative state, which are provided by a constant growth of innovations in various types of technical parameters. Solving this problem requires a significant amount of resources, including recourses from public sector. These resources are aimed at ensuring the progressive growth of investment in fixed assets, financing of fundamental research and applied development, investment in human capital and its development, taking into account constantly changing needs. In the conditions of Russia, state support for innovative development inevitably runs into restrictions associated with the crisis provision of financial resources, aggravated by the consequences of the current coronavirus crisis. The purpose of our study was to develop theoretical principles for the formation of an innovative development model as close as possible to the conditions of private sector self-financing, by searching for growth sources in innovative activity inherent in the market mechanism itself. The research’s scientific basis are fundamental provisions of the economic theory and approaches in the field of innovation management and innovation process. Distribution of cloud-based business concepts determines the realization of interactive model, in which the innovation process has a complex nonlinear structure, and the economy is acquiring as a global innovative character. The conditions for the functioning of the interactive model determine the progressively increasing level of innovation activity due to the opportunity to become participants in the innovation process for business systems with an insignificant amount of physical resources. Another factor to be called is the emergence of an incentive to innovate large structures as a result of the weakening of their monopoly position as a result of the development of innovations. The last factor will be the short-term nature of innovation rent due to the accelerated diffusion of innovation in an open model, which forces enterprises to implement and introduce new developments at a faster pace. As a result, we have developed a model of self-replicating growth of innovation activity of enterprises in the context of an interactive innovation process. The analysis of the sources of growth of innovative activity inherent in the market mechanism showed that the triggers of the self-replicating growth of innovative activity of enterprises are the development of info communication technologies in the direction of digitalization and the formation of an open network-centric business model determined by it. The implementation of this model ensures innovative development in conditions of a significant decrease in the requirements for the volume of its state support, but does not completely exclude it. The proposed model implies redirecting efforts of the government, first, to support the development of the digital economy, and, secondly, to improve the quality of the institutional environment of cloud-based systems and high-tech businesses. © 2021, Academic Conferences and Publishing International Limited. All rights reserved.