The influence of intellectual capital and innovations on the economic development of the world and national economy

Abstract

We consider in the study that the existing economic model will inevitably be replaced by a new effective model of creative and competitive economic development. Technological innovations have caused the rapid growth of the world economy. As the result, production costs have been reduced and the profits of corporations in many sectors of the world economy have increased. Innovation is a factor of rise in Kondratiev cycles. Innovations give an impetus to increase the value added of a country’s economy. The article asserts that intellectual capital is the basis and is becoming an increasingly important component of national and world development. The article has investigated in which way innovation activities affect real GDP and has suggested the answer to the question on what stage of the Kondratiev cycles the world economy is. Innovation as an object of intellectual capital is introduced in the form of patents and other intellectual property. We have analyzed the relevant trends for 2004-2020. The research has determined that by 2030, a significant increase in the number of patent applications is expected. The article has examined the dependence of the world real GDP on the number of filed patent applications in the world by constructing trend lines. It has been found that the largest approximation with a coefficient of determination greater than 0.92 is a polynomial trend line, in which the dynamic growth with a small number of patent applications is inhibited by a sharp increase in their number. The research has defined that the phases of the cyber revolution correlate with Kondratiev waves. The modern phase is characterized by the rapid generation and dissemination of innovations. The article has examined the filing of patent applications in the top 20 countries around the world, among which the leading positions are occupied by China, the USA, and Japan. By constructing trend lines, the research has analyzed the dependence of Ukraine’s real GDP on the number of innovations and has shown that there is no such clear dependence. This indicates the raw material orientation of the Ukrainian economy. The article states that it is extremely important for Ukraine to make the transition from the triad model (with state-monopoly capitalism) to the national economic model, which corresponds to the approaches of the people’s capitalism.