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National Interests: Priorities and Security
 

Spurring the demand for products of the high-tech sector during the development of the national innovative potential

Vol. 14, Iss. 8, AUGUST 2018

PDF  Article PDF Version

Received: 10 April 2018

Received in revised form: 30 April 2018

Accepted: 22 May 2018

Available online: 15 August 2018

Subject Heading: INNOVATION AND INVESTMENT

JEL Classification: C10, D52, F13

Pages: 1530–1550

https://doi.org/10.24891/ni.14.8.1530

Razvadovskaya Yu.V. Southern Federal University, Rostov-on-Don, Russian Federation
yuliyaraz@yandex.ru

https://orcid.org/0000-0002-3831-6444

Khanina A.V. Southern Federal University, Rostov-on-Don, Russian Federation
anna_smash@mail.ru

https://orcid.org/0000-0003-4871-2333

Importance The article discusses the main areas for the national policy pursuing the development of the national innovative potential in countries which made a technological breakthrough through innovation.
Objectives The research analyzes the main areas for the national policy stimulating the demand as one of the key drivers of the national innovative potential. The article presents some criticism concerning the idea that foreign direct investment is a cornerstone for the formation and development of the national innovative potential in developing countries since it serves as a pipeline of new knowledge and technology from technologically advanced countries. We also substantiate the importance of spurring the domestic demand for innovation through public procurement so as to develop the national innovative potential.
Methods The research involves methods of comparison, theoretical and statistical analysis.
Results We trace the nexus between public procurement and growth in production output and export of high-tech products. The article presents our own classification of the main models used to boost innovation by extent to which the applicable methods and tools are influential and regulated, and the impact of the governmental policy. Each of the proposed models combines governmental initiatives for the innovative potential development, being used by the State in line with its goals and tasks pursued in developing the innovative potential.
Conclusions and Relevance There is relationship between the economic development model, size of the public sector and innovative model of economic development.

Keywords: demand generation, supply generation, innovative potential, FDI, indirect method, public procurement

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