Modeling the innovative strategy, monopolization level and prospects of economic re-industrialization relationships: The case of Information and Telecommunication Technologies
Importance The national economy development fundamentally stems from industrial capital. The effective structure of industrial capital determines the level of competitiveness in the manufacturing sector, stability of the national economy in the long run. Global re-industrialization processes, which are not only typical of emerging economies, but also developed ones, necessitate effective mechanisms for increasing the industrial production capacities. Objectives The research pursues empirical substantiation of the nexus between the innovative strategy, monopolization level and prospects for the national economy re-industrialization. As we hypothesize, entities are more monopolized if they follow the strategy for producing new technologies. Methods The research draws upon the Kalecki theory of industry monopolization, economic and mathematical framework that allows evaluating the industry monopolization level and value added. Results When entities adopt new technologies, they generate higher added value. Considering the national economy re-industrialization strategy, it may constrain the recovery of industrial production capabilities. Conclusions and Relevance We propose positive and negative options of the information and telecommunication sector development, which prove the need to undertake effective measures for the State aid to the entities, which follow the strategy of producing new technologies.
Keywords: production strategy, strategy of borrowing, M. Kalecki, monopolization, re-industrialization
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