Transaction Costs, Institutions and Regional Innovation Development: The Case of Russia

Abstract:

Working on the assumption that innovation should be an inherent part of the economic mechanisms of all businesses and shall encounter no obstacles, a principle issue here is the revealing of key internal incentives for innovation, the efficient management of which will ensure dissemination thereof and self-development of the regional innovation system. We argue that the principal incentive to innovate is value-added generated by economic agents in the processes of innovation, research, and technology transfer. Therewith, the management of innovation development should be embedded into the very managing system in such a manner, that the management mechanisms will accord with mechanisms and regularities of self-organisation and self-development. Innovation process participants should actively collaborate and develop the experience of joint projects on creation and commercialization of innovations. Thereby, a special focus should be on the development and implementation of an appropriate strategy that will ensure establishment of structures-attractors, which are to draw innovative paths of development and to determine principal areas of promotion of collaboration for innovation activity participants. These attractors may be represented by innovation institutions with the greatest potential in decreasing of transaction costs in innovation activities.

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