=Paper=
{{Paper
|id=None
|storemode=property
|title=Features of National Welfare Innovative Potential Parametric Indication Information-Analytical Tools System in the Globalization Trends' Context
|pdfUrl=https://ceur-ws.org/Vol-1000/ICTERI-2013-p-339-351-ITER.pdf
|volume=Vol-1000
|dblpUrl=https://dblp.org/rec/conf/icteri/Lazareva13
}}
==Features of National Welfare Innovative Potential Parametric Indication Information-Analytical Tools System in the Globalization Trends' Context==
https://ceur-ws.org/Vol-1000/ICTERI-2013-p-339-351-ITER.pdf
Features of National Welfare Innovative Potential
Parametric Indication Information-Analytical Tools
System in the Globalization Trends’ Context
Elena Lazareva
Southern Federal University, 105, str. Bolshaya Sadovaya, 344006, Rostov-on-Don, Russia
el_lazareva@mail.ru
Abstract. In the article innovation-reproductive and rent-generating function of
national welfare is exposed, necessity and real ways of national welfare innova-
tive potential look-ahead analytical estimates methodology and tools’ revision
in a context of globalization trends are offered, complex analysis of the results
of system parametristic indication of the strategy of national welfare develop-
ment in the innovation economic growth interests on the author’s set of instru-
ments ground is conducted.
Keywords. National welfare, innovation as a new form of combining industrial,
intellectual and social resources; innovation rent; information-analytical tools
system
Key terms. NationalWelfare, CorporateModel, SpatialStrategy
1 Introduction
In a context of the modern economic development model the essence of national wel-
fare is expressed in new aspects – it becomes not only the accumulated re-iterative
reproduction process result, but also is converted into the integrated innovation-
oriented economic growth resource-factor. This conversion is connected with world
and national economic systems movement towards innovative «knowledge econ-
omy», competition gravity center transference to the science, education, innovative
activity sphere, non-material actives role in economic reproduction process increas-
ing.
The resource-provided countries have the export-raw model of economy. Their de-
velopment may be characterized in comparison with other countries by the rough,
spasmodic rate, mainly caused by considerable raw materials prices and economic
instability. Such development is inevitably accompanied by the problems which brake
economic modernization and its social and innovative orientation. On the contrary,
the development of the countries which realize the policy of human capital quality,
340 E. Lazareva
national well-being, high technologies increment provides advantages in world socio-
economic evolution, raises competitiveness of national «intellectual» economy.
Increasing human development quality importance for economic growth generating
and competitiveness initiated the mounting interest of economists to the subjective
factor (the human capital) role in production progress. It gradually promoted the na-
tional welfare parameters (at first – the individual, especially economic; later – the
social, public) inclusion into the economic dynamics resource supply research system.
The globalization accompanied by substantial capital mobility and national
economies openness increasing transforms the national welfare economic content and
display forms in reproduction process, modernizes its structure and functions in the
conditions of transition to the innovative-focused economy.
These tendencies find reflection in the new long-term economic trend research
methodology – the methodology which equally considers society and economy inter-
ests. The national welfare becomes the major productive forces element and the inte-
grated institutional condition of the human capital reproduction.
The world financial-economic crisis, showing critical dependence of the national
economies upon mobile global resources (financial, information, technologic re-
sources) and, in particular, exposing the fact that the dynamics of the Russian GDP is
still to a considerable extent determined by the external factors of the conjuncture,
made topical the problem of finding internal, innovative resources-sources for devel-
opment. The present situation requires the internal innovative resources of social-
economic development, first of all, existing resources of the national welfare, the
reserves of which in Russia are still unused in full due to the underdeveloped nature
of the institutions of their conversion into competitive factors of production, active
usage.
In this light, especial topicality is attributed to the issues related to technical-
methodological analysis of the national welfare resources in the system of the global
competitive resources, to determination of their role in the process of social innova-
tive reproduction, conditions and mechanisms of their conversion into the innovative
factors of production as well as integrated evaluation of the human capital of the
country, its efficient usage and higher rate of innovation oriented development of the
economic subjects and of economy overall.
The strategy of the economic subjects policies’ economic-oriented modernization
has to be based, due to the aforementioned facts, upon evolutional-cyclical, informa-
tional-innovative paradigm of the economic development theory and upon resource
analysis, in accordance with which national welfare in the postindustrial society plays
the role of an integrated resource for the innovative economic trends. One witnesses
not only a different nature of the input of national welfare into the reproduction proc-
ess, but its various composition, i.e. apart from traditional material elements, which
have cost measurement (revenue level, volume and structure of the personal con-
sumption fund etc.), greater importance is attributed to its social elements – level and
quality of education of the population, level of its health, housing conditions, degree
of security within the society, quality of the social-ecologic habitat, social capital,
social-economic mentality, condition of general and spiritual culture in the society, set
of the symbolic benefits etc., which do not have market cost and, often, which have
the nature of social benefits, i.e. they create general social conditions for fulfillment
of a person, for creative freedom.
Features of National Welfare Innovative Potential Parametric Indication … 341
In accordance with the above, the economic subjects’ innovative social-economic
policies have to comprise not only the innovative processes direct support strategies
and mechanisms, but also person-oriented, comfortable general social conditions for
innovation-oriented development of economy creation, realized in the form of wel-
fare, better life standards and insuring efficient reproduction of the human capital [1].
Orientation towards bigger human and social capital and, consequently, bigger in-
vestments in the anthropo-social capital in the process of intellectual resources social
reproduction as integral parts of the national welfare, constitute the basis for forming
its innovative, resource-reproducing functions. It follows that the principal problem of
continued innovative economic development consists of the national welfare into the
innovation-initiating human and social resources – factors of production inherent to
the “economy of knowledge” social-economic conversion mechanisms. Such the
national welfare components institutional conversion into the innovative resources,
human and social benefits economic composition is their comparative advantages
(competitiveness) capitalization within the framework of countries’ integration in the
world economic relations,, i.e. transformation of said advantages into the source of
the added value and objects of the global companies, business, integrated structures,
states innovative activities.
The innovative rent, which is received due to national welfare reproduction and its
conversion into the innovative-intellectual production economic resources, constitutes
an economic basis of the innovation oriented development. Within the framework of
the cluster theory, “network economy” – the innovative economic rent plays the role
of the result of the national welfare components, situated in the country, efficient
usage. The variety of the innovative rent categories is due to different categories of
benefits – resources of national welfare, which constitute the source of the rent forma-
tion.
The research is based upon such founders of the innovation-oriented economic de-
velopment theory as D. Bell, A. Buzgalin, V. Inozemtsev, N. Kondratjev, S. Kuznets,
B. Kuzyk, G. Mensch, B. Milner, R. Nizhegorodtsev, D, North, V. Ovchinnikov, J.
Osipov, D. Tis, E. Toffler, J. Schumpeter, J. Jakovets etc.
The national welfare potential evaluating scientific basis of the welfare economy in
the innovation-oriented development of economy system is considered in the works of
the following authors: J. Bentham, S. Valentej, L. Walras, A. Marshall, L. Nesterov,
V. Pareto, A. Pigou, A. Smith, J. Hicks, L. Erhard etc., who analyze the problems of
the benefits value, of wealth formation, its distribution, conditions for market balance
as a principal factor for social welfare, problems of harmonizing individual
and social welfare judging by different criteria. D. Buchanan, J. Galbraith, J. Mill, W.
Eucken, J. Rawls, V. Cherkovets, R. Ehrenberg etc. analyze a great number of social-
economic factors, which affect the social welfare growth in the market economy.
Different aspects of the national welfare role identifying in the of innovation-
oriented economic development system are researched in the works of P. Aguillon, R.
Barro, A. Varshavskij, J. Vinslav, S. Glazjev, I. Diskin, J. Coleman, V. Kostjuk, D.
Lvov, V. Makarov, N. Moisejev, N. Rimashevskaja, D. Rodrik, S. Rosefielde, K.
Salomon, A. Sen, R. Solow, J. Stiglitz, M. Todaro, F. Fukuyama etc. Study of their
works allowed specifying scientific interpretations of national welfare from the new
institutional evolutional cyclical paradigm of economic development point of view.
342 E. Lazareva
The nature and specificity of national welfare systems functioning taking into account
their correlations with innovative development of economy and its different institu-
tional structures were researched by A. Auzan, P. Drucker, V. Ivanter, G. Kleiner, A.
Prokhorovskij, V. Tambovtsev, F. Hayek, J. Jasin etc.
The methods of national welfare resources parametric evaluation are studied in the
works of S. Ajvazjan, G. Becker, N. Zubarevich, I. Maslova, M. Mozhina, R. Nure-
jev, L. Ovcharova, V. Polterovich, J. Rjumina, A. Shevjakov etc. Applicable mecha-
nisms and decision making technologies in the sphere of national welfare resource
management are analyzed in the works of M. Baskova, O. Bogomolov, A. Dynkin, M.
Musin, O. Pchelintsev, S. Rosenfeld, S. Sampler, V. Tretjak, T. Schultz, M. Jagolnit-
ser, etc.
Theoretical analysis of such phenomena as “informational civilization” (R. Abde-
jev, S. Djatlov, M. Kastels, S. Parinov, F. Jansen), “national innovative systems” (K.
Bagrinovskij, M. Bendikov, O. Golincheko, I. Dezhina, J. Lotosh), “intellectual capi-
tal” (E. Brooking, A. Gaponenko, M. Malone, T. Sakaya, L. Edwinsson), “cluster
development strategy” (T. Anderson, A. Weber, M. Iversen, A. Isaksen, N. Kal-
juzhnov, R. Kachalov, J. Christensen, B.-A. Lunvall, A. Ljamzin, L. Markov, N. Na-
grudnaja, P. Nertog, L. Nesta, M. Porter, M. Enright) was also important for paper’s
conception making.
Fig. 1. National welfare as the innovative process rent-yielding factor
Acknowledging high importance of the aforementioned scientists research and not-
ing the fact that there are fundamental approaches for exposing separate facets of the
topic considered in this article, it is necessary to underline, however, that hitherto one
has not realized an approach related to a complex evaluation of the national welfare as
an integrated resource of the nation oriented economic development, one has not ex-
Features of National Welfare Innovative Potential Parametric Indication … 343
posed its innovative-reproductive function within the framework of involving into the
economic system such factors as knowledge and intellect of the nation. Little practical
research has been made with regard to the issue of modernizing mechanisms of its
conversion into innovative economic resources.
Insufficient conceptual-methodological development of the resource approach to
the national welfare analysis in the system of the innovation-oriented economic de-
velopment; resource support of the innovation vector of economic development in
conjunction with its theoretical-applicative topicality determined the purpose of the
research.
2 Intermediate Results of Stages of Research
The purpose of the article is to form a methodological basis and to elaborate a theo-
retical-conceptual model and information-analytical tools system of the national wel-
fare innovation-reproduction function, conditions, mechanisms and implements of
using its resources in the interest of developing an innovative-economic system com-
plex analysis. Achieving the set goal determined the necessity and logical sequence of
solving a set of stage-by-stage theoretical-applicative tasks. The results of fulfilling
said tasks could be formulated as follows:
1. Innovation-oriented development of the present day national economies within
the framework of long-term global evolutional trends is more and more determined by
the national welfare level and its dynamics. The national welfare resources accumula-
tion induces higher volume and quality of human capital, higher labor efficiency,
modernization and efficient innovation-oriented national economies development.
2. The national welfare structure encompasses not only traditional material bene-
fits-resources characteristic for pre-industrial and industrial societies (real monetary
revenue, volume and structure of the personal consumption fund, housing conditions,
employment etc.), moreover, it includes new benefits-resources, having higher mar-
ginal utility (level/quality of education and health of the population, quality of the
social-ecologic habitat, freedom of access to new technologies and scientific discover-
ies, social capital etc.). The definitive result of mentioned factors involving into the
innovative productive cycle is revenue in the form of innovative rent creation which
insures competitiveness of the entire production process.
The economic composition of such national welfare resources conversion is capi-
talization of their competitive advantages in the course of countries integration in the
world market and network world-economic relations, especially, in the high-tech
spheres, based upon high quality of the human capital, in other words, transformation
of said advantages into the source of the added value and into the objects of global
investment activities. Within the framework of the innovation-oriented dynamics,
national welfare thus assumes the function of its resource-factor, increment of which
within the world and state structure of social-economic relations becomes a key pre-
requisite for the innovative economic development trend.
3. Globalization processes exert contradictory influence upon economic mecha-
nisms related to the national welfare resources usage aimed at the support of innova-
tion-oriented development. On one hand, they broaden the innovative-economic space
of the country and the possibilities of converting the resources of its national welfare
344 E. Lazareva
competitive potential into innovative-intellectual resources, on the other, globalization
brings about an additional impetus for bigger inter-state asymmetry, polarization of
the countries innovative development. Macroeconomic indicators analysis character-
ize the level of the countries integration into the global innovation-oriented economy,
which showed a high level of interstate developmental inequity and lack of competi-
tiveness of a set of components of the national welfare. This situation decreases the
level of converting separate components of the national welfare into innovative eco-
nomic development resources.
4. The national welfare resources accumulation-consumption (reserve-flow) values
correlation is a distinctive indicator of the innovative reproduction process cyclical
development. During stagnation, low rate of economic dynamics, accumulated na-
tional welfare is depleted (as the result of mobilizing its certain part in order to insure
innovative economic growth), and during rise, high growth rate, the situation is oppo-
site, national welfare is accumulated due to added national revenue, creating thus an
integrated basis for a long-term incremental trend of social economic innovation-
oriented development.
5. Greater role and larger scale of the economic development innovative factors
change traditional perception of the classic stages of the modern expanded produc-
tion. The stage of accumulating intangible assets - factors of production, which create
the innovative economy resource basis becomes the initial and principal stage in the
new scheme of reproduction economic relations. This stimulates national welfare
accumulation with the view of achieving higher productivity, fist of all, of the intel-
lectual resources, of human capital, creation of the institutional habitat, beneficial for
elaboration and distribution of innovations, and due to these factors higher rate of
innovative economic dynamics.
6. The need to convert of the accumulated tangible and intangible national welfare
resources into innovative development factors is embodied in the new priorities and
strategies of the long-term state economic policy, in accordance with which the inno-
vative growth of economy is due to observance of the principal of correlation and
balance of the imperatives of economic efficiency, social justice and ecologic stability
as the three principal criteria of the innovation-oriented reproductive development of
a high aggregation level. Moreover, this includes the fact that the state innovative
policy assumes a new objective function – the function of balanced social-economic
interests of the national, regional (local) and global economic subjects in the process
of accumulation, reproduction and usage of the national welfare resources with the
view of innovative growth.
Studies of the new model of subject-object relations in the national welfare repro-
duction system and conversion of its elements into resource sources for innovative
growth showed that the “network reality” conditions makes topical the issue of elabo-
ration of a collective strategy for the the national welfare development, in which the
aspect of “co-operation” prevails over the aspect of “competition”, and the classical
model of the civil society, based on legal definitions of liberalism and market regula-
tion, is replaced by the corporate community model (fig. 2).
Features of National Welfare Innovative Potential Parametric Indication … 345
Fig. 2. Subject-object relations’ conceptual model
Coordination and balance of the specific interests of innovation-oriented develop-
ment subjects in reproduction of national welfare as a national benefit, based upon
joint advantages, trust and state-personal partnership make one of the important
methodological principles for the corporate strategy formation, which helps to opti-
mize management and to achieve higher efficiency of national welfare usage with the
view of national economic growth. Determination of the ideal “hierarchical chain” of
interests of the economic subjects and orientation of the adequate stimulation policy
towards it is one of the alternatives for realizing the coordinative methodological
principle.
346 E. Lazareva
7. The national welfare resources inclusion into the economic asset balance of the
country signifies their interpretation as a source for added value in the long-term in-
novative cycle of economic dynamics.
The most adequate approach to economic evaluation of tangible and intangible
components of national welfare is a modified variant of the Hartwick-Solow princi-
ple, in accordance with which it is necessary to consider the innovative rent as the
principal source of the national revenue, a part of which is channeled into national
welfare accumulation, that brings about a higher resource potential of the long-term
innovation-oriented economic development – it is re-invested in better quality of the
human capital and amelioration of the social-ecologic conditions of its reproduction
(education, healthcare, fundamental science, social infrastructure, lower environment
pollution).
8. Rent revenue, which is received due to efficient usage of the new categories of
intangible benefits – informational, innovative, infrastructural, intellectual benefits
that directly insure reproduction of human capital, play a greater role in the national
economies innovation-oriented modernization of national economies. As it is shown
by the analysis of said processes in Russia, taking into account the existing institu-
tional deficits, underdeveloped nature of venture business, lack of a systematic, high-
quality network habitat, favorable for diffusion of innovations and weak interest of
the economic subjects in their elaboration and implementation, capitalization of the
present innovative potential of national welfare (infrastructural, educational-
intellectual, informational welfare) is rather difficult, whereas innovative rent is
gained only in separate, isolated cases. As the result a considerable part of the existing
tangible and intangible national welfare resources, fist of all, intellectual and human
resources, is not capitalized. This fact brings about a lower competitiveness of the
country.
9. Need to indicate and insure elaboration of the national welfare components con-
version into innovative economic resources mechanisms presupposes analysis and
evaluation, to be executed in the state management system, regarding the level and
dynamics of reproducing its four components – quality of the population proper, ma-
terial life standards of the population, quality of the social habitat and quality of eco-
logic state of the natural-economic complex. Complex evaluation of the aforemen-
tioned four components of the national welfare with the view of achieving innovative
economic growth is based methodologically upon usage of sophisticated theoretical-
analytical set of implements including a set of formalized methods and models of
determining latent connections between national welfare and innovation-oriented
economic growth (which form a unity of the innovative reproduction process) as well
as evaluation of the innovative effects due to a higher level of converting different
national welfare components into factors of innovative growth.
The elaborated set of implements allows to analyze efficiency of the existing na-
tional welfare resource structure, to expose its limiting components and to form on
this basis a strategy for a long-term economic policy, aimed at development of institu-
tions, which increase national welfare resources competitiveness and the level of their
conversion into productive sources of innovative economic growth.
A distinctive feature and advantage of the elaborated model set of implements is
the possibility to use it in order to accumulate analytical information regarding the
results and parameters of economic, social, ecologic strategies related to accumulation
Features of National Welfare Innovative Potential Parametric Indication … 347
and increment of the national welfare resources with the view of achieving a higher
national economic dynamics and to thus provide (as opposed to the traditional imple-
ments) a more adequate evaluation of the mechanisms used in the state economic
policies related to support of the innovation-oriented economic development trends
(figure 3) [2].
10. Diagnostics effected on the basis of the set of implements with regard to the na-
tional welfare as an integrated resource of innovation-oriented economic development
of Russia state-of-the-art within the global coordinates framework (figure 4) and
integral innovative effect of its increment showed that due to realized innovative wel-
fare management strategies (including strategies of a higher level/quality of education
and lower sickness rate of the population, higher buying power of its monetary in-
come per person and lower level of poverty, development of the social infrastructure,
higher social-territorial mobility and level/conditions of employment of the popula-
tion, development of smaller business and greater freedom of entrepreneurs, creation
of a dynamic information infrastructure and better access to technologies and science
etc.), the indicators of the Russian economy subjects may be increased approximately
by 1.5 times mostly by means of better social sphere quality [3].
The innovative effect due to national welfare increment and its transformation into
innovative economy resources indicators: level of economic subjects’ innovative ac-
tivities, level of conversion of national welfare into innovative growth competitive
factors, innovative rent capitalization level are the key parameters which characterize
the proportions between accumulation and consumption of the national welfare re-
sources state policy.
The quotients, calculated (with regard to Russia) with the view of proposed struc-
tural model empiric verification and reflecting the dependence between the dynamics
of the innovative activity of the economic subjects parameters and the parameters of
the national welfare resources (average expected lifetime, GDPPPP per person, Gini
index and ecologic stability index) showed that, within the integrated effect indicator
among the four basic components of national welfare, greater importance is held by
the social sphere resources which reflects the priority of social, socially-advantageous
benefits – social capital accumulation sources reproduction. These sources are charac-
terized by such important properties from the point of view of the innovative growth
as: positive network effects and their higher marginal utility in the course of their use;
therefore, the level of the national welfare resources into factor sources of innovative
growth conversion greatly depends upon the state of the social sphere – the elasticity
quotient was 1.724 and the correlation quotient was 0.671, then, following the order
of lower dependence one has the ecologic habitat quality – accordingly 0.463 and
0.324, quality of the population – 0.137 and 0.393 and the material life standards –
0.057 and 0.442.
348 E. Lazareva
Fig. 3. Model set of implements for state strategy’ analytical evaluation
Features of National Welfare Innovative Potential Parametric Indication … 349
Fig. 4. National welfare state-of-the-art estimation
11. In the course of interregional comparison of the conditions and existing limits
for realizing the policy of state national welfare resources reproductive proportions
between accumulation and consumption optimization, one detected a domineering
correlation between the economic subjects innovative activity indicator and indica-
tors of the achieved level of conversion. The calculations effected by the author ac-
cording to special methods showed, in particular, the following typology of de-
pendence of the features of the economic subjects innovative activity on the pa-
rameters of domineering kinds of national welfare resources (social sphere re-
sources) into innovative growth factors conversion which determine the priorities
of the long-term state economic policy: for an economy, which is characterized by
a low, medium, high fully realized dependence of the features of the economic sub-
jects innovative activity upon the parameters of the social sphere resources con-
version, priority belongs, therefore, to the strategy of developing social infrastruc-
ture and higher level/quality of employment of the population, strategies of devel-
oping smaller business and greater freedom of entrepreneurs, strategies of easier
access to scientific achievements and to new technologies, information infrastruc-
ture development (figure 5). The detected innovative effects indicate the priorities
of the social-economic policy, in which the main role belongs to investments into
the innovative national welfare resources: housing conditions, social and informa-
tion infrastructure, science, education, healthcare, culture etc.
350 E. Lazareva
3 Conclusions
The obtained results show that due to social conditions, factors and motives of behav-
ior more important role, social capital resources greater importance, it is necessary to
elaborate a harmonized systematic program of innovation-oriented long-term eco-
nomic policy modernization and to create a favorable social-economic climate in the
country on the basis of the existing national welfare.
The systematic approach means a reconsidered hierarchy of social-economic pri-
orities within the framework of the person oriented innovative economic growth para-
digm. In this light the state has the following tasks of paramount importance: amelio-
ration of the overall conditions of employment and population housing, recreation of
the salary reproductive function (first of all, on the basis of adequate evaluation of the
level/quality of education); accelerated development of the intangible investment
complex and social infrastructure, realization of human-saving social programs; con-
sistent industrial policy which would activate innovative activity mechanisms and
socially responsible behavior of the corporate subjects which are capable of making
their contribution into development of national welfare and human potential of the
nation.
Fig. 5. Spatial strategic “developmental crystal” of Russian national welfare
In the present situation efficient mechanisms of balanced innovation-oriented eco-
nomic development may be formed only on the basis of the state, civil society and
business integrated efforts in order to achieve consistent expansion and rectification
of opportunities for the representatives of different social, professional and territorial
population groups via reproduction of the national welfare resources as a social bene-
fit. This has to be reflected in the system of innovation-oriented long-term social eco-
nomic development strategic management.
Features of National Welfare Innovative Potential Parametric Indication … 351
The national welfare resources will be realized in an efficient way within the
framework of an innovative economy, only if there is a stable need for them from the
reproductive process. The strategic task is to bring about long-term correlation of the
national welfare resources demand and supply in the innovative development of the
economy.
The developed theoretical analytical tool allows to evaluate not only efficiency of
accumulation and usage of the national welfare resources, moreover, it makes possi-
ble to determine the innovative effect due to a higher level of their conversion into the
sources of innovative growth.
References
1. Lazareva, E. I.: National Welfare as an Integrated Resource of Innovation-Oriented Devel-
opment of Economy. Theoretical-Methodological Aspect. Publishing House of the South-
ern Federal University, Rostov-on-Don (2009) (In Russian)
2. Lazareva, E. I.: Strategy of National Welfare in Interest of Innovative Economic Growth
Development: Results of Systematic Parametrical Indication. Economic Newssheet of the
Rostov State University, 3, 65–74 (2010) (In Russian)
3. Aleshin, V. A., Lazareva, E. I.: National Welfare Increment as the Imperative Institutional
Determinant of Regional Systems’ Development in the Innovative Processes’ Globaliza-
tion Context. Social Inequality and Economic Growth, .4, 9–18 (2012)