The Study of the Dynamics of Innovative Development of Economy on the Endogenous Growth Through Multi-sector Extension of the Solow Model

Elena Anatol’evna Derunova¹, Anna Alexandrovna Firsova¹, Alla Vladimirovna Vavilina ²and Alexander Sergeevich Semenov²

¹National Research University Saratov State University, Saratov, Russia 83 Astrakhanskaya Street, Saratov, 410012. ² National Research University Higher School of Economics, Moscow, Russia 26, Shabolovka Street, MosAow, 119049.

DOI : http://dx.doi.org/http://dx.doi.org/10.13005/bbra/1556

ABSTRACT:

The article considers the global model of economic growth based on a number of national economies, containing endogenous indicators that reflect the status of scientific-technical progress. It is proved that technological development includes simulation stage, which is the borrowing of advanced technology and innovation, which dramatically increases the role of own research and development. In the work on the basis of economic-mathematical methods is the modeling of the dynamics of the economy like Russia in the framework of the theory of endogenous growth based on multi-sector extension of the Solow model with constant saving rate. The main mechanism that determines the dynamics of growth is the flow of investment from one sector to another. The study of the dynamics of the model is carried out both analytically and by numerical simulation of special cases that illustrate different effects. On the basis of application of modern methodological approaches and principles developed by the regulators of innovative development of economy in the conditions of intensification of extraction of natural resources.

KEYWORDS: economic growth; the Solow model; innovation; resource sector; high-tech products; scientific and technological progress; competitive selection; capitulationist labour theory of imitation and innovation

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