The development of the national system of innovation through investment engineering

Subject. To grow steadily and successfully, any economy should improve its mechanism for managing the socio-economic development, which should rely upon scientific approaches, methods and mechanisms. Objectives. The study is an attempt to outline the concept for developing the national economic system of innovation through investment engineering. Methods. The study is based on methods of generalization and systems analysis. Results. We propose a new concept for formulating the modern national system of innovation economics, which poses an investment project as the backbone constituent, being performed by diverse entities and organizations. The system raises the probability that comprehensive investment projects will be successfully implemented, including the reliability of mutual settlements for the sake of the ultimate economic effect. Conclusions and Relevance. The investment concept herein opens new opportunities for a new progressive strategy for the national economic development. Based on investment engineering principles, the economic system will carefully protect all types of property, effectively distribute the national property among federal, regional and local entities, and position regional and local budgets as a set of investment projects or the single investment program for the development of regions and country as a whole. The findings help implement new approaches to developing the national economic system of innovation, which will enhance the performance of manufacturing enterprises and public, collective and private entities. It will contribute to the transparency of financial flows in the non-public sector of economy and considerably curb the informal sector of economy.

Home Country Institutions and International Entrepreneurship

The extent of internationalization by early-stage entrepreneurial firms may depend upon home country institutional conditions. Using insights from institutional theory, this chapter suggests that national-level institutional conditions facilitate or constrain the efforts made by early-stage entrepreneurs to internationalize. Given the strong linkages between entrepreneurs and the enterprises they drive, the multi-level framework proposed in this study suggests that a strong national system of innovation and better regulatory quality, which supports early internationalization by new entrepreneurial firms. Smaller domestic markets induce such firms to explore overseas markets for their products. The framework also suggests that a strong regulatory environment positively moderates the effects of national innovation systems and domestic market size on the extent of early internationalization. While implications for the internationalization process are discussed, specific reference to the importance of policy to support internationalization by early entrepreneurial firms is made.