Innovative Economy and Economic Growth

The article examines relationship between innovation and economic development in the framework of new technological structures, as well as implementation of an innovative macro-strategy in the context of modern credit and banking system, supported and stimulated by the state and by transnational corporations. The function of an entrepreneur is to contribute to prosperity of both an individual business and the country's economy as a whole. In the absence of entrepreneurs, budget financing of projects often involves irresponsible decision-making (economically ineffective), bureaucracy and business degeneration. Systemic support for the development of entrepreneurial innovation is needed, and macroeconomic management tools should be stimulatory. Modern legal regulation does not comply with new technological possibilities. Technological change can have both positive and negative social consequences. Growing unemployment is considered one of the serious social threats. A well-thought-out state policy should be aimed at neutralizing the negative social consequences of the economy technological transition. It is necessary to use international experience in implementing credit issue in order to stimulate investments in innovative sectors of economy. The role of the Central Bank in targeting the growth of corporate incomes and incomes of the population is important, as well as implementation of the program for innovative development of the economy under the state support.

LATAR SOSIAL EKONOMI PERIODE MEKAH DALAM AL-QURAN

The socio-economic background of the Mecca period in the Qur'an influenced the attitudes, thoughts, and souls of Arab society at that time. The function of property as a basis for horizontal action is applied in various ways and purposes. This article concludes that worldly-oriented wealth can cause people's minds and souls to lose their minds and morals. Excessive attitude towards wealth accompanied by worries of poverty can affect the attitude of ignoring other people and even God. The Qur'an describes the previous people who were destroyed in their morals because the function of property was not used properly. Assets can be used for macroeconomic management in solving crises and for the benefit of community welfare in the Mecca period.

Economic Growth, Labor Market Segmentation, and Labor Productivity

This chapter examines economic growth, labor market segmentation, informal employment, and labor productivity in Indonesia from 1990-2015. It shows four important facts. First, Indonesia was ever among countries in Southeast Asia with the highest economic growth before the country was severely hit by the Asian financial crisis in 1997/98. In 1999, the country started to recover, and since then, the economy has performed exceptionally well until these days. Second, total employment increased continuously, although as a percentage of total labor force, it tends to decline. Second, total labor productivity also continued to increase. Third, employment is still dominated by the informal sector. This chapter also discusses labor market policy in Indonesia. This chapter concludes that there are many factors that simultaneously determine directly or indirectly the growth of labor productivity, including good macroeconomic management and effective labor market policies.