Business’ Innovative Component as a Factor of Economic Development by Max Polyakov, Ph.D.

The constantly changing business environment makes the task of finding innovative approaches to form a stable economy for the country, as one of the highest priorities. The financial and economic crisis that affected many countries, led to economic stagnation and the aggravation of burning problems like increasing poverty and corruption. Max Polyakov, Managing Partner of Noosphere Ventures, claims that in order to get out from the economic slowdown, it is necessary to completely change existing approaches to economic management.

The main idea of his work is that intellectual activity and science-based approaches must be the driving force of innovative progress and the formation of a strong and healthy economy in general. Throughout the years of his scientific activities, Max Polyakov has been trying to measure the impact of entrepreneurship on the economy. After analyzing a number of scientific works, Max Polyakov has formed his vision of the main economic issues and he is convinced that the success and life-cycle of businesses are directly related to the business innovation component. Max Polyakov believes that implementing innovative technologies in each sphere of business and human everyday life is the main key to economic success.

Due to the ongoing processes of economic transformation, the basis and studies of the Economics of Knowledge has become very prominent today. For example, V. Vishnevsky and V. Dementiev define innovation as a key way to maximize company profit. In addition,     U. Lazonik, as one of the authors of the theory of innovative enterprise, determined that innovation as the basis of the company strategy, which influences the choices made in strategy, finance and organization. In his scientific research, Max Polyakov lifted knowledge to the level of the key productive tool and necessary factor for a strong and stable economy. He believes that in times of fierce competition, the best solution for today’s entrepreneurs is to regularly search for and implement new technological and innovative ideas and approaches in business. This tactic will help business-owners to outperform their competitors.

Max Polyakov is sure that by using the core principles of the knowledge economy domestic businesses will broaden their range of abilities and, as the result, they will have more chances to increase company income. According to his work,  modern businessmen receive more money from their activity by providing knowledge-related services.

Besides this, in his work Max Polyakov praises the synergy of IT and digital technologies. He is sure that these components are the basis for business development.

Clearly the rapid transformation from a traditional economy to a knowledge-oriented one is a long and labor-intensive process. It will take years for each country to move up to the new model in their national economies. But with the basic principles of the knowledge economy, the economies of different countries will enter a new phase of their development