Innovational Development for Transitional Economy – Russia Case Study

The purpose of this article is to develop mechanisms of innovational development for countries with transitional economies. The methodological base of the research consists of a factor analysis of the structure of GDP adapted to the analysis of the innovational development of countries with a transitional economy, distinguishing the innovational sphere of the economy, the structure of manufactured innovational goods, the structure of the creation of leading production technologies, and the structure of the leading production technologies. During the course of the research, the authors determined the key problems inhibiting innovational development in Russia and other countries with transitional economies, determined the most important preconditions of Russia’s transition to an innovation-oriented type of economic development, and offered instruments for Russia’s transition to an innovation-oriented type of economic development. As a result, the authors developed working mechanisms of the innovational development of countries with a transitional economy. The authors come to the conclusion that the innovational development of an economy is an important condition for the adaptation of countries with a transitional economy to new market conditions because it allows the private manufacturing of products that are competitive in global markets. High innovational activity is one of the most important features of a market economy compared to an administrative & command economic system; thus, without the development of innovations, transitioning to a new type of economic system is impossible for countries with a transitional economy.

Multiple examples prove that innovations make it possible to overcome crises in the economy. The transitional period of economic development can also be considered a type of crisis of an economic system. A country may not fully realize its existing potential due to periodic systemic errors, a lack of clear rules that are understandable to all members of the economic system, and a lack of cooperation between various institutes.
According to the expectations of most modern economists, innovational development will help countries with a transitional economy pass to a new stage and end the transitional period. The main problem is insufficiently high levels of innovational development and a lack of working mechanisms for the activation of innovational activity in countries with a transitional economy.
It is important to note that such countries require special mechanisms that are adapted to the specifics of their nation, the level of development of their institutional environment and the general social mood in their society and business environment. This determines the actuality of the development of such mechanisms, which is studied in this research. The purpose of this article is to develop mechanisms of innovational development for countries with a transitional economy by using the example of modern Russia. This goal is achieved by determining the foundations and tendencies of current innovational development in countries with a transitional economy, determining key problems and preconditions of the transition of countries with a transitional economy to an innovation-oriented type of economic development, and developing the corresponding instruments.

Literature review
The theoretical base of the research includes works of modern authors in the sphere of economic growth on substantiating the necessity and importance of the growth of economic systems to achieve the development of the global economy; determining the preconditions and factors of economic growth; and determining obstacles to the growth and development of the modern global economy and the means and methods of their elimination. Such authors include (Bartolini & Sarracino, 2015;González-Pernía & Peña-Legazkue, 2015;Odhiambo, 2015;Pogosov, 2015;Popkova, Yurev, Stepicheva, & Denisov, 2005;Zeira & Zoabi, 2015).
Economic growth is very important and necessary for the development of the global economy (Choi & Shin, 2015). A precondition of economic growth is high entrepreneurial and innovational economic activity (Lee & Oh, 2015). The state can stimulate economic growth by financing scientific research, creating favorable conditions for business, and attracting foreign investments (Castiglione, Infante, & Smirnova, 2015).
This article also uses the theoretical research of economists in the sphere of innovational development of economic systems, in which the role of innovations in the development of economic systems is studied, the role of state regulation and the initiatives of private business in the provision of economic innovational development is determined, and regularities and terms of innovational development are analyzed. Such authors include (Appe, 2015;Imanbekova, 2014;Solovchuk, 2015). Despite the state financing of science and education, innovations are implemented by private business, which is a ley source of innovations in the economy (Zhao & Sun, 2014). Innovational development can be evolutional, via the implementation of insignificant improvements (Baldwin, Black, & O'Leary, 2014), or revolutionary, via the establishment of completely new technological modes (Tovt, 2014).
In addition, the work uses the studies of scientists assessing the methodical and practical aspects of economic growth and mechanisms of innovational development of the economies of modern countries, in which the effectiveness of various innovational tools is determined and issues of the use of various models of innovational development are viewed with the example of countries and regions. These authors include (Castellacci, 2015;Coccia, 2015;Donate, Peña, & Sánchez de Pablo, 2015;Rumyantsev, 2015;Scherer & Voegtlin, 2015;Vasin & Gamidullaeva, 2015). In Russia, the state is the member of economic relations that has the most initiative and expresses an interest in the creation and implementation of innovations (Lillis, Szwejczewski, & Goffin, 2015). This is caused by the relative isolation of the economy of modern Russia and a low level of competition (Kolychev & Prokhorov, 2015). In developed countries, competition creates stimuli for the imple-Innovational Development for Transitional Economy -Russia Case Study mentation of innovations for private enterprises (Ng, Kanagasundram, Wong, & Chandran, 2015). The authors also use the works of various researchers studying the peculiarities of the development of countries with transitional economies, which are known as transit economies, as well as those studying the most important aspects of the functioning of an economy during transitional periods from an administrative & command system to a market system and determining preconditions for the end of transitional periods. Such works include (Akimov, 2015;Andres & Round, 2015;Askarov & Doucouliagos, 2015;Borgersen & King, 2015;Makanyeza & Du Toit, 2015;Mutlu, Zhan, Peng, & Lin, 2015). Countries with a transitional economy include countries of the former USSR, one of which is modern Russia (Boermans & Roelfsema, 2015). The transitional character of the economy supposes refusal from administrative and command state management and the transition to the development of a market economic system (Hong, Hong, Wang, Xu, & Zhao, 2015). Currently, countries of the former USSR have not yet come to the end of the transitional period (Dovlatyan, Makeeva, Oboymova, & Cherkesova, 2015)

Method
The methodological basis of the research is comprised of factor analysis, adapted to the analysis of innovational development of countries with a transitional economy. Within this approach, the initial point of conduct of the analysis is the development of an economic model. This research builds a structural model of GDP with the allocation of the innovational sphere of the economy, which has the following form: where GDP -gross domestic product in a certain year; IP -volume of industrial production of industrial products that are not innovational in a certain year; AP -volume of agricultural production of food prod- The final stage of the factor analysis is to determine the contribution of the studied factor or several studied factors in the innovational development of countries with a transitional economy using the following formula: In equation (2) For this, the authors of this research offer the following model: To create a general notion on the nature of innovational development of a country with a transitional economy, it is important to know the structure of the creation of leading production technologies. We use the following model: Finally, it is necessary to determine the structure of the used leading production technologies according to the following formula: where UPT -total number of leading production technologies used in this country in a certain year; TDP -number of leading production technologies of domestic production used in this country in a certain year; and TFP -total number of leading production technologies of foreign production used in this country in a certain year.
For this model, the data are shown in the following table.

Results
The