Partnership for Development
The formation of a new cooperation paradigm between the state and business in the innovation field is essential for Belarus’ participation in global economic processes
the globalization of the world economy is changing the established perception of the government regulation and is pushing for the transformation of its model all around the world. this necessitates the development of a new form of economic development - the public-private partnership (PPP) that has been embraced by developed countries as an efficient mechanism to promote innovative development.
French researcher Laurent Fabius believes that the 21st century will see the emergence of the partnership era when the partner- state will take the place of the masterstate making a country’s advancement more efficient and open. In the time of globalization and emergence of the geo-economy, the mutual penetration of international commodity and financial flows and manufacturing systems, as well as integration of markets and financial structures changes the economic environment and consequently the paradigm of the public-private relations.
American scientist Robert Heilbroner identified three stages of the development of public-private relations: at first, the state acts as a patron, then as a moderator, and finally as a guarantor. The analysis of the economic regulation models in developed countries reveals that the economic globalization has brought to life the third phase which will result in the formation of the geo-economy.
Globalization shapes the global economic environment and determines the transformations of national economies. Today, the prosperity of any country depends on the competitiveness of its economy. The major elements of a country’s prosperity are national security, living standards, education, healthcare, and environment. They all depend on the competitiveness of the national economy which, in turn, relies on scientific progress and cuttingedge technologies.
The private-public partnership comes to play a leading role in the innovation sector, as today no economy can be a success unless it is open. Globalization and the formation of the geo-economy force the national economies to open up. Otherwise, they will be left aside of the mainstream of the global development. However, openness implies an equal competition among economies and economic entities and manufacturing complexes.
In other words, to be able to compete as an equal, a national economy should meet at least two major requirements: to be open and innovative.
Openness is a must for a national economy that seeks to join globalization processes. The openness of a system implies the adaptation of its structure to the global economic environment. In other words, a national economy should be competitive, while its structure should fit the global economic system. Structural reforms are needed to preserve economic stability and the existing living standards and secure economic growth. This is imperative for any economy integrated into the global economic system and taking part in globalization processes. It is also the number one condition to join the processes.
Investment in Innovation Today, High Living Standards Tomorrow
Structural changes in the economy are the result of the innovative development of industry. It is particularly true for countries which economy is dominated by the manufacturing industry. Belarus is one of such countries. In the G7 countries, the ratio of the service sector, manufacturing in-