Page 76 - Theoretical and Practical Interpretation of Investment Attractiveness

changing the volume of production, reduces the volume of resource consumption. This
conclusion, however, does not provide sufficient explanation for the emergence of innovation
in order to reveal the essence of innovation.

Continuing comparative analysis, if we look at the research of another leading scholar,
for example, the economist G. Mensch emphasizes the link between the level and
sustainability of economic development and the presence of structural and innovative
research. According to him, "the emergence of new enterprises as a result of created
innovations and inventions, in turn, contributes to influencing the state and periods of
economic development. The demand for the created new product (service) exceeds the
volume of demand, which contributes to the rapid increase in the volume of production 105 ."
Another group of scholars engaged in innovatics, such as K. Freeman 106 , D. Clark 107 ,
and L. Soete 108 , in their research, elaborate on the characteristics and relationships between
technological systems, technological, and social innovations. According to their views, the
pace of economic development is closely related to the formation, development, and
transformation of the technological system. The diffusion or spread of innovations reflects
the development of the technological system mechanism.
Theoretical innovation is a system of ideas, methods, and hypotheses that reflects and
guides the theoretical state and methodology of innovation. Practical innovation is a process
that contributes to the direction of scientific activity, namely the management, organization,
implementation, and development of innovative activities.

105 Mensh G. Stalemate in Technological Innovation: Organization, Strategies for Implementing Advanced Manufacturing
Technologies, San Francisco; L .: Jossey-Bass Publishers, 1986.
106 The Economy of Industrial Information. Third edition. Chris Freeman and Luc Soete. - The MIT Press Cambridge,
Massachusetts, 1994
107 D. Clark. Unstable States: Transformation of Social Security Systems // Journal of Social Policy Research. 2003. Vol.
1. No. 1. pp. 69-89
108 Soete L., Turner R. Technology Diffusion and the Rate of Technical Change // The Economic Journal. 1984. Vol. 94;
Metcalfe S., Gibbons M. Technology, Variety and Organization / Research on Technological Innovations – Management
and Policy. Vol. 4. JAI Press. pp. 153-193.
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