INNOVATIONS AND GLOBAL ECONOMY

Abstract

Globalization of the world economy has started cen-turies ago. The old trade roads like Silk Road or long ship journeys over the Oceans to both directions West and East are just the examples of simple forms of Globalization. Now-adays we are having more difficult form of Globalization of the world economy where political, social, cultural, environ-mental and military aspects are closely interconnected and deeply influence economic ones (Keohane R., Nye J., 2000). Modern globalization is the complex and tough interdepen-dence of the regions and countries which are not immedi-ate geographic neighbours. In such environment Knowledge becomes the key driver for global world economic develop-ment. Technology, knowledge and innovations are the key to raising the resource efficiency (Sepashvili, 2014).

On current stage of global economic development high skill labour, new knowledge, developed technologies and con-tinuous innovations will be utilized in most efficient and pro-ductive way. Therefore, national economic policy should give particular attention to education and researches, advanced infrastructure development (easy internet access, telecommu-nications, transports etc.). Success of the country in science and more importantly, commercialization of scientific results defines positions of national firms in the global markets and generates higher incomes. Further development and unprece-dented wide spread of digital technologies together with new technologies dictates national governments to encourage and support knowledge generation and innovation creation which are resulted in profit. The policies, approaches and measures are also varying according to countries and regions.