Proceedings of the 12th European Conference on Knowledge ...

Developing Institutions <strong>of</strong> Knowledge Economy
Evgeny Popov, Maxim Vlasov and Marina Zubareva
Institute <strong>of</strong> Economics UB <strong>of</strong> RAS, Ekaterinburg, Russia
epopov@mail.ru
mvlassov@mail.ru
marjushka@mail.ru
Abstract: The aim <strong>of</strong> <strong>the</strong> present research is to show <strong>the</strong> working-out <strong>of</strong> institutional structure <strong>of</strong> economic
development system with respect to <strong>the</strong> concept <strong>of</strong> Knowledge Economy. Evaluation <strong>of</strong> <strong>the</strong> functioning <strong>of</strong>
development institutions, analysis <strong>of</strong> <strong>the</strong> degree <strong>of</strong> its elaboration and establishment <strong>of</strong> mechanisms to control
institutions rendered <strong>the</strong>ir representation possible in <strong>the</strong> form <strong>of</strong> a single institutional framework with clearly
defined hierarchical links. This structure may take <strong>the</strong> form <strong>of</strong> institutional atlas, acting at both country and
regional level. In this paper <strong>the</strong> institutional atlas is a summary classification <strong>of</strong> institutions, which combines
several types <strong>of</strong> systematization <strong>of</strong> <strong>the</strong>se institutions by various criteria: place <strong>of</strong> appearing (endogenous,
exogenous), sphere <strong>of</strong> knowledge (social, technological, economical, political, cultural, and ecological),
management functions (developing institutions <strong>of</strong> planning, organizing, incentive and control) and spheres <strong>of</strong>
activity (developing institutions <strong>of</strong> producing, distributing, using and merchandizing). We attempt to institutional
model <strong>of</strong> economic institutions <strong>of</strong> region development, which is caused by one <strong>of</strong> <strong>the</strong> features <strong>of</strong> Russian
economic space – its heterogeneity, and uneven development. As a result we got <strong>the</strong> institutional atlas <strong>of</strong> region
development <strong>of</strong> entrepreneurship as a special case <strong>of</strong> <strong>the</strong> atlas <strong>of</strong> economic development institutions. The atlas
<strong>of</strong> region development entrepreneurship institutions includes 79 institutions aimed to ensure <strong>of</strong> sustainable
development, economic security and stimulating innovation activity <strong>of</strong> <strong>the</strong> Ural region through entrepreneurship
development as a main driving force <strong>of</strong> economic development. This atlas can be used for analysis <strong>of</strong> <strong>the</strong> degree
<strong>of</strong> elaboration <strong>of</strong> region development entrepreneurship institutions and to develop mechanisms to control <strong>the</strong>se
institutions. Accordingly in this paper <strong>the</strong> hierarchical structure <strong>of</strong> region economic development institutions was
worked out. Such a hierarchy is responsible to develop strategic decisions on investments <strong>of</strong> existing economic
institutions. It’s a good illustration <strong>of</strong> agent’s interactions in <strong>the</strong> development <strong>of</strong> economic systems to addition <strong>the</strong>
atlas by traditional institutions – organizations, such as business incubators, venture and innovation funds, and
o<strong>the</strong>rs. Selected sequence <strong>of</strong> economic institutions would allow defining weak places <strong>of</strong> institutional designing.
And so <strong>the</strong> practical content <strong>of</strong> <strong>the</strong> atlas by specific norms and rules can be <strong>the</strong> basis <strong>of</strong> recommending
authorities to streng<strong>the</strong>ning regulatory support those or o<strong>the</strong>r institutional units.
Keywords: developing institutions, institutional atlas, knowledge economy, region development,
entrepreneurship
1. Introduction
Developing institutions have been one <strong>of</strong> <strong>the</strong> most popular <strong>the</strong>mes <strong>of</strong> <strong>the</strong> world economic policy for
last decades. Many countries <strong>of</strong> <strong>the</strong> world connect <strong>the</strong>ir future prosperity and welfare with emerging
and evolution <strong>of</strong> developing institutions. Most countries (both developed and developing), seek to
create such a system <strong>of</strong> developing institutions, which would allow to“tighten” underdeveloped
segments <strong>of</strong> <strong>the</strong> economy or to fur<strong>the</strong>r streng<strong>the</strong>ning <strong>the</strong> key segments, that is at that case will lead to
acceleration <strong>of</strong> GDP growth (Rodrick 1999). Now it is very obvious at <strong>the</strong> epoch <strong>of</strong> economic and
policy course <strong>of</strong> standing Knowledge Economy and Knowledge Society, acclaimed by <strong>the</strong> world
community, as inalienablestep <strong>of</strong> developing people civilization.
Conscious transition from society developed by material production to knowledge-based economy,
led to organizing <strong>the</strong> concept <strong>of</strong> Knowledge economy, founded by Austrian-American scientist Fritz
Machlup. In 1962 he coined into scientific area <strong>the</strong> term “Knowledge Economy” (Machlup 1962),
which along with definition “Knowledge-based economy” has become widely used at economic <strong>the</strong>ory
and practice since <strong>the</strong> late 1990s. The Knowledge economy is <strong>the</strong> economy, in which <strong>the</strong> generation,
distribution and using <strong>of</strong> knowledge are <strong>the</strong> main factors <strong>of</strong> economic growth.
There are a lot <strong>of</strong> scientific issues which were devoted to solving problems <strong>of</strong> <strong>the</strong> Knowledge
economy. Theoretical and methodological foundations <strong>of</strong> <strong>the</strong> concept <strong>of</strong> <strong>the</strong> Knowledge economy
were laid by famous scientists such as Blacker F. (Blacker 1995), Cabrera B. and Cabrera E.F.
(Cabrera & Cabrera 2002), Drucker P. (Drucker 1999), Foray D. (Foray 2004), Gertler V.S. and Wolfe
D.A. (Gertler & Wolfe 2004), Nonaka I. (Nonaka 1991) and o<strong>the</strong>rs. Knowledge generation problems
and <strong>the</strong>ir effect on <strong>the</strong> development <strong>of</strong> economic agents are regards in <strong>the</strong> works <strong>of</strong> Hayek F. (Hayek
1945, Hayek 1973). Knowledge management matters disclosed at works <strong>of</strong> Kogut B. and Zander U.
(Kogut & Zander 1992), Spender J.-C. (Spender 1996) and o<strong>the</strong>rs.
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