Evaluating Innovations Impact on Economy

Abstract

The chapter provides quantitative testing of the credibility of Schumpeterian hypothesis about the innovative nature of economic development. The rating method of “Global Competitiveness Report” was used to evaluate innovations impact on welfare of different countries. The results are that all rich countries had active innovation processes, and the dynamic catch-up countries demonstrate a strong interest in the implementation of innovation technologies. The chapter also analyses the structural technological development of Ukrainian industry, where structure of industrial sectors was classified according to both technology levels and technological paradigms. It could be an effective analytical method to evaluate the production facilities of the economic activity in the context of technological determinism of the innovation theory of economic development.