The innovative economy’s scientific, technological progress and development
theme 2
  1. The innovation process and factors affecting innovation activities
  2. The Impact of the scientific and technological revolution on the development of high-tech industry
  3. Innovation 2023. What to expect from the scientific and technological progress?
  1. The innovation process and factors affecting innovation activities
The innovation process means the innovative activity of any company.

The innovation process is understood as an activity in scientific, technical, production, marketing and sales processes in the manufacture of new products and services and aimed at meeting specific public needs.
The main characteristic of this process is innovation capability.

Innovation capability is understood as a structural characteristic of the organization of social and economic life in the country or a separate company to the rapid adaptation of novelty's production and distribution.
Differences between innovative and stable processes
Stable (routine) process

Stable (routine) process is characterized by: stability in time, satisfaction of established social needs mainly by the choice of the best option, continuity of the process itself, relatively low risk.

Innovative process
Innovative process is characterized by: striving to meet new social needs, uncertainty of ways to achieve the goal, high risk.
Stages of the innovation process

In an aggregated form, the structurization scheme is usually formulated as follows:
1) research;
2) development;
3) production;
4) marketing;
5) sales.

The structuring of the innovation process by stages in the form more comfortable for practical work is as follows:

1) Market research of market needs.

2) Innovation initiation. Initiation is an activity consisting in choosing the purpose of the innovation, setting the task to be performed by the innovation, searching for the idea of the innovation, its techno-economic study and materialization of the idea.

3) Technical and economic expertise of the project. Expert groups of project evaluation are being composed. The projects are examined and the winning project is selected.

4) Research and development works on the subject of the product. Terms of reference for the Research and Development work are approved. Conducting of R&D. The act of R&D completion is approved.

5) Experimental development work. The technical task for development work is approved. Development work is carried out. The result of the work is the complete set of design documentation, corrected by the results of tests of the prototype.

6) Marketing of innovation. Marketing research of the proposed innovation is carried out, during which the demand for a new product is studied, the volume of product output is determined, consumer properties and product characteristics that should be given to the innovation as a product entering the market are determined.

7) Preparation of production of the novelty at the manufacturing plant of serial products. Works on preparation of production are carried out, equipment is purchased and installed, modernization and adjustment of the existing equipment is carried out, setting up of the technological process, etc.

8) Production of the innovation - materialization of the idea, transformation of the idea into goods (property, new product, property right, transaction document, etc.).

9) Realization of the innovation. Then the product or operation is sold on the market or the operation is realized within the enterprise. Sales promotion activities are carried out.

10) Promotion of the innovation is a set of measures aimed at the implementation of innovation (advertising, organization of the trade process, individual consultations, etc.).

11) Evaluation of economic efficiency of the innovation. The results of the implementation of the innovation and the costs of its promotion are subjected to statistical processing and analysis, on the basis of which the economic efficiency of the innovation is calculated.

12) Diffusion ( distribution) of the innovation. The innovation process ends with the diffusion of the innovation. Diffusion (Latin diffusio - spreading, spreading out) of an innovation is the spread of the innovation in new regions and markets.
Functions of innovation
Reproductive function

Reproductive function means that innovation is an important source of financing for expanded reproduction. The meaning of the reproductive function is to make profit from the innovation and use it as a source of financial resources.

Investment function
The profit obtained through the realization of the innovation can be used in various ways, including as capital. This capital can be used to finance new types of innovation. Thus, the use of profits from the innovation for investment constitutes the content of the investment function of innovation.
Stimulating function
Obtaining profit by the businessman through the implementation of innovation directly corresponds to the main goal of any commercial organization. Profit gives an impulse to the businessman to implement new innovations; it encourages him to constantly study demand, improve the organization of marketing activities, apply modern methods of financial management.
Factors affecting innovation activity
2. THE Impact of the scientific and technological revolution on the development of high-tech industry
The stages of the scientific and technological revolution varied from country to country or region to region.

Industrial revolutions have their origins in the late 18th century.


England became the founder of the industrial revolution because it had the necessary technical and social preconditions, which helped England to overtake all the countries of Europe and start a new stage in the development of the world economy.

In Europe, several general stages can be identified.

The first stage of the Scientific and Technical Revolution (STR) in Europe (Industrial Revolution, mid-18th century - mid-19th century) is associated with the transition from manual labor to machine production, the appearance of the first steam engines and the development of the textile industry.

The second stage of the STR in Europe (development of science and technology, late 19th century - early 20th century) is characterized by the appearance of new scientific approaches such as electrodynamics and quantum mechanics, as well as important inventions such as radio and telephone.

The third stage of STR in Europe (post-industrial society, from the 1960s to the present) is associated with the development of information and computer technology, the creation of the Internet and telecommunications, as well as the development of biotechnology and the use of robotics.

In addition, in Europe a separate stage of STR is often identified, associated with the transition to environmentally stable development, which began at the end of the 20th century and continues to the present day. As part of this stage, alternative and renewable energy sources are being actively developed, and environmentally friendly technologies and production are being created.


STR in Europe allowed the USA to use European, and especially English, technical experience. The transition to industrial methods took a relatively short period of time and was completed almost at the same time as many European countries. The American economy developed at an unusually rapid tempo. As a result of the rapid industrial growth, the United States became an industrialized country and the U.S. industry became the second largest in the world in terms of production.

In the USA, the first stage of STR (STR formation, 1945-1965) was associated with the development of nuclear power and rocket technology, such as the Manhattan Project and the creation of the first atomic bomb. This stage was also marked by the creation of the first computers, which were used for scientific and military purposes.

The second stage of STR in the United States (Information Revolution, 1965-1985) is characterized by the emergence of personal computers, the development of telecommunications, and the application of military technology in the civil sphere. During this period, companies such as IBM and Apple were created, and the first operating systems and software were developed.

The third stage of STR in the USA (convergence of STR and biotechnology, 1985-2005) is associated with the development of new materials, genetic engineering and biotechnology, as well as the widespread use of the Internet. This period saw the creation of companies such as Google and Amazon, as well as research into gene code and pharmaceuticals.

The fourth stage of STR in the United States (the digital economy, since 2005) is characterized by the development of the Internet of Things, artificial intelligence, robotics, and other digital-related technologies. Companies such as Facebook and Tesla continue to grow during this period, and there is a lot of research into blockchain and cryptocurrencies.


Japan began its industrial revolution after World War II (late 1940s to mid-1950s), which involved the rapid modernization of Japanese industry and the development and production of electronic devices.

The second stage of STR in Japan (1960s - 1970s) is characterized by the development of new technologies such as semiconductors, video technology and laser devices. During this period, Japan became one of the world's leading exporters of electronics.

The third stage of STR in Japan (80s - 90s of the XX century) was associated with the creation and development of new industries such as computer technology, automotive industry, semiconductor production and other advanced technologies.

The fourth stage of STR in Japan (present) is associated with the creation and development of new technologies such as artificial intelligence, cybersecurity and biotechnology. Japan remains the leading country in the production of high-tech and advanced goods. As in other countries, Japanese scientific and technological advances also focus on environmental issues, energy efficiency, and environmental protection.


The first stage of STR in China (economic reforms, 1978-present) was associated with the initiation of economic reforms and the opening to foreign investment. This stage led to the rapid development of the Chinese economy and its recognition as one of the world's leading economies.

The second stage of STR in China (technology and industry development, 1990s-present) is characterized by large-scale development of industry and technology, the creation of broadband Internet, the development and launch of the Beidou satellite navigation system and other new technologies.

The third stage of STR in China (strengthening of positions in the world economy and technology, present) is associated with strengthening of China's position in the world economy, creation of new technologies and their promotion in the international market. China is actively working on environmentally friendly technologies, creation of renewable energy sources, reduction of greenhouse gas emissions and other measures to protect the environment.


STR in Russia also had its own series of stages.

The first stage of STR in Russia (early 20th century - early 1930s) was associated with the development of heavy industry, the development of mechanization and the production of new types of materials.

The second stage of STR in Russia (1940s - 1950s) is characterized by the creation of nuclear weapons, the space industry and the development of computer technology.

The third stage of STR in Russia (1960s-70s) was associated with the development of new types of energy, such as nuclear power plants and hydropower, as well as the improvement of the aviation industry and the creation of new modes of transportation.

The fourth stage of STR in Russia (1990s - present) is associated with the restructuring of the economy and technology, the creation of new industries and advancement in information technology. In recent years, Russia has been actively working on the development of technologies in the field of artificial intelligence, cryptography, cybersecurity and other advanced technologies. The development of renewable energy sources and environmentally friendly technologies is also a priority.
STR waves description
However, it is worth remembering that the evolution of scientific and technological progress also has its negative sides, such as increasing social disparities, job losses, ecological imbalance and other challenges that require appropriate measures to address them.
The term "Industry 4.0" (I4.0) appeared in 2011 in Germany at the Hannover Fair, the world's largest industrial exposition, and represents a new stage of industrial development, which is called the fourth industrial revolution. Unlike the earlier stage, when the main efforts of industrial enterprises were focused on the automation of equipment and technological processes, the new stage is based on the tools of the digital economy, such as: analysis of large data sets and advanced algorithms, cloud services, smart sensors, 3D printing, the Internet of Things, supplemented reality, artificial intelligence and personalization of interaction with customers [6].

In some regions of the world other terminology is used, for example, "Industrial Internet" in the USA, "Internet+" in China. The concept is based on key concepts: cyber-physical systems, internet of services and smart factories. From the technological point of view, I4.0 is mainly reduced to digitalization and automation.
3. Innovation 2023. What to expect from the scientific and technological progress?
Innovative technologies have shown colossal growth over the past two decades, with a combined market value of $1.5 trillion in 2020, and could reach $9.5 trillion by 2030.
About half of the latter is accounted for by the Internet of Things (IoT), which covers a wide range of devices in various sectors. These technologies are mainly supplied by a few countries, notably the United States, China and Western European countries.
As with previous waves of automation, advanced technologies are destroying old jobs and creating new ones. Current worker expectations may be more pessimistic due to the growing ability of AI to mimic human intelligence. However, most alarmist scenarios often fail to take into account that not all worker tasks lend themselves to automation and, most importantly, that technology also creates new goods, tasks, professions, and economic activities throughout the economy.
With respect to these new technologies, knowledge is dominated by the United States and China, accounting for 30% of global publications and nearly 70% of patents. Other countries compete in certain categories, notably France, Germany, India, Japan, the Republic of Korea, the United Kingdom, and France.
Innovation 2023
Today it is difficult to surprise us with the release of a new model of car or smartphone, but science does not stand still. Let's consider the main achievements of scientific and technological progress of mankind, which in 2023 will become an accessible reality.
Tesla Cybertruck
Final specifications and prices are still unknown, although the company's website hints at a few data: towing capacity is 6000 kg (compared to 4500 kg in the case of the Ford F-150 Lightning and 5000 kg in the case of the Rivian R1T), payload up to 1600 kg, range up to 800 km and acceleration from 0 to 96 km/h in just 2.9 seconds.

The Tesla Cybertruck is expected to go on sale in 2023, but the starting batch will be very limited. Large-scale production will start in 2024.

Interestingly, Tesla received 146,000 pre-orders within 2 days of the product's unveiling.
Space greenhouse
Redwire Corporation said it will launch the first commercial space greenhouse next spring to boost plant science research beyond the planet. NASA's Artemis project aims to establish a long-term colony on the moon as a possible precursor to human exploration of Mars.
Redwire's first commercial customer will be Dewey Scientific, an agricultural technology company. This experience will expand humanity's ability to grow agro-crops in space.
A meta-universe at the crossroads of the real and online worlds
In early 2023, a new product from Sony Group will be available in Japan - the Mocopi system, which allows you to transfer the user's movements into the meta-universe. The cost of such a device will be about 360$.
Mocopi consists of 6 small sensors in the form of pucks of different colors. Two sensors each are attached on the wrists and ankles, one each on the back and head. The user's movements will be fully transmitted to the avatar in the meta-universe. Why? Motion mapping can be integrated into apps like VRChat for Android and iOS smartphones.
Using the technology, fitness apps, games, and interactive tools can be created in the future. And the Mocopi system itself is designed not only for meta-universe users, but also for animation professionals and filmmakers.

Therapy for gene editing
The first gene editing medication could be on the market as early as 2023. It will be CTX001, designed to treat beta-thalassemia and sickle cell anemia.
The preparation is based on the revolutionary CRISPR/Cas9 gene editing technology, which allows for targeted and precise changes in DNA.
Earlier, in 2016, the technology was first used on mice in the treatment of sickle cell anemia, and already in 2019, the experimental treatment was performed on humans. In 2020, the creators Emmanuelle Charpentier and Jennifer Doudna received the Nobel Prize in Chemistry for CRISPR/Cas9 technology.
Quiz on theme 2
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The main characteristic of innovative process is ...
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Stable process is characterized by ...
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In an aggregated form, stages of the innovation process are usually formulated as follows:
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Could any of the classic stages of the innovation process be missing in some situations?
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What are the functions of innovation?

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Task. What innovation do you think totally changed the world forever? Write a short report about it in the document on the link.