Search for Better Model of Innovative Economy Development

Abstract

The author of the paper presents the failures of liberal model of economy, which is stimulated by innovations and European model of knowledge-based economy. He emphasizes that these models are characterized by chaotic and disproportional nature of socio-economic development, increase in wealth and income inequality and other threats of development. To overcome them, it is postulated to shift from development paradigm based on global liberalization and triple bottom line concept towards the paradigm of integrated development, and from focus on innovations towards innovativeness. The article consists of the characteristics of the suggested model of economy, based on knowledge and innovativeness, which is focused on integrated development and conditions of a transformation towards it. The following issues are necessary, namely, the recon-struction of human capital, which is based on holism and respect of inter- and between generational responsibility, integrated management of innovativeness, coherent institutional order focused on integrated development and promotion of innovative attitudes.