Innovations in the Global Process of Capital Reproduction
- 10.2991/aebmr.k.200324.058How to use a DOI?
- reproduction process, globalization, innovation, capital gain, taxes, jobs, demand
One of the main factors for globalization is innovation. The research of the globalization and innovation impact on the capital reproduction process is one of the most relevant. Each country tries to influence the global process through its domestic labor force, means of production, import-export tariffs and tax rates. The method of comparing capital reproduction approaches allowed to identify advantages and disadvantages for each other. Based on the analysis, it was found that the greatest threat to the economy is undoubtedly a sharp increase in technological unemployment. Any approach based on the principles of Keynesian Economics (through capital gains and job creation) should help to stimulate the national economy and consumer demand through the process of capital reproduction. This principle does not work well when manual labor is replaced by robotic technology and intellectual capital is replaced by artificial intelligence. It is concluded that it is necessary to stimulate retraining of unemployed citizens as a result of innovative activities. As a novelty, authors proposed to create a special Fund supported by taxes or compensation derived from the economic value added from innovation (EVAfI), which directly led to the reduction of jobs. This Fund can help retrain the unemployed to affordable jobs in the economy and support effective demand to continue capital reproduction process.
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Olga Panfilova AU - Vladimir Chernenko PY - 2020 DA - 2020/03/30 TI - Innovations in the Global Process of Capital Reproduction BT - Proceedings of the “New Silk Road: Business Cooperation and Prospective of Economic Development” (NSRBCPED 2019) PB - Atlantis Press SP - 311 EP - 315 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200324.058 DO - 10.2991/aebmr.k.200324.058 ID - Panfilova2020 ER -