INNOVATIVE ORIENTATION AS A GUIDE FOR THE FINANCIAL POTENTIAL GROWTH IN TERMS OF SOCIAL AND ECONOMIC DEVELOPENT

  • Svitlana Onyshko
Keywords: social and economic development, potential, essence, structure, financial potential, resource potential, activity potential, innovations, innovative orientation

Abstract

The article deals with the problems of growth of the financial potential of the social and economic development. Some approaches to revealing the essence and definition of the basic concept "potential" and its separate kinds are analyzed. Author's definition of the concept of financial potential is given, is determined its essence that is formed by interaction and organic unity of available resources and unused possibilities, that have different forms of manifestation.

It is noted that with evidences of the multi-structural nature of the category “financial potential”, it is needed to rethink the weight of its influence on the creation of basics of social and economic development in the context of individual factors of this potential’s growth. The solution to this problem is the structuration of the components of the potential. It is substantiated that the isolation of the resource potentials subsystem is a limited approach, since the group of activity potentials is ignored. It is proved the necessity to analyze the structure of system “financial potential” in the framework of two subsystems: the resource potentials and activity potentials. This is an important prerequisite and a basis for activation of both the effective use of existing potentials and the search for reserves of potential’s growth.

It is emphasized that each of the separated subsystems has its own factors of dynamics, is multifactorial and needs its own driving forces of development due to their interdependence. Also is noted the existence of factors whose role cannot be exaggerated both in relation to each of the selected potential’s subsystems and in relation to their specific components. Such role is assigned to the innovation factor which peculiarity is in its particular nature and significance for the fullest use of potential.

Considering that perspectives of social and economic development are more and more tightly linked with innovations, the opinion that formation of financial potential and its effective utilization is possible only with innovative orientation of all financial potential components, not by extracting the innovations into separate element. Attention is drawn to the fact that today specific components of financial potential that together form the financial potential are considered mainly isolated or as a mechanical aggregate without taking into account their essential differences that can arise under the innovation orientation of each of them. This prevents the fullest use of financial potential.

It is noted that the proposed approach is based on the understanding of the deep essence of the potential, of the internal logic of its formation and on the fundamental changes of the current stage drivers of the social and economic system development in the direction of its focus on long-term effects.

Published
2018-03-06