Traditional Economy Influences on Intellectual Capital Development

• Published in: Montenegrin journal of economics Vol. 13; no. 1; pp. 87 - 95
• Main Authors: Popov, Evgeny, Vlasov, Maxim, Hanusch, Horst
• Format: Journal Article
• Language: English
• Published: Podgorica Ekonomska Laboratorija za Istrazivanje Tranzicije 01-01-2017; University of Montenegro - Faculty of Economics Podgorica
• Subjects: development; Economic development; Economic policy; Globalization; Influence; Innovations; Intellectual capital; Multiculturalism & pluralism; Native peoples; Population density; Ratings & rankings; Regions; Stagnation; traditional economy; Asia; Russia
• ISSN: 1800-5845; 1800-6698
• DOI: 10.14254/1800-5845/2017.13-1.6

During econometric analysis conducted by the authors the following hypotheses were substantiated. First of all we found the most pronounced correlation between the amount of innovative products, works and services in the total amount of shipped goods, performed activities and technological innovation costs per one person. This demonstrates the need for planning and implementing state programs on raising intellectual capital in multicultural regions with traditional economics. Secondly there is a correlation between life expectancy and population density in ethnic regions. This demonstrates low level of life in the regions with low population density and strong influence of traditional economy. Creation of hi - tech companies and larger amounts of goods fabrication requires creation of local unions, developing the share of scientists and entrepreneurs and formation of government programs: these are the most important success factors. In order to achieve that we must create a cooperation program covering all parties participating in intellectual capital development in the region. State regulation of intellectual capital development must take into consideration peculiar features of social and cultural development of ethnical multicultural region strongly influenced by traditional economy. This direction of regional development will be available only in case of equal dialogue between business and authorities. Suggested options for using traditional knowledge for developing intellectual capital can improve economic position of the region, create new workplaces and, therefore, improve the level of life of population in the regions strongly influenced by traditional economy.