Innovations in the Global Process of Capital Reproduction

DOI

10.2991/aebmr.k.200324.058How to use a DOI?

Keywords

reproduction process, globalization, innovation, capital gain, taxes, jobs, demand

Abstract

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.

Copyright

© 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/).

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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  -