Economic activity, investments and technological policy
- Defining investment .
- Real risk-free interest rate.
- Undertaking an investment.
- The expected future demand.
- The future preferences of consumers.
- The increase of consumer income.
- The total cost of the investment.
- The technological changes.
- Investment motive policy.
- Public investments.
- Transfer of technology and foreign direct investment .
The concept of competitiveness of the national economies and the viability of the national productive systems in the context of globalization focuses on the role of innovative competitive advantages, which are related to the technological know-how. The competitive advantages of low production cost and specialization, which used to be the determining factors of a country's ranking in the world economy, are rapidly displaced by the competitive advantages of technological know-how and innovativeness. In this context, the contemporary issues of competitiveness and growth are included in the new frame of the knowledge economy, which is identified with the know-how of production. This paper presents the relationship between economic activity, investments and technological policies by considering the factors that should be reviewed when undertaking an investment decision as well as the measures applied by a government in order to encourage investment activity. Moreover, the importance of public investments is stressed out as well as the transfer of technology as a basic component of the policies for economic growth. The paper concludes that governments in developing countries are responsible for important investments, which require a view of the evolving structure of the economy.
Keywords: investment, public investment, technology transfer
[...] The most important factors to be considered when considering undertaking an investment decision are the expected future demand, the future preferences of consumers, the increase of consumer income, the expected level of wages and raw materials, the total cost of the investment, the level of interest- rates, the technological changes, the existing reserve of capital equipment, the socio-political environment, the expected dangers from the undertaken investments and the psychological attitude of businessmen against the dangers and the expected tax policy and the investment motive policy. [...]
[...] This paper presents the relationship between economic activity, investments and technological policies. Investment is defined in section while in section 2 the factors that should be considered when undertaking an investment decision are presented. In the context of the measures applied by a government in order to encourage investment activity, the paper explains the investment motive policy in section 3. In section public investments are defined and the importance of public saving in relation to private saving is explained, while, in section the transfer of technology through foreign direct investment and the multinational enterprises is investigated as a basic component of the policies for economic growth. [...]
[...] The technological changes: if the rhythm of technological change is swift, the capital goods are disdained rapidly and the undertaking of new investments is essential for the firm to maintain its competitiveness. The existing reserve of capital equipment: the higher the existing reserve of capital equipment, and supposing that the remainder factors remain constant, the lower the demand for new investments. The socio-political environment: the wider social and political environment influences positively or negatively the course of investments, particularly in the case of foreign direct investments. [...]