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Abstract:The article discusses well-known factors of production in the context of the innovative economy, identifies their weak points and contradictions. Investigating the process of the emergence of entrepreneurial abilities and information among the factors of production, an analysis of the possibility of replacing them with intellectual potential is carried out, a historical analysis of the issue being studied and the role of knowledge in the economic life of society is given. Also, in contrast, other factors are proposed, the relevance of which is based on practical experience in the implementation of innovative processes.
As an example, the high role of the external environment in the formation of the innovative economy is noted, and the significance of the development of such an environment largely determines innovative development, even if there is a basic quintet of production factors. In conclusion, it is summarized that the development of new institutional structures and corresponding system interconnections, which accelerate the development and optimal use of existing factors of production in the interests of the sustainable development of the national economy, is becoming urgent.
Keywords:factors of production, human capital, innovation, intellectual potential, system interconnections
JEL-Classification: J24, O31, O32, O33
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