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The essence, principles and concepts of development of innovative processes

Abstract. The article is devoted to the theory and the concept of “innovation”, the economic development of society and entrepreneurship. It is shown that the founder of the theory of innovation is considered to Joseph Schumpeter, who picked up and developed the basic ideas ND Kondratieff in this area. Schumpeter focused on the economic innovation, praised the role of the entrepreneur and innovator in the economic progress. Basic theory of Schumpeter’s innovation: innovation as the most important function of entrepreneurs; distinction between products and innovation, innovation processes, the radical (basic) and enhancing technological and economic innovation; a place of innovation in the cyclical dynamics of the economy. 

Since gaining independence Kazakhstan’s external environment for existing businesses has changed radically. There was a transition economy on the rails of the industrial-innovative development, carried out a policy of import substitution, leading to accelerated economic development and modernization. In these circumstances, the market of innovative products and knowledge intensive technologies is one of the fastest growing segments of the global economy.

The concept of “innovation” and its derivatives are among the key concepts of modern management organization theory. Exploring the concept of innovation, we have come to the conclusion that innovation is not only a system of periodically introduced single innovations, replacing product and process variables of the organizational structure, but also a complex social process, developing according to certain objective laws that are closely interrelated with the history and traditions of the consideration of social systems and radically transforming its structure. Meanwhile, it is also a socio-psychological phenomenon, characterized by a kind of life cycle with special phases, sequences and dependencies. 

The study of the main directions of development of innovative processes in the 1990s shows the increase in the level of uncertainty and dynamism of social structures, combined with the unique properties of the cultural system for the CIS countries stimulated innovation explosion in the activity of organizations, immediately affect the status and direction of research organizations, management theory. Important foundation concepts of innovation were founded in this period which had a powerful influence on the development of organizational theories in the 90s. Taking into account that the development of innovative concepts in our country has gone through a very peculiar experience of most developed countries seems to us extremely valuable both in terms of critical analysis of their own development, and forecast the development of innovative concepts.

In this context, in our opinion, it is necessary to further explore the nature of the process of innovation. One of the first who studied the essence of innovation are N.D.Kondratiev and I.Schumpeter

N.D.Kondratievare not directly involved in the analysis in the problems of innovation, but they were determined large cycles conditions (long wave) contributed to the subsequent study of these cycles their duration and the driving forces which as the most important innovations have been recognized. In studies, he put forward the idea of the existence of large cycle’s conjuncture which is formed from each of the base and represents a plurality of secondary that improve innovation [1]. He developed, in particular the theory of long waves innovations based on their own concepts of development of STP. Essentially, N.D.Kondratev laid the foundation of the so-called “cluster approach” to the study of the innovation process.

N.D.Kondratev ideas have been used by western economists before the 50-ies to substantiate and justify the cyclical crises of overproduction. For example, I. Schumpeter considered in innovation opportunities for accelerated overcoming economic downturns through the activation of radical technological innovation [2]. In his concept of the normal state of the economy lay in dynamic disequilibrium caused by the activities of innovator-entrepreneur. In this case, the main direction of innovation is increase the return on invested resources where innovation (novation) is the most economic and social concept than technical. Further integrated development of ideas about innovation processes associated with the names Drucker, M. Rogers, G.Zallman and other researchers who understand it as a growing technological capabilities of the social subject, promoting open access to a wider, compared with the previous, the spectrum of the limited resources that ensure its existence.

Taking into account the opinion of these scientists and economists we came to the conclusion that under the novation should be understood planning innovations in industrial and commercial organizations, mainly in small and medium-sized enterprises (since they are embedded in the production of 90% of the new technologies), that is targeted changes in the functioning of enterprises as systems that make them relatively stable elements significantly transform the nature of the functions and management. In practice, the use of the term “innovation” is due to technical and technological changes in the production process that is the use of new scientific ideas, technical devices, processes, raw materials, etc.

  1. Schumpeter, the founder of the concept of innovation reveals the following patterns of innovation: the connection between theoretical research and production, between fundamental theories and applied research, established the existence of relationships short and long term bonds in the process of technical and technological changes, has revealed the conditions in accumulation and dissemination of innovations, described factors that positively or negatively affect the use of Innovative issues after
  2. Schumpeter was developed only in the 60-ies of XX century in connection with the acceleration of scientific and technological development, it began intensive lydevelopedby scientists. The main direct ion of the sedevelopments initially tended to follow I. Schumpeter’s concept on which formulated the main characteristics of scientific and technological innovation process.

In this concept, under the scientific and technological innovation process should be to understand the process of preparation and gradual implementation of innovative changes in technology and engineering, which in technical and technological innovations includes phases “science”, “research”, “development”, “production”, “consumption”.

“Science” is a basic research in various areas of reality, to develop general theoretical approach to solving this problem, “research” applied theoretical research, experimental research and testing, creating an experimental model. “Development” is the definition of the technical characteristics of the product in the form of the sample, its design and technological support for the production of this product, “production” is the implementation of the entire cycle of prepared production operations of this product, “consumption” is the use of innovations in the form of a product or service by the consumer, including forms warranty service within the prescribed period. But the concept of “innovation”, “innovation” cannot will conclude only in technical and technological changes. Also I. Schumpeter saw innovation as an important instrument of social dynamics of society and pointed out that the technical and technological innovations invariably lead to certain economic consequences, favored in competition for markets, changing competitive environment and thus contribute to social development. 

Back in the 70s of last century, along with the technical and technological process of beginning to develop the concept of social innovation where social novation were attributed economic novations: changes in the remuneration system and the nature of work motivation, etc. In these years, a serious approach to innovation showed an American economist, specialist in management P. Drucker [3]. He noted that innovation has a more economic and social concept than technical, because even in the case of technical and technological innovations change the value and quality of consumer, consumer recoverable resource. P. Drucker [4] characterized innovation as a specific tool of entrepreneurs, the means by which they seek to implement a new type of business or service. This opinion was held by the Hungarian economist D. Santo, who argued that innovation is a social, technical and economic process based on the use of ideas and inventions and leading to the creation of the best on the properties of products, technologies, and if it is focused on economic benefit, profit, it can bring additional income. The crucial aspect of social innovation to specific enterprises are innovation management, wearing a narrow organizational and managerial in nature (the creation of new organizational structures, new forms of work organization, the decision-making, ie.) and broad social and administrative reforms.

Currently, much attention is paid to the systemic nature of innovation changes, where innovation is the result set of interactions that change the entire system of the enterprise. In this regard, the Russian scientist V.N. Lapin defines innovation as a complex process of creation, dissemination and use of new practical tools to better meet the needs of consumers.

In the economic literature of considerable interest are the studies that show the social significance of the innovation process as major technical and technological innovations will inevitably lead to wider social change. Thus, for example, it is very common to all serious transformation and changes the nature of the enterprise operating functions (it directly from the operator turns to the quality inspector) nowadays industrial automation process at shop floor level. There are largely used it physical abilities and skills, and intelligence, analysis and diagnostics capability of the production process. Changes and the role of the lower administrative personnel masters and complicates the individual control over the labor process. The master can no longer play the role of overseer and moves to the role of the spotter and motivator of the production process.

One aspect of the innovation process is the automation which requires a change in the nature of the relationship between all the horizontal structure of the production cycle, and other forms of interaction between workers, craftsmen with the technical services of the enterprise. To automate the creation of conditions required for direct communication, quality control of products with service operators in the workplace. Also automation as technical and technological innovation, it requires a new understanding of the functional responsibilities at a higher than the shop level, ie at the level of services and works general management systems, etc.

Particularinterest to the consideration of new and innovative transformations trends in organizational culture. This issue is devoted to the study of M. Crozier [5] which comes mainly from the premise that the world is going through a special “post-industrial revolution”. The essence in his opinion is highlighting the human factor. Manufacturing activity is no longer a form of maneuvering and manipulation indifferent mass. They are increasingly based on a spiritual basis, and consequently on the individual, so 

Crozier believes that in these circumstances, the possibility of operating material resources loses its significance in relation to the ability of people to the initiative. Competence, knowledge of the business, entrepreneurial spirit, a sense of the new ability to cooperate these are in the opinion of M. Crozier, set the quality of the enterprise worker’s

It highlights in his work that in today’s competitive struggle in the first place, is not for resources, material goods, and for the ability to innovate, it’s a comprehensive upgrade that becomes more vital than the ability to rational organization. In the current industrial society based on mass production and consumption where the rationalization of logic prevails, it is impossible to imagine a person as a free and autonomous character of production. The company relies on the creativity, and the rationalization of payment loses their decisive importance. More significant challenges are the mobilization of personal and spiritual resources.

Based on the said M. Crozier formulates the following four elements of the new understanding of the organizational culture:

  • the first element is the transfer of emphasis: the ability to innovate comes to the first place in relation to the ability to rationalize and in this case, success can be achieved only with simultaneous innovations in technical and technological sphere in governance, in the relationship with the client;
  • the second element is a review of priorities in terms of quantity and quality where the industrial society is based on a number of priority (dominated by the idea of mass production and mass consumption), it is the goal of innovation is to create a new quality of goods, services, relationships with the client;
  • the third element is connected to the recognition of the lead role of human resources which were considered only in terms of their size and ability to adapt to the conditions of production, that is, the ability to engage in the production process. High technologies require special abilities of the person, so the worker must be According to M. Crozier, human resource is a set of organized relations on the basis of a particular culture, so it is not just about the individual human resources and the organizational resources which included this individual. In his understanding, the new society is not a consumer society, and society involvement, engagement and development;

the fourth member is the ability to innovative changes, development of new technological services. Achieving high quality does not depend on material investments (in construction, a new technique in working capital), and intangibles (in personal development, in the system of relations in culture). The basic concept that expresses the essence of these intangible assets is training aimed at the mobilization of human resources within the enterprise, customer relationships, establishing effective linkages between manufacturing.

Meanwhile, if you have changed the driving forces functioning of the organization it should be changed and the very principles of the organization of the enterprise, its management methods and forms. According to M. Crozier main trends of modern innovative changes in enterprises field of organization and management, based on three basic principles: simplicity, autonomy and control over culture.

Principles of simplicity. In this case, M. Crozier believes that the best response to the complexity of human relationships is the ease of organization which implies reducing the number of steps in the hierarchy, the intermediate transfer structures and elements of power [6]. However, the decision it encounters some resistance management staff of enterprises and above all, their lower-level (masters, shift supervisors, workshops). Each lower-level manager is seen as the future chief a man who once will take a higher position in the hierarchy. And if there are less senior management positions, it will lead to a reduction of the lower guiding unit, which means it will occur and fewer opportunities for vertical movement. At the same time he must stop to perform the functions of overseers, “drove”, and serve as technical advisors. It reduces the need for administrative managers, but increased demand for technical specialists able to rely on the competence of providing cooperation of operators and taking care of their professional growth. Thus, in principle, simplicity, implemented a new value orientation of organization the reliance on human spiritual powers and abilities.

Principles of autonomy. The meaning of this type of principle is that the organization must rely on spiritual means, the strength and ability of the person that the employee enterprises must have freedom of action and responsibility. The scientific literature has repeatedly sounded the call for autonomy and horizontal structures, and to respect the rights of freedom of the individual in the workplace. With this in mind, the French scientist adds two new dimensions, where the first is related to the revision of the place and the role of the client in the company, the second aspect of the innovative changes is connected with the revival of handicrafts as an individual skill. In industrial, rationalistic approach, specialization of production creates the preconditions for the disappearance of craft with a post-industrial production system creates the possibility of restoring the integrity of the profession, to realize the creative potential of the operator.

Principles of management through culture. This principle of control, according to M. Crozier, makes it possible to implement the principles of simplicity and autonomy, responding to the new realities of technological, social and economic sphere. In the future, businesses need to gradually move from the complex horizontal and vertical structures to simple organizations, consisting of autonomous self-governing communities. In this connection it is necessary to revise the strategy of management and go to the predominant use in the management of leverage capabilities and resources of organizational culture, that is, the conscious formulation and regulation of cultural enterprises, targeted its development on a particular, pre-planned schedule. Culture is an organic enterprise education, which is formed as the emergence and further development of the company and a number of elements of this culture are added to it spontaneously in the course of the staff response to a variety of situations that arise in the external and internal environment, in the process of mutual communication of all members of the enterprise.

We cannot exclude the possibility of impact on organizational culture. For example, the concept of “symbolic management” implies control motivation and behavior of the personnel at the expense of semantic symbolic system. A number of specialists in organization theory (P. Byrne,

Crozier, P. Sansele) develop the concept of “ownership management”, the maximum possible delegation of powers, the development of all types of communications, especially horizontal, without the mediation of a higher level of management, handling of technical freedom, economic, social media, etc.

Supporters of the concept of development management paid special attention to the problems of free access to treatment, use, dissemination of information. In their understanding to share information it’s means to redistribute, to delegate his authority. Free access to information contributes to the establishment of a favorable climate between management and staff, creating a sense of community spirit of enterprise, belonging to one team or organization. Within this framework is radically changing the role of the head which is that it should be the ideological informal leader of the case, to simplify the production personnel solutions to their problems contribute to their positioning as individuals [7].

The concept of “ownership management” to some extent, originated within the spread of the enterprises in the 60-70-ies of the so-called “quality circles”. The purpose of their creation was the fact that, if the enterprise arises some technical technological problem has a serious impact on the quality of products, all who are able to take part in its decision are combined into an independent creative structural unit, but within the enterprise and work on solution to this problem. Thus participants in these quality circles are to remove barriers and some intellectual fragmentation between services, horizontal and hierarchical structures. The main purpose of these informal units is to form immediate, direct communication between the scientific and technical production staff from different shifts, departments, services, etc. After deciding set before “quality circles” members of problems they break, and a new problem gives rise to new clubs. For example, in Japan, the operation of data structures has been very effective and successful, confirmed that many sources.

Significant contribution to the development of innovations was introduced and other academic economists who developed the concept of technological structures. For example, Russian economist S.Y.Glazyev states that the technological structure is a group of technological sets associated with each other the same type of technological chains and forming replicating values and determined as the main factor and the organizational-economic mechanism of regulation [8]. According to the results of his research in a modern market economy technological order life cycle is about 100 years. Phase birth of a new way of dominance occurs when a number of his previous orders. Further development of a new way of life depends on a number of factors, including socio-economic, scientifictechnical, political and etc.

The initial stage of formation corresponds is to the emergence of a new way of life and reduce flue technological structures, which is accompanied by an increase in conflict in the reproduction process, the aggravation of the socio-economic situation. The next step corresponds to a phase of growth of the new technological order, which should follow after the restructuring of the entire economic system.

In its development the author claimed that both are five technological orders (TO):

  • The first concerns the middle of the XIX century, and to a large extent it is linked to the textile and food industries, the development of transport and mining;
  • The second was established in the framework of development of mechanical engineering, coal, metallurgy, railway
  • The growth and maturity of this type of lifestyle fall at the end of the XX century. This way of life in England was formed 50 years earlier, which in parallel with technological changes in the industry sectors was the mechanization of the main and auxiliary production;
  • The form is associated with dominance TO electrical industry and mechanical engineering sectors;
  • The emergence of a fourth type is associated with the development of the chemical industry, precision engineering and instrumentation which began in the 60th years. XX century a new stage of scientific and technological revolution has led to the predominance in all industrialized countries, the emergence of the fourth and fifth TO;
  • The basis for the development of the fifth type is the electronics industry, computer and fiber-optic technology, production and processing of gas, information services and

In Kazakhstan, in contrast to the industrialized countries for a long time we continued to develop the first and second kind of technological structure, dominated the third way and developed smoothly fourth. Distribution of the fourth basic type of technology happening in the country is significantly slower than in the US, Japan, Germany. At the end of the last century, with the liberalization of prices and economic activity has been a rapid decay in all kinds of specifications and, especially in the way of the fifth, which is the basis for economic growth in all economically developed countries. In modern conditions the fifth pillar of TO are flexible automated manufacturing systems, industrial robots, software, information services, telecommunications, computer technology, electronics and aviation industry, optical fiber and optical electronics. In the period from 1990 to 2040 yy. basis of a new way of fifth constitute biotechnology, space technology, fine chemistry, global ocean research, artificial intelligence.

Currently, in the Republic of Kazakhstan of the fifth development and formation of the sixth order, in our opinion, we are constrained not only a consequence of existing economic crisis, but also poorly conducted targeted state scientific-technical and innovation policy. To support the republic of science and technology should be one of the most important areas of support and development. In this regard, the theory and practice of innovation, the development of innovative processes, the mechanism is of utmost relevance and target orientation.

 

REFERENCE

  1. Kondratiev N.D., Oparin D.I. Bol’shie tsikly kon’yunktury. , 1925. 48 s. [in Russ.].
  2. Schumpeter J. Teoriya economicheskogo razvitiya. M.: Progress, 1982 [in ]. 
  3. Drucker F. Kakvyiti v lidery. Practika I printsypy. M.: Book Chember International 1992 [in Russ.].
  4. Drucker F. Novye realnosti. V pravitelstve i politike. V ekonomike i biznese. V obshestve i mirovozzrenii. M .: Book Chember International, 1994 [in Russ.].
  5. Crozier M. Predpriyatie ptislushiveyutsya.Uchitsa postindustrial’nomu menedzhmentu. Paris, 1991 [in Russ.].
  6. Upravlencheskoe konsul’tirovanie / s angl. Pod. Red. M.: Cruz, 1992 [in Russ.].
  7. Argynbayev M. Obespecheniye ekologicheskoy bezopasnosti Yevropeyskogo soyuza. Izvestiya KazUMOiMYA imeni Abylay khana. Seriya “Mezhdunarodnyye otnosheniya i regionovedeniye”, 2014, № 1 (15). S. 25-31 [in Russ.].
  8. Glazev Yu., Mikerin G.I., Teslya P.N. Dlinnye volny: nauchno-tekhnicheskii progress i sotsial’noe razvitie. Novosibirsk, 1991. 224 s. [in Russ.].

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