Post-Crisis Economic Policy. Innovation Based Growth

Crises are not only natural but also indispensable in the capitalist market system. It is during the crisis when there is a natural selection of the most effective organisational, institutional and technological solutions. The decline in the growth dynamics is a crucial problem in highly developed economies. The task of an abrupt business recovery of innovativeness requires the implementation of reforms and restructuring on the basis on a new economic paradigm. Business policy based on the public sector growing deficit and low interest rates leading to fiscal crisis and inflation should be replaced by the policy stimulating entrepreneurship and innovation through fiscal stimuli. This policy has to include the facilitations in the area of establishment and liquidation of companies, labour market liberalisation, tax and credit stimulation of innovation, organisation and financing of high standard education and science, and at the same time due care of employment and use of the human factor.