ECONOMIC POLICY AND INNOVATION SYSTEM ADJUSTMENT
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Development of innovation capabilities both in research and applied aspects and improvement of institutional structure are main problems in modern economies. Enterprises couldn't create innovations without more institutional and policies support but they couldn't apply effective innovation solutions without a free market (Prahalad, Krishnan 2010, Von Tunzelmann 1995). That is why it seems that economic system functioning and especially economic policy might become a crucial factors determining the nature and dynamics of innovation development processes. Creating new innovation structure (via economic policy) and transfer of technologies should support modernisation processes in companies and creation of development opportunities for the national economy as a whole [Burton-Jones 2001; Dore, Lazonick, O'Sullivan 1999; Varieties of Capitalism 2001[. Those processes should will accelerate technological convergence of low-developed economies. The main aim of the paper is to describe and interpret two processes: 1) the impact of the institutional changes and market environment on the changes in the circumstances of innovation process, and 2) the role of innovation and technology transfer in the formation of the economic system with the support of economic policy.
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