Influence of Social Innovations on Modernization of Economic Relations

Authors: Z. Halushka, ORCID ID 0000000305975221, Doctor of Sciences (Economic), Professor, Head of Department of economic theory, management and and administration, Yuriy Fedkovich National University of Chernivtsi, Chernivtsi, Ukraine

Abstract: The article generalizes approaches to understanding the essence of social innovations and substantiates their significance as a process that ensures a qualitative transformation of the system of soci o-economic relations, their modernization and appropriate institutional formulation. Specifics of social innovations, approaches to their classification, their factors are determined. The following changes in the system of economic relations under the influence of social innovations are revealed: socialization of economic relations as a global trend of their development; formation of join to ownership and sharing models; social investment; minimize transaction costs; rating of partner sand clients, control over their behavior; partial replacement of market mechanisms based on the construction of modern communications vertically and horizontally, gradual transition to digital multilevel governance, establishment of social management, etc. It is noted that social innovations lead to the emergence of new socio- economic institutions, changes in “rules of the game” and typical behavior patterns. The influence of social innovations on the change of socio- economic relations at the mega-, macro-, meta- and micro-levels of functioning of the economy is shown. Changes in socio-economic relations under.the influence of global social innovations, Internet technologies, social reforms, social networks, digital governance and other factors are described. On the example of formation and accumulation of social capital, the directions of the influence of social innovations on the change of the whole system of economic relations and modernization of social and economic order are determined. Their influence on the formation of modern social institutions, which sanction the norms and structure of social relations, functions of state structures, the range of rights and responsibilities of individuals, forms of coordination of social processes.

Key words: social innovation; modernization of economic relations; public institutions; social capital; institutionalization of social innovation

Received: 01/04/19

1st Revision: 08/04/19

Accepted: 27/04/19

DOI: https://doi.org/10.17721/1728-2667.2019/203-2/1

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