The Knowledge Economy and the Activation of Scientific and Technological Progress: Contemporary Challenges

This article is dedicated to the problems and processes of the activation of scientific and technological progress in the context of contemporary challenges of the creation of a knowledge-based society and knowledge economy. The main focus here is on activating innovations, scientific and technological progress and creating various preconditions for the development of a knowledge-based society and knowledge economy.The contemporary processes and phenomena of innovations of scientific and technological progress and of its activation are analyzed in a complex manner; the needs for the purposeful activation and acceleration of scientific and technological progress, in particular in response to the aspirations of the knowledge-based society and the creation of a knowledge economy, are investigated in the presented material.The role and importance of innovation activities and the acceleration of scientific and technological advance in the context of the creation of a knowledge-based society and a knowledge economy are revealed and highlighted. New ideas of the search and use of synergetic effects, as well as a new theoretical approach based on the so-called universal principle of the creation of a “new quality,” are described.The results of the presented research can be used for preparing practical recommendations and methodologies that could be applied in the creation and implementation of the managerial and economic instruments and support systems aimed at the purpose of activating the processes of innovations and scientific and technological progress. These recommendations and methodolies could also be utilized in the development of international relations in the context of what is required in the creation of a knowledge-based society and knowledge economy.It is shown that the problems and processes of scientific and technological progress can be appreciated as an extremely important and viable field of scientific research on the creation and development of a knowledge economy. Keywords: knowledge economy, scientific and technological progress, innovation, synergy, networkin

Enterprise Research and Development Activity in Poland in Comparison to Eurozone Countries

During the years 2000-2018, the number of enterprises conducting research and development activity in Poland was increasing systematically, thus the expenditures on research and development were increasing as well. The impact of R&D activity on the level of innovation of both enterprises and entire economies is related to objective and subjective structure of these expenditures which means that is not connected only with the value of the expenditures for its financing. The purpose of this paper is to present the level of expenditures on R&D in the business enterprise sector in Poland, in comparison to Eurozone countries and to analyze the convergence of value of these expenditures in Poland. The authors of the article used description and analysis of the statistical data obtained from the EUROSTAT and the GUS (General Statistical Office in Poland) statistics and estimation of econometric models and testing the occurrence of sigma and beta convergence. Based on the results we state that the key issue is to further activate Polish enterprises within the sphere of research and development, because Poland, in comparison with Eurozone countries, ranks within the group of countries with low expenditures on research and development and with structures characteristic of less prosperous economies. The study allowed determination of occurrence of sigma and beta convergence in Poland, in comparison with the Eurozone countries

COVID-19 Induced Economic Uncertainty: A Comparison between the United Kingdom and the United States

The purpose of this study is to investigate the effects of the COVID-19 pandemic on economic policy uncertainty in the US and the UK. The impact of the increase in COVID-19 cases and deaths in the country and the increase in the number of cases and deaths outside the country may vary. To examine this, the study employs the bootstrap ARDL cointegration approach from March 8, 2020 to May 24, 2020. According to the bootstrap ARDL results, a long-run equilibrium relationship is confirmed for five out of the ten models. The long-term coefficients obtained from the ARDL models suggest that an increase in COVID-19 cases and deaths outside of the UK and the US has a significant effect on economic policy uncertainty. The US is more affected by the increase in the number of COVID-19 cases. The UK, on the other hand, is more negatively affected by the increase in the number of COVID-19 deaths outside the country than the increase in the number of cases. Moreover, another significant finding from the study demonstrates that COVID-19 is a factor of great uncertainty for both countries in the short-term

About the Calculation of the Compliance Value and its Practical Relevance

Corporate investment in compliance in general and compliance management systems (CMS) in particular, follow the cardinal management obligation to always obey the law (so-called “management duty to legality”). But does the compliance function as any other corporate investment really add value favoring all shareholders? The socially desired answer should be probably “yes”, but the business reality shows a different picture: the measurement of the compliance value is a “blind spot” in the scientific theory and research as well as in the corporate practice. This paper analyzes reasons for that “blind spot” and explores the systematization of the compliance value drivers setting up a practical model that monetarizes these effects as well as calculating the added value and ROI of compliance. The author concludes that this quantification is particularly relevant to practice, as the compliance function must be able to measure the quantified impact(s) of the compliance function in order to demonstrate its value to management, shareholders, as well as all interested parties, and to justify and strengthen its role increasing the effectiveness of the CMS as part of the company’s “second line of defense”

Loan and Grant Support for Students in the Context of the Diversification of Funding Sources for Higher Education

[full article and abstract in English] This paper considers the mechanism of direct state support for students in European countries using loans and grants: their functions, forms, schemes, and conditions for provision. The peculiarities of the state preferential educational loan in Ukraine and the reasons for its curtailment since 2011 are determined. Nowadays, it is established that the main form of state support for Ukrainian students who receive higher education in public procurement comes with academic and social scholarships, whereas students who receive higher education under a contract of preferential state lending yet after the curtailment of the program are deprived of any state support. The necessity of restoring the program of preferential state lending for students and the directions of its improvement, such as the establishment of an interest rate on a loan based on the level of inflation, the establishment of a minimum amount of annual payments on a loan as a percentage of the minimum salary, the distribution of the risk of non-repayment of a loan between the state, the borrower and his parent, are all substantiated. This is done taking into account the financial capabilities of the Ukrainian state and the high levels of hidden income. We consider the establishment of conditions needed for the development of a system of commercial educational loans, by providing for the provision of a state guarantee on it and partial state subsidy of interest rates. We consider the areas of improvement of scholarship support of students and substantiate the necessity of introducing education at least for orphans, children deprived of parental care, and disabled children

The Fraud Tree and its Investigation in Audit

The purpose of the present research paper is to introduce a new structure of the Fraud Tree and to suggest certain audit procedures possibly employed in examining its branches. For the purpose of the present paper the authors thereof have referred to the analysis of related research literature, also applied the information comparison and generalization methods. Fraud is being committed in every part of the world, and in every sphere of human activities. Often fraud leads to financial nightmare and collapse of major international corporations which cause spill-off after-effects not only upon corporations and their employees, but also upon other related businesses and organizations, governments and societies. In view of globalization of economy, increasingly dynamic and competitive business fraud has changed in character though has not downscaled in its scope. Today fraudsters elaborate their attempts making use of the most state-of-the-art science achievements and innovative technologies. This largely facilitates the growth of the “Fraud Tree” with its new branches ever springing up. The present article represents an attempt to investigate individual fraud cases and the groups of persons committing this kind of crime. A new concept of “Fraud Tree” has been introduced with the following basic branches: i) material misstatements in financial statements; ii) asset misappropriation; iii) corruption; iv) tax evasion; and v) others. Every branch on the Fraud Tree has several sub-branches, and significant efforts should be devoted in the course of audit to examine the scope, formation conditions of each such sub-branch. The present paper includes guidelines for the principal actions and procedures to be followed by an auditor in view of the risks related to misstatements in financial statements, asset misappropriation, corruption and tax evasion

Development of Real Estate Funds in Europe and Lithuania

Due to the growing economy in Lithuania as well its a rapid integration into the European Union and global markets, improvement of the investment process in real estate has been and will continue to be a topic of great interest. The article presents an analysis of the investment process in real estate. It aims at presenting a theoretical and practical evaluation of real estate as an investment object. To this end, the first part of the paper singles out the most important concepts related to real estate, compares real estate with other types of investment, analyses real estate in the investment portfolio. The second part explores the importance of real estate investment funds in order to ensure an efficient and expansive functioning of the investment market in the European Union and to expand the Lithuanian market of investment goods. It also investigates the legal basis and development of real estate funds in the European Union. Lithuanian legislation provided a possibility for real estate funds to operate only at the end of 2007: on 15 November 2007 a new edition of the Law on Collective Investment Undertaking of the Republic of Lithuania was adopted, stipulating a possibility for specialized funds to appear in Lithuania from 1 March 2008

Short-Term Forecast of Ukrainian Economy Including Shadow Sector Using Causal Simulation Model

A new causal simulation model of economic development was created, which comprehensively in detail and fully reflects various types of legal and shadow economic activities and their interrelations.The model is used to forecast the whole (legal and shadow) country’s economy up to 2022.The dynamics of shadow and legal indicators are different.The biggest and most important difference is about exports and imports. Official statistics give a negative balance of the Ukrainian foreign trade of Ukraine in 2019-22. However, total export, determined by the model, considerably exceeds imports, so actually we expect a surplus.This is very important for the National Bank: its policy based on the official (legal) negative balance of Ukraine foreign trade should be one (throw foreign currency reserves into the market or to devalue the hryvnia), but with the actual balance that includes shadow flows and is positive, - contrary one (to buy currency on the market or to revalue the national currency).Our model calculates how the production volumes of all types of goods and services should change to ensure that supply and demand are balanced. These numbers can serve a reference for manufacturers.We suggested that the relevant Ukrainian authorities take an active position in the implementation of the developed forecast for the economic development of Ukraine: measuring actual rates of changes in the production of these types of goods during the year, they provide recommendations to producers to increase or decrease their production

The Relationship Between Geopolitical Risk and Credit Default Swap Premium: Evidence from Turkey

This study investigates the relationship between the geopolitical risk in Turkey arising out of the war and terror incidents happened in the region during the period 2003:01-2020:06 with the CDS premium. A two-step approach is undertaken for this assessment, in which an ARDL limit test and then a time-varying symmetric and asymmetric causality test are applied to study the possible causality vis-a-vis the subperiods. The ARDL limit test does not reject the hypothesis that there is a co-integrated relationship between CDS premium and geopolitical risk index. In addition, the time-varying symmetric and asymmetric test also identifies causality between CDS premium and geopolitical risk, and establishes periods where the latter influences the former variable both in a positive and negative way. In summary, both the ARDL limit test and the time-varying symmetric and asymmetric test deduce a causal relationship between the studied variables

A Comparison of Lithuanian and Swedish Old Age Pension Systems

[full article and abstract in English] The aim of this study is to compare Lithuanian and Swedish pension systems from the point of view of their design and performance in order to elaborate reasonable recommendations to Lithuanian pension policy based on the best Swedish experience. Swedish income, premium and guaranteed old-age pensions system are compared with the analogous Lithuanian system of the “first,” “second” pillars and the “social” pensions. The main features of the systems are discussed, and the performance of the systems, mainly from the point of view of adequacy, is compared. The differences in system design and performance are identified, and the possible reasons of these differences are examined. Special attention is paid to differences in financing and the approach to the definition of benefits. The Lithuanian pension points approach is compared to the Swedish Notional Defined Contribution (NDC) approach. Each system is analyzed, and the relevance of transforming the Lithuanian first pillar pensions into a NDC system is examined