Increasing the Level of Economic Freedom as a Condition of Innovative Development of Russia

Abstract

The article is devoted to the analysis of the role of economic freedom of entrepreneurial activity and its impact on innovative processes in the country’s economy. Analyzing the various definitions of economic freedom, the authors propose their own: Economic freedom is an opportunity to improve one’s life with one’s own actions; it implies the right to choose, the right to an equal start in the absence of discrimination, the opportunity to take advantage of the results of the choice. In the narrow sense of the word, this is freedom of entrepreneurial activity; in the broadest sense it is also freedom of professional, consumer, property, financial choice. The authors believe that economically free citizens can only make a steady demand for political freedoms. The results of international studies, in particular, the data of the Heritage Foundation, show that the level of economic freedom in Russia is low. These studies characterize economic freedom in the narrow sense of the word. To assess the level of economic freedom in its broadened understanding it is necessary to take into account the possibilities of professional self-realization, the level of security of property, financial assets, savings. Such aspects of economic freedom in Russia have not been adequately researched. In the opinion of the author, they, like the freedom of entrepreneurship, are poorly provided with institutional support. The article shows that the level of innovation activity in the Russian economy is low and continues to decline. The main reason is insufficient demand for innovations from economic entities due to insecurity of property, savings, weak enforcement, excessive state pressure. An increase in the degree of economic freedom is necessary for the country’s innovative development. The solution of this problem requires broad government and public support, the consistency and political will of the country’s leadership.