innovative potential, human capital, Armenia’s economy, economic growth and development

Abstract

Introduction. In recent years the innovative development of Armenia has become one of the pressing issues in the context of both theory and application practice. This article is devoted to the analysis and assessment of the coutnry's innovative potential from the perspective of ensuring sustainable economic growth in the long term. Under partial blockade of transport communications, noticeable shortage of internal growth sources in the form of natural resources or accumulated capital, the focus of the sustainable economic growth policy in Armenia is on the human capital development. At the same time, in conditions of the turbulent global economy and geopolitical instability it is important to prioritize the development of Armenian economy from the standpoint of innovative potential, which, in the author's opinion, will enable the country to become more resistant to external shocks and crises. The key goal of the research is to analyze and assess the innovative potential of Armenia, also regarding prospects for economic growth in the long term.

Materials and methods. Methodologically the research is based on a set of provisions of modern economic theory relating to the innovative potential of the economy and criteria to assess it. The methods used in the research are those of qualitative and statistical analysis of indicators, followed by identification of cause-and-effect relationships, observation and synthesis. Results and conclusions. The research made it possible to identify key theoretical approaches to the issue of innovative economic development, including against the background of positive and negative consequences for economic growth. The article thoroughly examined theoretical prerequisites for the country's innovative potential development and analyzed innovative development of the Armenian economy in relation to the criteria highlighted in the research. The criteria for innovative economic development were analyzed and assessed in terms of the long-term prospects for sustainable economic growth in Armenia. The research result is the conclusion that the Armenian economy needs significant injections into the field of scientific and technological development to strengthen the country's innovative potential in the long term. In addition, the focus of the conclusions is also on recommendations for human capital development, in the context of the existing potential in Armenia.