Innovation and High-Tech Products' Import Substitution as a Means of Reducing the Technological and Innovation Gap

Since the beginning of XX century when Joseph Schumpeter defined the innovation process as a basis for economic growth, the increasing innovation and high-technology production has been perceived as a conclusive evidence of economic well-being of a country. Obviously, the country's realized ability to intensify the production of new-to-world commercially successful products and processes is a clear indication of exceptionality of its production capacities, resources and other conditions. Therefore, it is a logical step for a government seeking to enhance international economic power to declare innovative growth as a primary goal. However, in a situation of substantial technological backwardness such a declaration appears to be unwarranted: a country with lagging economy is able to copy innovations at best. The aim of this paper is to attempt to formulate a working concept of innovation and high-tech import substitution. Such a general concept may be considered as a valid analytical instrument enabling policymakers to create an import substitution policy that would be efficient and adequate to the existing innovative environment.