Summary

The major global trend of modern society formation is the transition from raw materials and industrial economy to the "new economy", sometimes called the “knowledge based economy”. The innovative economy is based on intellectual resources, scientific and information technologies.

Georgia has repeatedly stated about the transition to innovative path of our economic development. But the simple announcement will not give us an expected outcome. Discovery of system innovations in the structure of production factors will result in a certain imbalance in the existing system and require the reviewing of factors combinations, searching for their optimal mix, and possibly determine the creation of new and complex factors that are in line with the modern stage of market development.

One of the complex factors that have resulted from synergies of existing factors is a venture capital that, together with innovative direction, considers the enhanced risks of economic systems, instability of economic environment, innovation cycle, lack of knowledge of managerial skills and investment process among entrepreneurs. Its driving force is an innovative character of venture capital that relies on the achievement of science, the rapid development of new technologies and effective management. The countries that are now controlling the process of creating new technologies will control the market of products created using the latest technologies. One of the most important economic outcomes of this process is the probable dominance of leading countries in the world's major markets, with the conscious expulsion from these markets of peripheral countries (including Georgia).

At the modern stage of technological revolution, companies are striving to increase the share of novations implemented in innovations, allowing them to increase the level of monopolism in the given field and dictate to users and competitors their own policies. The wellbeing of the society is determined not by the mass of production factors, not by the volume of investment, but by the efficiency of innovative activity, which gives the final positive result.

In our opinion, innovative activities provide a way to solve disagreements related with the fact that each subject (process, event) includes objective tendencies of development (potential). Their implementation is realized through the objective innovative activities of social and economic subjects.

For the research of innovative processes and for assessing their place in the country's economic development Condratiev's works have become a strong impetus, especially the big cycles (long waves) of the conjuncture discussed by him, which arise from "every basic novelty, and represent a number of secondary sophisticated innovations." The novelty was regarded as "cumulative" elements that define the dynamics. As Frist and M. Porter showed later, a development-like character is due to the processes in real, open "socio-technical systems". Condratiev’s studies have initiated further study of these cycles and their duration.

Schumperter first mentioned technical innovation as the economic means of achieving high profits, contrary to the fundamental economic theory of von Neeman, in which technical progress is not provided at all. Harrod created the model similar to Nieman, but, as later noted by Robert Solow, he was not able to avoid clashes with the economic impact of innovations. Then came the Kaletski development scenario, Shmukler's studies based on the fact that a great  impact of technical changes on economic growth was acknowledged.

Venture financing has great advantages over other sources of financing in the initial stages of development of the company, as the entrepreneurs might be offered investors' personal connections, information about markets and similar goods, in addition with cash, organizational, managerial and other types of support. With the development of the company, the role of human capital offered by the venture investor is reduced and instead of venture funding the strategic financing takes place.

Thus, the major global trend of modern society formation is the transition from raw materials and industrial economy to innovative economy, based on intellectual resources, scientific and information technologies. Georgian government in recent years has repeatedly announced about the transition of economic development to innovative way, but the results are not yet to be seen. System innovations appearance in the structure of factors of production will result in an imbalance in the structure of the existing system and creates the necessity to review factors combination, to search an optimal mix of options and this may lead to the appearance of new or complex factors, which will be suitable for the modern stage of development of the market.