On the dialectics of growth and development, as well as on necessary and sufficient conditions of economic development

The article deals with the dialectics of the relationship between the growth and the development regarding the economic development of the state, more precisely, the national economy and regulated market economy. The author determines growth aseconomic growth, i.e. the increase (as a result of production) of the general, aggregate indicators of the production of goods. Regression, degradation, and deterioration oppose the development from the point of view of logic and dialectics. Thus, the development of human society and economy means its improvement, progress and perfection. The development requires the evaluation of quantity parameters / indicators (increase or decrease). Therefore, the development is also the growth, including quantitative growth. At the same time, economic growth transforms into the development at a certain stage as ‘quantity changes turn into quality changes’. In other words, growth and development do not oppose each other in antagonistic way but they form two sides of the same process (quantity and quality). Changes in the parameters of social characteristics of society as signs of development are not unambiguously positive or universal. Instead, they are ‘tied’ to certain historical stages, and in a class society they are class-based and have their measure. The article considers the formula determining the necessary conditions to ensure innovative development of the economy, containing the components as follow ‘innovation’, ‘human capital’, ‘knowledge’, ‘social capital’, aimed to develop innovative entrepreneurship. But this formula does not take into account the historical specifics and mental differences hindering the development of entrepreneurship in some countries. The enduring tendency to the ‘tsarist character of the authorities’, the cult of the personality of the official leader of the country and paternalism, are among such peculiarities in Russia. As a result, there were long periods in Russian history when there was no quality management in the interests of the country's sovereign development. The article shows that this concept should contain ‘institutions promoting economic development, corresponding to the nation’s mentality’, so that it would be able to provide necessary and suffi cient conditions for stable innovative economic development.