ABSTRACT
Technological modernization of industrial production is limited by institutional conditions and infrastructure. The state plays the key role in the efficiency and effectiveness of public management, regulation, and incentives for technological upgrade of projects in the real sectors of the economy. At the beginning of the 1930s, the Japanese scientist Kaname Akamatsu developed the “flying geese paradigm” to explain the nucleation process of a particular sector of the economy. This concept identifies three phases of industry development: a product enters the country through imports, growing domestic demand leads to local production, and surplus supplies are exported. He focused on the restructuring of economic mechanisms in the developing countries as the main factor of change. The main idea of the paradigm is that in the context of an open economy, the developing countries gradually pass through the stages of industrial modernization, capitalizing on innovative features that become available due to the development of foreign economic relations with more developed countries.
