The customs tariffs state regulation impact on the innovative development indicators of the economy

The paper explores the theoretical framework of the interrelations between tariffpolicy and the innovative development and provides this relationship assessment.The authors analyze the definition of the high-quality government regulation, reviewthe theoretical considerations of its role in changing the level of innovative activity.The paper also considers the potential effects of the tariff policy on the innovativedevelopment. By applying regressive and correlation analysis tools, the authorsassess the character of the interrelationships between simple mean tariff and aninnovative development indicator, particularly, innovative firms as a percentageof total firms in several countries. The study concluded that there is no statisticallysignificant relationship between reviewed indicators. At the same time, significantcorrelation is revealed between changing the simple mean tariff (in particular, itsrising) and changing the innovative firms’ percentage. It was therefore recommendedthat state bodies should assess protectionism benefits comparing to its postponedadverse effects, particularly, innovative activity declining.