2020 (17), №1

Organic Structure of Capital: Influence of Technological Development

For citation: 

Rumyantsev,  А.  А.  (2020).  Organic  Structure  of  Capital:  Influence  of  Technological  Development.  Zhurnal Economicheskoj Teorii [Russian Journal of Economic Theory], 17 (1), 91-100

Abstract:

The article is considering the organic structure of capital in the conditions of technological progress, unlike the classical definition and assessment of the structure of capital. The aim of the study is to identify changes in the organic structure of capital, under the influence of technological upgrade, development of human assets, as trends in technological development of the manufacturing industry in the region. The hypothesis of the study is based on the assumption of constant capital as a valuation of technological upgrade and the assumption of variable capital as a valuation of human assets development.
The method of the work was to analyze the changes in constant, variable capital, organic composition of capital, for 15 companies of St. Petersburg from 2009 to 2016 based on data from annual financial reports. The method of determining the composition of fixed capital as the cost of upgrading equipment and variable capital as a quantitative, cost characteristics of human capital, their ratio was developed. The assumptions and limitations of the calculation formula of the organic structure of capital, were taking into account the technological development of the company. The evidence showed that both the growth and decline of the organic structure of capital, there was an increase in labor productivity as a result of technological development of the company: technological upgrade of equipment and (or) the development of human capital. As a result of their analysis, we have established the main trend — a decrease in the organic structure of capital, due to the development of human assets. Evaluation of it become a tool for analyzing the technological development of a company in terms of its monetary value. The comparison it with the economic results can be the basis adjustment in the investment policy, and in the region — industrial policy. In the future, it is important to deepen the study of changes in the organic composition of capital, and link it with specific measures of technological upgrade and development of human assets.

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Alexey Alexandrovich Rumyantsev — Doctor of Economics, Professor, Chief Research Associate, Institute of Regional Economic Problems of RAS (St. Petersburg, Russian Federation; e-mail: aarum1@yandex.ru).

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