State regulated competitive-market order as a category of the economy based on knowledge

Amid the domination of "knowledge", the economy stems two conjugate processes: the formation of new temporary monopolies on the unique technology and cooperation (alliances) of existing firms in order to optimize the cost of research and development. Two of these processes cause each other. Transformation of competition provides for the creation and increment of value based on intangible assets: knowledge, developments and ideas. In this regard, government regulation acquires a new property of evaluation of the effectiveness of firm behavior in the market from the perspective of improving the welfare of society, the structure of antitrust policy transforms into pro-competitive policy, competition policy. State regulation of the economy based on knowledge becomes an institute that provides its sustainable and targeted development. High level of concentration does not preclude intense competition in the markets of innovative and high-tech products. Non-market state measures are an institutional factor of the market of imperfect competition. State pro-competitive policies in terms of the knowledge economy objectively strengthen the process of socialization. Formation and development of a social market economy has to do with the search for ways of formation and development of the subject which could scientifically be part of the national economy to create a regulatory mechanism for sustainable focused development of the economy based on knowledge rather than with the functional aspects of goal-setting. The "invisible hand" of the market mechanism itself does not generate socially oriented knowledge economy. Adjustable competitive market economy of knowledge arises from the interaction of objective forces of the market mechanism and the subjective will of the social state. Then, this type of organization of the economic space becomes a publicly regulated competitive market order. This order is the result of the interaction of objective forces of the market mechanism and the subjective role of the welfare state as a need to compensate for the failure of the market mechanism to regulate social issues in the transition to the knowledge economy, the basis of which is the formation of cognitive capital as a result of the application of human capital to the accumulation of knowledge. Support and protection for sustainable development of the economy is the main function of the institute of the publicly regulated competitive market order.

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