Innovative development of regions of Russia: opportunities …

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Innovative development of regions of Russia:
opportunities and barriers

Vladimir Tikhiy
Institute Of Economics and Management
Department of Innovatics and applied Economics
Orel state University the name of I. S. Turgenev
Orel, Russia
E-mail: tikhiivi@yandex.ru

Olga Koreva
Institute Of Economics and Management
Department of Innovatics and applied Economics
Orel state University the name of I. S. Turgenev
Orel, Russia
E-mail: olga_koreva@mail.ru

Abstract – This article proves that one of the main conditions
of overcoming technological inferiority and modernization of the
Russian economy is vigorous innovative activity since many
branches of production have considerably exhausted both
intensive and extensive possibilities of development. To reinforce
innovative activity there must be innovative potential of regions.
Innovative potential of regions is a key factor to achieving
economic growth and improving quality of life of the population.
The article suggests methodology of integral evaluation of
innovative potential of the regions which allows to estimate the
innovative development level of territories and to carry out
interregional comparisons.

Keywords – innovative development of regions, competitiveness
integral
the region, methodology of

innovative potential

of
evaluation of the region

I. INTRODUCTION

Nowdays the only way of economy development in the
Russian Federation is an innovative one. Due to that
innovative processes in Russia and how they are developing,
is the most prior direction of the state economic policy. First
of all, it is caused by the fact that in the conditions of
globalization and formation of economy, progress of world
scientific and technical leaders is defined by effective
integration of science, education and business. The economies
they are being
of
modernized and this leads to significant changes in all spheres
of activities on the basis of innovative development.

these countries do not stand still,

One of the main conditions of overcoming technological
inferioriry and modernization of the Russian economy is
innovative activity as many branches of production have
considerably exhausted both
intensive, and extensive
possibilities of development. However, the economy of Russia
has the following competitive advantages which should be
used:

– large reserves of mineral raw materials and fuel and

energy resources;

– scientific and technical potential;
– capacious domestic market;
– high education level of the population and qualification

of labor at a rather low level of compensation.

Improving the competitiveness of the Russian economy is
in

introduction of new

technologies

connected with

production, expansion of innovative goods and services
production , which have better consumer properties and are
able to carry out successful competition on the domestic and
foreign market with foreign counterparts.

Complex development of domestic productions and
territories to the level of their competitiveness in the world has
to become a strategic objective of development of innovative
activity and innovative economy formation in our country for
the next few years.

The region’s competitiveness is determined by a large
number of factors. The region’s competitiveness is determined
by its ability to attract business and improve the quality of life
of the population (the competitiveness of the population). The
increase in appeal of the region is possible on the basis of
effective use of the available objective advantages and
creation of conditions for their emergence and development
[1].

Possibilities for innovative development of regions are
extensive, however, there are various barriers and factors
defining development of the region. The conditions of
innovative development in the regions are determined by the
characteristics of the regional economy. The factors that
determine the development of the region, include, for instance,
population density and existence of free territories. For
example,
low
population density and extensive territory. The maintenance
of these territories, as a rule, appears to be costly. There is no
univocal attitude to this fact. On the one hand, the exploration
of natural resources, industrial improvement demand creation
of expensive provision systems. On the other hand, the
development of these territories require capital investments in
the modern equipment in order to implement the activities
necessary for the region.

there are many regions with

in Russia

Research of the characteristics of innovative potential of
the region was studied in many works of domestic and foreign
scientists such as N. N. Mitina [2], S. B. Savchuk [3], C.
Freeman [4], O. N. Izyumova [5].

Now, the problem of complex evaluation of innovative
potential of the region has aquired a special relevance. This
problem occupies scientists of various domestic and
international organizations.

On the basis of the comparative analysis of regions
innovative potential evaluation methodologies by V.A.
Sergeyev [6], R. N. Ushakov [7], O. V. Mamay [8], V.I.

10Copyright © 2018, the Authors. Published by Atlantis Press. This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).Competitive, Sustainable and Secure Development of the Regional Economy: “Response to Global Challenges” (CSSDRE 2018)Advances in Economics, Business and Management Research (AEBMR), volume 39 Tikhy, O.V. Koreva [9], Higher School of Economics [10],
Expert RAEX [11], it has become clear that there is no
consistent methodological approach to complex assessment of
region’s innovative potential.

The innovation of the region is defined by its capacity for
self-updating, adaptation to the changing conditions and
generation of products of scientific and technical progress.

As international experience shows, sustainable production
development and also maintenance of its competitiveness with
commitment to a long-term perspective, depends, first of all,
not only on resource opportunities but mostly on innovations
as they are. [12].

Thus, strengthening the region’s competitive advantages
and fostering innovation can be achieved through the creation
of effective forms of support for science and innovation.

Realization of complex innovative projects in the regions

demands legal and financial state support.

II. RESEARCH METHODS

Implementation of innovative activity requires presence of
innovative potential. Innovative potential of the region allows
to estimate the possibilities of innovative activity of the
territory and to develop strategy for further innovative
development.

The authors’ research has developed a methodology of
integral evaluation of innovative potential of the region on the
basis of domestic and foreign methods [13].

The basis of this methodology is a system of indicators,

grouped into five blocks, namely:

1) socio-economic conditions of innovative activity (gross
regional product (GRP) per one person employed in the
economy of the region; the average income of the population;
investments in fixed capital, the coefficient of renewal of fixed
assets);

2) labour potential (the expenditures of the consolidated
budget of the subject of Federation on education; the number
of staff involved in scientific research and development; the
number of researchers with a scientific degree, graduate from
training of
graduate school; organizations conducting
postgraduate students; the number of students enrolled in
bachelor, specialist, master);

3) financial potential (domestic expenditures on research
and development, % of GRP; expenditure on technological
innovation (TI); the intensity of expenses on TI; costs in the
information and communication technology (ICT));

4) production and technological potential (the share of
organizations performing TI; number of created advanced
production technologies; number of used advanced industrial
in
technologies;
technological, organizational and marketing innovations in the
reporting year,
surveyed
organizations);

share of organizations engaged

total number of

the

the

the

5) scientific and technical potential (the number of
organizations performing Research and Development, R&D;
admission of patent applications; developed advanced
production technology; the issue of the security documents;
the volume of
services;
organizations, to carry out innovations that provide increased
environmental safety in the production process of goods,
works, services).

innovative goods, works,

On the basis of statistical data published on the website of
the Federal State Statistics Service [14], and applying the
in [13] estimation of
proprietory

technology, detailed

innovative potential of regions of the Central Federal district
was integrated for the period from 2012 to 2016.

The analysis produced valuation indicators by the method
of linear scaling and the calculation of a weighted average of
all blocks. Then the integral indicator of innovation potential
of regions of Central Federal district was determined on the
basis of the integrated values for each selected block (a
formula weighted arithmetic average was used ).

The results are presented in table 1.

TABLE I. INTEGRAL INDEX OF INNOVATIVE POTENTIAL OF REGIONS OF THE
CENTRAL FEDERAL DISTRICT IN 2012 – 2016, IN UNITS

No Regions
2012
0,195
Belgorod region
1
0,104
Bryansk region
2
0,192
Vladimir region
3
Voronezh region 0,171
4
0,116
Ivanovo region
5
Kaluga region
0,152
6
Kostroma region 0,149
7
0,135
Kursk region
8
0,213
9
Lipetsk region
0,329
10 Moscow region
0,121
11 Oryol region
12 Ryazan region
0,165
Smolensk region 0,131
13
0,068
Tambov region
14
0,123
Tver region
15
0,129
16
Tula region
0,208
17 Yaroslavl region
0,921
18 Moscow

2013
0,183
0,106
0,195
0,171
0,138
0,178
0,112
0,123
0,208
0,336
0,117
0,172
0,135
0,084
0,092
0,152
0,225
0,938

years
2014
0,176
0,097
0,198
0,196
0,139
0,215
0,098
0,142
0,206
0,341
0,118
0,178
0,132
0,097
0,094
0,158
0,216
0,925

2015
0,196
0,096
0,200
0,192
0,131
0,194
0,073
0,147
0,222
0,348
0,125
0,192
0,128
0,105
0,079
0,156
0,228
0,924

2016
0,202
0,159
0,234
0,247
0,136
0,217
0,085
0,146
0,249
0,372
0,135
0,194
0,142
0,165
0,084
0,183
0,222
0,936

III. RESULTS OF A RESEARCH

The lowest level of the indicator of innovative potential in
2012 was observed in the Tambov region which equaled to
0,068 units, but by 2016 there had been a noticeable increase
up to 0,165 units. In 2016 the lowest level was recorded in the
Tver region, equal to 0,084 units. Also a low level of this
indicator throughout the analyzed period was observed in the
Kostroma and Bryansk regions.

Taking into consideration the data of an integrated
indicator it is possible to analyse as points of innovative
growth in the Central Federal district (CFD) were displaced.
Year 2012 was chosen as a comparative base.Calculation data
has shown that the line-up of the first three in the rating of the
regions having the largest innovative potential remained
constant in 2016 when compared to 2012. Moscow, the
Moscow and Lipetsk regions have become a fixture on these
positions. Also rather high positions in this rating in 2016 are
taken by the Voronezh, Vladimir, Yaroslavl and Kaluga
regions.

Seven

regions

(Voronezh, Vladimir, Kaluga, Tula,
Tambov, Bryansk, Ivanovo regions) have improved the
positions, and other eight regions (Yaroslavl, Belgorod,
Ryazan, Kursk, Smolensk, Oryol, Kostroma, Tver regions)
have fallen in rating.

The most noticeable growth of innovative potential was in
the Tambov region – transition from the 18th place to the 11th
place, in the Bryansk region – from the 17th to the 12th, in the
Voronezh region – from the 7th to the 4th, in the Tula region –
from the 13th to the 10th . The movements of the remaining
three regions in a rating scale were insignificant and count 1-2

11Advances in Economics, Business and Management Research (AEBMR), volume 39 positions. It is possible to designate the Vladimir region, (plus
1), the Kaluga region (plus 2) and the Ivanovo region (plus 1)
to them.

Innovative growth of the Tambov region is determined by
increase in values of subindexes of financial and production
and technological potential.

Besides, the Tambov region’s position change in the
general innovative rating of CFD is affected by the change of
several indicators: the growth of physical volume of gross
regional product, as well as the growth of investment in fixed
capital per capita, and the increase in the intensity of
expenditures for technological innovation.

It is to be noted that the level of innovative potential in
2016 compared to 2012 increased by almost 3 times and
amounted to 0,165 units. (this is the highest growth among the
regions of Central Federal District).

The most considerable innovative decrease is observed in
the Kostroma region – transition from the 10th to the 17th
place in the general rating and also in the Tver region – from
the 14th to the 18th.

Recession in these regions is connected with reduction of
production and technological and scientific and technological
potential. What is more, the number of the technologies being
used in the Kursk region decreased by 263 in 2016 in
comparison with 2012.

The number of the granted patents in the Smolensk region

was reduced by 19 units.

was insignificant (minus 2).

The movement on a rating scale of the Yaroslavl region

In general, the number of regions with the high and
average level of innovative potential for the studied period has
increased almost on a third, and with low – has decreased three
times that demonstrates some increase in innovative activity at
the regional level.

Reduction of values of above-mentioned indicators is
caused by currency crisis of 2014-2015 and also by the policy
of sanctions and anti-sanctions.

The financial condition of the enterprises has worsened as
demand for innovative goods, works, services was reduced.
Consequently there was slow development of innovative
potential of regions in Central Federal district (CFD).
Currently, there is a gradual increase of innovative potential,
but this process occurs quite slowly, which is due to the
current market conditions and socio-economic situation in the
country as a whole.

IV. CONCLUSIONS AND PROSPECTS OF DEVELOPMENT OF THIS
DIRECTION OF RESEARCHES

The innovative economy model in the regions involves the
creation of effective forms of support for science and
innovation, because the implementation of complex and
innovative projects often requires government support.

Regional governing bodies need to form special approach
to management and development of innovative activity in the
region, namely:

– to determine “points of growth” for each specific region,
the priority sectors and activities, allowing to realize the
competitive advantages of the territory;

– to produce timely, quality innovative business projects

and effective investment projects on their basis;

– to promote attraction of direct foreign and national
investment in the region’s enterprises and to promote their
implementation;

– directly participate in the most effective and socially
important regional investment projects with the use of tender
and contract systems for their implementation;

– to strive to improve the level of financial autonomy of
micro-regions (municipalities) based on the use of their
resource potential and competitive advantages.
Central Federal District has considerable innovative potential
allowing it to take a more noticeable place in Russia and, in
some directions, in the world.

The research of innovative potential of regions of CFD
has shown that development of innovative processes happens
unevenly: there are regions (Moscow, the Moscow region)
which in many respects advance the regions innovative
“outsiders” (The Tver, Kostroma regions) .

In 2015 a negative dynamics of indicators values defining
innovative development was observed caused by currency
crisis of 2014-2015.

Now there is a gradual accumulation of innovative
potential, but this process is developing slowly due to the
developed market condition and an unstable social and
economic situation in the country.

The innovative potential analysis of the region, where the
authors of this article live, was quite interesting in its own
right.

As regression analysis found that gross regional product of
the Oryol region for the period from 2012 to 2016 to a greater
extent was influenced by R & d expenditures, receipt of patent
applications,
the number of used advanced production
technologies.

However, among the three variables, one indicator of R &

d expenditure is not statistically significant.

Thus, the main feature of the innovative development of
Russian regions is that this process is distributed across the
regions unevenly. The divergence in indicators of regions will
become less noticeable only in case the state actively
participates in management and financing of innovative
activity.

The state, first of all, needs to motivate all subjects of
economy so that they have a desire and aspiration to develop
innovative activity. To receive an additional boost, regions
need also to cooperate with sectors of researches and scientific
developments, relying on the created infrastructure in the
region.

Often, a region has a high level of education of the
population and a large number of students and, however,
almost the lowest indicators in the field of innovative activity.
Again, oneshould bear in mind that even if there is a
sufficient number of qualified personnel in the region, it is
impossible to build a knowledge economy without having the
objects of innovation and information infrastructure.

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13Advances in Economics, Business and Management Research (AEBMR), volume 39