Development of innovative industries in Russia under unfavourable external environment

Abstract

Research background: Innovative development of industries and regions in Russia during the period 2005–2011 has not brought significant positive results. Innovative activity of regions and industries remained at a low level. After a relatively stable 2012–2013, the Russian economy faced the geopolitical crisis and economic sanctions in 2014–2015.
 Purpose of the article: The primary purpose of this study is to investigate the innovative development patterns of industrial sectors in selected Russian regions in the years 2012–2015, which include the period of negative external environment (2014–2015) for the national economy.
 Methods: The study enhances the analysis of statistical data and applies quantitative analysis methods (variance analysis). The research focuses on 14 regions of Russia, members of the Association of Innovative Regions of Russia (AIRR) and 2 specific industries: section D «Manufacturing» and subsection DL «Manufacture of electrical and optical equipment» which usually manifest high level of innovative economic activity.
 Findings & Value added: The research results show that the crisis period of 2014–2015 has not stimulated the increased innovative activities for both industries. The innovative sector (section D) grew faster than the non-innovative one in 2013, but this advantage became insignificant in 2014–2015. Some signs of revival for innovative enterprises in subsection DL were observed during the crises beginning in 2014, but this trend was not retained in 2015. The analysis of structural indicators (proportions) of the innovative sector shows that only a few AIRR regions have values comparable to the leading European countries. Most of the AIRR regions lag behind the leading foreign countries specifically on the «Share of enterprises engaged in technological innovation» and «Share of new or significantly improved products» Indicators. The study did not reveal the statistically significant positive dynamics of these indicators in the AIRR regions over the period 2013–2015.

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