Does complementarity matter for the emergence of new specialization industries in the regions of Russia?

Abstract

The purpose of this article is to assess how internal and external complementarity linkages are responsible for the emergence of new specialization industries in the context of Russian regions in the period from 2005 to 2015, taking into account other factors that are significant for the emergence of such industries. The internal complementary linkages are measured by the share of new specialization industries related to existing specialization industries in the same region. External complementarity linkages are measured by the share of new specialization industries related to existing specialization industries in neighboring regions. Our data show that internal and external complementarity linkages have a strong positive effect on the emergence of new specialization industries, with a greater effect had by external ones. The number of specialization industries, the number of employees, market potential, gross domestic expenditure on research and development (R&D), domestic patent applications, working population with a higher education, and the distance from the administrative center of a region to the nearest million‐plus city also influence the emergence of new specialization industries, while gross regional product (GRP) per worker, the share of companies using the internet, and special economic zones do not. In addition, we assess the models that predict beginning of the process of diversification in a region. Finally, some policy measures are suggested for the creation of new specialization industries for Russia.