Interrelation of R&D, Knowledge Spillovers, and Dynamics of the Economic Growth of Russian Regions

Abstract

The article explores the interrelations between research and development (R&D), innovation activity, and economic growth in the Russian regions. To analyze these interrelations, the econometric framework is applied. Based on data for 2005-2013, panel regression with fixed effects and the Arellano-Bond model are constructed. Hypotheses about the significant impact of knowledge and socioeconomic conditions on regional growth have been tested, while the expenditure on R&D and technological innovation are used to analyze knowledge spillovers; and spillovers of socioeconomic conditions are modeled with a socioeconomic filter. The results of calculations indicate possible competition for labor in the industry when this indicator is included in the socioeconomic filter. The calculations also confirm the significant impact of expenditure on technological innovation and spillovers on technological innovations for regional economic growth. At the same time, knowledge has been more efficiently disseminated to regions with high absorptive capacity, as well as between regions with similar growth rates. The authors conclude that knowledge spillovers can have a significant impact on gross regional product per capita (GRP) growth. The results can be used by regional governments when formulating innovation policy.

The impact of R&D and knowledge spillovers on the economic growth of Russian regions

“…The authors applied the haversine formula to measure distances between regions. A 2005–2013 study of Russian regions confirmed a positive effect of knowledge spillovers (in the form of expenditure on R&D and on TI in fixed‐effects models), while the spillovers did not affect growth in GMM estimations (Kaneva & Untura, ). Lobodina and Schmidt () evaluated knowledge spillovers between Eastern and Western regions of Russia using the knowledge production function, econometric models, and Moran's index.…”

“…The particular combination of positive and negative factors in the organization of science and innovation in Russia after the 1990s has led to a situation in which R&D and knowledge flows now are no longer straightforward or easily interpreted, thus making the task of econometric modeling of the effect of R&D and innovation growth challenging for the authors. This difficulty was further exacerbated by the low number of studies that quantify the impact of regional R&D expenditure on economic growth (see Lobodina & Schmidt, ; Aldieri et al, ; Kaneva & Untura, ). The current paper addresses this gap in the literature.…”

“…Another factor that could also affect regional growth in Russia is knowledge spillovers. Today there are several papers that study spillovers of research and development (hereafter R&D) (Lobodina & Schmidt, ; Pilyasov, ), spillovers of R&D capital stock demonstrate significant effect on regional growth (Aldieri, Kotsemir, & Vinci, ) while Kaneva and Untura () could not confirm this effect in GMM models for Russian regions from 2005 to 2013.…”

Economic Growth Of Russian Regions: Condition, Factors, Opportunities

“…If to speak about the present, then there is such situation at which at the macro level economic indicators is more or less obvious and are more studied, but the analysis of factors and systematization of approaches to studying of development of regions of Russia remains logically not ended (Kaneva & Untura, 2018).…”