Russia’s Place in the Global Economy, Investment and Innovation in the Era of Digitalization

Abstract

The paper raises the crucial for the modern Russia issue of the influence of the position of the country at the world market for its economic development. Methodological framework of analysis is based on the world-system theory, which puts emphasis on domination of the developed countries (the core) over the developing countries (the periphery). Basing on a large body of empirical data the authors demonstrate such negative repercussions of the semi-peripheral position of the country in the world economy as: structural shifts in favor of extracting industries at the expense of the manufacturing, low scale and quality of the productive investments of the Russian enterprises, weak interest of the Russian business in innovations and digitalization of economy. The authors conclude that in conditions of unprecedented pressure on Russia through sanctions there are prospects for our country to break free from the shackles of unfavorable external economic ties.