Specific Aspects of Functioning and Interaction of Regional Economic Systems

Abstract

The presented study examines the specific aspects and processes of the functioning of regional economies and interregional interaction.Aim. The study aims to analyze the existing mechanisms of the functioning and interaction of regional economic systems.Tasks. The authors present a general scheme for the functioning of a regional economic system; examine the principles of interaction between regional economic systems; determine the specific aspects of inter-sectoral interaction as a form of interregional cooperation.Methods. This study uses general scientific methods, including systems analysis, synthesis, induction and deduction, specification and generalization, and modelling.Results. The authors substantiate a general scheme for the functioning of the regional economic system as an object of management. Its structural elements include the region’s production-economic and socio-economic complexes and the fiscal sphere. It is shown that interregional interaction is now particularly important as it facilitates joint production of goods. Interregional interaction involves the exchange of goods and services, migration processes, and financial exchange. Interregional cooperation should be based on the existing federal and regional strategies. It is established that inter-sectoral interaction and formation of regional sectoral clusters are efficient forms of interregional cooperation.Conclusions. A specific feature of the functioning of regional economies is that it is regulated simultaneously at the macro- and meso-level. Regulation at the meso-level involves the implementation of regional economic development strategies with allowance for the socio-economic features of individual administrative and territorial units. At the macro-level, the regional economy functions within the existing strategy of the federal center and also involves interregional and inter-sectoral interaction.

The current state and potential of innovative developments in the service industry

“…[15] As it was already brought up the transition to the innovative service-digital economy is characterized by the predominance of the service industry and services in the state economy. The researchers [7] note that the innovations in the service sector are the most in-demand especially taking into consideration the events associated with the 2020 pandemic.…”

“…The authors of the article [7] state that the branches of the extractive sector were the top priority for the state for a long period of time and the service sector was not assumed as a significant part of the economy. This situation has led to the fact that the service sector as an important social tool in the state policy has practically no control which leads to the growth of the informal sector in this industry.…”

“…To estimate the impact of the various indicators on the study field it is proposed to apply the methodology stipulated in the works [7,10,11]. The authors propose to use the indicators which describe the state of the environment of the innovation in the service industry in different time periods including the forecast indicators.…”

“…Based on the information of the state economy development level and being focused on the certain innovative technologies this trend can be defined from the position of the predominance of a specific technology. [6,7] On the basis of the records [8,9] the service industry is a component of the non-resource sector and its considerable importance is mentioned in the above materials. It should be stressed that in the future the innovations in the non-resource sector of the economy will be crucial in achieving the maturity and sustainability indicators of the national economy.…”

Professional education for digital economy: trends and prospects

“…The problems of educational programmes' changes accordingly with economics' digitalization, state's social and economic level, digital transformation modelling opportunities, contemporary professional competencies and professional building skills were revealed by known authors. It worth to refer proceedings of Okrepilov V. [1], Evmenov A., [2], Widdeth S. and Holliford S. [3], Meister [4], Parkinson [5]. Creative economy, ecology and environmental economy, humanoriented services are well-known spheres of business nowadays.…”