The State of Mechanical Engineering in the Modern Russian Economy

Abstract

Machine building is a leading industry in advanced countries. It provides many industries with machines and equipment as it is the main link in the system of intersectoral linkages. Innovations in engineering create the basis for increasing production and qualitative changes in the structure of industry, that creates a synergistic effect for the economy as a whole. Thus, it secures full employment for highly skilled employees, promotes the growth of the level of educational background of the population and contributes to the development of the scientific and technological potential of the country. However, underinvestment in innovation technologies and processes, a limited character of the import substitution model and an insufficient support of the export model greatly hinder rapid and effective development of the machine-building industry. Specific peculiarities of the machine building development such as R&D intensity, labor intensity, and the intensity of metal use, the need in cooperation and consumer orientation influence their geographic location. Despite the decline in the number of enterprises and employment in the machine-building industry, the industry’s contribution to the GVA is stable. At the same time, the state’s interest in the development of all sectors with high added value will influence the future of engineering. In statistics innovative activity in mechanical engineering began to be considered relatively recently. The highest rates of innovation are high-tech engineering. The state’s share in supporting innovation in both manufacturing and engineering is increasing. The coefficients of specialization are calculated for all Federal districts and each of the 85 subjects of the Federation for the period from 2007 to 2017. Calculations were carried out for all types of economic activity, according to the classifier of OKVED. The specialization industries for each of the regions are identified. The group of regions where engineering is concentrated is defined. These 19 regions did not change their industry of specialization during the analyzed period from 2008 to 2017.