IDEAS home Printed from https://ideas.repec.org/a/url/izvest/v23y2022i3p86-108.html
   My bibliography  Save this article

Industrial growth and specialisation: The impact of the government support tools

Author

Listed:
  • Evgeny N. Starikov

    (Ural State University of Economics; Institute of Economics (Ural branch of RAS), Ekaterinburg, Russia)

  • Marina V. Evseeva

    (Ural State University of Economics, Ekaterinburg, Russia)

  • Ilya V. Naumov

    (Institute of Economics (Ural branch of RAS), Ekaterinburg, Russia)

Abstract

In the past decade, the concept of smart specialisation has become the basis for incorporating the principle of selectivity while using the tools of industrial policy. The paper studies the impact of the selective government support on industrial growth and assesses its qualitative correspondence with the industrial specialisation of Russian regions. Against this backdrop, considering the activity of the Industrial Development Fund (IDF) is at the center of the study. Modern concepts of industrial growth and the policy of new priorities constitute the methodological basis of the research. The methods include correlation analysis and ARIMA modelling. The research uses the information about 924 projects implemented with the funding from the IDF, panel data on the industrial production index (IPI) for 2015–2021, expert opinions on industrial specialisation of the Russian regions to identify three groups of Russian regions depending on the support provided by the IDF. The first group is characterised by the highest amount of support and displays an inverse relationship between IPI and the share of allocated funding, whereas other groups demonstrate a direct relationship. Presumably, high degree of interconnectedness of industries in the regions belonging to the first group leads to the network effects: these territories are self-developing and therefore, the government support does not much influence their industrial growth. On the contrary, other regions feature narrow specialisation and a small degree of interconnectedness of industries. The paper concludes that the IDF should prioritise loans for projects aimed at developing new production in the regions of the second and third groups based on the model of smart specialisation.

Suggested Citation

  • Evgeny N. Starikov & Marina V. Evseeva & Ilya V. Naumov, 2022. "Industrial growth and specialisation: The impact of the government support tools," Journal of New Economy, Ural State University of Economics, vol. 23(3), pages 86-108, October.
    • Handle: RePEc:url:izvest:v:23:y:2022:i:3:p:86-108
    DOI: 10.29141/2658-5081-2022-23-3-5
    as

    Download full text from publisher

    File URL: https://jne.usue.ru/images/download/96/en/5.pdf
    Download Restriction: no
    File URL: https://jne.usue.ru/en/issues-2022/1194
    Download Restriction: no
    File URL: https://libkey.io/10.29141/2658-5081-2022-23-3-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Dominique Foray, 2018. "Smart specialisation strategies and industrial modernisation in European regions—theory and practice1," Cambridge Journal of Economics, Oxford University Press, vol. 42(6), pages 1505-1520.
    2. Diego D’Adda & Donato Iacobucci & Francesco Perugini, 2022. "Smart Specialisation Strategy in practice: have regions changed the allocation of Structural Funds?," Regional Studies, Taylor & Francis Journals, vol. 56(1), pages 155-170, January.
    3. Jerker Moodysson & Michaela Trippl & Elena Zukauskaite, 2017. "Policy learning and smart specialization: balancing policy change and continuity for new regional industrial paths," Science and Public Policy, Oxford University Press, vol. 44(3), pages 382-391.
    4. Philip McCann & Raquel Ortega-Argilés, 2016. "The early experience of smart specialization implementation in EU cohesion policy," European Planning Studies, Taylor & Francis Journals, vol. 24(8), pages 1407-1427, August.
    5. Elena B. Dvoryadkina & Elvin V. Dzhalilov, 2022. "Properties of traditional industrial regions’ economic space: Theoretical foundations," Journal of New Economy, Ural State University of Economics, vol. 22(4), pages 45-61, January.
    6. Ron Boschma, 2014. "Constructing Regional Advantage and Smart Specialisation: Comparison of Two European Policy Concepts," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2014(1), pages 51-68.
    7. Marina V. Evseeva & Evgeny N. Starikov & Mikhail P. Voronov, 2021. "Technological development of industrial regions: The ecosystem approach," Upravlenets, Ural State University of Economics, vol. 12(3), pages 13-30, July.
    8. Dominique Foray & Xabier Goenaga, 2013. "The goals of Smart Specialisation," JRC Research Reports JRC82213, Joint Research Centre.
    9. Pierre-Alexandre Balland & Ron Boschma & Joan Crespo & David L. Rigby, 2019. "Smart specialization policy in the European Union: relatedness, knowledge complexity and regional diversification," Regional Studies, Taylor & Francis Journals, vol. 53(9), pages 1252-1268, September.
    10. Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 18-29, Summer.
    11. Ron Martin & Peter Sunley, 2006. "Path dependence and regional economic evolution," Journal of Economic Geography, Oxford University Press, vol. 6(4), pages 395-437, August.
    12. Alexandra Frangenheim & Michaela Trippl & Camilla Chlebna, 2020. "Beyond the Single Path View: Interpath Dynamics in Regional Contexts," Economic Geography, Taylor & Francis Journals, vol. 96(1), pages 31-51, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ron Boschma, 2021. "Designing Smart Specialization Policy: relatedness, unrelatedness, or what?," Papers in Evolutionary Economic Geography (PEEG) 2128, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2021.
    2. André Spithoven & Bruno Merlevede, 2023. "The productivity impact of R&D and FDI spillovers: characterising regional path development," The Journal of Technology Transfer, Springer, vol. 48(2), pages 560-590, April.
    3. László Szerb & Raquel Ortega‐Argilés & Zoltan J. Acs & Éva Komlósi, 2020. "Optimizing entrepreneurial development processes for smart specialization in the European Union," Papers in Regional Science, Wiley Blackwell, vol. 99(5), pages 1413-1457, October.
    4. Trippl, Michaela & Asheim, Björn & Miorner, Johan, 2015. "Identification of regions with less developed research and innovation systems," Papers in Innovation Studies 2015/1, Lund University, CIRCLE - Centre for Innovation Research.
    5. Carmelina Bevilacqua & Ilaria Giada Anversa & Gianmarco Cantafio & Pasquale Pizzimenti, 2019. "Local Clusters as “Building Blocks” for Smart Specialization Strategies: A Dynamic SWOT Analysis Application in the Case of San Diego (US)," Sustainability, MDPI, vol. 11(19), pages 1-25, October.
    6. Ron Boschma, 2022. "Evolutionary Economic Geography and Policy," Papers in Evolutionary Economic Geography (PEEG) 2220, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2022.
    7. Jason Deegan & Tom Broekel & Rune Dahl Fitjar, 2021. "Searching through the Haystack:The Relatedness and Complexity of Priorities in Smart Specialization Strategies," Economic Geography, Taylor & Francis Journals, vol. 97(5), pages 497-520, October.
    8. David L. Rigby & Christoph Roesler & Dieter Kogler & Ron Boschma & Pierre-Alexandre Balland, 2019. "Do EU regions benefit from smart specialization?," Papers in Evolutionary Economic Geography (PEEG) 1931, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2019.
    9. E. Marrocu & R. Paci & D. Rigby & S. Usai, 2020. "Smart Specialization Strategy: any relatedness between theory and practice?," Working Paper CRENoS 202004, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    10. Marco Di Cataldo & Vassilis Monastiriotis & Andrés Rodríguez‐Pose, 2022. "How ‘Smart’ Are Smart Specialization Strategies?," Journal of Common Market Studies, Wiley Blackwell, vol. 60(5), pages 1272-1298, September.
    11. Jan Ženka & Marcela Chreneková & Lucie Kokešová & Veronika Svetlíková, 2021. "Industrial Structure and Economic Resilience of Non-Metropolitan Regions: An Empirical Base for the Smart Specialization Policies," Land, MDPI, vol. 10(12), pages 1-21, December.
    12. Diego D'Adda & Donato Iacobucci & Roberto Palloni, 2020. "Relatedness in the implementation of Smart Specialisation Strategy: a first empirical assessment," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 405-425, June.
    13. Moodysson , Jerker & Trippl, Michaela & Zukauskaite, Elena, 2015. "Policy Learning and Smart Specialization Balancing Policy Change and Policy Stability for New Regional Industrial Path Development," Papers in Innovation Studies 2015/39, Lund University, CIRCLE - Centre for Innovation Research.
    14. Seyed Peyman Asadi & Ahmad Jafari Samimi, 2019. "Lagging-behind Areas as a Challenge to the Regional Development Strategy: What Insights can New and Evolutionary Economic Geography Offer?," Papers in Evolutionary Economic Geography (PEEG) 1923, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2019.
    15. Lars Mewes & Tom Broekel, 2020. "Subsidized to change? The impact of R&D policy on regional technological diversification," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(1), pages 221-252, August.
    16. Chatzistamoulou, Nikos & Kounetas, Kostas & Tsekouras, Kostas, 2022. "Technological hierarchies and learning: Spillovers, complexity, relatedness, and the moderating role of absorptive capacity," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    17. Ron Boschma & Carlo Gianelle, 2014. "Regional Branching and Smart Specialisation Policy," JRC Research Reports JRC88242, Joint Research Centre.
    18. Yang Li & Frank Neffke, 2022. "Relatedness in regional development: in search of the right specification," Papers in Evolutionary Economic Geography (PEEG) 2208, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2022.
    19. Angela Wigger, 2023. "The New EU Industrial Policy and Deepening Structural Asymmetries: Smart Specialisation Not So Smart," Journal of Common Market Studies, Wiley Blackwell, vol. 61(1), pages 20-37, January.
    20. Roberta Capello & Camilla Lenzi, 2018. "The dynamics of regional learning paradigms and trajectories," Journal of Evolutionary Economics, Springer, vol. 28(4), pages 727-748, September.

    More about this item

    Keywords

    industrial growth; industrial production index; Industrial Development Fund; industrial specialisation; policy tools; regions; industrial development projects;
    All these keywords.

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:url:izvest:v:23:y:2022:i:3:p:86-108. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Victor Blaginin (email available below). General contact details of provider: https://edirc.repec.org/data/usueeru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.