Selective industrial policy in the Russian Federation: criteria for searching priority regions for realization

This study identifies patterns of protectionist policies implemented by countries around the world that made them part of the world leading economies. Based on this analysis, it highlights the need for a selective industrial policy in the Russian regions to restructure their economy towards a focus on high-tech and knowledge-intensive industries that can both meet domestic demand under external technological sanctions and replace traditional Russian exports goods (hydrocarbons and other natural resources) which are the subject to sanctions imposed by their former long-standing consumers. Two criteria for searching regions for industrial policy realization were formulated and described: diversification of their economies based on the Herfindahl index and potential for high-tech exports. Based on official statistical data from the Federal State Statistics Service, a quantitative analysis was carried out, and a group of regions with the greatest potential for successful implementation of industrial policy was identified. As a result, 16 constituent entities of the Russian Federation were selected based on their high production and scientific and technological potential, which were found suitable for implementing selective industrial policies aimed at developing high-tech and knowledge-intensive export-oriented industries in the context of limited government resources.