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The Economic Effects of Technological Innovations in the Manufacturing Industry of Russia and the Russian Far East

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  • Yegor Leonidovich Domnich

    (Economic Research Institute FEB RAS)

Abstract

The study is devoted to the assessment of the economic effects of technological innovations on productivity in the manufacturing industry of the regions of Russia with a more detailed analysis given for the Russian Far East. The study was carried out on the materials of official statistics of provided by Rosstat and covers the period between 2006–2020 with the detailed periods of 2006–2013 and 2014–2020. It is established that on average, in the period of 2006–2020, technological innovations significantly and positively influenced the productivity of Russian manufacturing enterprises in the regions of the country. The effect of product innovations was most pronounced in 2006–2013 against the background of the financial and economic crisis and the subsequent recovery of the Russian industry. The effect of process innovations, on the contrary, gained strength only in 2014–2020 as foreign markets closed for Russian manufacturers. It is shown that technological innovations are not the most significant factor in increasing the productivity of manufacturing enterprises. In manufacturing industries, productivity depends more on the volume of goods shipped in previous years, as well as on the industry environment of enterprises and the infrastructure constraints within which they have to operate. The total effect of these factors on productivity is 1.5 times greater than the effect of innovation. It is shown that in the manufacturing industry in the Russian Far East, the effect of the total volume of technological innovations on productivity is 1.5–2 times less than in Russia in general, which can be explained by the low efficiency of process innovations in the Far Eastern Federal District. At the same time, the processing enterprises of the district demonstrate an increased effect (by 25–40%) of product innovations relative to the average level in Russia, which is associated with a greater dependence of the enterprises of the district on the fulfillment of individual orders

Suggested Citation

  • Yegor Leonidovich Domnich, 2023. "The Economic Effects of Technological Innovations in the Manufacturing Industry of Russia and the Russian Far East," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 4, pages 84-116.
    • Handle: RePEc:far:spaeco:y:2023:i:4:p:84-116
    DOI: https://dx.doi.org/10.14530/se.2023.4.084-116
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    More about this item

    Keywords

    technological innovations; productivity; Far East; infrastructure constraints; dynamic panel approach;
    All these keywords.

    JEL classification:

    • B29 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Other
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • H19 - Public Economics - - Structure and Scope of Government - - - Other
    • H59 - Public Economics - - National Government Expenditures and Related Policies - - - Other
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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