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Alternative model for managing innovation and high-tech sector of the Russian economy

Author

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  • Evgeny V. Balatsky

    (Financial University under the Government of the Russian Federation, Moscow, Russia)

  • Nataly A. Ekimova

    (Russian Academy of Sciences, Moscow, Russia)

Abstract

Currently, the Russian government is implementing technological modernization of the country’s economy. However, all economic indicators show that, though the country is still among the world leaders in the military industry and nuclear energy, its attempts to achieve success in civilian industries have not yet provided the intended outcome. The article presents a systembased explanation of the model of spasmodic technological development in Russia and the reasons behind the failure of the authorities to form an innovative economy. The cultural concept of Loren Graham constitutes the methodological basis of the study. According to the concept, the main problem of Russia is a lack of Western business values embedded in the country’s culture. To test this concept, we used the case study method in the historical retrospective and statistical comparisons, including data from the Global Entrepreneurship Monitor database. For calculations, Kremer’s modified model was applied. The adoption of these values involves the creation of such innovation classes as inventors, entrepreneurs and investors. The authors substantiate the thesis that the state should form an innovative culture, which requires every citizen to be aware of the challenge associated with that, i.e. the loss of economic sovereignty. At the same time, it is necessary to formulate a neutral, but effective national idea similar to the Asian slogan “Dictatorship of Development”. The strength of the central government in Russia is objectively determined by the geographical factors – a vast territory and a cold climate. In such a state, it is impossible for democratic political institutions to exist, and therefore traditional management decisions about creating a national innovation system do not produce significant results. The authors develop a thesis about the “innovative ambivalence” of the central government, which encourages the state to create high-tech industries cultivating the traditional way of technological development management. The paper specifies the professional requirements for managers of such enterprises and outlines the principles of planning the activities of new production facilities. The research results can be of use when developing programs for technological modernization in Russia.

Suggested Citation

  • Evgeny V. Balatsky & Nataly A. Ekimova, 2020. "Alternative model for managing innovation and high-tech sector of the Russian economy," Upravlenets, Ural State University of Economics, vol. 11(5), pages 2-16, November.
  • Handle: RePEc:url:upravl:v:11:y:2020:i:5:p:2-16
    DOI: 10.29141/2218-5003-2020-11-5-1
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    References listed on IDEAS

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    1. Harrison, Lawrence E., 2008. "The Central Liberal Truth: How Politics Can Change a Culture and Save It from Itself," OUP Catalogue, Oxford University Press, number 9780195331806.
    2. Michael Kremer, 1993. "Population Growth and Technological Change: One Million B.C. to 1990," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 681-716.
    3. Kwon, Seokbeom & Motohashi, Kazuyuki, 2017. "How institutional arrangements in the National Innovation System affect industrial competitiveness: A study of Japan and the U.S. with multiagent simulation," Technological Forecasting and Social Change, Elsevier, vol. 115(C), pages 221-235.
    4. Evgeny V. Balatsky & Nataly A. Ekimova, 2019. "Innovation-technology matrices and national economic development strategies," Upravlenets, Ural State University of Economics, vol. 10(5), pages 9-19, October.
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