IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa15p600.html
   My bibliography  Save this paper

Role of SMEs in regional innovation systems in Russia

Author

Listed:
  • Vera Barinova
  • Stepan Zemtsov
  • Alla Sorokina

Abstract

SMEs play an important role in the development of regional innovative systems because of their potential to accept new technologies and show fast growing rates. There is an interdependence between emergence of fast growing SMEs (?gazelles?) and innovative development of regions. High level of regional innovative development creates a fertile environment for increasing the number of fast growing companies, while we assume that large number of ?gazelles? creates a favourable environment for the dissemination of innovations in regions via spillover effect (NESTA Business growth and innovation, 2009). Fast-growing companies may contribute more than 50% to GDP growth (Europe INNOVA Gazelles Innovation Panel, 2008). There are several works, that explain growth of firms as a stochastic phenomenon (Gibrat, 1929), or as a combination of endogenous (Penrose, 1955) and exogenous factors (Delmar, Davidsson, Gartner, 2003). In our work we assume that regional innovation performance (as a share of RnD personnel in employment, share RnD expenditures in gross regional product, etc.) may be a significant factor because of knowledge spillover effects (Audretsch, Feldman, 2004), affecting more competitive firms. There were no works on Russian regional data that could prove it. The article analyses a variety of endogenous (intra-firm) and exogenous (regional) factors, which determine the share of fast-growing firms in Russian regions. The analysed firms were fast-growing manufacturing SMEs during post-crisis period (2009-2012), the main focus was on the determinants of the companies? share in total number of manufacturing firms in a region. The dataset was collected from SPARK (Professional market and company analysis system), and consists of information about income, owners, location, industry and several financial indicators. Regional factors, according to Russian Federal State Statistical service, include research and development indicators (such as RnD expenditures, RnD employees, etc.), urbanization rate, human capital, investment climate, etc. There are 419 manufacturing fast-growing companies (?gazelles?) from 9220 companies in database, which is approximately 5%. Econometric analyses demonstrates a strong correlation between the share of high-growth companies in regions and indicators of regional innovation performance: number of researchers per 10 000 people, the number of PCT applications per economically active population, the share of employees with higher education in the total number of population in economically active age, and the number of applications for inventions submitted to the Russian Patent Bureau by national applicants per the economically active population. Determined factors could be used for elaborating recommendations for implementation of industrial policy in Russia.

Suggested Citation

  • Vera Barinova & Stepan Zemtsov & Alla Sorokina, 2015. "Role of SMEs in regional innovation systems in Russia," ERSA conference papers ersa15p600, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa15p600
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa15/e150825aFinal00600.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Audretsch, David B. & Feldman, Maryann P., 2004. "Knowledge spillovers and the geography of innovation," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 61, pages 2713-2739, Elsevier.
    2. Penrose, Edith, 2009. "The Theory of the Growth of the Firm," OUP Catalogue, Oxford University Press, edition 4, number 9780199573844.
    3. Michael Porter, 1994. "The Role of Location in Competition," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(1), pages 35-40.
    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. Yasuyuki Motoyama, 2020. "Beyond formal policies: Informal functions of mayor’s offices to promote entrepreneurship," Local Economy, London South Bank University, vol. 35(2), pages 155-164, March.
    2. Md. Mominur Rahman & Bilkis Akhter, 2021. "The impact of investment in human capital on bank performance: evidence from Bangladesh," Future Business Journal, Springer, vol. 7(1), pages 1-13, December.
    3. Mohamed Amara & Khaled Thabet, 2019. "Firm and regional factors of productivity: a multilevel analysis of Tunisian manufacturing," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(1), pages 25-51, August.
    4. Emanuela Marrocu & Raffaele Paci & Stefano Usai, 2013. "Productivity Growth In The Old And New Europe: The Role Of Agglomeration Externalities," Journal of Regional Science, Wiley Blackwell, vol. 53(3), pages 418-442, August.
    5. Anna M. Ferragina & Giulia Nunziante, 2018. "Are Italian firms performances influenced by innovation of domestic and foreign firms nearby in space and sectors?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(3), pages 335-360, September.
    6. Rui Baptista & Joana Mendonça, 2010. "Proximity to knowledge sources and the location of knowledge-based start-ups," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(1), pages 5-29, August.
    7. Pauly, Stefan & Stipanicic, Fernando, 2021. "The creation and diffusion of knowledge: Evidence from the Jet Age," CEPREMAP Working Papers (Docweb) 2112, CEPREMAP.
    8. Marta Aloi & Joanna Poyago-Theotoky & Frédéric Tournemaine, 2022. "The Geography of Knowledge and R&D-led Growth [Real effects ofacademic research: comment]," Journal of Economic Geography, Oxford University Press, vol. 22(6), pages 1149-1190.
    9. Myint Moe Chit, 2018. "Political openness and the growth of small and medium enterprises: empirical evidence from transition economies," Empirical Economics, Springer, vol. 55(2), pages 781-804, September.
    10. Tom Broekel & Matthias Brachert & Matthias Duschl & Thomas Brenner, 2015. "Joint R and D subsidies, related variety, and regional innovation," Working Papers on Innovation and Space 2015-01, Philipps University Marburg, Department of Geography.
    11. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    12. Parent, Olivier & LeSage, James P., 2011. "A space-time filter for panel data models containing random effects," Computational Statistics & Data Analysis, Elsevier, vol. 55(1), pages 475-490, January.
    13. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    14. Andrés Rodríguez-Pose & Riccardo Crescenzi, 2008. "Mountains in a flat world: why proximity still matters for the location of economic activity," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 1(3), pages 371-388.
    15. Nils Grashof, 2020. "Sinking or swimming in the cluster labour pool? A firm-specific analysis of the effect of specialized labour," Jena Economics Research Papers 2020-006, Friedrich-Schiller-University Jena.
    16. Marrocu, Emanuela & Paci, Raffaele, 2011. "They arrive with new information. Tourism flows and production efficiency in the European regions," Tourism Management, Elsevier, vol. 32(4), pages 750-758.
    17. Daisuke Oyama & Yasuhiro Sato & Takatoshi Tabuchi & Jacques-François Thisse, 2009. "On the impact of trade on industrial structures: The role of entry cost heterogeneity," Working Papers halshs-00566786, HAL.
    18. Antonelli, Cristiano, 2017. "Digital knowledge generation and the appropriability trade-off," Telecommunications Policy, Elsevier, vol. 41(10), pages 991-1002.
    19. repec:use:tkiwps:3232 is not listed on IDEAS
    20. Maria De Paola & Michela Ponzo & Vincenzo Scoppa, 2018. "Are Men Given Priority for Top Jobs? Investigating the Glass Ceiling in Italian Academia," Journal of Human Capital, University of Chicago Press, vol. 12(3), pages 475-503.
    21. Malen, Joel, 2015. "Motivating And Enabling Firm Innovation Effort: Integrating Penrosian And Behavioral Theory Perspectives On Slack Resources," Hitotsubashi Journal of commerce and management, Hitotsubashi University, vol. 49(1), pages 37-54, October.

    More about this item

    Keywords

    SME; Russian regions; regional innovation systems;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:wiw:wiwrsa:ersa15p600. 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: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

    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.