“Propulsive Industries” of the Regions of Russia's Western Borderland under of Geopolitical Turbulence

Authors

  • Sergey Valentinovich Kuznetsov Institute for Regional Economic Studies of RAS
  • Stanislav Sergeevich Lachininskiy Saint Petersburg University; Immanuel Kant Baltic Federal University
  • Andrey Sergeevich Mikhaylov Immanuel Kant Baltic Federal University
  • Alexander Vladimirovich Shendrik Saint Petersburg University

DOI:

https://doi.org/10.17059/2019-4-22

Keywords:

region, Russia's Western borderland, potential, value added, geopolitical turbulence, propulsive industry, economic security, assessment, types of activity, taxes

Abstract

The study aims to identify and analyse the dynamics of “propulsive industries”, considered as drivers of economic growth and stabilizers of economic security ofthe regions of Russia's Western borderland in the period of geopolitical turbulence (20132018). We are particularly interested in the identification of industries regarded as drivers of regional economic growth during the crisis of the Russia's economy and its individual regions. The article presents the results of a study, supported by the grant of Russian Science Foundation No. 18-17-00112 «Ensuring the Economic Safety of Russia's Western Borderlands amid of Geopolitical Turbulence» and by the grant No. 18-310-20016 of Russian Foundation for Basic Research. “Propulsive industries” are characterised by a high level of the adaptation of technologies, and export and innovation potential, which determine the fifth and sixth technological order. The state and dynamics of these industries support region's economic security and the level of competitiveness, especially under difficult conditions of geopolitical turbulence (2013-2018). We conducted analysis based on data on net value added, produced by the main types of economic activity. Then, we assessed value added for enterprises and organisations subject to value added tax in the regions of Russia's Western borderland. Thus, the study is based on tax statistics provided in the reports of the Federal Tax Service of the Russian Federation. We selected and substantiated some types of activity as the “propulsion industries” that determine the economic security, and regions export and innovation potential. They include “production of medicines and materials used for medical purposes”, “production of computers, electronic and optical products”, “production of aircrafts, including spacecraft, and related equipment”, “information and communication activities” and “professional, scientific and technical activities”. The study's statistical and quantitative base is built on data on value added tax (VAT). Based on these data, we calculated the net value added for the main types of economic activity produced by enterprises and organisations subject to VAT. The study has shown that the industry «Production of computers, electronic and optical products» is propulsive for the majority of the regions of Western borderland. The research results will be reflected in the implementation of our team's fundamental developments, including the projects of Russian Science Foundation and Russian Foundation for Basic Research.

Author Biographies

Sergey Valentinovich Kuznetsov, Institute for Regional Economic Studies of RAS

Doctor of Economics, Professor, Head of the Institute for Regional Economic Studies of RAS; Scopus Author ID: 57190430941 (38, Serpukhovskaya St., Saint Petersburg, 190013, Russian Federation; e-mail: s.kuznetsov09@yandex.ru).

Stanislav Sergeevich Lachininskiy, Saint Petersburg University; Immanuel Kant Baltic Federal University

PhD in Geography, Associate Professor, Head of the Department of Regional Policy and Political Geography, Saint Petersburg University; Senior Research Associate, Immanuel Kant Baltic Federal University; Scopus Author ID: 55782922700 (7–9, Universitetskaya Emb., Saint Petersburg, 199034, Russian Federation; e-mail: s.lachininsky@spbu.ru).

Andrey Sergeevich Mikhaylov, Immanuel Kant Baltic Federal University

PhD in Geography, Research Associate, Immanuel Kant Baltic Federal University; Scopus Author ID: 56567817600 (14, A. Nevskogo St., Kaliningrad, 236016, Russian Federation; e-mail: mikhailov.andrey@ yahoo.com).

Alexander Vladimirovich Shendrik, Saint Petersburg University

Assistant, Department of Economic and Social Geography, Saint Petersburg University; Scopus Author ID: 57195719645 (7–9, Universitetskaya Emb, Saint Petersburg, 199034, Russian Federation; e-mail: shen@mail.ru).

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Published

27.12.2019

How to Cite

Kuznetsov, S. V., Lachininskiy, S. S., Mikhaylov, A. S., & Shendrik, A. V. (2019). “Propulsive Industries” of the Regions of Russia’s Western Borderland under of Geopolitical Turbulence. Economy of Regions, 15(4), 1253–1265. https://doi.org/10.17059/2019-4-22

Issue

Section

Research articles