Assessment of Factors Influencing the Innovation Potential of Vertically Integrated Companies in a Macroregion

Abstract

Due to the globalisation of the world economy and development of transnational corporations, vertically integrated companies have to use a wide range of innovation opportunities spanning the entire value chain in order to maintain market positions. Thus, such companies need to constantly and timely monitor changes influencing the innovation potential. The study proposes a new methodology for assessing the innovation potential of vertically integrated companies (VICs) and affecting factors. The implementation of the principle of continuity across the value chains of vertically integrated companies ensures the integrity and reliability of research results. Statistical data of seven VICs of the Volga Federal District for 2017 were analysed. Using the proposed methodology, we determined aggregate factors, ranked them and revealed their stimulating and disincentive effects on the innovation potential of VICs. Additionally, the study identified mechanisms for the efficient use of such potential across the value chains for strengthening the socio-economic development of regions. The analysis was performed based on the integrated use of structural, functional, generalisation, correlation and regression, statistical and economic, and expert assessment methods. It explained the distribution of factors and their correlation dependencies. The quantitative evaluation of presented factors demonstrated their varying impact on the innovation potential of vertically integrated companies. The research results can be used for developing regional strategies aimed at the improvement of company performance and economic crisis resolution.