Does Technological Progress Magnify Regional Disparities?
We study how technological progress in manufacturing and transportation to-gether with migration costs interact to shape the space-economy. Rising labor productivity in the manufacturing sector fosters the agglomeration of activities, whereas falling transport costs associated with technological and organizational in-novations fosters their dispersion. Since these two forces have been at work for a long time, the final outcome must depend on how drops in the costs of producing and trading goods interact with the various costs borne by migrants. Finally, when labor is heterogeneous, the most efficient workers of the less productive region are the first to move to the more productive region.
The paper deals with the issues of economic activity location in the Russian regions, that is influenced not only by factors "first nature" - the presence of minerals, fertile land, favorable geographic position, but also factors of a "second nature", in particular, the agglomeration effects and the economy of scale. Analysis of geographic concentration and regional specialization reflects the general trend of the location of industrial production, investment and human resources, provides the necessary information basis for a balanced economic policy.
Abstract. The uneven distribution of economic activity in Russia promotes the differentiation of its constituent entities by level of development. Regions are independent participants of economic relations, and they often act as competitors rather than partners. Agglomeration effects arise in more successful regions and contribute to the concentration of resources, manufacturing enterprises, service providers, skilled workers, and scientific and technological knowledge. The aim of the study, the results of which are reflected in the paper, is to identify the factors and assess their impact on the concentration (dispersion) of economic activity on the basis of Russia’s regions. The paper describes the benefits of agglomeration processes from the standpoint of economic geography, allocation theory and international trade theory. The concentration of economic activity in Russia’s regions is estimated by the Herfindahl–Hirschman index of industrial production taking into consideration the volume of investments in fixed capital and the number of people employed in the economy in Russia’s regions in 1990–2013. It is determined that fixed capital investments have the propensity to concentrate, but react strongly to economic crises. Labor resources, by contrast, are distributed relatively evenly, and their concentration in certain regions is increasing steadily. The article considers key factors such as wage growth, distance to large cities, direct foreign investment, road network density, the degree of development of the services sector in the region. The factor model is constructed using the least squares method. The authors conclude that the growth of wages in the region (relative to national average) has a negative effect on the concentration of economic activity. There is a positive correlation between the growth of direct foreign investment and the density of hard surface roads. The development of services has the greatest positive impact on agglomeration processes in Russia’s regions. The paper confirms the point of the new economic geography concerning the negative impact that the region’s remoteness from major markets exerts on the development of agglomeration process. The authors agree with foreign researchers on the fact that the emergence and development of agglomeration process is influenced by increasing returns to scale, transport costs and labor migration. But the very indirect factors included in the model are influenced by economic actors in the regional socio-economic policy.
This volume of scientific papers IEF RAS includes articles on a wide range of issues of theory and practice analysis and forecasting of national and regional economies and their sectors. The articles raise urgent problems of Russia’s socio-economic development: restoring of economic growth, increase in productivity, transition to a new technological level of production, improving the quality of RF citizens’ life. The book is addressed to researchers, economists, teachers, graduate students, students and readers interested in current and future socio-economic Russia’s problems.
Contrary to more advanced countries, Russia’s district heating hardly embraces radical innovations. Moving forward with breakthrough solutions, even if they have proven their effectiveness at leading European companies and are supported by federal and regional authorities, encounters significant obstacles. These obstacles include inflexible corporate management, including when interacting with customers, and inexperience in creating internal corporate startups and managing risks in the early stages of R&D. The authors review the innovation activity of heating companies, analyze the difficulties in adopting innovations, and compare the strategies and performance indicators of Russian and Finnish energy companies. Special emphasis is given to the Moscow district heating system. Analysis shows that its’ strategic development in the past decade has focused primarily on reframing the organizational set-up, not innovation. As a result, business processes and cash flows were largely streamlined but European level of productivity was not achieved. The creation of a single vertically integrated entity in Moscow’s energy industry has limited the ability to develop alternative district heating and cooling systems. Energy infrastructure innovation centres are sparse and feature limited specialization and competition. Large companies tend to follow the ‘closed innovation’ model where R&D activities are concentrated within an organization, and focus on incremental innovations while lagging in radical innovations in cogeneration and trigeneration. Under these conditions, short-term planning dominates, while mid- and long-term planning are virtually non-existent. The paper concludes with recommended measures to support the innovative development of Russian heating companies that can be split into institutional and corporate recommendations. The first group concerns stimulating competition in the heat supply market and creating a stable legal and investment environment. The second group calls for technological modernization, development of long-term corporate strategies that include investment programmes, systematic analysis of the best international practices for innovative development, and the formation of partner networks involving foreign innovative, consulting, and research centres.
One of the most important indicators of company's success is the increase of its value. The article investigates traditional methods of company's value assessment and the evidence that the application of these methods is incorrect in the new stage of economy. So it is necessary to create a new method of valuation based on the new main sources of company's success that is its intellectual capital.