Innovations as a factor of regional manufacturing’s development in Russia
Background. The search the reasons for a manufacturing development is very important for Russia. Nowadays the extractive enterprises are the most important part of Russians economy. For example, in 2013 year the part of mineral products in common Russian export was 76,1% (data of Russians Federal State Statistics Service). But to be competitive in the global economy the country needs in production of more complex products. Methods. The method of this research is a production function which was constructed for the Russian manufacturing. The most known production functions which are used for used in the regional economics are the Cobb-Douglas function and the CES function. In spite of long life of the Cobb-Douglas production function and availability of large amount of new functions, we can say, that this instrument is still applicable today. Many scientists use this production function in their research. So in our article we used the Cobb-Douglas function and the factors were labour, capital, transport infrastructure and innovations. The coefficients for the selected function were obtained using the correlation-regression analysis approach. Results. The result is that transport infrastructure doesn’t matter for Russian manufacturing. The coefficient of innovation in logarithmic production function is 0,15 and it’s significant on the 1% level. It’s means that innovations play an important role in manufacturing production increasing. Conclusions. The first conclusion is regarding the possibility of using the Cobb-Douglas function to research the Russian industry and regarding factors, which influence the development production. The main factor except labor and capital is innovations that means that to increase manufacturing production in Russia the government should improve innovation infrastructure.