THE RELATIONSHIP OF THE REGIONAL INNOVATION POTENTIAL AND THE LEVEL OF SMALL AND MEDIUM-SIZED ENTREPRENEURSHIP DEVELOPMENT IN RUSSIA
The aim of this article is to analyze the relationship of innovation potential and its main components with the level of small and medium-sized enterprises development in Russian regions. Based on international and Russian experience the regional innovation potential was evaluated using the multilevel approach. It includes the calculation of the partial sub-indices reflecting the innovation potential components in the regions (resources, infrastructure and effectiveness of innovation) as well as the composite index evaluation based on them. Principal components analysis of the variables characterizing small and medium-sized enterprises density in a region and these enterprises contribution to regional employment allows obtaining generalized characteristic of the level of small and medium-sized enterprises development. By the values of resource and effectiveness components of the innovation potential the typological groups of Russian regions were highlighted. The analysis reveals a significant moderate positive relationship between the level of small and medium-sized enterprises development (in particular, the groups of micro and small enterprises, medium-sized enterprises) and the composite index of innovative potential as well as sub-indices characterizing its components. For medium-sized enterprises this relationship with the resource and effectiveness components is higher because medium-sized enterprises are more involved in innovation activities. Currently, the contribution of small enterprises to innovative development of Russian regions is negligible, so the level of small entrepreneurship development depends mostly on regional infrastructure than on other aspects of innovation. Finally, practical recommendations were developed to stimulate entrepreneurial activity taking into account regional specificities.