Dependence of Russian regions innovation indices on innovation type and branch-wise specialization

There are many international and Russian methods to estimate and compare regional innovationactivity. But most of them do not consider regional economic and branch differentiation, which influences innovation indices. Thepurpose of this work is the analysis of the dependence of innovation indices on regional economy innovation type and branch-wise specialization.The work is based on the Russian regions statistics data analysis. Hypothesis that regional innovation indices will depend onthe innovation type predominating in regional economy is put forward and tested. The analysis is based on the authors methods, whichallow finding the regions, which specialise in product innovations, process innovations and other regions; calculating average values ofindices of these regions groups, describing their innovation results; finding out indices, in which the average values differences betweenregions are non-random, and analyze them. We receive the following results of our analysis. 1. Regional innovation type is connectedwith regional branch-wise specialization. Product innovations are associated with equipment manufacturing. Process innovations areassociated with raw materials industry, metallurgy, coke and mineral oil industry. 2. Distinctions in innovation indices between regionsleading in product innovations and process innovations were defined. Regions leading in product innovations have high rates of innovationactivity indices but their enterprises suffer from financial difficulties. To solve financial problems it is necessary to form and realizestate industry and investment policy and to make export promotion of their innovation enterprises. 3. Regions with process innovationshave financial and economic advantages due to their branch-wise specialization. But innovations at these regions enterprises are usuallyforced by a parent company or difficult conditions of raw materials extraction. Economic and social effectiveness of these innovations islow. It is necessary to redirect the surplus of these enterprises financial resource to other economy branches innovation development.4. According to the regional innovation indices distinctions it is necessary to improve innovation statistics and region-ranking methods.It is incorrect to calculate and compare regional innovation indices ignoring regional branch-wise specialization. Russian regional innovationstatistics must form report data disaggregated by industry sectors.

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