Innovative Development for Northern Regions: Russian Case

According to the ranking by global competitiveness benchmarking study (WEF Competitiveness Report, 2017), Russia has the 43rd index of the competitiveness out of 142 countries compared by 67th place at 2012. We can explain it with different reasons but primarily it is a result of strengthened fundamentals, including the quality and quantity of education, training programs, and innovation capacity. In this article we consider the innovation to be the major factor that keeps countries to sustain their competitiveness that is a strategic goal for any economy including the Russian economy as well. Design/methodology/approach: Design approach for the research is based on benchmarking data and case studies analysis, as well as on author´s research activities and practical experience. The sample was chosen from research institutions (national research universities) and innovation centers as well as enterprises in different industries.Findings: There are a few forms of innovation ecosystem were considered that could become a moderator for evolving innovations and sustainable economic growth. Those are integrated distributed centres of competences at enterprise level, innovative business regional clusters (hubs), high skills centres of competences at universities, business-universities joint alliance. The concept of innovation development and the findings of this article defiantly make practical impact and resonance that get to be discussed and resulted in actions of regional and national administrations. Research/practical implications: The outcomes and implications proposed in the article related to functioning of Centres of Competence and Innovation Centres are very important for practice, and for keeping and increasing the positive dynamics of economic development cycle. The establishment of the Innovation Centres of different forms has to become a national idea of the sustainable economic growth. It has to be included to the strategic plans of the government for the better future.The aim of the research is an analysis of innovation environment of the northern regions and using it as the basis for identifying factors hindering innovation activities of the northern regions, as well as formulating ways of speeding up innovation development of the northern regions of Russia.Design/methodology/approach: Мethodological basis of the research is built on the algorithm of the knowledge index evaluation suggested by the World Bank; innovation development rating of the Russian Federation regions compiled by the Russian Academy of Public Economy and state service of the Government of the Russian Federation; Higher School of Economics, National Association of Innovations and Information Technology Development. Comparative evaluation of the level of innovation activity development in the northern regions of Russia was conducted, challenging points in the innovation development of the northern regions were identified, recommendations on improving efficacy of innovation activities of the norther regions of Russia.Findings: Authors conducted analysis of northern regions innovation environment in order to evaluate context for creation and development of innovation activities. Knowledge index for northern regions was calculated on the basis of knowledge index evaluation algorithm suggested by the World Bank. Knowledge index evaluation allows for subdividing northern regions into four groups. In general, this method allows for identifying those Russian Federation regions that are most capable of creating, accepting and disseminating knowledge, that is possessing innovation potential. Research/practical implications: The authors identified main regional policy trends in the field of innovation development stimulation: 1. Implementing additional financial mechanisms of target industrial company support.2. Forming new mechanisms of innovation projects financing.3. Implementing major infrastructure projects aimed at uniting major enterprises, small businesses, research institutions and higher education institutions. 4. Creating institutional support for innovation policy.5. Development of informational, expert – consulting and educational infrastructure for innovation activities.Originality/value: Comparative evaluation of the level of innovation activity development in the northern regions of Russia was conducted, challenging points in the innovation development of the northern regions were identified, recommendations on improving efficacy of innovation activities of the norther regions of Russia.