Intellectual Capital as a Basis for Innovative Development

The purpose of this paper is to investigate the link between intellectual capital andinnovative development on the example of Russian regions. Design/methodology/approach: Authors have collected data on 85 Russian regions for the2013-2016 years from Unified Interdepartmental Information and Statistical System (EMISS)and Federal State Statistics Service of the Russian Federation. Panel regressions with randomeffects were employed to estimate impact of intellectual capital, VAIC and their componentson the indicators of regional innovative development. Findings: The regression analysis confirmed significant and positive impact of intellectualcapital, VAIC, and their components on the indicators of innovative development of Russianregions. Human capital and its effectiveness have stronger impact on the innovativedevelopment of Russian regions than other components of intellectual capital and VAIC. Research/practical implications: The study results can be used by state bodies in theformation of innovative development strategies for future periods and in the development ofmeasures to achieve the targets of the current strategy. Originality/value: This study empirically proved positive impact of intellectual capital, VAICand their components on innovative development of Russian regions.