INNOVATION AS A FACTOR OF REGIONAL ECONOMIC GROWTH: EVIDENCE FROM RUSSIA

The aim of this research is to determine which factors of innovation are relevant to generate economic growth at the regional level and which to reap the benefits. The new growth theories suggest that the source to increase returns may be agglomerations as geographical concentrations of knowledge. The paper analyses the concentrations of knowledge as agglomerations of expenditure on Research and Development, and on science and technology. It entails the number of scientists and engineers, scientific and technological personnel of innovation enterprises in the various Russian regions. The Exploratory Factor Analysis method is used to examine the structure of the innovation inputs and outputs. The paper empirically evaluates the impact of innovation factors on the economic growth in the regions and proposes a strategy to improve the efficiency of the regional innovation system.