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Finance and Management
Reference:

Smart specialization of regions as a basis for sustainable development of the Russian Federation

Shaidullin Azat Kamilevich

ORCID: 0009-0005-7001-2861

Graduate student, Institute of Economics and Business, Ulyanovsk State University.

432007, Russia, Ulyanovsk region, Ulyanovsk, nab. University, 1/4

azshk641@gmail.com

DOI:

10.25136/2409-7802.2024.1.69846

EDN:

HVSXFC

Received:

12-02-2024


Published:

19-02-2024


Abstract: The article is devoted to the implementation of the concept of "smart specialization" of regions for the purposes of sustainable development of the Russian Federation. The purpose of the study is to justify making adjustments to the issues of strategic planning and territorial management at the federal level for the effective implementation of the principles of smart specialization in the regions. The current macroeconomic conditions prevailing in Russia have led to the formation of a strategic course of socio-economic development of the state in the public administration system, which is based on diversified specialization and sustainable development of the subjects of the Russian Federation. This article offers recommendations on the formation of the concept of smart specialization of the subjects of the Russian Federation at the strategic level. The subject of the research is the concept of smart specialization for sustainable development and the possibility of its reflection in the strategic documents of the Russian Federation. The relevance of the research topic is beyond doubt, since the issues of sustainable development of the subjects of the Russian Federation are still topical. The present study is based on the dialectical method of cognition, which includes such methods as comparative, institutional analysis, synthesis, induction, deduction. This methodology provided an opportunity to study this problem through the prism of theoretical and practical aspects. It was concluded that "smart specialization" will make it possible to most effectively identify and implement the vector of regional development, select specific measures that are most effective for each of the subjects of the Russian Federation. One of the important tasks when using this approach is to minimize competition between regions, implement the transition from competition for investment and business to joint development of value chains by regions and strengthen interactions between enterprises. The necessity of developing and implementing institutional and methodological foundations for detailing and updating the most economically promising specializations of the regions was justified. The results of this study, the conclusions drawn and the formulated proposals can be used to improve the strategic foundations of territorial management with a view to their sustainable development. The scientific novelty of the research lies in the proposal to make changes to the fundamentals of strategic planning for the territorial development of the regions of the Russian Federation, which will contribute to the implementation of the principles of smart specialization in practice.


Keywords:

smart specialization, sustainable development, regional economy, strategy, spatial development, production, economic growth, socio-economic development, subjects of the Russian Federation, macroeconomic conditions

This article is automatically translated.

Actions to enhance the socio-economic development of their territories are being taken by many foreign countries that are faced with increased competition, global challenges, as well as serious economic and social consequences at the macro and micro levels. According to G.Ya. Yasheva and O.M. Sherstneva, in order to achieve such a strategic goal as strengthening the national economy, it is necessary to use various instruments of sustainable development, including the strategy of "smart specialization" [17]. Experts point out that with the introduction of "smart specialization", the region may experience an increase in GRP per capita by more than three times with the right methodological approaches [15]. At the same time, with proper investments in specialization, the state can achieve significant economic effects [4]. Thus, in the countries of the European Union, about 40 billion euros were allocated for the implementation of the smart specialization strategy in the period 2014-2020, and by the beginning of 2022, the effect was achieved in the form of the emergence of 140 thousand promising start-ups, 15 thousand new types of products and 350 thousand new jobs [17]. Due to the high projected prospects, it seems relevant to study the concept of smart specialization for the sustainable development of Russian regions.

 

Theoretical aspects of the concept of "smart specialization".

 Currently, a large number of studies are devoted to the theoretical foundations of smart specialization of regions for sustainable development goals. Table 1 presents an analysis of the available modern works over the past few years.

Table 1

Analysis of the definition of the concept of "smart specialization" in modern scientific works

 

No. p / p

The authors of the research

Proposed definition

1

M.I. Abuzyarova

Smart specialization involves the concentration of resources, structuring and adaptation of already applied processes and techniques in determining the strategic priorities of "smart specialization" for the knowledge ecosystem [1].

2

S.S. Bakhtina

When using "smart specialization", the goal is to create new industries, as well as develop, diversify and qualitatively update existing ones. In addition, new innovative forms are being formed, which is ensured by defining the unique competencies and technological capabilities of the region [2].

3

S.V. Kumakova

By "smart specialization" the author understands a state or regional economic development strategy, which is based on investing in innovations and research in areas reflecting the advantages and strengths of the region [9].

4

M.S. Oborin

The term "smart specialization", in the author's opinion, refers to the mechanism by which new opportunities are created for business support from the state. Thanks to such support, provided taking into account the real needs of business entities, additional opportunities are created for more productive interaction between entities [13].

5

G.M. Samostroenko, M.V. Kournikova, G.A. Khmeleva, E.V., Bolgova E.V.

 The essence of the smart specialization strategy is to establish the most optimal combination of educational, innovation and industrial policy in the region in order to select priority areas for regional development. Thanks to this strategy, the most effective use of the comparative advantages of the region and its strengths is ensured [10, 14].

 Source: compiled by the author based on the analysis of available research.

 In our opinion, there is no doubt that the concept of "smart specialization" covers ideas about the future prospects for the economic development of the region, built around the available opportunities and advantages. This approach correlates with the understanding of this concept in the works of foreign authors on the topic of regional sustainable development [12]. In other words, when using this approach in strategic planning, the directions of sectoral development are based on taking into account the strengths and advantages of the region. Also of great importance is the identification and subsequent development of hidden potential with the creation of a base for the formation of competitive advantages in those types of economic or business activities that are characterized by high added value [13]. This approach was developed in contrast to the complementary development strategy, in which the region adopts the strategy of the leading region. The disadvantage of such a strategy, as foreign experience has shown, is the consolidation of the backlog.

 

Foreign experience of the concept of "smart specialization".

 The analysis of foreign experience is of particular scientific interest due to the fact that the concept in question has spread abroad. For example, in 2012, the European Commission adopted Guidelines for the Development of Research and Innovation Strategies for Smart Specialization. This document establishes a number of methodological approaches to the development of regional priorities. This guide contains scenarios for the search and development of regional specialization, for example: 1) the application of new technologies in old industries (the introduction of nanotechnology in the pulp and paper industry in Finland); 2) the development of new industries based on existing technologies (for example, the transition to medical technologies from optical production and precision engineering (Austria)); 3) the combination of several industries (creation of IT applications for archaeology (Florence)); 4) the development of the value chain (GPS and satellite technologies in addition to the aviation industry (Toulouse)); 5) the introduction into practice of fundamentally new sources and formats of innovation (live laboratories of Eindhoven)) [6]. Methodological recommendations for its implementation are presented for each of the scenarios.

The smart specialization approach has proven itself positively in strategic planning at the level of the European Union. For example, in the European Union, initially many regions chose the food industry and agriculture as their priority areas of competence [19]. Taking into account the directions of development in the field of health and safety in the European Union, only Galicia received advantages from all possible regions by creating a specific niche related to the production of healthy food products [18]. The prerequisites that contributed to this situation include the high share of the food industry in the gross regional product, the aging of the population (23% of residents were over 65 years old). Due to the long-term development of the industry, it was decided to apply innovative approaches in production [6]. A feature of the smart specialization approach is its scalability and the possibility of application in any country in the world (Table 2) [7].

 Table 2

Examples of the implementation of the smart strategy concept abroad

 

A country

The concept

South Korea

Since 1988, various innovative programs have been implemented, which include three main areas: pharmaceuticals, medical equipment and cosmetics. This made it possible to increase GNP by 8% annually, and in 2009 to switch from the status of an OECD aid recipient to the status of a donor [8].

Spain

Tools for the intelligent production of cheese and cheese products were introduced in the Extremadura region [3].

France

The focus is on the development of biopharmaceuticals in the Loire Valley. Currently, France is among the leaders among European countries in the production of pharmaceutical products [5].

 Source: compiled by the author based on the analysis of available research.

 To apply the concept of "smart specialization" on the territory of the Russian Federation, it is important to take into account the specifics of strategic planning and the institutional environment that has developed in connection with the implementation of regional development [10].

 

Regional experience of the concept of "smart specialization".

 Thus, in the Russian Federation, issues of spatial and regional socio-economic development are solved in parallel in accordance with Federal Law No. 172-FZ dated 06/28/2014 "On Strategic Planning in the Russian Federation". This law forms a system of normative acts of a strategic nature, which includes the strategy of spatial development of the Russian Federation and the strategy of socio-economic development of the subjects of the Russian Federation.

By Order of the Government of the Russian Federation No. 207-r dated 02/13/2019, the Spatial Development Strategy of the Russian Federation for the period up to 2025 was approved, within the framework of which it is planned to develop and approve a set of measures to stimulate the development of promising economic specializations of the subjects of the Russian Federation, including through the development and approval of methodological recommendations for determining the priorities of innovative development by the subjects of the Russian Federation branches of promising economic specializations ("smart specialization"). In accordance with paragraph 10 of the Strategy Implementation Plan, the Ministry of Economic Development of the Russian Federation should have adopted methodological recommendations as a departmental act by February 2020, but this document was not found in the public domain. At the same time, the target setting of such methodological foundations was to help the subjects of the Russian Federation in choosing reasonable and non-contradictory development priorities in promising sectors of economic specialization.

Based on the analysis of the socio-economic development strategies of the subjects, it can be concluded that "smart specialization" is already present in 46 regional strategies out of 85. However, according to experts, the economic indicators achieved during the implementation of these strategies are poorly related to the sectoral priorities contained in such strategies [12].

However, it is obvious that the regions that have identified industry priorities and follow them with the support of certain industries receive significant economic results. This can be traced in the analysis of Rosstat data in terms of attracting private investment in a number of regions. Let's take the example of two regions of the Volga Federal District (Table 3).

  

Table 3

Examples of the impact of the presence of industry specialization on the dynamics of the growth of private investment in the economy, taking into account the industry priority

 

The region of the Volga Federal District

Availability of industry priorities

Dynamics of growth in the volume of private investments in the economy, taking into account the sectoral priority

2017/2018

2018/2019

2019/2020

2020/2021

Republic of Bashkortostan

The specialization defined in the Socio-Economic Development Strategy adopted in 2018 is the production of diesel fuel, soda ash, and benzene.

-5,8%

21,5%

12,1%

9,2%

Ulyanovsk region

In 2017, the strategy of "smart specialization" was adopted in the form of the Concept of the introduction of intelligent digital technologies "Smart Region"

3,5%

-2,4%

-3,1%

39,9%

 Source: compiled by the author based on the analysis of Rosstat data.

 Thus, it seems obvious that "smart specialization" will make it possible to most effectively identify and implement the vector of regional development, select specific measures that are most effective for each of them.

 

Methodological problems of the implementation of the concept of "smart specialization".

 It should be noted that the Spatial Development Strategy of the Russian Federation for the period up to 2025 does not contain a justification for the choice of macro-regions and specializations. And the specializations themselves are defined quite broadly, and their number in certain subjects of the Russian Federation exceeds two dozen types of economic activity (not taking into account subspecies). Therefore, those specializations that are indicated in the Strategy can hardly be considered specializations in the literal sense of the word. In addition, it seems difficult to provide state support measures in such an impressive list of areas.

This justifies the need to develop methodological recommendations for determining the specialization of the subjects of the Russian Federation, taking into account the strategic priorities of the Russian Federation as a whole and the need to make changes to the strategies of socio-economic development of the subjects of the Russian Federation, taking into account methodological recommendations and plans for their implementation. In addition, it is important to ensure that control over how the implementation of strategic activities takes place. As part of the control, along with estimates of quantitative indicators, it is necessary to focus on expert opinion (including in terms of the implementation of key vectors of cluster policy) [11].

In our opinion, it is possible to identify the main directions that should be reflected in the methodological recommendations for the regions regarding the implementation of the concept of "smart specialization":

1) an analytical approach to the definition of specialization. Based on certain characteristics (such as the volume of investments, the number of people employed in the industry, GRP, etc.), it is necessary to analyze the potential of existing industries and determine the necessary resources for the development of a particular industry [16]. This is necessary for a more effective search for public funds or investments to implement the concept of "smart specialization".

2) the search for new specializations arising in the context of technological development of traditional specialties. It is necessary to search for narrow niches that may arise in "traditional industries". For example, a project in the field of nuclear medicine is being implemented in the Ulyanovsk region, namely the production of radiopharmaceuticals and medical devices, which is a fairly narrow niche in the field of nuclear production.

3) realizing the potential of interregional cooperation. Nevertheless, such cooperation is developing rather poorly in the conditions of the unity of the country. There are effective examples when interregional industry specialization allowed achieving good economic results. For example, the Composites Without Borders cluster is currently operating – an association of leading Russian players in the composite industry, which includes enterprises of the Volga Federal District.

4) consideration of methodological aspects and adaptation of foreign methods. "Smart specialization" is based to one degree or another on the knowledge economy. A successful experience is the creation of so-called "think tanks" within regional teams that would analyze the socio-economic potential of the subjects of the Russian Federation and provide expert, consulting support, implementing the main stages of developing the concept of "smart specialization".

5) the stage-by-stage process of implementing the "smart specialization" strategy. It should include the following steps: analysis of the potential of the region by "think tanks"; setting up the environment, searching for resources; forming a vision of the image of the future subject of the Russian Federation; choosing industry priorities; forming a plan to implement the strategy; implementing assessment and monitoring tools.

It seems that such methodological recommendations would contribute to the effective development of the concept of "smart specialization" in the Russian regions.

 

Conclusions.

 In this regard, in order to implement the "smart specialization" approach in the strategy of socio-economic development of the subjects of the Russian Federation, it is necessary to develop and implement institutional and methodological foundations for correcting and detailing promising economic specializations of the subjects of the Russian Federation, which include the following successive stages:

1) development and adoption by the Ministry of Economic Development of the Russian Federation of methodological recommendations for determining the specialization of the subjects of the Russian Federation, taking into account the strategic priorities of the Russian Federation as a whole;

2) making changes to the strategies of socio-economic development of the subjects of the Russian Federation, taking into account methodological recommendations and plans for their implementation;

3) development of institutional frameworks (for example, a digital platform) that allow for operational monitoring of the implementation of a strategy that includes smart specialization approaches.

The result of these actions will be the realization of the long-term scientific and technical potential of the regions, increasing their competitiveness, boosting economic growth, determining competitive advantages, as well as synchronizing the economic development plans of the regions with the long-term priorities of the country.

References
1. Abuzyarova, M.I. (2021). Smart specialization as the basis for the development of knowledge ecosystems. KE, 12, 60-63.
2. Bakhtina, S.S. (2017). Possibilities of using European experience in the formation of regional innovation strategies. Management accounting, 12, 78-87.
3. Bosch, A., & Vonortas, N. (2019). «Smart specialization» as a stimulus for the innovative economy in developing countries. Lessons from Brazil. Foresight, 1, 77-79.
4. Byvshev, V.I. (2024). Formation of a model of scientific, technological and innovation policy in a constituent entity of the Russian Federation. Journal of Siberian Federal University. Humanitarian sciences, 1, 18-20.
5. Dorofeeva, L.V., & Roslyakova, N.A. (2022) Transformations of the socio-economic space of regions: international experience and main trends. Management consulting, 2(158), 40-45.
6. Eferin, Y.Yu., & Kutsenko, E.S. (2021). Adaptation of the concept of smart specialization for the development of Russian regions. Issues of state and municipal management, 3, 75-80.
7. Inshakova, E.I., & Inshakov, O.V. (2017). Cluster development of the Russian nanotechnology industry as a strategic component of “smart specialization” of regions. Regional Economics. South of Russia, 4, 90-94.
8. Ketova, N.P., & Ovchinnikov, V.N. (2023) Policy for managing the development of regional innovation clusters. Science Management and Scientometrics, 1, 40-45.
9. Kumakova, S.V. (2019). Innovation clusters as a mechanism for the project implementation of the region’s development strategy within the framework of “Smart Specialization”. Russia: trends and development prospects, 14-1, 825-829.
10. Kurnikova, M.V., Khmeleva, G.A., & Bolgova, E.V. (2023). Harmonization of strategic priorities of adjacent regions based on the strategy of «smart» specialization. Bulletin of Samara University. Economics and Management, 1, 34-38.
11. Kutsenko, E., Islankina, E., & Kindras, A. (2018). Is it possible to be smart alone? Study of innovative strategies of Russian regions in the context of smart specialization. Foresight, 1, 10-15.
12. Musaev, R. A., Pankratov, A. A., & Astapov, K. L. (2020). Cluster approach to strategic planning at the regional level in the Russian Federation. Management Consulting, 11(143), 14-20.
13. Oborin, M.S. (2020). The role of regions with “smart specialization” in the socio-economic development of Russia. Bulletin of the Nizhny Novgorod University. N.I. Lobachevsky. Series: Social Sciences, 4(60), 23-28.
14. Samostroenko, G. M. (2019). Strategies of “Smart specialization” of regional development. Russia: trends and development prospects, 14-2, 16-19.
15. Salimonenko, E.N. (2020). Formation of promising segments of the economy of open monospecialized regions. Bulletin of SUSU. Series: Economics and management, 4, 17-20.
16. Tagirov, K.T., Glushchenko, A.V., & Dovgan, E.A. (2023). The strategy of “smart specialization” of regions as a factor in innovative development. State and municipal management. Scientific notes, 1, 20-25.
17. Sherstneva, O.M., & Yasheva, G.A. (2022). Strategy for “smart specialization” of regions: theoretical aspects and European experience. Vestnik VSTU, 1(42), 100-104.
18. Balland, P.A., Boschma, R., Crespo, J., & Rigby, D.L. (2018). Smart specialization policy in the European Union: relatedness, knowledge complexity and regional diversification. Regional Studies, 1-17, 141-148.
19. Rigby, D. L., & Essletzbichler, J. (1998). Evolution, process variety, and regional trajectories of technological change in the U.S. manufacturing. Economic Geography, 73(3), 269-284.

First Peer Review

Peer reviewers' evaluations remain confidential and are not disclosed to the public. Only external reviews, authorized for publication by the article's author(s), are made public. Typically, these final reviews are conducted after the manuscript's revision. Adhering to our double-blind review policy, the reviewer's identity is kept confidential.
The list of publisher reviewers can be found here.

The subject of the study. Based on the headline formed by the author, we conclude that the article should be devoted to the "smart specialization" of regions as the basis for sustainable development of the Russian Federation. In general, the content of the article corresponds to the stated topic. The research methodology is based on the presentation of well-known facts and judgments. When finalizing the article, it is recommended to study specific numerical data characterizing the subject of research and the dynamics of its development over time. It would also be interesting to use comparative analysis methods in terms of the experience of different subjects of the Russian Federation and approaches used in foreign countries. The relevance of the study of issues related to regional development is beyond doubt, since not only economic growth in the constituent entities of the Russian Federation, but also the quality of life of Russians largely depends on this. Moreover, the solution of the task of ensuring regional development will also contribute to the achievement of national goals defined by the Decree of the President of Russia dated 07/21/2020. Scientific novelty was not found in the material submitted for review, because the author concentrates on presenting well-known facts and judgments. At the same time, a fairly large number of aspects of the chosen research topic are poorly studied in the current scientific literature and, accordingly, there is a high level of demand for high-quality scientific research on the chosen research topic. Style, structure, content. The style of presentation is scientific from the point of view of the absence of expressions of colloquial and journalistic styles. The structure of the article has not been built by the author, which, most likely, was the reason for the weak substantive study. In the final paragraphs, the author outlined several recommendations, but, firstly, they are in no way related to the higher-level text of the article. Secondly, they do not contain any justification. For example, the author says that it is necessary to "make changes to the strategies of socio-economic development of the subjects of the Russian Federation, taking into account methodological recommendations and plans for their implementation." What specific changes is the author talking about? What exactly needs to be changed? What should be contained in these guidelines and implementation plans? How do these recommendations relate to existing problems? Bibliography. The bibliographic list includes 12 titles. It is valuable that the author relies not only on domestic scientific publications, but also on foreign ones. At the same time, attention is drawn to the lack of studied scientific papers published in 2022-2024. When finalizing the article, it is also necessary to supplement the list of sources with references to numerical data that will be added during the correction of the article. Appeal to opponents. Despite the generated list of sources, no scientific discussion has been found. When finalizing the article, the author is recommended to eliminate this problem. This will ensure the formation of scientific novelty, which is absent in the current version of the article. Conclusions, the interest of the readership. Taking into account all the above, the article requires revision, after which it can be re-sent for review. In case of high-quality revision, the article will be in demand among a wide readership.

Second Peer Review

Peer reviewers' evaluations remain confidential and are not disclosed to the public. Only external reviews, authorized for publication by the article's author(s), are made public. Typically, these final reviews are conducted after the manuscript's revision. Adhering to our double-blind review policy, the reviewer's identity is kept confidential.
The list of publisher reviewers can be found here.

The reviewed article is devoted to the study of "smart specialization", which is considered by the authors as the basis for sustainable development of the Russian Federation. The research methodology is based on the generalization of scientific publications of foreign and domestic scientists on the issues considered in the article, the application of general scientific methods. The authors attribute the relevance of the work to the fact that, according to experts, with the introduction of "smart specialization" in the region, there may be a threefold increase in GRP per capita with the right methodological approaches, and due to the high projected prospects, the study of the concept of smart specialization for the sustainable development of Russian regions seems relevant. The study is relevant in the context of the Spatial Development Strategy of the Russian Federation for the period up to 2025. The scientific novelty of the work, according to the reviewer, lies in the conclusions that in order to implement the "smart specialization" approach in the strategy of socio-economic development of the subjects of the Russian Federation, it is necessary to develop and implement institutional and methodological foundations for correcting and detailing promising economic specializations of regions, including the stages justified in the article. The following sections are structurally highlighted in the text of the publication: Theoretical aspects of the concept of "smart specialization", Foreign experience of the concept of "smart specialization", Regional experience of the concept of "smart specialization", Methodological problems of the implementation of the concept of "smart specialization", Conclusions and Bibliography. The article notes that there is a large number of studies devoted to the theoretical foundations of smart specialization of regions for sustainable development, and an analysis of the available modern works on this topic over the past few years is presented. The authors consider both foreign and domestic experience of specialization, provides examples of the implementation of the concept of smart strategy abroad – in countries such as South Korea, Spain, France. In our country, examples of the impact of the presence of industry specialization on the dynamics of the growth of private investment in the economy, taking into account the sectoral priority, are illustrated by the materials of the Republic of Bashkortostan and the Ulyanovsk region. The publication identifies four main areas, which, according to the authors, should be reflected in the methodological recommendations for the regions regarding the implementation of the concept of "smart specialization". The bibliographic list includes 19 sources – scientific publications in Russian and English on the topic under consideration. The text of the publication contains targeted references to the list of references confirming the existence of an appeal to opponents. From the reserves for improving the article, it should be noted that the introductory part is not titled in the text of the article (for example, as an "Introduction"), the purpose and objectives of the study are not formulated, the methods of scientific research used in the work are not reflected. The topic of the article is relevant, the material reflects the results of the research conducted by the authors, corresponds to the topic of the journal "Finance and Management", can be published after the elimination of the above shortcomings.