Journal 2020#2


“Propulsive Industries” of the Regions of Russia’s Western Borderland under of Geopolitical Turbulence

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Abstract References

The study aims to identify and analyse the dynamics of “propulsive industries”, considered as drivers of economic growth and stabilizers of economic security of the regions of Russia’s Western borderland in the period of geopolitical turbulence (2013–2018). We are particularly interested in the identification of industries regarded as drivers of regional economic growth during the crisis of the Russia’s economy and its individual regions. The article presents the results of a study, supported by the grant of Russian Science Foundation No. 18–17–00112 «Ensuring the Economic Safety of Russia’s Western Borderlands amid of Geopolitical Turbulence» and by the grant No. 18–310–20016 of Russian Foundation for Basic Research. “Propulsive industries” are characterised by a high level of the adaptation of technologies, and export and innovation potential, which determine the fifth and sixth technological order. The state and dynamics of these industries support region’s economic security and the level of competitiveness, especially under difficult conditions of geopolitical turbulence (2013–2018). We conducted analysis based on data on net value added, produced by the main types of economic activity. Then, we assessed value added for enterprises and organisations subject to value added tax in the regions of Russia’s Western borderland. Thus, the study is based on tax statistics provided in the reports of the Federal Tax Service of the Russian Federation. We selected and substantiated some types of activity as the “propulsion industries” that determine the economic security, and region’s export and innovation potential. They include “production of medicines and materials used for medical purposes”, “production of computers, electronic and optical products”, “production of aircrafts, including spacecraft, and related equipment”, “information and communication activities” and “professional, scientific and technical activities”. Th e study’ s statistica l an d quantitativ e bas e i s buil t o n dat a o n value added tax (VAT). Based on these data, we calculated the net value added for the main types of economic activity produced by enterprises and organisations subject to VAT. The study has shown that the industry «Production of computers, electronic and optical products» is propulsive for the majority of the regions of Western borderland. The research results will be reflected in the implementation of our team’s fundamental developments, including the projects of Russian Science Foundation and Russian Foundation for Basic Research.