Abstract
Relevance. Massive industrial and economic changes, which are a part of the Fourth Industrial Revolution, bring about new challenges and opportunities for regional development. The factors that used to play a key role in the development of regions such as labor, capital and geography, are now receding to the background while other factors such as technological progress, human capital and institutions gain importance. Research objective. The article deals with changes in the factors that shape regional development, more specifically, it aims to compare the influence of geographical and institutional factors on the development of one of the leading industrial macro-regions in Russia – the Urals. Data and methods. The research contains regional analysis of geographical and institutional factors in old industrial regions of the Ural macroregion of Russia. The method of geographical zoning is based on collation the development levels of regions with their geographical and institutional competitive positions. Results. The research revealed the complexity of factors affecting old industrial regions in Russia in the 2010s: some of these regions are still highly dependent on geographical factors while others are largely shaped by institutional factors. Such territories show sustainable development of their economies and innovation sectors. We also found a significant correlation between the regions’ economic performance and their formal institutions (the quality of regulation) while the differences in informal institutions were negligible. Conclusions. The conclusion is made that regional authorities in Russia should put more effort into creating a better regulatory environment for innovation and industry.
Highlights
Geographical factors played a fundamental role in shaping economic systems
Since the purpose of the research was to identify the comparative role of geographical and institutional factors (Fig. 8) in economic development of regions, it seems necessary to point out that our analysis does not exclude the influence of other factors in additions to the ones discussed in this article
A number of old industrial regions in Russia remain highly dependent on geographical factors
Summary
Geographical factors played a fundamental role in shaping economic systems. The significance of space is transformed in Industry 4.0. Economists have justified the role of other factors (e.g. institutions) in economic development. The causes of regional inequality have attracted much scholarly attention. We believe that humanity is on the threshold of the third institutional revolution today 211), which will fundamentally change the nature of economic actors’ interactions. The purpose of this paper is to compare the influence of geographical and institutional factors in the era of the fourth industrial revolution for Russian regions. This purpose determines the following research objectives:
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