Institutional Traps of Innovative and Investment Activities as an Obstacle on the Path to the Well-Balanced Development of Regions

Abstract

The purpose of this chapter is to study the possibilities and perspectives of eliminating obstacles on the way to well-balanced development of Russian regions. For this purpose, the authors of this chapter perform evaluation of the balance level of Russian regions’ development in 2014, conduct analysis of causal connections of unbalanced development of Russian regions, and offer recommendations for solving this problem. Russia is the object for the research, as, in addition to the industrial orientation of economy due to geographical peculiarities, it is peculiar for high level of regionalization. Methodological tools include the proprietary methodology of evaluation of the balance level of region’s development and the proprietary methodology of analysis of structural disproportions of regional development as a part of the national socioeconomic system. As a result of the research, the authors came to the conclusion that modern Russia is peculiar for the problem of unbalanced development of the regions. The most important condition for provision of well-balanced development of regions is innovative and investment activities. Thorough study of the specifics of innovative and investment activities of Russian regions led to the conclusion that the most important reason for its weak development is existence of institutional traps, under the influence of which the regions show low level of innovative and investment activities. In order to solve this problem, a proprietary institutional model of well-balanced development of regions is offered.