On diversification taking into account innovation activity and resource availability of regions

Abstract

An approach to assessing the possibility of diversification of the regional economy based on the formation of recommendations for the development of sectors to the level of strong ones is presented. The approach is based on regression analysis using an extended economic basis, including characteristics of regional differentiation and innovation activity. On this basis, sectors can be identified, the development of which depends on the innovation activity of the regions. A condition is described that makes it possible to assess the sufficiency of the resource provision of the sector in the region for its development to the level of a strong one. As a result of the approbation of the proposed approach, 20 sectors have been identified, the volume of production of which depends on the innovative activity of the regions aimed at creating international patent applications. For the Construction sector, considered as an example, 11 regions have been identified in which this sector has sufficient resource provision for development to the level of a strong one. The possibility of turning this sector into a strong one in other regions may be associated with an increase in their innovation activity and government support.