The impact of regional conditions on the business demographics of Russian IT companies

Abstract

Information technology (IT) companies design and disseminate new technologies, sources of digital solutions for a wide range of economic agents. The size of the IT sector in Russia and its contribution to the national economy still lag behind the level of the leading countries. In recent years, the number of estab­lished IT companies has been declining, while the number of liquidated com­panies has been growing. The business demographics of IT companies represent exceptional regional differentiation, more than a twofold interregional gap on the birth and death rates. The paper explores the relationship between the demog­raphy of Russian IT companies from 2010 to 2020 with the help of regression analysis (Arellano—Bond method). The results showed a general shift of activity in the direction from east to west and an increase in the concentration of IT companies in metropolitan centers; stable differences between the western and eastern territories of Russia; the significance of regional institutional environment and habitat. The results of the study are important for decision making to support the development of the digital economy in Russian regions.