Economic Instability Research Articles

Navigating the water–energy nexus amidst the Lebanese economic crisis

ABSTRACT Lebanon's economic crisis has disrupted the country's energy and water sectors, highlighting their interdependence. The methodology involves surveying 150 municipalities across all Lebanese governorates, ensuring a comprehensive coverage of public and private water resources. Data on water and energy were collected before and during the crisis to explore this nexus during periods of economic turmoil. The findings reveal a decline in water provision during the crisis, with the average weekly water supply plummeting from 49 h in 2019 to 22 h in 2023. Concurrently, the use of water tankers has surged from 26 to 44%, indicating a concerning shift in water acquisition methods. Despite the crisis, conventional water sources remain predominant, while unconventional sources account for less than 1% of the total supply. In response to the energy shortage, renewable energy sources have gained traction in residential, commercial, and industrial sectors. The scarcity and rising cost of electricity have driven the adoption of solar photovoltaics in the water sector, reaching 4.8% for extraction from underground reservoirs and 2.8% for distribution. Similarly, the use of solar water heaters has increased from 7.9 to 15.4% in 2023. These findings underscore the interplay between energy and water security during periods of economic instability.

Analysis of the impacts of carbon neutral policy portfolios on the economy, environment, and residents' welfare based on computable general equilibrium models

The efficacy of the synergistic interplay of various programs about energy efficiency and emission reduction in China's endeavor to achieve carbon peaking and carbon neutrality remains to be determined. This research constructed a computable general equilibrium (CGE) model to examine the economic, environmental, social, and energy consequences of various policy combinations. Using data from the 2018 input-output table of China, we create 21 industry sectors and examine the combined impacts of different carbon policies. Our findings indicate that the effects of carbon emission reduction are more favorable when multiple carbon-neutral policies are implemented together, compared to the impact of a single policy. Among the various combinations of policies examined, the combination of feed-in tariff subsidy policy (FIT), renewable energy quota policy (RPS), carbon trading, carbon tax, and carbon capture, utilization, and sequestration (CCUS) technology proves to be the most effective. The study predicts that by 2060, this combination of policies could lead to a reduction of 32.5% in carbon dioxide emissions. At the same time, it was discovered that a combination of lower-intensity renewable energy quotas, carbon trading, carbon taxes, and higher-intensity subsidies for carbon capture, utilization, and storage (CCUS) technologies, the synergy indicator θ exceeds 1, indicating a more stable economy; When the carbon tax policy is more robust, and the remaining three policies are more minor, carbon emissions fall the most and are the most ecologically beneficial. Imposing excessively high renewable energy quotas while maintaining the same level of technology and substitutability between fossil fuels and electric energy sources will result in economic instability afterward. Therefore, we suggest that to attain balanced growth of the environment, society, and economy, the government should increase the function of policy combinations and balance several objectives.

STRATEGIC MANAGEMENT AND SUSTAINABLE ECONOMIC DEVELOPMENT

The article is devoted to the search for conceptual solutions to the problem of ensuring sustainable economic growth in the new unstable economic conditions. This topic remains extremely relevant in the modern world, where various challenges are faced, such as climate change, resource depletion, population growth, increased social inequality and other problems. The authors explore the evolution of the concept of sustainable development, highlighting various essential aspects of understanding the category of sustainability. In different time periods, climate change and environmental challenges, social justice and efficiency, global cooperation and risk management, digitalization and technological innovation have consistently been at the center of the problem of sustainable development. As a result, strategies to reduce the negative impact on the environment and adapt to climate change have been replaced by strategies of green technologies, which, in turn, have been replaced by strategies of international cooperation and coordination of actions by all members of society to solve global problems of our time. The authors prove the importance of considering not only environmental, but also social aspects when developing sustainable development strategies to ensure social justice and improve the quality of life of all segments of society. In conclusion, the authors conclude that risk management related to economic instability, environmental changes and other factors requires new strategies for sustainable development, which in turn is impossible without effective public management, public involvement, and informed decision-making.

Analyzing the Economic Opportunities for Small Businesses in Gansu Province’s Logistics and Trade Sectors Stemming from China’s Belt and Road Initiative

The Belt and Road Initiative (BRI) has significantly transformed Gansu Province into a crucial logistics and trade hub, presenting substantial economic opportunities for small businesses in the region. This paper explores the historical development of logistics and trade in Gansu, the strategic importance of the province within the BRI, and the specific infrastructure projects that have been implemented. It further examines the economic opportunities created by the BRI for small businesses, including improved access to new markets and resources, opportunities for partnerships and collaborations, and case studies of successful businesses. Despite these opportunities, small businesses face several challenges and risks, such as financial constraints, regulatory complexities, logistical inefficiencies, political and economic instability, and environmental concerns. The paper concludes with policy recommendations aimed at addressing these challenges and enhancing the ability of small businesses to leverage the benefits of the BRI. By improving access to finance, simplifying regulatory processes, enhancing infrastructure and connectivity, fostering collaboration, investing in training, promoting sustainable practices, and strengthening market access, the government can create a supportive environment for small businesses, contributing to the overall economic development of Gansu Province.

Is democracy costly? The effect of political turmoil on Kuwait’s stock market

This study is the first to analyze the impact of domestic political unrest on Kuwait’s stock market. Our data indicates a daily market decline of 0.16 percent during periods when the parliament is suspended. This translates to a 7.1 percent loss in the value of the Kuwait Stock Exchange for each period of suspension. Our findings suggest that Kuwait, despite having a more democratic political system, experiences greater economic instability than Saudi Arabia. This research highlights the nuanced relationship between the political structure and economic performance, particularly in emerging markets, challenging the notion that more democracy invariably leads to better economic outcomes.

The Long-Term Impact of Student Debt on Career Choices and Social Mobility of Low-Income Students

This paper explores the long-term impact of student debt on the career choices and social mobility of low-income students in the United States. Utilizing a mixed-methods research design, the study combines quantitative data from national surveys and secondary sources with qualitative insights from in-depth interviews. The findings reveal that low-income students graduate with significantly higher levels of student debt compared to their higher-income peers, which constrains their career options and compels them to prioritize financial stability over personal interests. This debt burden also impedes their ability to achieve upward social mobility, as it limits their capacity to save, invest, and make significant life purchases such as buying a home. Moreover, the psychological stress associated with substantial debt further exacerbates these challenges, leading to chronic stress and mental health issues that impede career progression and overall quality of life. The intergenerational effects of student debt are also profound, as financial strain on parents and subsequent economic instability experienced by their children perpetuate cycles of poverty. This study underscores the need for comprehensive policy interventions to alleviate the burden of student debt and promote greater economic equity.

Navigating Crisis: Strategic Adaptations in Family Businesses Amid Economic Uncertainty

This research delves into the strategic adaptations made by family businesses to navigate crises amidst economic uncertainty. Family businesses represent a significant portion of the global economy and face unique challenges during periods of economic instability. Through a comprehensive review of academic literature, case studies, and expert insights, this study identifies key strategies employed by family businesses to withstand turbulent economic conditions. The findings highlight the critical role of clear communication and transparent decision-making processes in ensuring business resilience during crises. Family businesses that prioritize open dialogue among stakeholders are better equipped to respond effectively to challenges and maintain continuity. Moreover, flexibility within business models emerges as essential for adapting to rapidly changing market dynamics. Family businesses often leverage their inherent strengths, such as strong relationships with customers and communities, to navigate crises successfully. Prudent financial planning and risk management are identified as fundamental for safeguarding the financial stability of family businesses amidst economic uncertainty. Effective management of resources and proactive risk mitigation strategies enable businesses to weather downturns and position themselves for recovery. Additionally, the study emphasizes the importance of maintaining a long-term perspective and fostering family unity during crises. Family businesses that prioritize cohesion and collaboration among family members demonstrate greater resilience and are more likely to emerge stronger from adversity. By synthesizing these insights, this research provides valuable guidance for family business owners, managers, and policymakers facing economic uncertainty.

The role of economics and management in the development of sustainable business models of agricultural enterprises

The relevance of this topic lies in the need to use economic and management strategies that can help agricultural enterprises adapt to a changing environment and ensure sustainable and resilient growth in the future. The purpose of the study was to examine the impact of economic and managerial factors on the development of agricultural enterprises, with a focus on creating sustainable business models. The methods used were analytical, statistical, and comparative. The paper examines the role of economics in the formation of sustainable business models of agricultural enterprises, focusing on optimizing the use of resources and adapting to market conditions. It is found that economic aspects include optimization of production processes, cost management and analysis of market trends. Efficient use of resources is a key aspect of sustainable business models of modern agricultural enterprises. The use of advanced technologies, such as precision farming and process mechanization, helps to increase productivity and reduce costs. Management of such market factors includes strategic planning, risk analysis and search for new development opportunities. An example of successful use of innovative technologies in agriculture is given on the sample of the American company John Deere. The article describes the strategy for developing sustainable business models for the Ukrainian company Myronivsky Hliboproduct, which includes the introduction of advanced agricultural technologies, diversification of production, optimization of resource use, development of local markets, improvement of risk management and promotion of social development of local communities. It is noted that the unfavourable conditions of war and economic instability pose serious challenges to the agricultural sector, but such conditions can also stimulate the search for new, more sustainable, and efficient business approaches. As a result, the development of sustainable business models for agricultural enterprises requires a comprehensive approach and systematic measures aimed at optimizing production, managing risks, and promoting the social development of local communities. The practical significance of the study lies in the possibility of increasing competitiveness, resource efficiency and sustainability in a changing market environment, which contributes to the sustainable development of the agricultural sector

Participatory budgeting in Russia in conditions of economic instability

Subject. The article considers theoretical and methodological aspects of participatory budgeting development in Russia. Objectives. The aim is to substantiate the effects of using the participatory budgeting under economic instability. Methods. The study draws on general scientific methods of cognition (analysis, synthesis, induction, deduction, comparison, and analogy), and special methods of cognition (comparison of theoretical and practical material, expert method, systematization, and classification). Results. Changes in methodological aspects of budget planning significantly affected the implementation of budget policy. Budget planning is influenced by internal and external factors, and by entities with which public legal entities have to interact at the subnational level. The paper focuses on financial aspects of participatory budgeting, like the total amount of funding for participatory budgeting projects, the average cost per project, the number of funded projects, sources of funding. I investigated options for including participatory budgeting in the budget process of Russian regions and municipalities and identified two main ones used by public legal entities. Conclusions. The study substantiates why participatory budgeting is advisable to apply in conditions of economic instability and uncertainty. It highlights the effects of the development of participatory budgeting practices and specifics of their implementation at the municipal level. The findings can be useful for public authorities, local governments, and those involved in participatory budgeting.

Determinant factors of gross domestic product (GDP) in Association of Southeast Asian Nations (ASEAN) member countries

Background The gross domestic product (GDP) of Association of Southeast Asian Nations (ASEAN) member states can be used to determine their overall economic growth. In order to increase GDP, all emerging nations in Southeast Asia are stating to depend on foreign direct investment (FDI), the tourism industry, international visitors visiting ASEAN member nations banking credit, and low inflation rates. High inflation is a problem that developed and developing countries will definitely face. One of the problems faced by ASEAN member countries is that most of the member countries are in the developing country category. For ASEAN member countries, high inflation levels will encourage economic instability. GDP is less than optimal because of these classic problems in developing countries so that economic growth is not as planned. The ASEAN Economic Community (AEC), which ASEAN established, is seen as a way to reduce unemployment, alleviate poverty by boosting the travel and tourism industry and increasing investment, as well as to offer or distribute credit to businesses at low interest rates in order to boost GDP. The purpose of this study is to investigate and analyze how the GDP of ASEAN member nations is affected by FDI, foreign visitors, bank credit, and inflation. s: We analyzed panel data for seven ASEAN members from 2002 to 2020. FDI, foreign tourists, banking credit, and inflation are the research factors examined as independent variables that have an impact on GDP, the dependent variable. Results The study’s findings indicate that while inflation has a large negative impact on GDP, FDI, foreign tourism, and bank credit have a considerable positive impact on GDP. Conclusions FDI, foreign tourists, bank credit, and inflation have a significant influence on GDP in ASEAN member countries.

Economic instability, income, and unemployment effects on mortality: using SUR panel data in Iran.

This study aims to investigate the effects of socioeconomic factors on mortality in Iran. To this end, this research examines how economic instability, income, and unemployment affect mortality using a seemingly unrelated regression (SUR) with panel data for 30 provinces in Iran from 2004 to 2019. The results indicate that unemployment and mortality have a countercyclical relationship among the working age-groups 20-59 but a procyclical pattern among old-age (60+), except for rural mortality. This result is harmonious between employment and age-group mortality. This finding implies that unemployment increases mortality in working age-groups due to psychological stress and poverty risk. In addition, the income level decreases mortality in all ages over 40 years due to the provision of higher access to health and medical services and social welfare. However, it increases mortality in rural areas and age-group 20-39 because of their hazardous, unsafe, and stressful work conditions. Therefore, policymakers should plan for an inclusive economic growth to reduce poverty and out-of-pocket payments and increase the quality and accessibility of public health services, especially for beneficiaries of lower social groups. Moreover, they should adopt strategies to alleviate the burden of premature, preventable, and treatable deaths.

Pension security in Ukraine: current trends and directions of development

The article aims to substantiate the directions for reforming and developing the pension system in Ukraine. To achieve the goal, the following research methods were used: methods of analysis and synthesis; abstract logical method; methods of theoretical generalization − formulating definitions of the concepts "pension security", "accumulated pension", etc.; systemic approach − changes and problems in the indicators of the pension system and the development of measures to solve them. As a result of the research, the concept of pension security and the pension system as a process of securement financial support in the form of pensions to a specific category of unemployed citizens, which is aimed at reducing the level of poverty due to its positive impact on such social risks as old age, disability and loss of working capacity, is defined as a set of legal, organizational, financial and economic institutions and norms, as well as professional organizational structures aimed at reducing the level of poverty by positively influencing such social risks as disability and loss of working capacity. The main problems of the pension system of Ukraine at the current stage are substantiated, namely the rapid deterioration of the ratio between the working age and the retirement age due to the drop in the birth rate and the increase in emigration, a permanent deficit of pension funds due to budget imbalance; low level of pensions; underdevelopment of non-state pension security; decrease in the number of payers due to economic instability, military events and other factors; significant lack of public awareness of pension provision; lack of trust in state financial programs and reforms. The main direction of the reform of the pension system has been determined − the introduction of non-state pension security, based on the principles of voluntary choice of the type of pension security and the creation of conditions for non-state pension security at the legislative level, as well as taking into account the risks associated with non-state pension security, such as the risk of investment losses, the instability of the financial market and the possibility of abuse by pension funds. Additional areas of pension development have been identified: increasing the efficiency of the system of tax collection and control over their payment to ensure stable financing of the Pension Fund; support for programs and initiatives aimed at increasing financial literacy among the population, which will contribute to more effective management of personal finances and retirement planning; introducing mechanisms to encourage additional voluntary contributions to the pension fund, such as tax benefits or special support programs for those who actively plan their financial future; development of social programs and services for pensioners aimed at improving their quality of life, access to medical care, cultural and educational events; strengthening mechanisms for controlling the Pension Fund's expenses and effective use of its resources to meet the needs of pensioners as much as possible; open and transparent control over the activities of pension funds and the functioning of the pension system. The scientific novelty of the study consists in substantiating the set of measures for the development and reform of the pension system of Ukraine, which involves the development of non-state pension schemes. The practical significance of the work is that the research results can be used at the level of individual organizations and industries and at the level of individual regions of Ukraine. Prospects for further research are the substantiation of the toolkit for the practical implementation of non-state pension funds. Keywords: pension security, accumulative pension security, pension system, non-state pension security, corporate pension fund

Prevalence of Opioid Use Disorder and Opioid Overdose Rates Among People With Mental Illness.

The authors examined the prevalence and correlates of co-occurring opioid use disorder and opioid overdose among individuals receiving psychiatric services. This was a cross-sectional study of adults with continuous enrollment in New York State Medicaid who received at least one psychiatric service in 2020 (N=523,885). Logistic regression models were used to examine the correlates of both opioid use disorder and overdose. In the study sample, the prevalence rate of opioid use disorder was 8.1%; within this group, 7.7% experienced an opioid overdose in the study year. Opioid use disorder rates were lower among younger (18-24 years; 2.0%) and older (≥65 years; 3.1%) adults and higher among men (11.1%) and among those residing in rural areas (9.9%). Compared with Whites (9.4%), opioid use disorder rates were lower for Asian Americans (2.0%, adjusted odds ratio [AOR]=0.22) and Blacks (6.8%, AOR=0.76) and higher for American Indians (13.2%, AOR=1.43) and Hispanics (9.6%, AOR=1.29). Individuals with any substance use (24.9%, AOR=5.20), posttraumatic stress (15.7%, AOR=2.34), bipolar (14.9%, AOR=2.29), or anxiety (11.3%, AOR=2.18) disorders were more likely to have co-occurring opioid use disorder; those with conduct (4.5%, AOR=0.51), adjustment (7.4%, AOR=0.88), or schizophrenia spectrum (7.4%, AOR=0.87) disorders were less likely to have opioid use disorder. Those with suicidality (23.9%, AOR=3.83) or economic instability (23.7%, AOR=3.35) had higher odds of having opioid use disorder. Overdose odds were higher among individuals with suicidality (34.0%, AOR=6.82) and economic instability (16.0%, AOR=2.57). These findings underscore the importance of providing opioid use disorder screening and treatment for patients receiving psychiatric services.

The Interesting Side of the Birth of a Demonstrator Mansur Samin in Ian Watt's Social Perspective

The material object of this research is Mansur Samin's social criticism in his poem entitled "Pidato Seorang Demonstran". This poem is full of socio-political protests that discuss the situation experienced by the Indonesian people during the 1960s. The formal object of this poem uses a literary sociology approach adopted from Ian Waat's theory, which focuses on the societal aspects of literary works, considering them as the author's response to social reality. The findings produced in this study are that the poem "Pidato Seorang Demonstran" reflects the background of political change, economic instability, and dissatisfaction of the society at that time. The social criticism in this poem includes abuse of power, economic, political, and human rights issues. The critique addresses military repression, economic inequality, the behavior of political leaders, and human rights violations. The poem becomes a voice that reflects the socio-political conditions of Indonesia at that time and provides a perspective on the aspirations and discontent of the people.

Increasing Business Resilience of International Corporation in Current Environment

The issues of business resilience of international corporations and, in particular, enterprises operating in the nuclear field are becoming important in terms of modern political and economic instability in Russia caused by both the coronavirus pandemic and political factors especially. The purpose of the presented article is to justify the need to conduct a study of the business resilience of an international corporation and develop ways for its improvement using the example of the state corporation (SC) Rosatom. The objectives of the research are clarifying the concept of "business resilience", studying economic indicators that characterize the business resilience of an international corporation, conducting a study of the factors that form the business resilience of the SC Rosatom, as well as developing recommendations for increasing the business resilience of an international corporation using the example of the SC Rosatom. The concept of "business resilience" is clarified, indicators characterizing it are determined. A number of problems that international corporations faced in current environment were identifi ed based on the analysis of the economic security system of the SC Rosatom, as well as a study of the process of creating business resilience. Also, recommendations and actions were worked out to improve the business resilience of an international corporation using the example of the SC Rosatom. These recommendations are of applicable nature and can be used by nuclear enterprises.

Aggressive tax planning as a threat to national security

The article examines the strategies of aggressive tax planning as a threat to state security. Aggressive tax planning practices are becoming more common. This poses multifaceted challenges to fiscal policy, economic stability, and national security. By conducting a comprehensive analysis of applied strategies, economic impacts, and potential policy measures, this study aims to provide information on the complex mechanism of tax evasion. The article discusses various strategies that companies use in aggressive tax planning. These strategies cover offshore tax havens, transfer pricing manipulation, royalty movement, "fine capitalization" and tax deferral, each of which uses legal nuances to minimize tax liabilities. The study examines the economic consequences of aggressive tax planning, focusing on significant revenue losses for governments around the world. Eroding tax revenues through aggressive tax planning reduces states ' ability to finance basic public services, contributing to budget deficits and economic instability. In addition, it creates material inequality, contributes to social unrest, and jeopardizes the nation's ability to solve national security problems. By analyzing these economic implications, this study highlights the urgency of considering aggressive tax planning as a fiscal and national security issue.

Walt Disney’s Business Model

Disney is a well-known worldwide entertainment company with a wide range of investments, including entertainment and motion picture production. The SWOT analysis framework is utilized in this article to examine Disney’s advantages, disadvantages, opportunities, and threats to clarify the elements that have contributed to the company’s success. Disney’s resilience in the face of a changing business is seen in its strong alliances, significant cash flow, and wide range of products and services. However, its dependence on flagship properties and vulnerability to outside influences present difficulties. By utilizing Disney’s connections and experience, there are several potentials to grow into the internet streaming market with Disney Plus. However, threats like increased competition and economic instability still exist. Analyzing Disney’s development and strategic decisions highlights the company’s lasting impact on the entertainment industry and exemplifies a revolutionary business strategy with broad implications.

Managing the Needs of Orphans and Vulnerable Children in Mainstream Rural Schools: An Ethnopsychology Informed Approach

Orphans and vulnerable children (OVC) in mainstream rural schools encounter unique challenges stemming from loss, economic instability, and disrupted familial structures. Addressing their needs demands a comprehensive and culturally sensitive approach. This paper thus explored the use of an ethnopsychology framework to understand and address the diverse needs of rural children, emphasizing the importance of culturally sensitive interventions in mainstream schools. It also evaluated the effectiveness of ethnopsychological interventions and the role of community collaboration. This article used secondary data sources to understand how the ethnopsychology approach can be utilized as a potential sustainable intervention strategy for the needs of OVC in mainstream rural schools. The results show that OVC are well-served by the cultural resources that rural schools have in abundance from a cultural perspective. The study also emphasized the significance of cultural practices and beliefs in influencing community responses and developing resilience in assisting OVC. The study supported the care, protection, and psychosocial support to OVC as significantly influenced by family and relationship networks, community-based organizations, and traditional support systems. The paper made recommendations for improving rural schools’ response to OVC needs in light of cultural sensitivity. These include boosting collaboration between formal and informal support systems, creating community networks, fostering cultural adaptation and preservation, and giving community members more agency through programs that increase their knowledge and skills. This study underscored the significance of ethnopsychology principles of community and social connection in leveraging cultural resources, context-based and responsive interventions, and appreciating and sustaining existing indigenous knowledge systems in understanding and addressing the needs of OVC in mainstream rural schools. Understanding and supporting OVC contributes towards cultivating meaningful collaborations and transformative care of OVC in the Global South. Keywords: Ethnopsychology, Cultural Sensitivity, Rural Community, Mainstream Rural Schools, Orphans and Vulnerable Children.

Adaptive potential of Russian economic growth in the context of decline in foreign direct investment

This study analyses the adaptive potential of Russia’s economic growth in the context of decline in foreign direct investment (hereinafter referred to as FDI). In light of today’s geopolitical environment, marked by increased trade tension and protectionist measures, understanding the impact of FDI on Russia’s gross domestic product (hereinafter referred to as GDP) becomes critical for policy-making and economic planning. The study employs a vector autoregression modeling approach (hereinafter referred to as VAR) to analyse the dynamics of Russia’s GDP and FDI inflows with consideration to various economic and geopolitical factors. Besides, an extensive dataset is used covering the period from 1996 to 2021 which includes relevant macroeconomic indicators and geopolitical events. The VAR model allows to study short- and long-term correlations between variables reflecting dynamic interaction and feedback effects. In addition, impulse response analysis is used to estimate the magnitude and sustainability of economic growth under conditions of economic instability. The results of the study contribute to understanding the adaptative potential of Russia’s economic growth in the context of FDI restrictions from Western countries. The analysis provides insight into the significance of FDI inflows for the Russian GDP with consideration to the impact of various economic and geopolitical factors.

Innovation Ecosystem as a Factor in Sustainable Development of the Regional Economy

Relevance. The innovation ecosystem is currently the vector for the development of innovation activity in the regional economic system. In the context of the emergence of destabilizing external factors and economic instability in the state, innovative activity acquires a key role associated with the formation of economic stability at the macro, meso and micro levels, helping to counter external threats and challenges. It has a particular influence on the development of the regional economic system, ensuring the growth of the level of enterprises and economic sectors through the production of high-tech products. Thus, stimulating the growth of competitiveness, both at the level of enterprises and the region as a whole. The innovation ecosystem is a condition for achieving the effectiveness of innovation, thanks to the process management system in the innovation cycle, from the generation and production of an innovative product, to its implementation and promotion, thereby expressing the relevance and practical significance of this phenomenon in conditions of economic instability. The purpose of the study was to determine the functional characteristics and influence of the innovation ecosystem on the processes of innovation in the region, as a necessary condition for the integration of elements of the Concept of Sustainable Development.Objectives. The study set and consistently solved the following objectives: conduct a theoretical review of the concept of “innovation ecosystem” and study approaches to its theoretical understanding; identify its structural units and relationships between its elements and formulate a model of the functioning of the region’s innovation ecosystem; assess the impact of the innovation ecosystem in the process of integrating elements of sustainable development and test it using the example of the Vladimir region.Methodology. The work used methods of statistical, graphical and logical analysis, generalization, and systematization of data.Results. Based on a theoretical review, a model of the functioning of the region's innovation infrastructure was obtained, and its influence was determined when integrating elements of the Concept of Sustainable Development into the regional economic system of the Vladimir region.Conclusions. When conducting the study, it was concluded that the integration of the innovation ecosystem into the regional economic system helps to increase the indicators of innovative products produced, and will create conditions for the implementation of the goals of the concept of sustainable development in the region.