Branch analysis in the context of evolutionary development of economic systems

Upgrading of Russian economy claims special attention to long-term problems of its development in order to make it stable and purposeful. The necessity to improve social and economic parameters and comprehensive innovation development of territorial economic systems requires elaboration of sound policy and regions' strategies in relation to regional branches that form their potential. The article proposes an approach to reform national economic sectors on the basis of their life cycle analysis and allocation of functional features of a single mesoeconomic system. The research is aimed at selecting key parameters of sectors' development at the regional level. The evolutionary approach that serves as the basis for the methodology gives an opportunity to determine the factors that have the greatest impact on life cycle dynamics. The article singles out the following main groups of factors: resources, product, technology, market, banking sector, public policy. By analyzing life cycles of the Yaroslavl region's chemical industries (synthetic rubber and carbon black production) it is concluded that the only way to ensure sustainable development of branches lies in the continuous implementation of innovations, a process affected by cyclicity and determined by factors of exogenous and endogenous nature.