Innovations as a factor of economic growth in the Russian regions: econometric analysis

Today, the extensive sources of economic growth in progressive countries are rather stable and do not drive GDP growth. The number of the employed and the accumulation of physical capital in these states show an insignificant change over a time horizon of up to ten years. Thus, economic growth is likely to be determined by the advancements in labor and applied equipment. At the same time, innovations act as a factor that increases the average efficiency of the economic resources used. Therefore, the stimulation of innovative activity can be one of the main sources for intensive economic growth. The study is devoted to the analysis of innovations in various regions of Russia and innovations' impact on GRP growth. This article aims at identifying the contribution of the innovation component to the growth of the economy in the regions of the Russian Federation. The stated goal requires panel data based econometric methods. The results of the study give the conclusion that there are domestic and imported innovations. Imported innovations are determined by the dynamics in the import of scientific educational services. At the same time, the 2014-2019 economic sanctions did not affect imported scientific and technological progress. The results of the calculations show that innovation and the accumulation of human capital have become the main factors in Russia's GDP growth since 2014. Consequently, the stimulation of innovative activity may affect the growth of both the domestic economy as a whole and its individual regions. The conducted research may be of interest to the government bodies handling the economy. Further research should be focused on the public management methods at the level of innovation for better performance.