Selective Territorial Diffusion of Technologies Taking into Account the Scale Effect

• Published in: Issues of Economic Theory Vol. 25; no. 4; pp. 59 - 85
• Main Authors: Balatsky, Evgeny, Ekimova, Nataly
• Format: Journal Article
• Language: English
• Published: 25.11.2024
• ISSN: 2587-7666; 2587-7666
• DOI: 10.52342/2587-7666VTE_2024_4_59_85

The article proposes a procedure of investment allocation between regions based on the assessment of their production achievements. For this purpose, the return on investment and economies of scale are taken into account, which creates the basis for the construction of technological and investment matrices for the subsequent identification of the most promising regional-sectoral clusters. The procedure is tested on the example of agriculture for all subjects of the Russian Federation. The proposed scheme of selecting investment flows for different needs - expansion of production, research and development, borrowing and introduction of new technologies - in different regions opposes the traditional Russian practice of equalizing regional inequality. Instead of subsidizing lagging regions, it is proposed to stimulate the development of leading regions with subsequent transfer of their progressive experience to other territories. In this case, each region has its own mission in terms of innovation economy - some of them play the role of advanced production clusters that provide technological breakthroughs, while others adopt the best practices and thus improve the quality of the country's economic space. We discuss the procedure of interregional diffusion of advanced forms of production, taking into account sub-sectors and individual areas of production specialization.