Science, Innovation аnd Investment: Prospective Aspects of Russian Industrialisation

Abstract

This paper explores the systemic relationship between the development of science, innovation, technological efficiency in the economy, and investment. The study aims to structurally analyse the impact of innovator and conservative models on industrial development and the formulation of economic policy strategies. The methodology adopts a neo-Schumpeterian approach to economic development, structural analysis, theories of industrial development, and empirical estimations. The research utilises data from the Russian statistical agency Rosstat, the World Bank, and the author’s prior scientific findings. The study demonstrates that innovators and conservatives, as two types of agents driving scientific and technological progress, exhibit distinct behavioural models. These models depend on the nature of the innovation and the mode of technological development, which are characterised by the principles of ‘creative destruction’ and ‘combinatorial growth.’ Similarly, the types of industrialisation policies are shaped by the dominance of one principle over the other. Furthermore, investment strategies for stimulating new technologies vary significantly across these modes. The results reveal that overall technological capability shows low sensitivity to investments in new technologies. This finding underscores the need for increased resources –  not only financial but also labour and capital. Additionally, reducing development risks through state-led investments and potential insurance schemes is crucial for addressing the challenges of new industrialisation. This approach provides valuable insights for promoting R&D and integrating domestic patents into production processes.