What Agglomeration Externalities Impact the Development of the Hi-tech Industry Sector? Evidence from the Russian Regions
This paper continues the ongoing debate on the importance of agglomeration externalities that may impact innovation development and the high-technology sector in regional economies. Previous studies suggest that the evidence for agglomeration externalities is strongly context-specific. We aimed...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Indonesia
2020-12-01
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| Series: | International Journal of Technology |
| Subjects: | |
| Online Access: | https://ijtech.eng.ui.ac.id/article/view/4423 |
| Summary: | This paper continues the ongoing debate on the
importance of agglomeration externalities that may impact innovation
development and the high-technology sector in regional economies. Previous
studies suggest that the evidence for agglomeration externalities is strongly
context-specific. We aimed to expand this discussion to Russian regions by
utilising statistical evidence. We constructed a panel dataset with 83 regions
and used various spatial econometrics and statistic techniques to test our
hypothesis. Our study made two essential contributions. First, we found that
regions with a high density of used high technologies tended to co-locate next
to each other. Secondly, the localization of employment, sales volume, and paid
wages in the electrical equipment, electronic, and optical equipment sector
demonstrated a positive association with hi-tech usage density. These
externalities suggest the presence of positive direct or indirect spillover
effects among regions in Russia within the examined industry sector. However,
the localization of investment did not display any association and, thus, does
not suggest the presence of any spillover effects. These contrasting findings
reveal the peculiarities of Russian business reality, such as vast territories
of the country, uneven infrastructure, lack of funding, and small cooperate
networks. The federal government is expected to provide appropriate financial
and legal support to stimulate clustering processes and innovative activities.
Recommendation for further research is provided at the end of the paper. |
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| ISSN: | 2086-9614 2087-2100 |