Qualitative Assessment of the Potential of Innovative Development of Territories

Journal of Environmental Treatment Techniques

2019, Special Issue on Environment, Management and Economy, Pages: 1195-1199

J. Environ. Treat. Tech.

ISSN: 2309-1185

Journal web link: http://www.jett.dormaj.com

Qualitative Assessment of the Potential of

Innovative Development of Territories

Gulia F. Galiullina , Tatyana G. Mansurova, Elvira F. Gallyamova

Kazan Federal University, Naberezhnye Chelny Branch, Economic Theory and Economic Policy Department, Kazan, Russian Federation

Received: 13/09/2019

Accepted: 22/11/2019

Published: 20/12/2019

Abstract

This article presents the results of a study of the relationship between the existing potential of innovative development of a territory

that has received special status, and the conditions for moving to the next level of evolution. Inconsistency of the management system

with technological potential hampers the industrial and socio-economic development of the territory. The analysis of production

technologies opening in the status of resident revealed a negative tendency in a number of areas of priority social and economic

development - residents offer technologies of a lower level than those in aboriginal enterprises. This situation is a clear sign of the

degradation of the industrial development of the territory. Comparison of the potential that is unique for each territory and the potential

necessary for the effective activities of residents will allow us to identify gaps between them and develop targeted programs for the

formation of an appropriate institutional environment. Qualitative indicators of the potential for innovative development of the territory

are proposed to be evaluated based on the level of technology of key enterprises. Consideration of the evolution of technological

structures and the phase of industrial development of the territory on the basis of models of competitive strategies by I. Ansoff made it

possible to propose five types of territories of advanced social and economic development in single-industry towns: an industrial city,

agglomeration, innovative city, smart city, and cybercity. The presented classification, on the one hand, helps to identify weaknesses

in the TASED management system, on the other hand, orients potential residents to the choice of a territory that is more consistent with

the level of applied technologies of the created production.

Keywords: Territory of advanced social and economic development (TASED), innovative potential, technological structure, single-

industry town, innovative development

Introduction¹

The classification of territories of advanced social and

economic development (TASED) by the development

potential of the territory (economic, demographic, by the

income base of the territories) showed

a variety of

combinations of the initial factors of each territory (1). The

proposed classification features are based on quantitative

indicators of the development of a particular area of the

territory.

It is proposed to evaluate the qualitative indicators of the

development potential of the territory by determining the level

of technologies used in production by residents or a city-

forming enterprise. Advance development is not deployed on

obsolete technologies. Russia lags significantly behind in the

deployment of a new industrial revolution (Figure 1).

Figure 1: Share of production of different technological structures in

the industrial production of countries, %, 2010 (2)

Recognizing the importance of enhancing innovative

development by Decree of the President of the Russian

Federation No. 204 dated 05.05.2018 “On National Goals and

Corresponding Author: Gulia F. Galiullina, Kazan Federal

University. Email: gulia-fag@yandex.ru.

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Journal of Environmental Treatment Techniques

2019, Special Issue on Environment, Management and Economy, Pages: 1195-1199

Strategic Tasks of the Development of the Russian Federation

until 2024”, the following priorities are identified:

humanitarian advantage is the improvement of the quality of

life of the population. The external environment is slowly

changing and predictable; the system adapts to change. There

is a low frequency of introducing new products into production

and the product life cycle, the slow pace of technology change,

an imitation of technology changes and a new type of products.

Solving the issues of infrastructural development the

authorities create a favorable business climate in the territory,

contributes to the influx of investments. At this stage of

development, agglomerations actively form (7). The main

method is program-targeted. Goals, ways of achievement are

set taking into account the available development resources.

Development programs become a way of thinking, and

achieving targets serves as a lever for managing the territory.

Experts and entrepreneurs join the development of territorial

development programs.



Accelerating the technological development of the

Russian Federation, increasing the number of organizations

implementing technological innovations, up to 50% of their

total number;



Ensuring the accelerated implementation of digital

technologies in the economy and social sphere;

Entering the five largest economies in the world,



ensuring economic growth rates above the world while

maintaining macroeconomic stability, including inflation, at a

level not exceeding 4%;



Creating a high-performance export-oriented sector

in the basic sectors of the economy, primarily in manufacturing

and agriculture, developing on the basis of modern

technologies and provided with highly qualified personnel.

The fourth TM corresponds to the development phase

“

integration”, in which the system searches for habitual

Methods

changes in rapidly changing, predictable external

The existing potential for innovative development of the

environment. There is a moderate pace of technology change,

the frequency of introduction of new products into production

and the product life cycle, the emphasis in technology research

and product development is on their improvement. The

backbone industries are automotive, non-ferrous metallurgy,

oil refining, synthetic polymeric materials. The main task of

managing the operation of TASED is the integration of the

production of residents and operating enterprises in order to

build relations on the basis of dialogue and partnership with

each other and the surrounding world. Territory management

aims to develop ways to achieve long-term goals since

qualitative changes require strategic approaches to solving

problems. It becomes clear that the performance factor of the

TASED is the degree of coordination of the actions of the

organizations of the territory, as well as the level of interaction

between the authorities, business, and science in the

development and implementation of the development strategy.

At this stage, the management of TASED moves to a

qualitatively different level: self-control replaces control, self-

coordination replaces coordination.

At the “association” stage of organizational development,

the question of introducing innovations, expanding

institutional forms and relationships is possible, the creation of

new institutional structures of innovative development is

demanded (at earlier stages they are created artificially).

TASED begins to form the external environment itself, and the

understanding of the priority of the quality of growth, and not

just the growth of quantitative indicators, comes. At this phase,

technologies of the fourth TM are naturally created and

developed: electronics and microelectronics, information

technology, genetic engineering, telecommunications.

Achieving the mode is individualization of production and

consumption. The humanitarian advantage is globalization, the

speed of communication and movement. Traditional cities

transform or new cities arise in the form of high-tech

territories, including an effective management system,

innovative infrastructure in production and the social sphere

territory, which has received the status of TASED, is proposed

to be analyzed according to the level of technology of the main

production facilities of the territory. For single-industry towns,

this will be a city-forming enterprise/industry. As a rule, the

institutional environment of the territory (personnel training

system, logistics, labor market, communal infrastructure, etc.)

is “tailored” to the needs of these enterprises/industries (3).

When searching for a new production site, investors

consider many factors (4), and first of all, the compliance of

the institutional environment of the territory with business

requirements (level of administrative barriers, availability, and

quality of labor resources, openness of the system, etc.). In

order to understand what qualitative characteristics of the

external environment contribute to the transition of the

territory to the next technological structure, TASEDs are

classified on the basis of models of competitive strategies by

I. Ansoff (5), the dynamic development of the enterprise by B.

Lievegoed and F. Glasl (6) (Table 1). The phase of industrial

development - “pioneer” - corresponds to the second

technological mode (TM). Systemically important industries

are mining and ferrous metallurgy. Achievement of the mode

is the growth of production, the development of transport. The

humanitarian advantage is the liberation from hard manual

labor. The second TM corresponds to a repeating level of

environmental variability, which is characterized by a rare

introduction of new products into production, a repeating

external environment, a long product life cycle, the emphasis

in product development is fixed on extending the term of

product use. At this phase of development, the TASED

management function is reduced to collecting and processing

information and solving operational issues. The amount of

information for making management decisions is minimal.

The authorities take separate decisions on the functioning of

the TASED neglecting the opinions of the business and the

expert community (Table 2).

The “differentiation” phase is characterized by an

expanding level of environmental variability, which is

coherent with the third TM. The backbone industries are heavy

engineering, the electrical industry. Achievement of the mode

is the growth of production, the development of transport. The

(housing, healthcare, education, leisure, etc.) based on the

active use of information and communication technologies.

Smart cities develop.

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Journal of Environmental Treatment Techniques

2019, Special Issue on Environment, Management and Economy, Pages: 1195-1199

Table 1: Characteristics of the parameters of the external environment and the level of technological development of enterprises in

the territory

The level of technological development of key enterprises territory

Parameter

Second TS

Pioneer

Third TS

Fourth TS

Integration

Fifth TS

Sixth TS

A phase of development

Differentiation

Association

Creativity

B. Livehudu

Level of environmental

variation

The pace of change

technologies

Repeating

Very slow

Expanding

Slow

Changing

Moderate

Spasmodic

Unexpected

Borrowing

technology

The emergence of new

technologies

Parameters of environmental instability

The degree of openness of

the system

Adapts to

change

Looking for the usual

changes, asynergism

Looking for a

change, global scale

Looking for radical

change, creativity

Rejected changes

Repeating

Slowly

changing,

predictable

By comparing

the response of

firms

Rapidly changing,

predictable

Inconstant, partly

predictable

External environment

Type of change

Casual, predictable

Slower than the

response of firms

By comparing the

response of firms

Faster than the

response of firms

Faster than the

response of firms

Frequency of introducing

new products into

production

Rare

Low

Moderate

High

Characteristic of technological structure

Hydrocarbon energy,

Main resource

Energy steam, coal

Electric energy

the start of nuclear

energy

Atomic Energy

Nanotechnology

The internal

combustion engine,

petrochemicals

Microelectronic

components

Key factor

Steam engines

Long

Electric motor

Long

Artificial intelligence

Short

Product life cycle

Moderate

Short

Extension of the

use of the products,

cost reduction

Simulation of a

new kind of

production

Emphasis on product

design

Development of new

products

Launch new products

with preset properties

Product development

Table 2: TASED grouping by the potential of innovative development of a single-industry town

№

Technological

structure

Type single-industry

Characteristic

town

Industrial city

Territories are faced with an annual decrease in population, high unemployment, low-

income base, as production with a low share of value added prevails. The main goal of

the department is to create jobs, attract investments in fixed assets in order to improve

the socio-economic development of the territory.

III

Agglomeration

Innovation city

The main goal of TASED is to provide the production of existing enterprises and

residents with labor resources of the required qualification, to remove the existing

restrictions in the sphere of production, transport and energy infrastructure.

The main goal is to create/use innovation development institutions of the territory in

order to attract residents, investing in the production of innovative products and creating

high-performance jobs. The TASED strategy is aimed at forming a “flow of high-tech

projects”, reaching the world level of competitiveness of residents' products, increasing

the share of breakthrough world-class research and development.

Smart City

KiberCity

A territory that is making conscious efforts to innovate the use of information and

communication technologies in support of a more inclusive, diverse and sustainable

territorial environment based on sustainable development principles. Companies come to

the territory after highly qualified specialists who are demanding to the environment of

their life, they need a high quality of life.

Production of this level is practically not represented in the country, and there are no

residents willing to develop production at this level.

The next stage - “creativity” - is the least studied in

Russian theory and practice, since there is practically no

production of the sixth TM. The external environment is

unstable, changes rapidly and the effectiveness of TASED is

impossible without focus on synergistic effects based on the

introduction of basic innovations. Linear thinking attempts to

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Journal of Environmental Treatment Techniques

2019, Special Issue on Environment, Management and Economy, Pages: 1195-1199

extrapolate past experience to the present, and even more to

the future, are no longer a danger but a threat to the strategy of

innovative development. The core of labor collectives when

creating new jobs should be talented youth able to integrate

new ideas (8). The innovation process is not only non-linear

but also non-equilibrium, emergent, synergistic and therefore

is out of traditional control (9).

such priorities are proposed to be consolidated in regional laws

on industrial policy (10).

Summary

Inconsistency of the management system with

technological potential hampers the industrial and socio-

economic development of the territory. The analysis of

production technologies opening in the status of resident

revealed a negative tendency in a number of TASEDs -

residents offer technologies of a lower level than those in

aboriginal enterprises. This situation is a clear sign of the

degradation of the industrial development of the territory. Yes,

here and now, such industries solve short-term problems -

attract investments, create new industries. But in the medium

and long term, this is the road to nowhere - in the XXI century,

in the era of the digital economy, state preferences are

provided to organizations with automated and mechanized

technologies.

Results and Discussion

The analysis of the specialization of 65 single-industry

urban settlements that have received special status revealed

that the basis of the economy in 20 single-industry towns is the

production of the second TM (Figure 2). The criterion for

classifying production as a specific technical condition is the

use of technologies inherent in this structure in production, or

technologies that ensure the production of products that,

according to their technical or physicochemical characteristics,

can correspond to the products of this structure.

Conclusions

A closed system with a bureaucratic management system

gives no chance to innovative technologies to take root or

develop. They need a system that is open to innovation,

accepting the challenges of the time and ready for

experimentation, and

a pool of relevant development

institutions (laboratories, research institutes, universities, etc.).

Currently, mainly companies with technologies of 2-4 levels

receive the status of TASED residents. In order to attract

production with a higher level of added value (5 TM

production) to the territory, it is necessary to create an

appropriate institutional environment, as production data

develop in an environment that seeks change, has a global

scale, individualization of production and consumption, and a

high frequency of implementation in production of new

products, etc. To create such an environment, it is proposed to

find out at what stage of evolution the industrial development

of the territory is and to form the appropriate institutional

environment to attract TASED residents with a similar or

higher level of technological development.

Figure 2: Classification of TASED by the level of technological

development of a key enterprise of 65 single-industry towns

It is alarming that the TASED residents often open

production facilities of lower TM than even a city-forming

enterprise, where the difficulties in its activity cause the socio-

economic situation of such a single-industry town to be

classified as complex. For example, “Naberezhnye Chelny”

TASED was created in the city of automobile manufacturers

6 Acknowledgments

The work is performed according to the Russian

Government Program of Competitive Growth of Kazan

Federal University.

(

TM 4). As residents, the production of the food industry,

hockey sticks, etc. is opened. The resident with the

technologies of the next TM (plant for the production of

artificial sapphires) could not stand the competition and

closed.

References

Galiullina Gulia F, Aetdinova Rasulya R, Makarov Anatoly N.

Classification of Territories of Advanced Socio-Economic

It turns out that when applying for the country's innovative

development, in fact, through preferences, the state supports

any production that meets the requirements for the type of

activity, the volume of investments made, the number of jobs

created, and does not regulate the level of technology used. It

is especially important that the tax incentives provided to

investors are not focused on “filling” ongoing investment

projects, in particular within the framework of TASED, with

modern innovative industries. A coordinated vision of the

priorities of scientific and technological development, both at

the federal level and in the regions, could solve this problem.

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