Abstract
In this chapter the different terms and concepts implemented in the study are introduced. In all cases not only is the concept itself introduced but it is as well discussed in how far it can be measured and which data sourced were used to measure it.Starting with an basic description of economic growth the problem with regional price levels which not only effects output variables like GRP but all monetary variables has been discussed and a solution that is later on implemented proposed.After introducing knowledge as a concept it is discussed how it differs from human capital and innovations and in how patents provide a suitable measure for the level of available knowledge. Furthermore, it is discussed how knowledge can be generated and by which channels it can be transmitted, whereas the focus lies on the traditional channels patents, labor mobility, FDI and trade. Building on these mechanisms the idea of the national innovation system is introduced.As one of the basic ideas of Alois Schumpeter has been that small enterprises are essential for the generation of new knowledge it is discussed how they come to be. Taking into account the Russian industry structure the idea of cluster are introduced to account for the respective dynamics. The chapter concludes with a view on the absorptive capacity – whether a region is really able to absorb and use the knowledge available to it.
To define a thing is to substitute the definition for the thing itself.Georges Braque
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Notes
- 1.
Before the introduction of the GRP concept into then-Soviet economic accounting, the most commonly used indicator has been the gross industrial output (GIO), measured in real terms, by the amounts of produced goods.
- 2.
Note that this argument only holds as long as immigrant workers, especially from Central Asian countries, are excluded. In this context extensive discrepancies would arise due to the large amount of remittances send back to the Central Asian countries. See for example Marat (2009).
- 3.
Note that in this study Y denotes the GRP and Y i,t the GRP of region i in period t.
- 4.
The CPI measures the price of a basket of goods and services an average household consumes.
- 5.
The PPI measures the price of a basket of goods and services an average enterprise consumes.
- 6.
Additional information on the calculation of the indicators can be found in International Labor Organization (2010).
- 7.
In this context the methodology of Rosstat follows the international procedures applied in the European Union by Eurostat.
- 8.
As no information is released by Rosstat on regional or community weights, the study by De Masi and Koen (1995) remains the only one to report at least regional weights.
- 9.
The price indices are calculated on a monthly basis. In comparison to the Eurostat methodology no country weights are necessary. Refer for an example to Gluschenko (2006).
- 10.
In all econometric estimations constant data is indexed on the base year 1995.
- 11.
However, when the share of the shadow economy is calculated later on, 1995 is used as base year as well, due to the available data. Therefore, both approaches complement each other.
- 12.
- 13.
Being defined here as absolute β-convergence following the work of Barro and Sala-I-Martin (1990).
- 14.
- 15.
See Sect. 4.1 for the mathematical deduction of the result.
- 16.
Club convergence in this context describes the fact that sub-groups of the Russian regions exist, where convergence to a common steady state takes place, even though on a larger scale no convergence could be detected.
- 17.
Note even for the European Union, where spillover activities are pronounced, for example Feldkircher (2006) argues that spillovers per se have only little influence on the convergence process. This can be explained in part as Jungmittag and Welfens (2003) list a number of requirements for economic convergence to take place. Some of them are included in the absorptive capacity concept, which will be introduced in a later section.
- 18.
It is assumed here that the price index data published by the Worldbank for the Russian Federation on a national scale is a reliable data source.
- 19.
This is possibly the largest caveat of this scheme as even during Soviet price regulation regional price discrepancies existed.
- 20.
- 21.
It is disputable whether a set of signs already sports a semiotic dimension due to the sign system they originate from.
- 22.
This set of rules is mostly referred to as a grammar.
- 23.
The presence of a syntactical dimension does not necessitate that the sign structure always has to be valid. The possibility of falsification alone is sufficient for the presence of a syntax.
- 24.
Recent developments have shown that ICT can also be implemented to account for different forms of knowledge transfer. A simple example might be face-to-face discussions via webcam and VoIP technology.
- 25.
- 26.
Note that a number of researchers like Leonard and Sensiper (1998) argue that all knowledge is inherently tacit and can therefore not be codified.
- 27.
- 28.
See Verspagen and Schoenmakers (2004).
- 29.
For the basic definition of human capital see Becker (1962) or (1993). Note, in colloquial use human capital is sometimes equated to human resources – the stock of humans in possession of the knowledge – relating mostly to the fact that one of the most common measures of human capital is accounting for its carriers.
- 30.
- 31.
At some time every part of the stock of explicit knowledge has been part of the stock of human capital.
- 32.
- 33.
See WIPO (2012).
- 34.
The PCT was founded in 1970 and regulates the international protection of patent rights. It offers the option to file patents for all members at the same time – 143 member states as of 2011. The Russian Federation ratified the PCT in 1978. For the text of the PCT see WIPO (2002).
- 35.
Before its introduction in the Civil Code it was amended and new sections were added on December, 12th 2000, October, 30th 2001 and February, 7th 2003.
- 36.
If three inventors are listed on a patent – one from Moscow and two from St. Petersburg, then Moscow is attributed one-third of a patent and St. Petersburg is attributed two-thirds of a patent.
- 37.
The knowledge frontier, sometimes referred to as the technology or technological frontier, is defined as the sum of all unique knowledge.
- 38.
In reality the usage of knowledge can mean its devaluation, if it has hence been unknown to others who attribute value to gaining it, but receive it free of charge.
- 39.
Exceptions exist in reality as in the case of patents or if the usage of knowledge is connected to its economic exploitation, whereby the economic environment would generate a limitation in its exploitability. However, the ability to use the knowledge would not be affected.
- 40.
See Kultusminister Konferenz (2010).
- 41.
In this context relevant can be seen as a synonym for cross-referenced.
- 42.
Exports can have an indirect effect on the knowledge discovery and duplication process since in an international environment a higher degree of innovativeness is needed to compete, leading to a rising need for new knowledge.
- 43.
- 44.
A spillover describes the process of knowledge duplication by transfer from one carrier to another. A summary of the early literature on knowledge spillovers can be found in Feldman (1999).
- 45.
For a comment on the different channels of knowledge transfer refer to Kim (2010).
- 46.
- 47.
- 48.
- 49.
Due to the limited brain capabilities of humans and the mechanics of learning, it is to be assumed that humans, even if they learn new knowledge, do not really learn and store the new knowledge but the underlying information and some case-specific interpretation thereof, and every use of the knowledge is but an extrapolation of the case-specific information already stored in the brain.
- 50.
See Shannon and Weaver (1949).
- 51.
If the idea behind a patent is reused, then the used patent is cited by the patent that uses its knowledge, thereby determining the importance of a patent.
- 52.
It is assumed here that knowledge transfers are voluntary in nature, while spillovers are used in a broader scope and include involuntary transfers as well.
- 53.
See Andrienko and Guriev (2004).
- 54.
See Maurseth (2003).
- 55.
- 56.
The traditional learning curve measures the time it takes to learn a certain topic, a steeper curve signifies a harder to learn concept.
- 57.
This is usually referred to as Verdoorn’s law which states that faster growth in output increases productivity due to increasing returns Verdoorn (1949).
- 58.
Lundberg observed that for the Horndall iron works in Sweden, without investments and with no changes in the production process over many years, the productivity still increased Arrow (1962).
- 59.
Even though this problem theoretically exists it is not included directly in economic models. A practical counterexample to possible negative effects of job rotation can be seen in the so-called Toyota Production System, where not only have learning curve effects been reported, but which is also very active in the field of job rotation or job enrichment. See for example Schonberger (1982) or Monden (1983).
- 60.
Note that, though similar in name, what in the literature like Wagner (2002) is referred to as learning-through-exporting or learning-through-importing is referring to knowledge generated via competitive pressure or knowledge spillovers via traded goods, but not via intrinsic learning as is the case with LBD. Jungmittag and Welfens (2003) take up this topic in the context of transition economies, especially the Russian Federation.
- 61.
See for example De Fraja (1993) for a discussion of motives that lead to the disclosure of knowledge.
- 62.
Abbreviation for the International Monetary Fund.
- 63.
Abbreviation for the Organization for Economic Cooperation and Development.
- 64.
See IMF (2008), p. 3.
- 65.
See OECD (2008a), p. 234.
- 66.
See Protsenko (2003) for the different types of DI and their importance in transition countries like Russia.
- 67.
- 68.
However they call it an investment with a lasting interest.
- 69.
Horizontal FDI are FDI in the same sector, whereas vertical FDI are FDI in a sector upstream or downstream in the respective supply chain.
- 70.
See for example Saggi (2006).
- 71.
See for example Segerstrom (1991).
- 72.
Note, though, that even if it has been the aim of this study to provide as complete as possible a summary of institutions, due to the potential for design of institutional characteristics, it cannot be guarantied that the list is complete. Nevertheless, it does contain the most important institutions.
- 73.
- 74.
See Shapiro (2002).
- 75.
See for example Welfens (2009).
- 76.
See Desai and Goldberg (2008).
- 77.
The importance of the factor culture is stressed for example in Weir and Hutchings (2005).
- 78.
As discussed in Chap. 2, it is assumed that Jews and Lutheran Protestants are more engaged in economic activities than other religious groups.
- 79.
The figure has been made in reference to a publication by European Commission (2012). For a list of the full names and internet resources on the different parts of the Russian and Science and Technology System see appendix A. Note, furthermore, that the figure, especially considering the political level and the respective committees, is based on the governmental structure under president Dmitry Medvedev, whereas it has been changed in some aspects with the beginning of the presidency of Vladimir Putin in 2012. Committees related to education, science and technological development in the beginning of Vladimir Putin’s second presidency are the The Russian Government Commission on Competition and Development of Small and Medium-sized Businesses, the Government Commission on Investment Projects of National, Regional and Interregional Importance and the Government Council on Grants for state support of research conducted under the supervision of leading scientists at Russian institutions of higher learning, research institutions of state academies of sciences and state research centers of the Russian Federation which all report to the prime minister. The Council for Economic Modernization and Innovative Development, Council for Science and Education and the Commission for Military Technology Cooperation with Foreign States report directly to the president. For additional information on the different councils and commissions refer to Government Commissions (2012), Kremlin Councils (2012) and Kremlin Commissions (2012). Note that Komkov and Ivashchenko (2009) also presents an overview of the Russian Science and Technology System. However, his structure deviates a bit from the figure shown above.
- 80.
See S&T Gate RUS.EU (2012).
- 81.
See for example the study by Golovanova (2010).
- 82.
- 83.
- 84.
Note, that Bergek et al. (2008) rightfully remarked that all products are inherently different and the assumption of only one innovation system for all products is an over-simplification, and a precise analysis would necessitate that for each product a separate innovation system needs to be analyzed, respecting that the different innovation systems might be interlinked with each other.
- 85.
See for example Segerstrom (1991).
- 86.
See Kondratieff (1926).
- 87.
The figure has been created based on the information in Nefiodow (2007).
- 88.
The figures are based on the illustration in Welfens (2012).
- 89.
See Storey and Greene (2010).
- 90.
- 91.
See Stowell (2010) for a definition of the terms.
- 92.
Especially in the German community, outsourcing and spin-off are used as synonymous terms.
- 93.
- 94.
- 95.
See Kihlgren (2004).
- 96.
- 97.
Note that this development path is only of an idealistic nature and as such, relates to the cluster lifecycle introduced in Sect. 3.5.
- 98.
- 99.
See OECD (2008b).
- 100.
- 101.
See Desai and Goldberg (2008).
- 102.
Private investors, who like a venture capital association promote the formation of new firms through credit or other support like management advice.
- 103.
Desai and Goldberg (2008) reports that no angel investors are active in the Russian Federation.
- 104.
See the study conducted by Kovaleva (2002) for the whole Federation.
- 105.
See Porter (1998).
- 106.
See Porter (1998), p. 78.
- 107.
Note that concentration in the sense of proximity can refer to other types of proximity besides geographical distance as noted by Sheppard (2000).
- 108.
See Sect. 3.6.1 for a definition of the absorptive capacity.
- 109.
See Porter (1998).
- 110.
See Carmagni (1991).
- 111.
See Marshall (1890).
- 112.
See European Commission (2008).
- 113.
See Ellison and Glaeser (1997).
- 114.
See Sternberg and Litzenberger (2004).
- 115.
See as an example Hoser and Schröder (2007).
- 116.
See for example Menzelm and Fornahl (2010) for a discussion of the cluster lifecycle concept.
- 117.
- 118.
- 119.
The same can be said on a lesser degree for the special economic zones.
- 120.
See Karlsson (2010).
- 121.
- 122.
See citezimin10. For general developments of the Russian Sector see for example Kuboniwa (2009).
- 123.
See Cohen and Levinthal (1990).
- 124.
See for example Griffith et al. (2003).
- 125.
- 126.
Refer in this context to the study by De Long (1988), who sees religion as a proxy for the capability to absorb new technologies and therefore as the absorptive capacity.
- 127.
See for example Asheim et al. (2011).
- 128.
The spatial effects measured in convergence studies are sometimes related to spillover effects and Caniëls and Verspagen (2001), for example, stresses the importance of the absorptive capacity as a prerogative for spillovers. In this study barriers to spillovers through a badly developed absorptive capacity are also discussed.
- 129.
Refer to Barro and Sala-I-Martin (1991) for the proof.
- 130.
It is acknowledged that this implies that every student will finish his studies.
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Perret, J.K. (2014). Relevant Economic Terms and Concepts in a Russian Context. In: Knowledge as a Driver of Regional Growth in the Russian Federation. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-40279-1_3
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