Cluster analysis of the relationship between traditional and innovation economies

Abstract

Under contemporary conditions, programmes for the socio-economic development of Russian regions are increasingly relevant due to the necessity of a coordinating element between the Federal target programmes that operate on the territories of Federal Subjects and the target programmes of the Federal Subject itself. When creating an effective system for managing the development and implementation of regional socio-economic development programmes, it is necessary to proceed according to a unified method that is in conformity with government socio-economic development priorities. Regional economic policy essentially depends on a particular region’s innovative potential, which, in turn, predetermines its further socio-economic development. In order to determine specific influence of socio- cultural factors involved in traditional approaches to the economic management of regions where the indigenous peoples are predominantly supported through innovative development, the authors conducted a cluster analysis of the regions of the Russian Federation. The study revealed the relationship between indicators of support for traditional activities and those aimed at supporting innovation activities. The amount of funding for ongoing programmes that support traditional activities affects the birth rate in the corresponding region. It is precisely among indigenous people, who are closely associated with traditional activities, that one of the main values is marriage and children. As might be expected, efforts to support this part of the region’s population lead to a reduction in the divorce rate. However, along with this, a certain “inhibition” of economic and innovative development can be detected. Therefore, when designing support for these regions, it is necessary to direct additional efforts to support precisely these problem areas. The studied regions were combined into three clusters. The regions of the first cluster are characterised by the extent to which social and economic development indicators are harmonised. Regions of the second cluster (in which only organisations supporting traditional livelihoods are developed) are characterised by high birth rates and low divorce rates. Regions of the third cluster (regions in which only organisations supporting innovation are developed) are characterised by positive innovation and economic development indicator values. It is also worth noting that this corresponds to the highest value of the “number of people with higher education” indicator. Along with the positive points, this cluster is also distinguished by negatives: the largest number of divorces per 1000 people and the lowest birth rates. The cluster analysis of traditional and innovative economies allows us to formulate the directions of development of economic systems for the formation of harmonious relations between traditional structures and innovative approaches to conducting economic activity. © 2019, Economic Laboratory for Transition Research. All rights reserved.