Spatial and Technological Diversification of the Russian Economy

Abstract

The article explains the technological diversification of the Russian economy as the main precondition for sustaining the economic development and strengthening the internal economic space. The industrial-based approach applied for understanding the economic diversification prospective is criticized for its theoretical shortcomings, leading to the false conclusion of unfeasibility of the technological diversification of the Russian economy under the harsh conditions of the western sanctions and financial restrictions. The new theoretical insight, based on new notion of «spatial technological diversification» is presented to reveal substantial hidden capabilities for horizontal and vertical diversification in Russia. The new path for the breakthrough economic development should be based on specific «regional comparative advantage», identified for every region as a main frame for its specific vertical technological diversification while the horizontal diversification, embracing different regions with their different «regional comparative advantage» might be applicable for the Russian economy in general.

Keywords

• economic diversification
• industrial specialization
• horizontal diversification of the economy
• vertical diversification of the economy
• spatial technological diversification of the national economy
• «regional comparative advantage»