Regional Innovation Sustainability: Evaluation Features
Galina S. Merzlikina
a
Department of Management and Finance of Production Systems, Volgograd State Technical University, Volgograd, Russia
Keywords: Innovation Development, Innovation Sustainability, Characteristics of Regional Innovation Development.
Abstract: The article presents the study results of evaluation methods for the regional innovation development (both
used in statistical observations and proposed by scientists). It was detected that they all rely on the "basic"
definition of the innovation development, consisting in the innovation process implementation, the indicators
are not related to sustainable innovation development. The studies, describing innovation development
evaluation (both domestic and foreign), are not focused on the problem of innovation sustainability as an
innovation development characteristic. The author proposes the “regional innovation stability" concept as a
property of the regional innovation, consisting of the ability of the economic system to maintain a certain
(predetermined) level of achieving goals in conditions of dynamic equilibrium, "dynamic balance". The article
identifies the attributes of innovation sustainability: effective formation and innovation potential management
(a dominant feature), the use of disruptive or gradual innovations, closed and open innovations, lean
production organization and activation of digitalization of innovation, a combination of flexibility and rigidity
of integration forms of cooperation in organizing innovation activities.
1 INTRODUCTION
Increased investment in research and innovation is
recognized as the core of virtually all national
sustainable development strategies. According to
(Karayannis and Grigorudis, 2016): This is the only
way to “ensure smart, sustainable and inclusive
economic growth”; the key element of the regional
innovation policy will be the so-called “smart
specialization; the priority of regional innovation is
the formation and strengthening of "its own scientific
and innovation potential in accordance with business
needs to use emerging opportunities and market
trends without duplication and fragmentation of
efforts" (Karayannis and Grigorudis, 2016). The
importance of innovation in the region is discussed in
(Audretsch, 1998), noting that: “Just a few years ago,
according to the current opinion, globalization would
result in the disappearance of the region as a
significant unit of economic analysis. However, the
obsession of world politicians to “establish the next
Silicon Valley” confirms the growing importance of
geographic proximity and regional agglomerations
<...> the irony of globalization is that while the
corresponding geographic market for most goods and
a
https://orcid.org/0000-0001-5877-9342
services is becoming increasingly global, the
increased importance of innovation in the leading
developed countries has resulted in the significance
of local regions as a key source of comparative
research.” (Audretsch, 1998). Moreover, innovative
activities within the region are useful and effective
not only for the “region” but for the regional
enterprises. According to (Antonioli et al., 2014),
many companies, having received the right to
participate in research and development, with
financial support, will not only improve their
innovation results, but also change their participation
in the innovation process at the regional level
(activating it), and innovation behavior models can be
identified both inside and outside of regional
companies. Innovation is a complex process
involving different groups of participants and
interactions between industries and territories
(Antonioli et al., 2014).
The assessment of the innovative development of
regions is carried out according to various methods
(statistical compilations, author's methods are
proposed by various scientists), but they all rely on
the "basic" definition of the innovation development
essence, consisting in the process implementation.
356
Merzlikina, G.
Regional Innovation Sustainability: Evaluation Features.
DOI: 10.5220/0010590603560361
In Proceedings of the International Scientific and Practical Conference on Sustainable Development of Regional Infrastructure (ISSDRI 2021), pages 356-361
ISBN: 978-989-758-519-7
Copyright
c
2021 by SCITEPRESS Science and Technology Publications, Lda. All rights reserved
And most importantly, all indicators are not related to
sustainable innovation development. In our opinion,
any activity, including innovation, should also
"work" for the sustainable development of the
country, region, and enterprise.
The author studied many techniques of innovation
development evaluation (both domestic and foreign),
they are not focused on the problem of innovation
sustainability as an innovation development
characteristic. The importance of economic
sustainability is self-evident. Considering the
regional innovation sustainability, it is important to
identify the assessment problems: innovation
processes heterogeneity, and "double” heterogeneity:
the heterogeneity of innovation processes carried out
by enterprises in the region, their different ability, and
readiness and opportunities are different (Shilova,
2015) and the heterogeneity of the innovative
development of individual regions, territories
(regional differentiation) (Babich, 2017).
It demands either individual approaches to
assessment or the use of certain "boundaries", the
values, adjusted for this individual feature. But in this
case, the “objectivity” and comparativeness of the
assessment of the regional innovation sustainability
are lost, and this is the problem of assessing the
regional innovation sustainability. But, perhaps,
individual assessments are needed to manage
innovation development? In our opinion, the
assessment of innovation sustainability will help
identify the problems of regional innovation
development and determine a set of certain individual
management decisions aimed at innovation
development.
As the study object, the author considers the
regional economic innovation sustainability. The
study subject includes features of the regional
innovation sustainability assessment.
The purpose of the study is to investigate the
proposed and used methods and indicators for
assessing the regional innovation development
propose a new characteristic of the regional
innovation development - its innovation
sustainability, determine its attributes and identify the
assessment features of the regional innovation
sustainability.
Study objectives:
1. To analyze existing methods and indicators to
assess the effectiveness of the regional innovation
development;
2. To propose and substantiate a new
characteristic of the regional innovation development
- its innovation sustainability;
3. To determine the main attributes of the regional
innovation sustainability;
4. To identify the assessment features of the
regional innovation sustainability.
2 RESEARCH METHODOLOGY
During study, the provisions of the theory of
management of the regional economy, the theory of
innovation management, the concept of sustainable
development, the scientific foundations of strategic
management set out in the works of famous Russian
and foreign scientists, methods, mechanisms, and
tools for managing the economy of the region,
balanced management, methodology and tools for
assessing the effectiveness of activities were used.
We used a dialectical approach (identifying the
performance of regional enterprises and the result of
regional innovation development), competence
(assessment of the control over regional innovation
potential), an approach based on balanced
management (formation and use of regional
resources). It made it possible to ensure valid results
and conclusions.
3 RESEARCH RESULTS
The use of innovation sustainability as a property of
the regional innovation development was proposed.
The essential content of the concept of regional
innovation sustainability was substantiated.
The main attributes of the regional innovation
sustainability were proposed;
The assessment features of the regional
innovation sustainability were analyzed.
4 DISCUSSION OF STUDY
RESULTS
Sustainable innovation development. The regional
innovation development and its effectiveness have
always been the subject of scientific research. An
important issue of sustainable innovation
development is the issue of assessment. After all, it is
known that you can only manage what can be
measured an assessed (classic management). Various
scientific results are presented in scientific
publications, various groups of indicators
characterizing innovation infrastructure, innovation
activity, and innovation policy are considered. But,
Regional Innovation Sustainability: Evaluation Features
357
officially it is possible to assess innovation
development (and then, perhaps, its sustainability)
using a certain system of indicators. For example, in
Europe (European innovation scoreboard, 2020) four
types of indicators, ten dimensions and 27 indicators
are included: conditions (human resources, young
scientists and their scientific activity), investment
(financing and support for innovation), innovation
activity, small and medium innovation business,
patent activity, types of innovations), “export” of
innovations.
The following indicators are used (Gokhberg et
al., 2020): socio-economic conditions of innovation,
innovation scientific and technological potential,
innovation, the export activity index (since 2019) and
the index innovation policy quality (regulatory legal
framework for innovation policy); since 2019, it has
been proposed to assess digitalization potential
(previously it was called informatization potential) by
indicators: specific weight of organizations and
households with Internet access, the number of
computers, etc.). These indicators are necessary and
important, but they allow either assessing the events
that have already taken place (achieved values), or
assessing the regional innovation activity. The used
ranks of innovation development are very similar to
the assessment of the "competition” effectiveness,
with difficult to determine further actions. The
assessment of innovation sustainability should
assume otherwise.
Regional innovation sustainability. The concept
of innovation sustainability in the analysis of
domestic and foreign scientific literature showed that
the innovation sustainability concept is sometimes
present as a part of economic sustainability (as a rule,
an enterprise). The types of sustainability are
classified, sometimes innovative sustainability its
mentioned among its types, but without the concept.
interpretation.
The author proposes a refined content of the
"innovation development” concept, which is defined
as a balanced innovative state (Merzlikina, 2020), it
is proposed to recognize the main property of
innovation development - the achievement and
maintenance of innovation sustainability as the ability
of the economic system to maintain a certain
(predetermined) level of achieving goals in
conditions, dynamic equilibrium, "dynamic balance"
characterized by certain features-attributes: effective
formation and management of innovation potential
(dominant feature), use of breakthrough or gradual
innovations, closed and open innovations, lean
production organization and activation of innovation
digitalization, a combination of flexibility and rigidity
of integration forms of cooperation in the
organization of innovation activities.
The main attributes of the regional innovation
sustainability.
1. Formation and use of innovation potential
(dominant feature).
Innovation potential as a concept, an economic
category, has been studied by scientists for a long
time in terms of the so-called resource, resultant,
inclusive and integrated approaches. The innovation
potential structure and the purpose of each of its
elements are analyzed. There are many scientific
publications on the problem of formation and use of
innovation potential, but not to turn this article into a
scriptorium, we will refer to the publication by
Merzlyakova, with a detailed analysis of the
“innovation potential” definitions. The results of the
regional innovation activity depend not only on the
size of its innovation potential, but also on how fully
and effectively it is used. In this regard, the efficient
use of innovation should be studied.
Therefore, innovation sustainability should be
determined by the availability of innovative potential
(its structure and assessment methodology is an
independent problem) and its efficiency. What do you
see as "balance", "sustainability"? In the adequacy of
the response (formation, maintenance, and use of
innovation potential).
2. Use of disruptive or gradual innovation.
Without being distracted by the classification of
innovations as such, we note in this case that it is
important to balance both resources and activity in the
types of innovations (a kind of innovative
ambidextricity) (Kortmann, 2015; Machikita, 2015)
that is, skillfully use both “revolutionary” and
“evolutionary” innovations. Clayton Christensen
(Christensen, 1997), an author of the innovation
matrix (with parameters: the problem (task) to be
solved and the scope of innovation) notes the
importance and necessity of breakthrough, disruptive
innovations and not to get carried away with
“continuous improvements” (in his opinion, it is
utterly dangerous), but we also need and small
supporting innovations. Each region needs its own
“balance” of disruptive and gradual innovations.
3. Use of “closed and open innovations”. A
fundamentally innovative business develops in two
directions. The first direction involves the
development of "closed innovations", the
innovations, developed and implemented within the
region (at regional enterprises) (R&D, pilot research,
pilot production, product promotion, etc.).
Advantages: entering the market, staying ahead of
competitors, high financial results; disadvantages -
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the need for a "large" amount of all resources,
inability to implement all the innovations.
Disadvantages - a high burden falls on the protection
of inventions and innovations from copying,
including patenting, registration of designs, and
copyright (Lambert and Franz, 2008). The second
direction is the implementation of open innovations -
innovations, created by the scientific community or
within a corporation, but “working” outside the
organization. Advantages: the problem solution rate
increases, the cost of development is lower, etc.) (No.
18 of the criterion), disadvantages - high risks of
"information leakage" and loss of professional staff
("recruiting") (Sukhareva, 2021). Recently, an
opinion has been formed that “innovations can be
implemented as a result of the integration of
knowledge, experience, the results of good analytics,
socialization; “physical and digital platforms involve
representatives of various industries and scientific
disciplines in co-production, and promote “cross-
pollination”" (Wise et al., 2016). That is, it is
important to maintain a “balance” of open and closed
innovation.
4. Lean production organization and activation of
digitalization of innovation activities. The active and
obsessive digitalization of technology based on
robotics, neurotechnology, artificial intelligence, the
Internet, etc. The author Kostin identifies three main
effects from the introduction of digital technologies:
differentiation (based on targeted online advertising),
formation of new income sources of income (based
on online sales growth), cost reduction (based on
"revenue" management) (Kostin, 2017). Seemingly
endless opportunities for business development
appear (although we already talk about "digital
fatigue"). But the organization Disruptive digital
innovation (DDI) requires costs and considerable
costs (Darlington et al., 2021) for example, in Russia
alone, “Digital Region” federal project included in
the “Digital Economy” program will require 247 bln.
rubles over five years (Korolev, 2020): infrastructure,
software, communications, personnel training, etc.,
“contradicting” “lean production” principles
(Thorbjörn, 2019). Sometimes a model of “lean start-
ups” is proposed, which implies increased flexibility
and a reduction in the innovation process duration
(Wise et al., 2016), but such models are not
numerous. Therefore, it is so important to find a
"happy medium" for digitalization and rational use of
resources.
5. Combinations of flexibility and rigidity of
integration forms of cooperation in the organization
of innovation. The regional innovation potential, the
search for a balance of open and closed, disruptive or
gradual innovations, the costs of digitalization and
lean manufacturing, we assume the possibility of
forming integration structures in the region, both new
rigid organizational forms and consortia.
Implementation of certain innovations may require a
"rigid" management structure, for others - only
temporary "creative" project-type unions. Within a
separate region (territory, it is possible to establish
and efficiently operate a regional innovation project
(RIP) with inclusion of all stages of innovation
formation and implementation (from organization of
research work to the specific innovative product
production (Antonioli et al., 2014). It is important to
ensure a balance of interests of the participants in the
integration structure and optimize its structure.
The assessment features of the regional
innovation sustainability. Strategies for regional
innovation development should consider significant
differences between regions (orientation towards
export or import, industry, agriculture, tourism)
(Karayannis and Grigorudis, 2016), it is necessary to
consider the resources, advantages and potential of a
particular region. The success of innovation
development in any country is determined by
innovation activities in individual regions, the ability
of individual territories to create and promote
innovations, organize and operate a regional
innovation system based on mutual understanding,
optimization of creative functions, and a combination
of economic interests. A feature of regional
innovation development in any country is probably
the heterogeneity, unevenness of the implementation
of innovative processes in different regions, implying
uniform approaches to assessing innovation
development, but with the obligatory consideration of
a particular region-specific features, a certain
territory. It is important to develop and implement
measures to form and support innovation
sustainability, considering specific features of a
region:
it is necessary to take into account the initial
socio-economic state of the region (the level of
performance of the regional economy);
availability of resources (material, natural,
scientific, technical, production);
availability of resources (material, natural,
scientific, technical, production);
feasibility (combined in time and space) of
various innovations: marketing, production,
financial, product, organizational);
the level of human capital development in the
region (education level, age structure,
employment);
Regional Innovation Sustainability: Evaluation Features
359
establishment and effective functioning of
regional innovation structures (consortia), for
the implementation of a specific regional
innovation project (combination of economic
interests of all participating structures).
Thus, the assessment of the regional innovation
sustainability according to the proposed attributes
will help determine true results of the regional
innovation development and form proper
management decisions; when assessing regional
innovation sustainability, it is necessary to consider
the socio-economic state of the region, and its
resource base, innovation potential, and a balanced
approach to determine the directions of innovation
development.
5 CONCLUSIONS
1. The analysis of existing methods and indicators to
assess the efficiency of regional innovation
development; it was revealed that scientists offer
various methods for assessing innovation
development results, but in practice they use well-
known "standard" statistically observable indicators
that do not allow correct determination of the
innovation development directions;
2. A new characteristic of the regional innovation
development is proposed and substantiated - the
regional innovation stability, which is the
achievement and maintenance of the ability of the
economic system to maintain a certain
(predetermined) level of achieving goals in
conditions of dynamic equilibrium, “dynamic
balance”;
3. The attributes of innovation sustainability:
effective formation and innovation potential
management (a dominant feature), the use of
breakthrough or gradual innovations, closed and open
innovations, lean production organization and
activation of digitalization of innovation, a
combination of flexibility and rigidity of integration
forms of cooperation in organizing innovation
activities were identified;
4. The assessment features of the regional
innovation sustainability are determined: the socio-
economic state of the region, resource base,
innovation potential and use of a balanced approach
to determining innovation development directions.
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