Theoretical and Methodological Foundations of Balanced Regional

Innovation Development

Oksana V. Takhumova

Kuban State Agrarian University named after I. T. Trubilin, Krasnodar, Russia

Keywords: Sustainable Development, Balance, Innovation Development, Harmony, Proportionality, Region.

Abstract: At the current stage of the development of scientific thought, the concept of the regional sustainable

development is considered as one of the strategic directions of scientific discussions. The economic content

of the term is based on the principle of harmony, balance, and stability. In this context, the work provides the

scientific substantiation of the sustainable development concept as a stable process independent of

fluctuations in the external and internal environment with the constant development of the social, economic,

technical, institutional environment, taking into account the resource potential. The paper considers the

theoretical aspects of the regional system management, based on the methods of the unity of logical and

historical approaches to research, formalization, and generalization: the terminological apparatus was clarified

and supplemented, including the author's interpretation of the concept of “balanced innovative regional

development”, “sustainable development”. The paper proves that in order to achieve a balanced regional

system development, it is necessary to maintain sustainable growth trends in terms of the main social,

economic and environmental indicators. The study reveals the nature of the emergence of the theory of

sustainable innovative development origin on the basis of G. F. Hegel categorical system, systematizes the

list of the main conditions and factors influencing the process of balanced development of the region, within

which it is determined that the specificity of the regional development is determined by the external and intra-

environment conditions formed by a set of key parameters. The stages of the origin of theories of balance and

the determinants of development are revealed. The results formulated in the study make it possible, on a

scientific basis, to improve the understanding of the regional sustainable development and to develop

instruments of influence to increase the efficiency of agricultural production and accelerate the innovation

process within the study area.

1 INTRODUCTION

At the current stage of the development of scientific

thought, the concept of sustainable development is

considered as one of the strategic directions of

scientific discussions. The economic content of the

term is based on the principle of harmony, balance,

and stability. In our opinion, the above-mentioned

scientific substantiation of the sustainable

development concept identifies a stable process that

does not depend on fluctuations in the external and

internal environment with the constant development

of the social, economic, technical, institutional

environment, taking into account the resource

potential. In the plane of scientific discussions of the

theory and practice of sustainable development, the

https://orcid.org/0000-0001-7002-7100

emphasis is placed on identifying the factors for

achieving this process. And in relation to the

formation of ideas about balanced development, the

term “sustainability” is not advisable to be regarded

as a synonym. The term “sustainable development”

by itself consists of two concepts. Sustainability is

understood as the property of a system to maintain its

state regardless of external conditions (Azrilian et al.,

2008); in the technical translator's reference book -

the stable state of the system and its ability to return

to its original state (Takhumova, 2020); according to

A.N. Folomev sustainability is a type of state of a

certain economic system in a market environment

(Folomev, 2009); K.S. Tikhonkov applies the ability

to maintain the same behavior of a system (structure)

when exposed to environmental factors to the concept

Takhumova, O.

Theoretical and Methodological Foundations of Balanced Regional Innovation Development.

DOI: 10.5220/0010592504670474

In Proceedings of the International Scientiﬁc and Practical Conference on Sustainable Development of Regional Infrastructure (ISSDRI 2021), pages 467-474

ISBN: 978-989-758-519-7

467

of stability (Gladilin, 2013). Following the

development of the theory of sustainability, it can be

assumed that this is an unchanging, equilibrium state

of a certain system, which has the properties to return

to its original state under various fluctuations of the

external environment. “Development” is a

movement, a transition from one state to a new,

higher quality level. Modern trends in the

development of modern society are taking place in the

context of an intensification of the globalization

process, and for further scientific substantiation of the

subject of study, it seems most interesting to study the

innovation balance as a condition to achieve

harmony, consistency, and proportionality of the

development of structural elements of the economic

system. Nowadays, the technological order calls for

compliance requirements along with social and

economic stability and increased economic growth in

the innovation sphere, which can serve as a faster way

out of the current crisis situation in the regions of the

country. In the current trend of global production

development, more and more attention is paid to the

concept of compatible and continuous development

of the economy of territories, the environment, and

society, which cannot be achieved without the

implementation of innovations.

The era of globalization generates not only the

dependence of one country on another, but also

necessitates the intensive use of elements of scientific

and technological progress. In this regard, it is

obvious that there is a need for research to promote

innovative products in various industries, towards

building a “green economy”, observing the principle

of maximizing economic growth, without affecting

the quantity and quality of natural assets and using the

resources of the basic and accumulated potential. The

problem of increasing the innovation activity of the

region resulted from the need to transfer the

production processes of the regions to a new stage,

which would increase profitability and provide

society with quality goods and services in the

required quantity.

Innovation balanced development is understood

as the ratio of interdependent elements of the system

on the basis of coordinated actions that ensure its

normal, stable functioning with the continuity of

innovation and financial processes. Innovation is a

promising area of scientific discussion and an integral

part of fundamental research.

Fundamental foundations and basic concepts are

reflected in scientific works of: G.A. Bezdudnyi,

O.D. Smirnova, O.D. Nechaeva (1998), JI.H.

Borisoglebskaya (2010), P.V. Akinin (2015)

conditions (Azrilian et al., 2008), (Smirnova, 1985)

and (Takhumova, 2020).

In modern scientific literature, considerable

attention is paid to the assessment of innovative

activity, N. E. Egorovetal (2015) propose to use an

econometric method to quantify the innovation

activity of economic entities of the region at different

levels on the basis of an innovative spatial-spatial

model, making it possible to assess the role of each

participant in the regional innovation development as

a whole, as well as broken down by specific

municipalities, sectors of the real economy, territorial

innovation clusters, etc. Aspects of forecasting the

dynamics of innovative activity in industries based on

data on changes in the structure and intensity of

competition were considered in the article by R.

Akhmetzianov, V. I. Kosachev (2016), in trade A. N.

Mayorova, et al. (2018). The issues of innovation

activity at the enterprise level are considered in the

work, the authors analyze the impact of cross-border

mergers and acquisitions (M & A) on the innovation

of European firms.

A large number of works are devoted to the study

of various aspects of the development of cluster

initiatives of territorial economic systems and the

state. The study (Falck, O. Heblich, S. Kipar 2010)

assesses the cluster-oriented policy introduced in

Bavaria, Germany, in 1999.

It is believed that the founder of the formation of

this theory is Schumpeter, who at the beginning of the

twentieth century introduced a system of knowledge

about new combinations that are manifested in the

process of transformation and development. The

formation of scientific thought about the innovation

activity development can be traced at all stages of the

evolution of the economy. Back in the 17-18th

century, the famous historian, culturologist A.

Toynbee put forward the idea that the single logic of

development is progress. The origin of the

fundamental foundations of justifying basic

innovations marked the beginning of the first stage,

the outstanding representatives of which were J.

Schumpeter (1930), N. D. Kondratyev (1920), J. Van

Gelderen (1913), S. De Wolf (1924) et al. (Smirnova,

1985) (Mirokhina et al., 2019) (Figure 1).

The second period is devoted to the development

of the functional foundations of innovation

management, an important role in the formation of

scientific thought was played by the ideas of K.

Friedman (1955), R. Nelson (1945), G. N. Sorvin and

Yu. V. Yakovets (1968).

The third stage is associated with the formation of

concepts of innovation systems (G. Mensh, V.

Jevons, A. Gelfand, E. Hansen) (Gladilin, 2013).

ISSDRI 2021 - International Scientiﬁc and Practical Conference on Sustainable Development of Regional Infrastructure

468

The fourth period in the development of

innovation theories begins in 1980. Thus, K.

Freeman (1982) introduced the concept of a system

of institutions aimed at creating, changing, and

integrating new technologies (Nelson, 2002). B. O.

Lundvall believes that the innovation system is within

the state, based on the principle of interactivity with

the use of new economically reasonable knowledge

(Smirnova, 1985).

Figure 1: Stages of the formation of the innovation sustainable development theory.

An increase in the population, the role of urban

agglomerations, and culture are raising the issue of

providing high-quality and in the required amount of

food products. The ongoing processes have become

an imperative to intensify production through

improved technology. The evolution of economic

development shows that this has made it possible to

increase the population density and improve its well-

being. The origins of the development of agriculture

took place in Egypt and in a number of Asian

countries. In the 6th millennium BC, farmers began

to grow legumes and wheat in India, later in northern

Africa and Europe. The innovation processes of this

period were accompanied by the selection of plant

varieties, the search for ways to increase the

productivity of livestock, and soil reclamation.

Significant progress in agriculture was manifested

during the agrarian revolutions. About 10 thousand

years ago, at the first stage of the Neolithic

transformations, there was an improvement in tools,

soil irrigation, and the appearance of primeval barns

for storing crops. During the Golden Age of Islam

from the 7th - 13th centuries AD, there has been

significant progress in the earth sciences, ending

cycles of food shortages. This period is characterized

by the improvement of agricultural cultivation

technologies, the acquired skills began to actively

spread beyond the borders of the Arab Caliphate. A

massive increase in productivity and the development

of new varieties that bring greater yields occurred

during the British Agrarian Revolution of the 15th

and late 19th centuries. Most scientists call this period

evolutionary in the agriculture development,

associating it not only with the emergence of new

technology, fertilizers, but also with the emergence of

new market segments for the sale of food products.

During the period of Scottish agrarian

transformations, there is a departure from the rune

control system, 1739 is associated with the

appearance of the potato. Among the innovations - the

appearance of the first working header, the

development of a new method of plowing the root-

inhabited layer of soil without top layer deformation.

During the Green Revolution, there was a massive

increase in agricultural products, which has improved

global food security and living standards. The

emergence of aquaculture, according to scientists of

that period, made it possible to bring the growth rate

of agricultural production closer to the growth rate of

the population. However, such a breakthrough in

technology, in methods of soil cultivation, the

emergence of new types of fertilizers, pesticides have

become a threat to the environment. In this regard,

fundamental research began to be based on the search

for ways to increase the well-being of the population

while reducing the load on the ecosystem using the

achievements of the digital economy. It can be

achieved by balancing the economic system elements.

1900 1940 1970

1980

Pre-scientific

stage

1st stage

2nd stage

3rd stage

4th stage

K. Frimen

Yu. Moiseev

L. Tarasova

I. Sandu

J. Schumpeter

N. Kondratyev

J. Gelderen

S. Wolf

K. Friedman

R. Nelson

G. Sorvin

Y. Yakovets

G Menshem

V. Jevons

A. Gelfand

E. Hansen

Theoretical and Methodological Foundations of Balanced Regional Innovation Development

469

2 RESEARCH METHODOLOGY

Summarizing judgments about the content side of the

concept of "balance", we can highlight the nature of

its formation (Figure 2).

Balance is the property of a system to maintain a

set of certain invariants with respect to changes

caused by the determinants of transformations.

Balance has several contexts and areas of study.

Modern trends in the development of modern

society are taking place in the context of an

intensification of the globalization process, and for

further scientific substantiation of the subject of

study, it seems most interesting to study the

innovation balance as a condition to achieve

harmony, consistency, and proportionality of the

development of structural elements of the economic

system.

Figure 2: The nature of the origins of theories of balance.

Innovative balanced development is understood

as the ratio of interdependent elements of the system

on the basis of coordinated actions that ensure its

normal, stable functioning with the continuity of

innovation and financial processes.

It is possible to explicate the concept and nature

of the origin of innovations from the point of the

scientific views of G.F. Hegel. Despite the denial of

the evolutionary approach to development, his

judgment that the development process is determined

by the sequence and connection with the previous

cycles seems to be interesting. The interrelation of

opposites provides the basis for functioning, and the

world is organized in an orderly, natural, and rational

way (Hegel, 2002). The epistemology of Hegel's

teachings is revealed through the constituent parts of

the philosophical system, which includes logic,

philosophy of nature, and philosophy of spirit (Figure

3).

ISSDRI 2021 - International Scientiﬁc and Practical Conference on Sustainable Development of Regional Infrastructure

470

Figure 3: The origin of the theory of sustainable innovation development based on the system of F. Hegel.

The development of social and economic,

technological, international processes is based on the

acceleration of scientific and technological progress.

In agricultural production, this is achieved through

constant renewal based on the achievements of

modern science and technology.

In the world scientific practice, there are enough

approaches to the study of the level of sustainable

development of regions. However, from the point of

a balanced approach, scientific judgments go through

a stage of gradual formation with an emphasis in

research on harmony and proportionality of

development.

Thus, the developed classification of innovations

implementation indicators by the Commission of the

European Community, on the basis of which a system

of indicators was proposed, seems interesting. The

assessment methodology in comparison with the

indicators of competitiveness deserves attention. This

can be achieved on the basis of an innovation policy

in terms of increasing the competitiveness of a market

entity. On the basis of a balanced system of

indicators, including indicators of development,

promotion, the efficiency of innovation, it became

possible to develop an innovative activity index of

regions.

3 RESULTS OF RESEARCH

Based on the generalization of theoretical, practical

scientific ideas on the issues of balanced innovative

regional development, it seems possible to identify

the key factors and conditions, affecting the

harmonious development process in the external and

internal environment key of the forms of agrarians

formation in the region (Figure 4).

To summarize, one can make a judgment about

the multifaceted nature, complexity, inexhaustibility

of scientific judgments, and ideas about the balanced

development of economic systems.

It is believed that a significant contribution to the

formation of the theory of sustainable development of

the modern scientific school was made by WCED

representatives, who, as the main conclusion in “Our

Common Future”, a report put forward a hypothesis

about the need to achieve sustainable social and

economic development with the obligatory

consideration of the environmental factor. In their

Philosophy of the innovation formation syste

Source and origin of innovation:

 unexpected event;

 new knowledge;

 changes in value attitudes;

 structural market changes;

 structural industry changes;

The regularity of the development of

innovations:

 changes in technology and production

technology;

 social crisis of society;

 depression of agricultural production.

The origins of the development of

innovations:

 development of society;

 formation of laws in nature;

 diffusion of innovations;

 product differentiation.

The entity

The nature of the entit

The source of the

nature of the entity

Spatial characteristics of the diffusion of

innovations:

 national level;

 regional level;

 industry level.

Time characteristic of the main cycles:

 innovative activity;

 innovation crisis.

Development Feature:

 Variability of achievement of the set

goals;

 high risks;

 satisfaction of a fundamentally new

need.

 Individual;

 Society;

 Religion, art.

Theoretical and Methodological Foundations of Balanced Regional Innovation Development

471

opinion, sustainable development implies meeting the

basic needs of individuals and only in a prosperous

society, there will be no poverty and economic crises.

All consumed goods should be spent in such

quantities that they will be enough for the future

generation.

The formation of theories of balance has been

actively developing in the last few decades.

Representatives of the modern scientific school such

as: Abdeev R. F. Gladilin A. V., Selkov A. V. etc.

identify the concepts of “Balanced Development” and

“Sustainable Development”. However, in our

opinion, each interpretation has its own lexical

meaning and sustainable development is possible

only if a number of conditions are met, including the

obvious fact of the need to achieve a balanced

development of the studied conditions, phenomena in

economic systems (Gladilin, 2013) (Schumpeter,

2007) (Lundvall, 1992).

Balance is the property of a system to maintain a

set of certain invariants with respect to changes

caused by the determinants of transformations.

Figure 4: Systematization of conditions and factors

affecting the balanced innovation development of regions

(compiled by the author).

Based on the analysis of the factors of the

balanced development of the region, the classification

of the main areas of the balanced innovative

development of the agricultural production of the

territories was determined (Figure 5).

Key features

Essence of

occurrence

The nature

of the

essence of

emergence

The origin

of the nature

of the

essence of

arising

stemic influence of factors and

Promoting

economic growth

Hindering

economic growth

Balanced innovative regional

development

External

conditions

Intra-environment

conditions

Key parameters

The balance of

opportunities

eats

The ratio

between the

consumption

accumulation

fun

Correlation of

the influence

of STEP

factors

The ability for

self-development

and self-

organization

Availability of

reserves and

innovative

potential

Striving for

improvement

Factors in the formation

of innovative

otential

Key parameters

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472

Figure 5: Areas of consideration of balanced innovative development and directions of implementation in the agrarian region

(compiled by the author).

4 RESULTS AND DISCUSSION

Thus, the results will help to substantively determine

the need for innovations, depending on the goals of

implementing an innovation policy that contributes to

the effective functioning of agricultural production

and the creation of conditions for sustainable

development of the region. To summarize, one can

make a judgment about the multifaceted nature,

complexity, inexhaustibility of scientific judgments,

and ideas about the balanced development of

economic systems. Balance is understood as the

spatial and coordinated relationship of many elements

of the system that ensure the effective functioning of

the whole in order to create conditions for advanced

growth. Balanced innovative regional development is

the ratio of interdependent elements of the system

based on coordinated actions that ensure its normal,

Areas of consideration of the balanced innovative development of agricultural production in the region

Technical and

technological

Improvement of product processing technologies; production of

innovative high-tech products; the transition of agricultural

producers to new markets, the use of new technologies and related

business models for conducting production activities.

Economic and

environmental

Integration of resource-saving technologies in the production

process; improving the environmental friendliness of products; use

of waste-free technologies for product processing; improving the

energy efficiency of the production process; development of

integration processes in the agro-industrial complex.

Industry

Organization of management of structural elements of the agro-

industrial complex; increasing the efficiency of interregional

cooperation; development, modernization and implementation of

project-oriented programs in production activities based on the

integration and consolidation of scientific resources of production

capabilities and resource base of organizations.

Functional

Improvement of logistics services for the storage and promotion

of agricultural products to the domestic foreign markets;

shortening the period between the investment process and profit

from production; an increase in the share of processing

organizations; providing access to the world information

resources of regional producers in order to gain and exchange

experience.

Aesthetic

Improving the quality of products and

ackaging; ensuring a

harmonious relationship between humanity and the surrounding

nature; increasing the functionality of products in accordance with

the needs of society; creation of optimal conditions for increasing

labor productivity; increasing functional orderliness in the

roduction activities of a

ricultural enter

rises.

SPHERES OF INNOVATIVE DEVELOPMENT

DIRECTIONS OF IMPLEMENTATION OF INNOVATIONS

Theoretical and Methodological Foundations of Balanced Regional Innovation Development

473

stable functioning with the continuity of innovation

and financial processes.

5 CONCLUSION

The paper developed the theoretical aspects of the

formation of sustainable development of the regional

system based on the methods of the unity of the

logical and historical approaches to research,

formalization, and generalization: the terminological

apparatus was refined and supplemented, including

the author's interpretation of the concept “balanced

innovative regional development”, which means the

ratio of interdependent elements of the system on the

basis of coordinated actions that ensure its

harmonious, stable functioning with the continuity of

innovation and financial processes. The results can be

used in the development of the main directions of the

national cluster policy and the choice of tools for their

implementation. The results formulated in the study

make it possible, on a scientific basis, to improve the

understanding of the regional sustainable

development and to develop instruments of influence

to increase the efficiency of agricultural production

and accelerate the innovation process within the study

area.

ACKNOWLEDGEMENTS

The work was performed within the framework of the

RFBR grant No. 20-010-00089 “Formation of an

organizational and economic mechanism for a

balanced innovative development of agricultural

production”

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