Potential Competitiveness of Russian industries
This paper, published in 2000 by several students of the Research Institute of the Finnish Economy in Helsinki, is aimed to be a preliminary identification of the basic industrial sectors in St. Petersburg that could serve as a basis for further competitive clusters formation.
Since the collapse of the Soviet Union in 1991, the Russian Federation has moved into the process of economic transformation from central planning to an open market economy.
After nearly 10 years of economic transformation, Russian industry is still searching for its place in local and international markets. The Russian people and leaders entered this period of transition with hope of rapid improvements in the quality of life and wealth and the strong belief that Russian industry, given the chance and access, will be able to adapt to the new operating conditions. The deep recession that followed was a great challenge for pol-icy makers and business leaders. Nevertheless, even after this period of time there is no clear consensus on the true degree of industrial competitiveness in Russia and St. Petersburg in particular. Thus one of the primary goals of this research project is to introduce an approach that will help in a comprehensive way to understand the present stage of industrial development in St. Petersburg and Russia and produce a framework for further decision taking at the corporate and governmental levels.
This paper is the first paper in this research that is aimed at a preliminary identification of the basic industrial sectors that could serve as a basis for further competitive clusters formation.
The paper also aims to provide ideas on an analytic framework that will be fine tuned in the course of the further research.
Chapter 1 of the present paper is devoted to describing the main questions and objectives of this research, and to introducing the thinking and ideas that are behind this research. The choice of employing Porter's diamond model as a main analytical tool for this research is discussed.
The application of Porter's model for the regional analysis as well as for the case of the transition economy environment made it necessary to adjust the model to take these factors
into consideration. Chapter 2 concentrates on the description of these adjustments. There is wide discussion about the measures needed to achieve the innovation-driven stage of eco-nomic development in Russia. The report argues that Russia is in a factor-driven stage of its development and that transition to the investment driven stage is the right decision making agenda at present. In Chapter 3 the report introduces the key figures that position St. Petersburg in Russia and in international trade. Consideration of industrial output and its structure,employment, privatisation and the labour market helps to specify the true positions of the sectors of St. Petersburg industry.
In chapter 4 the clusters of industrial ompetitiveness in St. Petersburg are identified and categorised. They are classified as "potential" - "Power engineering", "Food and Beverages", "Metallurgy", "IT sector", "Optical engineering", "Tourism", "Transport and Logistics", "Woodworking", and "latent" - "Shipbuilding and ship repair". A detailed review of their related and supporting industries, determinants, rivalry, and firm strategies for each sector are presented.
There are no conclusions nor final judgement presented in this paper. Further research in this project will undoubtedly reveal more and provide better insights into industrial development in St. Petersburg.
You can download the full report here .
Authors: DUDAREV, Grigori, SEVENARD, Konstantin, PRIGARA, Pavel, FILIPPOV, Pavel and HERNESNIEMI, Hannu, THE POTENTIAL COMPETITIVENESS OF SAINT PETERSBURG´S
INDUSTRIES. Helsinki: ETLA, Elinkeinoelämän Tutkimuslaitos, The Research Institute of the Finnish Economy, 2000, 70 p. (Keskusteluaiheita, Discussion Papers, ISSN 0781-6847;
No. 712).
After nearly 10 years of economic transformation, Russian industry is still searching for its place in local and international markets. The Russian people and leaders entered this period of transition with hope of rapid improvements in the quality of life and wealth and the strong belief that Russian industry, given the chance and access, will be able to adapt to the new operating conditions. The deep recession that followed was a great challenge for pol-icy makers and business leaders. Nevertheless, even after this period of time there is no clear consensus on the true degree of industrial competitiveness in Russia and St. Petersburg in particular. Thus one of the primary goals of this research project is to introduce an approach that will help in a comprehensive way to understand the present stage of industrial development in St. Petersburg and Russia and produce a framework for further decision taking at the corporate and governmental levels.
This paper is the first paper in this research that is aimed at a preliminary identification of the basic industrial sectors that could serve as a basis for further competitive clusters formation.
The paper also aims to provide ideas on an analytic framework that will be fine tuned in the course of the further research.
Chapter 1 of the present paper is devoted to describing the main questions and objectives of this research, and to introducing the thinking and ideas that are behind this research. The choice of employing Porter's diamond model as a main analytical tool for this research is discussed.
The application of Porter's model for the regional analysis as well as for the case of the transition economy environment made it necessary to adjust the model to take these factors
into consideration. Chapter 2 concentrates on the description of these adjustments. There is wide discussion about the measures needed to achieve the innovation-driven stage of eco-nomic development in Russia. The report argues that Russia is in a factor-driven stage of its development and that transition to the investment driven stage is the right decision making agenda at present. In Chapter 3 the report introduces the key figures that position St. Petersburg in Russia and in international trade. Consideration of industrial output and its structure,employment, privatisation and the labour market helps to specify the true positions of the sectors of St. Petersburg industry.
In chapter 4 the clusters of industrial ompetitiveness in St. Petersburg are identified and categorised. They are classified as "potential" - "Power engineering", "Food and Beverages", "Metallurgy", "IT sector", "Optical engineering", "Tourism", "Transport and Logistics", "Woodworking", and "latent" - "Shipbuilding and ship repair". A detailed review of their related and supporting industries, determinants, rivalry, and firm strategies for each sector are presented.
There are no conclusions nor final judgement presented in this paper. Further research in this project will undoubtedly reveal more and provide better insights into industrial development in St. Petersburg.
You can download the full report here .
Authors: DUDAREV, Grigori, SEVENARD, Konstantin, PRIGARA, Pavel, FILIPPOV, Pavel and HERNESNIEMI, Hannu, THE POTENTIAL COMPETITIVENESS OF SAINT PETERSBURG´S
INDUSTRIES. Helsinki: ETLA, Elinkeinoelämän Tutkimuslaitos, The Research Institute of the Finnish Economy, 2000, 70 p. (Keskusteluaiheita, Discussion Papers, ISSN 0781-6847;
No. 712).
Attached files
- Potential competitiveness of St. Petersburg industries, report 2000
- russiancluster2000.pdf (537.19 KB)
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