Skip to main content

Regional Factors in the Development of the ICT Sector in Russia

Abstract—

The development of the information and communication technologies (ICT) sector is a priority of economic policy in many countries, including Russia. The ICT sector is the main source of technology creation that transforms all sectors of the economy, determining their competitiveness in a changing world. At present, the size and contribution of the ICT sector to the Russian economy is much less than in the world’s leading countries. The spatial structure of the sector is highly concentrated in a small group of regions, accompanied by an increase in the digital divide between regions. The three leading regions include Moscow, St. Petersburg, and Moscow oblast. These regions account for more than a third of the sector’s employment and almost two-thirds of ICT spending. An empirical assessment of regional factors influencing the dynamics of the number of people employed in the ICT sector was carried based on panel data using the Arellano–Bond estimator. The assessment showed that the factors significant for growth are population size, the share of university students, GRP per capita, and the share of high-tech industry in manufacturing. Large and wealthy regions with a developed education system and high-tech business are the most attractive for workers and companies in the ICT field, and their advantage is supported by the inflow of trained personnel from other regions. When elaborating state support measures for ICT development, it is necessary to take into account the significant differences between regions both in the potential for creating new technologies and the possibilities for their development, and to use a predominantly selective policy that takes into account the diversity of regional economic systems.

This is a preview of subscription content, access via your institution.

Fig. 1.

Notes

  1. Determining the composition of the ICT sector is a debatable field. In this study, we used Russian statistical data that comply with international statistical standards [10].

  2. https://ec.europa.eu/eurostat/statistics-explained/index.php/ICT_specialists_in_employment.

  3. https://digital.gov.ru/ru/activity/directions/148/.

  4. The Nenets, Khanty-Mansi, and Yamalo-Nenets autonomous okrugs were considered separately, and the corresponding Arkhangelsk and Tyumen oblasts were considered without autonomous okrugs. The Republic of Crimea and the federal city of Sevastopol were excluded, since data for these regions are available only since 2014.

  5. In order to check the correctness and reliability of the estimates, Arellano–Bond, Sargan, Hansen, and Sargan–Hansen tests were carried out. In this model, the problem of heteroscedasticity arises, since the analysis is performed for the regions of the Russian Federation, which have different scales. This means the model errors are characterized by different variances. In this case, the Sargan test is inapplicable, since with heteroscedasticity in the model, this test erroneously indicates the model’s poor quality, as noted in [16]. Therefore, to assess the quality of the constructed models, one should rely on the Hansen and Sargan-Hansen tests, which confirm the reliability of the estimates obtained.

  6. In Russia, IT professionals can expect two to three job offers at a time, so they are able to confidently seek new positions [38].

REFERENCES

  1. Baburin, V.L. and Zemtsov, S.P., Regions-innovators and innovative periphery of Russia. Study of ICT-products diffusion, Reg. Issled., 2014, no. 3, pp. 27–37.

  2. Global Cybersecurity Index & Cyberwellness Profiles, Geneva: Int. Telecommun. Union, 2015. https://www.itu.int/dms_pub/itu-d/opb/str/D-STR-SECU-2015-PDF-R.pdf. Accessed October 7, 2019.

  3. Abdrakhmanova, G.I., Vishnevskii, K.O., Gokhberg, L.M., et al., Indikatory tsifrovoi ekonomiki, 2020: Statisticheskii sbornik (Indicators of Digital Economics, 2020: Statistical Handbook), Moscow: Vyssh. Shk. Ekon., 2020.

  4. Kolomak, E.A., Estimation of the spatial connectivity of the economic activity of Russian regions, Reg. Res. Russ., 2020, vol. 10, no. 3, pp. 301–307. https://doi.org/10.1134/S2079970520030089

    Article  Google Scholar 

  5. Monitoring of global digitalization trends, Rostelecom, 2019. https://www.company.rt.ru/upload/iblock/a86/ 3009_Rostelecom_trends_2019.pdf. Accessed October 9, 2019.

  6. Natsional’nyi indeks razvitiya tsifrovoi ekonomiki: Pilotnaya realizatsiya (National Development Index of Digital Economics: Pilot Implementation), Moscow: Rosatom, 2018.

  7. Growth potential of Russian IT business: transformation of the enterprise software sector: analytical report, J’son & Partners Consulting, 2017. https://fs.moex.com/files/16552. Accessed October 5, 2019.

  8. TAdviser100 ranking: the largest IT companies in Russia, 2019. http://www.tadviser.ru/index.php/%D0% A1%D1%82%D0%B0%D1%82%D1%8C%D1%8F:%D0%A0%D0%B0%D0%BD%D0%BA%D0%B8%D0%BD%D0%B3_TAdviser100:_%D0%9A%D1% 80%D1%83%D0%BF%D0%BD%D0%B5%D0%B9%D1%88%D0%B8%D0%B5_%D0%98%D0%A2-%D0%BA%D0%BE%D0%BC%D0%BF%D0%B0%D0%BD%D0%B8%D0%B8_%D0%B2_%D0%A0%D0%BE%D1%81%D1%81%D0%B8%D0%B8_2019. Accessed October 9, 2019.

  9. Abdrakhmanova, G.I., Artemov, S.V., Bakhtin, P.D., et al., Reiting innovatsionnogo razvitiya sub”ektov Rossiiskoi Federatsii (Ranking of Innovative Development of Russian Federal Subjects), Gokhberg, L.M., Ed., Moscow: Vyssh. Shk. Ekon., 2020, no. 6.

  10. Abdrakhmanova, G.I., Gokhberg, L.M., Dem’yanenko, A.V., et al., Tsifrovaya ekonomika: Kratkii statisticheskii sbornik (Digital Economics: Brief Statistical Handbook), Moscow: Vyssh. Shk. Ekon., 2018.

  11. Abdrakhmanova, G.I., Gokhberg, L.M., Dem’yanenko, A.V., et al., Tsifrovaya ekonomika: Kratkii statisticheskii sbornik (Digital Economics: Brief Statistical Handbook), Moscow: Vyssh. Shk. Ekon., 2019.

  12. Abdrakhmanova, G.I., Vishnevskii, K.O., Gokhberg, L.M., et al., What is the digital economy? Trends, competencies, measurement, Materialy XX Aprel’skoi mezhdunarodnoi nauchnoi konferentsii po problemam razvitiya ekonomiki i obshchestva, Moskva, 9–12 aprelya 2019 g. (Proc. XX April Int. Acad. Conf. on Economic and Social Development, Moscow, April 9–12, 2019), Gokhberg, L.M., Ed., Moscow: Vyssh. Shk. Ekon., 2019.

  13. RUnet economy, Digital economy of Russia in 2018, Russian Association of Electronic Communications, 2019. https://raec.ru/activity/analytics/9884/. Accessed October 14, 2019.

  14. Andersen, J.C. and Coffey, D., ICT leader or laggard? TIA innovation white paper, U.S. ICT R&D policy report, Telecommunications Industry Association, 2018. https://www.tiaonline.org/wp-content/uploads/2018/ 02/TIA-U-S-ICT-RD-Policy-Report.pdf. Accessed October 21, 2019.

  15. Arauzo-Carod, J.M., Liviano-Solis, D., and Manjon-Antolin, M., Empirical studies in industrial location: an assessment of their methods and results, J. Reg. Sci., 2010, vol. 50, no. 3, pp. 685–711.

    Article  Google Scholar 

  16. Arellano, M. and Bond, S., Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations, Rev. Econ. Stud., 1991, vol. 58, no. 2, pp. 277–297.

    Article  Google Scholar 

  17. Barrios, S., Mas, M., Navajas, E., and Quesada, J., Mapping the ICT in EU Regions: Location, Emwployment, Factors of Attractiveness and Economic Impact, Luxembourg: Eur. Commun., 2007. https://ec.europa. eu/jrc/en/pubhcation/eur-scientific-and-technical-research-reports/map ping-ict-eu-regions-location-employment-factors-attractivenes. Accessed November 5, 2019.

  18. Billon, M., Marco, R., and Lera-Lopez, F., Innovation and ICT use in the EU: an analysis of regional drivers, Empirical Econ., 2017, vol. 53, no. 3, pp. 1083–1108. https://doi.org/10.1007/s00181-016-1153-x

    Article  Google Scholar 

  19. Cairncross, F., The Death of Distance: How the Communications Revolution Will Change Our Lives, Boston: Harvard Bus. Sch. Press, 1997.

    Google Scholar 

  20. Strack, R., Kovacs-Ondrejkovic, O., Antebi, P., Schudey, A., Ignatova, M., and Oblov, A., Decoding Global Talent 2018: Russia faces a talent conundrum, 2018. https://www.bcg.com/ra-ru/publications/ 2018/russia-faces-talent-conundrum-globaltalent.aspx. Accessed November 7, 2019.

  21. Fallah, B., Partridge, M., and Rickman, D., Geography and high-tech employment growth in US counties, J. Econ. Geogr., 2014, vol. 14, no. 4, pp. 683–720.

    Article  Google Scholar 

  22. Fritsch, M. and Wyrwich, M., Regional emergence of start-ups in information technologies: The role of knowledge, skills and opportunities, Foresight STI Governance, 2019, vol. 13, no. 2, pp. 62–71. https://doi.org/10.17323/2500-2597.2019.2.62.71

    Article  Google Scholar 

  23. Gartner says global IT spending to grow 3.2 percent in 2019, 2018. https://www.gartner.com/en/newsroom/press-releases/2018-10-17-gartner-says-global-itspending-to-grow-3-2-percent-i. Accessed November 19, 2019.

  24. Global Cybersecurity Index (GCI), International Telecommunication Union, 2018. https://www.itu.int/ dms_pub/itu-d/opb/str/D-STR-GCI.01-2018-PDF-E.pdf. Accessed October 7, 2019.

  25. Karlsson, C., Maier, G., Trippl, M., Siedschlag, I., Owen, R., and Murphy, G., ICT and Regional Economic Dynamics: A Literature Review, Brussels: Eur. Comm., 2010. ftp://ftp.jrc.es/pub/EURdoc/JRC59920.pdf. Accessed October 21, 2019.

  26. Pellegrin, J., Catalano, G., Lifonti, R., Sartori, D., Sirtori, E., Vignetti, S., and Wink, R., Internet, Digital Agenda and Economic Development of European Regions CSIL, Brussels: Centre Ind. Stud., 2013. http://www. europarl.europa.eu/RegData/etudes/etudes/join/ 2013/513970/IPOL-REGI_ET(2013)513970_EN.pdf. Accessed October 21, 2019.

  27. Kerr, S.P., Kerr, W., Ozden, Q., and Parsons, Ch., Global talent flows, J. Econ. Perspect., 2016, vol. 30, no. 4, pp. 83–106.

    Article  Google Scholar 

  28. Kerr, S.P., Kerr, W., Ozden, Q., and Parsons, Ch., High-skilled migration and agglomeration, Annu. Rev. Econ., 2017, vol. 9, no. 1, pp. 201–234.

    Article  Google Scholar 

  29. Kinne, J. and Resch, B., Analyzing and predicting micro-location patterns of software firms, ZEW Centre for European Economic Research discussion paper no. 17-063, 2017. https://ssrn.com/abstract=3082822; https://doi.org/10.2139/ssrn.3082822. Accessed October 21, 2019.

  30. Lasch, F., Robert, F., and Le Roy, F., Regional determinants of ICT new firm formation, Small Bus. Econ., 2013, vol. 40, no. 3, pp. 671–686.https://doi.org/10.1007/s11187-011-9382-z

    Article  Google Scholar 

  31. Measuring the Information Society Report 2018, Geneva: Int. Telecommun. Union, 2018, vol. 2.

  32. Migration and Brain Drain: Europe and Central Asia Economic Update, Washington, DC: World Bank, 2019. https://openknowledge.worldbank.org/handle/10986/32481. Accessed November 12, 2019.

  33. Moeller, K., Culturally clustered or in the cloud? How amenities drive firm location decision in Berlin, J. Reg. Sci., 2018, vol. 58, no. 4, pp. 728–758.https://doi.org/10.1111/jors.12383

    Article  Google Scholar 

  34. Premus, R., Location of High Technology Firms and Regional Economic Development, Washington: U.S. Gov. Print. Off., 1982.

    Google Scholar 

  35. Prensky, M., Digital natives, digital immigrants, Part 1, On Horiz., 2001, vol. 9, no. 5, pp. 1–6. https:// www.marcprensky.com/writing/Prensky%20-%20 Digital%20Natives,%20Digital%20Immigrants%20-%20Part1.pdf. Accessed November 7, 2019.

  36. Sethi, A., Gott, J., and Suman, V., Digital resonance: the new factor impacting location attractiveness, The 2019 A.T. Kearney global services location index, 2019. https://www.atkearney.com/digital-transformation/gsli/2019full-report. Accessed November 7, 2019.

  37. Mas, M., Fernandez De Guevara, J., Robledo, J.C., Righi, R., Cardona, M., Samoili, S., Lopez Cobo, M., and De Prato, G., The 2019 PREDICT Key Facts Report: An Analysis of ICT R&D in the EU and Beyond, Luxembourg: Publ. Off. European Union, 2019. https://doi.org/10.2760/06479

  38. The Hays global skills index 2019/20. https://www.hays-index.com/ full-report/. Accessed November 19, 2019.

  39. United Nations E-Government survey, E-Government for the people, 2012. https://publicadministration.un.org/en/research/un-e-government-surveys. Accessed October 23, 2019.

  40. United Nations E-Government survey, E-Government for the future we want, 2014. https://publicadministration.un.org/en/research/un-e-govemment-surveys. Accessed October 23, 2019.

  41. United Nations E-Government survey, E-Government for sustainable development, 2016. https://publicadministration.un.org/en/research/un-e-governmentsurveys. Accessed October 23, 2019.

  42. United Nations E-Government survey, Gearing E-Government to support transformation towards sustainable and resilient societies, 2018. https://publicadministration.un.org/ en/research/un-e-government-surveys. Accessed October 23, 2019.

  43. Zemtsov, S., Barinova, V., and Semenova, R., The risks of digitalization and the adaptation of regional labor markets in Russia, Foresight STI Governance, 2019, vol. 13, no. 2, pp. 84–96.

    Article  Google Scholar 

Download references

ACKNOWLEDGMENTS

The authors are grateful to S.A. Kuznetsova and A.T. Yusupova for valuable comments and recommendations which aided the writing of the article.

Funding

The study was supported by the Russian Foundation for Basic Research (project no. 19-010-00731 “Comprehensive Analysis of the Heterogeneity of Russian Regions and Assessment of Its Impact on Socioeconomic Development”).

Author information

Authors and Affiliations

Authors

Corresponding authors

Correspondence to N. A. Kravchenko, S. R. Khalimova or A. I. Ivanova.

Ethics declarations

The authors declare no conflict of interest.

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Kravchenko, N.A., Khalimova, S.R. & Ivanova, A.I. Regional Factors in the Development of the ICT Sector in Russia. Reg. Res. Russ. 11, 91–100 (2021). https://doi.org/10.1134/S2079970521010081

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1134/S2079970521010081

Keywords:

  • ICT sector
  • regional determinants
  • regional factors
  • employment
  • Arellano–Bond estimator