Regional Innovation Sustainability: Evaluation Features

Galina S. Merzlikina

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

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

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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358

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

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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