Preview

Voprosy Ekonomiki

Advanced search
Open Access Open Access  Restricted Access Subscription Access

The impact of regional conditions on the business demographics of Russian IT companies

https://doi.org/10.32609/0042-8736-2022-5-79-98

Abstract

Information technology (IT) companies design and disseminate new technologies, sources of digital solutions for a wide range of economic agents. The size of the IT sector in Russia and its contribution to the national economy still lag behind the level of the leading countries. In recent years, the number of estab­lished IT companies has been declining, while the number of liquidated com­panies has been growing. The business demographics of IT companies represent exceptional regional differentiation, more than a twofold interregional gap on the birth and death rates. The paper explores the relationship between the demog­raphy of Russian IT companies from 2010 to 2020 with the help of regression analysis (Arellano—Bond method). The results showed a general shift of activity in the direction from east to west and an increase in the concentration of IT companies in metropolitan centers; stable differences between the western and eastern territories of Russia; the significance of regional institutional environment and habitat. The results of the study are important for decision making to support the development of the digital economy in Russian regions.

About the Authors

A. I. Ivanova
Institute of Economics and Industrial Engineering, Siberian Branch of the Russian Academy of Sciences; Novosibirsk State University
Russian Federation

Anastasiya I. Ivanova

Novosibirsk



N. A. Kravchenko
Institute of Economics and Industrial Engineering, Siberian Branch of the Russian Academy of Sciences; Novosibirsk State University
Russian Federation

Nataliya A. Kravchenko

Novosibirsk



References

1. Abdrakhmanova G. I., Vishnevskyi K. O., Gokhberg L. M. et al. (2021). Digital economy indicators: 2021: Statistical compilation. Moscow: HSE Publ. (In Russian).

2. Barinova V. A., Zemtsov S. P., Tsareva Y. V. (2018). Entrepreneurship and institutions: Does the relationship exist at the regional level in Russia? Voprosy Ekonomiki, No. 6, pp. 92—116. (In Russian). https://doi.org/10.32609/0042-8736-2018-6-92-116

3. Bessonova E. V., Morozov A. G., Turdyeva N. A., Tsvetkova A. N. (2020). Opportunities for accelerating labor productivity growth: The role of small and medium enterprises. Voprosy Ekonomiki, No. 3, pp. 98—114. (In Russian). https://doi.org/10.32609/0042-8736-2020-3-98-114

4. Verkhovskaya O. R., Bogatyreva K. A., Dorokhina M. V., Laskovaya A. K., Shmeleva E. V. (2021). Global entrepreneurship monitor. Russia 2020/2021: National report. St. Petersburg: HSM SPbGU. (In Russian).

5. Zemtsov S. P. (2020a). Institutions, entrepreneurship, and regional development in Russia. Journal of the New Economic Association, No. 2, pp. 168—180. (In Russian). https://doi.org/10.31737/2221-2264-2020-46-2-9

6. Zemtsov S. Р. (ed.) (2020b). High-tech business in Russian regions: National report. Moscow: RANEPA, AIRR, 2020. (In Russian).

7. Zemtsov S. P., Baburin V. L. (2019). Entrepreneurial ecosystems in the Russian regions. Regional Studies, No. 2, pp. 4—14. (In Russian).

8. Zemtsov S. P., Chepurenko A. Y., Barinova V. A., Krasnoselskikh A. N. (2020). New entrepreneurship policy in Russia after the 2020 crisis. Voprosy Ekonomiki, No. 10, pp. 44—67. (In Russian). https://doi.org/10.32609/0042-8736-2020-10-44-67

9. Kravchenko N. A., Khalimova S. R., Ivanova A. I. (2020). Information and communication technologies in Russia: Trends and regional development determinants. Region: Economics and Sociology, No. 1, pp. 44—76. (In Russian). https:// doi.org/10.15372/REG20200103

10. Obraztsova O. I., Chepurenko A. Y. (2020). Entrepreneurial activity in Russia and its cross-regional differences. Journal of the New Economic Association, No. 2, pp. 198—210. (In Russian). https:// doi.org/10.31737/2221-2264-2020-46-2-12

11. Semenova R. I., Zemtsov S. P., Polyakova P. N. (2019). STEAM-education and IT-employment as factors of adaptation to the digital transformation of the economy in the regions of Russia. Innovations, No. 10, pp. 58—70. (In Russian).

12. Tolmachev D. Е., Chukavina K. V. (2020). Technological entrepreneurship in the Russian regions: Educational and geographical paths of start-up founders. Ekonomika Regiona, Vol. 16, No. 2, pp. 420—434. (In Russian). https://doi.org/10.17059/2020-2-7

13. Arellano M., Bond S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies, Vol. 58, No. 2, pp. 277—297. https://doi.org/10.2307/2297968

14. Armington C, Acs Z. (2002). The determinants of regional variation in new firm formation. Regional Studies, Vol. 36, No. 1, pp. 33—45. https://doi.org/10.1080/00343400120099843

15. Audretsch D. (1995). Innovation, growth and survival. International Journal of Industrial Organization, Vol. 13, No. 4, pp. 441—457. https://doi.org/10.1016/0167-7187(95)00499-8

16. Baltagi B. (2005). Econometric analysis of panel data. Chichester: Wiley and Sons.

17. Barrios S., Mas M., Navajas E., Quesada J. (2008). Mapping the ICT in EU regions: Location, employment, factors of attractiveness and economic impact. JRC Scientific and Technical Reports, No. EU 23067, pp. 1—113.

18. Beck T., Demirgüç-Kunt A., Maksimovic V. (2008). Financing patterns around the world: Are small firms different? Journal of Financial Economics, Vol. 89, No. 3, pp. 467—487. https://doi.org/10.1016/j.jfineco.2007.10.005

19. Bogatyreva K., Shirokova G. (2017). From entrepreneurial aspirations to founding a business: The case of Russian students. Foresight and STI Governance, Vol. 11, No. 3, pp. 25—36. https://doi.org/10.17323/2500-2597.2017.3.25.36

20. Bravo-Biosca A., Criscuolo C., Menon C. (2013). What drives the dynamics of business growth? OECD Science, Technology and Industry Policy Papers, No. 1. Paris: OECD Publ. https://doi.org/10.1787/5k486qtttq46-en

21. Burstein R., Henry N. J., Collison M. L. et al. (2019). Mapping 123 million neonatal, infant and child deaths between 2000 and 2017. Nature, Vol. 574, рр. 353—358. https://doi.org/10.1038/s41586-019-1545-0

22. Cavallo A., Ghezzi A., Balocco R. (2019). Entrepreneurial ecosystem research: Present debates and future directions. International Entrepreneurship and Management Journal, Vol. 15, No. 4, pp. 1291—1321. https://doi.org/10.1007/s11365-018-0526-3

23. Cefis E., Bettinelli C., Coad A., Marsili O. (2021). Understanding firm exit: A systematic literature review. Small Business Economics. https://doi.org/10.1007/s11187-021-00480-x

24. Chavis L., Klapper L., Love I. (2011). The impact of the business environment on young firm financing. The World Bank Economic Review, Vol. 25, No. 3, pp. 486—507. https://doi.org/10.1093/wber/lhr045

25. Coad А., Rao Р. (2008). Innovation and firm growth in high-tech sectors: A quantile regression approach. Research Policy, Vol. 37, No. 4, pp. 633—648. https://doi.org/10.1016/j.respol.2008.01.003

26. Deloitte (2020). The 2020 Deloitte millennial survey.

27. Florida R. L. (2002). The rise of the creative class, and how it is transforming work, leisure, community and everyday life. New York: Basic Books.

28. Fritsch M., Mueller P. (2004). Effects of new business formation on regional development over time. Regional Studies, Vol. 38, No. 8, pp. 961—975. https://doi.org/10.1080/0034340042000280965

29. Fritsch M., Storey D. J. (2014). Entrepreneurship in a regional context: Historical roots, recent developments and future challenges. Regional Studies, Vol. 48, No. 6, pp. 939—954. https://doi.org/10.1080/00343404.2014.892574

30. Fritsch M., Wyrwich M. (2019). Regional emergence of start-ups in information technologies: The role of knowledge, skills and opportunities. Foresight and STI Governance, Vol. 13, No. 2, pp. 62—71. https://doi.org/10.17323/2500-2597.2019.2.62.71

31. Haltiwanger J. C. (2021). Entrepreneurship during the COVID-19 pandemic: Evidence from the business formation statistics. NBER Working Paper, No. 28912. https:// doi.org/10.3386/w28912

32. Huggins R., Prokop D., Thompson P. (2017). Entrepreneurship and the determinants of firm survival within regions: Human capital, growth motivation and locationalconditions. Entrepreneurship and Regional Development, Vol. 29, No. 3—4, pp. 357—389. https://doi.org/10.1080/08985626.2016.1271830

33. Gabison G. A. (2015). Birth, survival, growth, and death of ICT companies. JRC Working Papers, No. JRC94807. Joint Research Centre.

34. García-Muñiz A. S., Vicente M. R. (2014). ICT technologies in Europe: A study of technological diffusion and economic growth under network theory. Telecommunications Policy, Vol. 38, No. 4, pp. 360—370. https://doi.org/10.1016/j.telpol.2013.12.003

35. Gonzalez R. M., Gilleskie D. (2017). Infant mortality rate as a measure of a country’s health: A robust method to improve reliability and comparability. Demography, Vol. 54, No. 2, рр. 701—720. https://doi.org/10.1007/s13524-017-0553-7

36. Kane T. J. (2010). The importance of startups in job creation and job destruction. (Kauffman Foundation research series: Firm formation and economic growth). Hudson Institute

37. Kinne J., Resch B. (2017). Analysing and predicting micro-location patterns of software firms. ZEW — Centre for European Economic Research Discussion Paper, No. 17063. https://doi.org/10.2139/ssrn.3082822

38. Kravchenko N., Goryushkin A., Ivanova A., Khalimova S., Kuznetsova S., Yusupova A. (2017). Determinants of growth of small high-tech companies in transition economies. Model Assisted Statistics and Applications, Vol. 12, No. 4, pp. 399—412. https://doi.org/10.3233/MAS-170407

39. Lasch F., Robert F., LeRoy F. (2013). Regional determinants of ICT new firm formation. Small Business Economics, Vol. 40, No. 3, pp. 671—686. https://doi.org/10.1007/s11187-011-9382-z

40. Levine R. (2005). Finance and growth: Theory and evidence. In: P. Aghion, S. Durlauf (eds.). Handbook of economic growth. Amsterdam: Elsevier, pp. 865—934.

41. Marmot M. (2005). Social determinants of health inequalities. The Lancet, Vol. 365, No. 9464, pp. 1099—1104. https://doi.org/10.1016/S0140-6736(05)71146-6

42. Moeller K. (2018). Culturally clustered or in the cloud? How amenities drive firm location decision in Berlin. Journal of Regional Science, Vol. 58, pp. 728—758. https://doi.org/10.1111/jors.12383

43. Nyström K. (2007). An industry disaggregated analysis of the determinants of regional entry and exit. Annals of Regional Science, Vol. 41, No. 4, pp. 877—896. https://doi.org/10.1007/s00168-007-0130-x

44. Obraztsova O., Poliakova T., Popovskaya E. (2017). The choice of funding sources for start-ups in a transitional economy: The ability to predict in a national context. Foresight and STI Governance, Vol. 11, No. 3, pp. 71—81. https://doi.org/10.17323/2500-2597.2017.3.71.81

45. Premus R. (1982). Location of high technology firms and regional economic development. Washington: DC: Government Printing Office.

46. Prensky M. (2001). Digital natives, Digital immigrants Part 1. On the Horizon, Vol. 9, No. 5, pp. 1—6. https://doi.org/10.1108/10748120110424816

47. Rossetti F. (2017). The business demography of the ICT sector in Europe. Luxembourg: Publications Office of the European Union. https://doi.org/10.2760/45401

48. RUSSOFT (2014). 12-th annual survey of the software development export industry of Russia. St. Petersburg.

49. Zemtsov S., Chepurenko A., Mikhailov A. (2021). Pandemic challenges for the technological startups in the Russian regions. Foresight and STI Governance, Vol. 15, No. 4, рр. 61—77. https://doi.org/10.17323/2500-2597.2021.4.61.77


Supplementary files

Review

For citations:


Ivanova A.I., Kravchenko N.A. The impact of regional conditions on the business demographics of Russian IT companies. Voprosy Ekonomiki. 2022;(5):79-98. (In Russ.) https://doi.org/10.32609/0042-8736-2022-5-79-98

Views: 707


ISSN 0042-8736 (Print)