Localization of the production: international experience and imperatives of russia in the conditions of sanctions regime

This article is dedicated to the study of production localization problem which became especially topical in conditions of new challenges characterized by the unprecedented strengthening of sanctions regime towards Russian economy and predetermining the necessity to create national manufacturing chains of full cycle, reconfiguration of the sectoral policies, transformation of business models in context of strategic goals of the import substitution. The purpose of the article is to generalize and evaluate international experience of localization of production, as well as to analyze the state of this process in the branches of the Russian manufacturing sector, which since 2014 has been under the action of the blocking and sectoral sanctions of the collective West. In the research process, a complex of general scientific methods was used, including: analytical, logical, monographic, interpretation, synthesis, as well as a method of graphical visualization. Methodological base of the study includes the set of classical and neo-classical concepts of the spatial organization of the economy, theory of innovative growth and cluster development. Fragmentary overview of production localization international experience is given. We have carried out analysis of mechanisms of the state industrial policy, contributing to the problems solution of the localization and import substitution, taking into account strategic priorities of Russia. The advantages of localization in practice of special investment contract (SPIC) conclusion were systematized. Its sectorial features in automotive industry, power engineering industry and aircraft building were stated. We have made a conclusion about the necessity of forming of effective localization strategy, overcoming of declarative character of import substitution in the key spheres of real sector of Russian economy which will help to solve the problems of national security provision and technological independence. Practical significance of the results of the study consists in the possibility of its use in the sphere of program and project management and development of strategies of national and regional levels development.

1. Schumpeter J.A. Theorie der wirtschaftlichen Entwicklung. Berlin: Duncker & Humblot; 1912. 548 p.

2. Thünen J. H. von. Der isolierte Staat in Beziehung auf Landwirtschaft und Nationalökonomie. Hamburg: Perthes Verlag; 1826. 678 p. (Russ. ed.: Thünen J. Izolirovannoe gosudarstvo. Moscow: Ekonomicheskaya zhizn’; 1926. 325 p.).

3. Weber A. Über den Standort den Industrien. Tübingen: Verlag von J.C.B. Mohr; 1909. 246 p. (Russ. ed.: Weber A. Teoriya razmeshcheniya promyshlennosti. Leningrad-Moscow: Kniga; 1926. 223 p.).

4. Christaller W. Die zentralen Orte in Süddeutschland. Jena: Gustav Fischer; 1933. 340 p.

5. Lösch A. Die räumliche Ordnung der Wirtschaft: eine Untersuchung über Standort, Wirtschaftsgebiete und internationalem Handel. Jena: Fischer Verlag; 1940. 348 p. (Russ. ed.: Lösch A. Geograficheskoe razmeshchenie khozyaistva. Moscow: Foreign Literature Publ.; 1959. 455 p.).

6. Isard W. Location and space economy: A general theory relating to industrial location, market areas, land use, trade, and urban structure. Cambridge, MA: Technology Press; New York: John Wiley & Sons; 1956. 350 p.

7. Pred A. R. The spatial dynamics of U.S. urban-industrial growth, 1800–1914. Cambridge, MA: The MIT Press; 1966. 225 p.

8. Pottier P. Axes de communication et developpement economique. Revue économique. 1963;14(1):58–132. DOI: 10.2307/3499503

9. Perroux F. Economic space: Theory and applications. Transl. from Eng. Prostranstvennaya Ekonomika = Spatial Economics. 2007;(2):77–93. (In Russ.).

10. Krugman P. Increasing returns and economic geography. The Journal of Political Economy. 1991;99(3):483–499. DOI: 10.1086/261763

11. Romer P. Increasing returns and new developments in the theory of growth. NBER Working Paper.1989;(3098). DOI: 10.3386/w3098

12. Porter M.E. The competitive advantage of nations. New York: The Free Press; 1990. 896 p. (Russ. ed.: Porter M. Mezhdunarodnaya konkurentsiya. Moscow: Mezhdunarodnye otnosheniya; 1993. 896 p.).

13. Kolosovskii N.N. Theory of economic zoning. Moscow: Mysl’; 1969. 395 p. (In Russ.).

14. Granberg A. G. Economics and sociology of space. Ekonomicheskoe vozrozhdenie Rossii = The Economic Revival of Russia. 2010;(4):55–57. (In Russ.).

15. Tatarkin A.I. Spatial factors of the system modernization of the Russian Federation. Biznes, menedzhment i pravo = Business, Management and Law. 2012;(1):36–45. (In Russ.).

16. Suslov V.I. Problems and scenarios of spatial development of Russia. Ekonomika Vostoka Rossii = Economics of Russian East. 2017;(1):47–51. (In Russ.).

17. Lavrikova Yu.G., Andreeva E.L., Ratner A.V. Localization of foreign production as a tool to develop export base of the Russian Federation. Economic and Social Changes: Facts, Trends, Forecast. 2019;12(3):24–38. DOI: 10.15838/esc.2019.3.63.2 (In Russ.: Ekonomicheskie i sotsial’nye peremeny: fakty, tendentsii, prognoz. 2019;12(3):24–38).

18. Kondratyev V. B. Localization policy in oil and gas industry. Gornaya Promyshlennost’ = Russian Mining Industry. 2016;(3):64–70. (In Russ.).

19. Belyakova M. Yu. The role of the state in the development of the oil and gas complex in Norway. Delovoi Zhurnal Neftegaz.RU = Business Magazine Neftegaz.RU. 2020;(11):84–88. (In Russ.).

20. Skjeldal G., Berge U. Feber. Historia om norsk olje og gass. Oslo: Cappelen Damm; 2009. 326 p.

21. Klassen J. Joining empire: The political economy of the new Canadian foreign policy. Toronto: University of Toronto Press; 2014. 329 p. DOI: 10.1017/S 0008423917001275

22. Walker C., Baxter J. Toolkit for turbines: Wind energy development in Ontario and Nova Scotia, Canada. Ontario: Western University; 2017. 22 p. DOI: 10.13140/RG.2.2.23338.41921

23. Alvarez R.B. Estructura y recomposición de la industria automotriz mundial. Oportunidades y perspectivas para México. Economia UNAM. 2013;10(30):75–92. DOI: 10.1016/S 1665–952X(13)72204–7

24. Nutenko L. Ya. Brazilian industrial policy: a course towards localization and innovation. Latinskaya Amerika. 2015;(10):36–47. (In Russ.).

25. Santos R., Junior R., Adami V. Analysis of the effects of the New Automotive Regime (1996–1999) and Inovar-Auto (2012–2017). Brazilian Journal of Political Economy. 2021;41(1):137–154. DOI: 10.1590/0101-31572021-2992

26. Bellini C., Moreno V., Graeml A., Jacks T. Information technology issues in Brazil. In: The World IT Project. Singapore: World Scientific; 2020:43–55. DOI: 10.1142/9789811208645_0004

27. Maia D., Alves E., Rolim S., Silva F., Melo F., Fernandes M. A inovação tecnológica atrelada ao estímulo sustentável: uma análise no Centro Tecnológico do Porto Digital em Pernambuco. Research Society and Development. 2021;10(12): e104101219666. DOI:10.33448/rsd-v10i12.19666

28. Ovchinnikova A.V., Topoleva T. N. Clusterization of the economic space as a factor in the growth of the national economy competitiveness. Upravlencheskie Nauki = Management Sciences in Russia. 2020;10(2):41–52. (In Russ.). DOI: 10.26794/2404-022X-2020-10-2-41-52

29. Berezina E. Cluster-class: The Ministry of Industry and Trade will change the support system for industrial parks. Rossiiskaya gazeta. 2020;(175). URL: https://rg.ru/2020/08/09/minpromtorgizmenit-sistemu-podderzhki-promyshlennyh-i-industrialnyh-parkov.html (accessed on 04.04.2022). (In Russ.).

30. Shatalova O. M. On the organizational and economic mechanisms of formation of an innovative scientific and technological center for ensuring the sustainable development of the regional economy. Vestnik Udmurtskogo universiteta. Seriya Ekonomika i Pravo = Bulletin of Udmurt University. Series Economics and Law. 2021;31(4):610–620. (In Russ.). DOI: 10.35634/2412-9593-2021-31-4-610-620

31. Sutygina A.I. National food independence in crisis. Ekonomika sel’skogo khozyaistva Rossii = Economics of Agriculture in Russia. 2020;(6):2–8. (In Russ.). DOI: 10.32651/206–2

32. Il’ina S.V. Economic efficiency of manufacturing enterprises: Theoretical and practical aspects. Vestnik Udmurtskogo universiteta. Seriya Ekonomika i Pravo = Bulletin of Udmurt University. Series Economics and Law. 2022;32(1):27–32. (In Russ.). DOI: 10.35634/2412-9593-2022-32-1-27-32

33. Bun’kovsky D. V. Development of oil and gas industry enterprises: Prospects for import substitution. Ekonomika i upravlenie: problemy, resheniya = Economics and Management: Problems, Solutions. 2020;1(10):80–86. (In Russ.). DOI: 10.34684/ek.up.p.r.2020.10.01.009

34. Trofimova N.N. An innovative model for the development of the socio-economic space. Al’manakh Krym = Almanac Crimea. 2021;(24):113–117. (In Russ.).

35. Evstafieva Yu. V. Experience of application and development of special investment contract. Vestnik Instituta ekonomiki Rossiiskoi akademii nauk = Bulletin of the Institute of Economics of the Russian Academy of Sciences. 2019;(3):152–167. (In Russ.). DOI: 10.24411/2073-6487-2019-10038

36. Krom E. Forecast of entrepreneurs: “2023 will be a year of growth”. RBC. Apr. 09, 2022. URL: https://www.rbc.ru/spb_sz/09/04/2022/624e90dd9a79479f7e8ac2df (accessed on 05.04.2022). (In Russ.).