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TERRA ECONOMICUS

Technological sovereignty and priorities of localization of production


TERRA ECONOMICUS, , Vol. 21 (no. 1),

The current trend of global development is the strengthening of economic and geopolitical influence of countries that control transnational digital infrastructure. The claims of the United States and China to dominate the global economy are a challenge not only for Russia, but also for other countries that are not devoid of ambitions. Achieving digital sovereignty figures is among the goals of the European Union. India is striving to overcome digital colonization, the technological hegemony of the West and China. The article presents how the European Union and India move towards technological sovereignty. Since this sovereignty differs from autarky, it is an urgent task to develop a policy of participation in global value chains. Findings provided by METRO model (an OECD tool for analyzing global markets) focus on a broad diversification of foreign economic relations. The results of the shock test of the countries by the COVID-19 pandemic show that, although the countries with the largest income per capita are characterized by a high level of foreign trade activity, it is not a guarantee of sustainable economic development. National economy can be strongly negatively affected by supply chain disruptions. To resist foreign pressure, Russia needs to control a number of macro technologies that will dominate in the XXI century. Such general-purpose technology as artificial intelligence is beginning to play a significant role at that.
Citation: Dementiev V.E. (2023). Technological sovereignty and priorities of localization of production. Terra Economicus 21(1), 6–18 (in Russian). DOI: 10.18522/2073-6606-2023-21-1-6-18

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Concept of public services coproduction: Creating prerequisites of development or streetlight effect?


TERRA ECONOMICUS, , Vol. 21 (no. 1),

The growth of the states’ economic potential in most countries of the world in recent decades has sharply increased interest in effectiveness and efficiency of public administration. The purpose of this article is to analyze a group of approaches elaborated to replace the New Public Management. They are focused on the concept of co-production, which is strengthening the participation of citizens during decision-making and implementation. We rely on economic concepts, including that of opportunistic behavior, and principalagent model, to introduce and analyze the concept of co-production action of an individual. Within the theoretical framework of Public Administration, there is a lack of attention to the economic concepts among research of Co-production of Public Services, Public Value and New Public Governance. Besides, the fact that public services belong to different types of economic goods, such as search, experience and credence ones, is also neglected; no consistent delimitation of services and customer support is provided; practical recommendations for improving public administration in natural states ignore the results of studies on the social preferences of individuals. We conclude that the analyzed concepts do not go beyond the Public Administration Theory assumptions, which have led to the emergence and mass dissemination of New Public Management approach. Without the change this article proposes, improving effectiveness and efficiency of public administration is hardly capable.
Citation: Tambovtsev V.L., Rozhdestvenskaya I.A. (2023). Concept of public services coproduction: Creating prerequisites of development or streetlight effect? Terra Economicus 21(1), 19–31 (in Russian). DOI: 10.18522/2073-6606-2023-21-1-19-31

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Was seventeenth-century British political arithmetic a precursor of nineteenth-century economic science?


TERRA ECONOMICUS, , Vol. 21 (no. 1),

The 19th-century English economist W.S.Jevons revisited the work of Gregory King. A seventeenth-century follower of Sir Francis Bacon, King had described in a brief empirical observation how price correlated with supply. The history of seventeenth-century commercial mathematics, this essay suggests, provides essential background for understanding the empirical observation which Jevons received from King. The 17th century was the pivot time during which new techniques appeared in higher mathematics, calculus and mathematical probability among them. Higher mathematics incorporated innovations which had previously appeared in commercial mathematics, Arabic numerals, pen and paper calculations, new notations, etc. At the same time, ancient Greek higher mathematics continued for a while, and Gregory King also borrowed some calculations from James Ussher who used ancient Greek higher mathematics. King learned Bacon’s empirical method from John Graunt and Sir William Petty, and all three represented a stage of political arithmetic which was midway between Bacon’s simple empiricism on the one hand and later mathematical probability and random sampling on the other hand. In this midway stage, statesmen made policy while taking care to obtain data from professional advisors whom they employed. The advisors based their advice at first on a combination of observation, skill, and intuition, but then later they added commercial arithmetic.
Citation: Taylor J.A. (2023). Was seventeenth-century British political arithmetic a precursor of nineteenth-century economic science? Terra Economicus 21(1), 32–46. DOI: 10.18522/2073- 6606-2023-21-1-32-46

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Post-war economy of the USSR: Recovery factors


TERRA ECONOMICUS, , Vol. 21 (no. 1),

As of now, economic history is not able to provide a complete explanation for the success of the post-war Soviet economy. The results of studies by both Soviet and foreign authors show that Soviet economy reached its prewar level no later than 1948. However, when calculating the losses of fixed assets in the USSR of years during the war and comparing them with the level of capital investments, it becomes clear that the restoration of the USSR economy should have taken place no earlier than 1952. The calculations performed in this article exhibit that internal capital investments were responsible for only 29,4% of the restoration of post-war Soviet economy. The rest was due to external factors, the most important of which were the allies’ assistance during the war, post-war reparations, the transfer of material, and financial and intellectual resources from the occupied territories. There is reason to believe that the resources obtained by the USSR in the war and post war years guaranteed the country’s economic development up until the mid-60s.
Citation: Fomin D.A. (2023). Post-war economy of the USSR: Recovery factors. Terra Economicus 21(1), 47–60 (in Russian). DOI: 10.18522/2073-6606-2023-21-1-47-60

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An empirical analysis of the influence of financialization on the innovative activity of the firms’ managers in Italy


TERRA ECONOMICUS, , Vol. 21 (no. 1),

This paper contributes to the discussion about the impact of financialization on the innovative activity of firms. The initial hypothesis was whether financialization has negative impact on the innovative activity of a company as a consequence of investment short-termism of managers who are not motivated to invest in risky innovative initiatives with a long payback period. Assumptions are made through analyzing the relationship between financial indicators (financial expenses and incomes) and investments in research and development on the sample of Italian publicly listed non-financial corporations. The article tests whether financialization leads to short-termism of company managers forcing them not to invest in risky innovative initiatives with a long payback period. Econometric analysis reveals that financial income of Italian non-financial companies was found to be positively associated with their R&D expenses. This finding may support the economic theory of the mainstream literature, which argues for the beneficial effects of financialization on the economic growth and is inconsistent with many empirical results received by the Post Keynesian authors. The possible reason for it is that the motivation of the Italian managers may be different from the Anglo-Saxon managers’ one and not characterized by the shareholder value orientation and short-termism.
Citation: Tarverdyan M., Rozmainsky I. (2023). An empirical analysis of the influence of financialization on the innovative activity of the firms’ managers in Italy. Terra Economicus 21(1), 61–79. DOI: 10.18522/2073-6606-2023-21-1-61-79

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The role of the information and communication technologies in the institutional and economic sustainability of the post-pandemic small and medium enterprises


TERRA ECONOMICUS, , Vol. 21 (no. 1),

This paper focuses on the factors that determine the institutional and economic sustainability of the postpandemic small and medium enterprises (SMEs). In addition, it assesses the role of the information and communication technologies (ICTs) and digitalization in the creation and maintaining of sustainable SMEs during and after the COVID-19 crisis of 2020–2021. Our research is based on the unique sample of surveys collected in 200 Russian SMEs from seven different regions of the country between June and October 2022 and on the empirical model that employed this data. Our results allowed us to distinguish the nature of the impact of an external environment on the socio-economic stability of SMEs and to identify the institutional and economic factors that can hinder or contribute to their sustainable development in the post-pandemic period. These results can be used to build strategies for sustainable development at the regional level both in Russia and other countries. Our findings can be useful to managers and owners of small and mediumsized businesses in the process of integrating the goals of organizational and regional development, as well as for ensuring the networking of government, social organizations, and business at the regional level in the post-COVID era.
Citation: Korneeva E., Strielkowski W. (2023). The role of the information and communication technologies in the institutional and economic sustainability of the postpandemic small and medium enterprises. Terra Economicus 21(1), 80–93. DOI: 10.18522/2073- 6606-2023-21-1-80-93

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The role of universities as the institutional drivers of innovation at the regional level


TERRA ECONOMICUS, , Vol. 21 (no. 1),

This work assesses and scrutinizes the specific position of the universities and their relevance in fostering the regional development within the context of the globalized economy of the 21st century based on the relevant economic theories as well as the outcomes of the related research studies. Being both the educational as well as the research institutions, universities represent the important drivers that occupy an important position in knowledge-based and innovation-based society with a view to sustainable development at local, regional, national, and global levels. However, the society is sometimes not very much aware of the spectre and variety of services universities provide, or rather the way how the universities help to solve societal or local problems using their position and their activities. With the active cooperation of universities with local and regional governments in place, students have the opportunity to participate in identifying the problems of society and finding appropriate solutions by applying their theoretical knowledge. It is precisely the universities that, as the basis of an innovation system, should be the key for the regional innovation centres. We use a case study of Slovakia to demonstrate how universities can boost the innovative potential and foster the economic success in the competitive and globalized world economy.
Citation: Čajka P., Čajková A., Krpálek P. (2023). The role of universities as the institutional drivers of innovation at the regional level. Terra Economicus 21(1), 94–107. DOI: 10.18522/2073- 6606-2023-21-1-94-107
Acknowledgment: This paper was supported by the Grant VEGA No. 1/0320/21 “The role of universities in building a knowledge economy”.

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Entrepreneurial university model in the context of regional development: The case of Moscow Polytechnic University


TERRA ECONOMICUS, , Vol. 21 (no. 1),

The article deals with the development of entrepreneurial universities in the context of the triple helix model. We pay special attention to Russia, where entrepreneurial universities development is at the initial stage. Related social, economic, and legal factors are considered. We focus on the case of Moscow Polytechnic University, that implements entrepreneurial development model featured by practice-oriented educational modules, the stimulation of scientific and innovative activities that have commercial potential, and advanced partnership with industry. Methodologically, this study uses qualitative methods, including participant observation and benchmarking, to analyze and generalize the best practices in education, and test our model of entrepreneurial university development. Empirical data included statistics on organizations in higher education provided by the Federal State Statistics Service of the Russian Federation, evidence reported by rating agencies, leading Russian and foreign universities. Our findings may be useful to researchers and practitioners involved in higher education transformation in Russia.
Citation: Nikolaev V., Skvortsov A. (2023). Entrepreneurial university model in the context of regional development: The case of Moscow Polytechnic University. Terra Economicus 21(1), 108– 121 (in Russian). DOI: 10.18522/2073-6606-2023-21-1-108-121

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