Role And Importance Of Introducing Environmentally Friendly Solutions In Regional Economy Development

Abstract

The presented article is aimed at identifying and evaluating the dominant factors of sustainable development of the socio-economic system of the region. The group of environmental factors is crucial for the development of production, socio-cultural, technological, and other parameters of economic systems, ensuring the innovative growth of the territory as a whole. The study of factors of sustainable development demonstrates their expansion of activity in the main areas of social and economic growth of the region. This circumstance justifies the need to identify and develop scientific, technical, infrastructural, and other restrictions, opportunities, and reserve sources of resources that ensure the growth of innovation in the regional economy. The theoretical and methodological foundations of the innovative development of the regional economy based on the dominant influence of environmental factors are presented. Innovative development is focal low on the prospects for sustainable growth of regional competitive advantages, on the production of regional competitive products and their promotion within the given parameters. The results of the study can be used in the functional activities of local authorities at the regional level, as well as in the enterprise's management and organizations of the studied region. The determining importance of this scientific research is to identify the prospects and determinants of sustainable development of territories based on highly environmentally friendly technologies.

Keywords: Regional economyinnovationsprogressive developmentenvironmentally friendly

Introduction

Studying the socio-economic condition of the regions of the Russian Federation, it should be noted that the North Caucasus Federal District has abundant natural resources, significant labor, and opportunities for recreation and tourism, unique climatic conditions, and cultural heritage. In a crisis economic situation, the possibility of realizing and developing regional competitive advantages is based on the production of regional competitive products and their promotion within the given parameters.

The federal districts of our country have a clear specialization developed under the influence of the resources provision level, the international distribution of labor, as well as regional trends and development factors, while the characteristics of the overlapping trends of the past to the future provide detection of opportunities and threats for further development. (Akhmadov, 2015, p. 11)

The Russian economy is a complex socio-economic mechanism, a complex of systems and links is functioning. The Russian economy is heavily dependent on mining and as a result of raw material exports. This situation is not new to the Russian economy. This situation was formed based on the transformation of world standards of raw material supply. As a result of the international division of labor in the countries endowed with minerals, the raw material orientation of exports began to develop. So, not only in the Russian Federation, mining has become the dominant budget item (Tumkhadzhiev & Parkhomenko, 2017).

The scientific and technical symbiosis of in-country production and trade chains is based on increasing reproductive potential. Scientific and technical symbiosis allows creating a regime of maximum favor about those industries that are basic for the region, providing vital functions of socio-economic systems. Essential areas deserve special attention since they form the basis for the trajectory of sustainable development of the regional economy of a particular territory (Glushkova & Simagin, 2017).

Right now, government support for the development of the domestic market is significant. State support should take into account the tenets of regional self-sufficiency and exchange.

The progressive development of the regional economy demonstrates effective progressive movement as a synergistic link, integrating the areas of production, distribution, and sale of finished products of the agricultural complex, industry, identifying and using scientific and technological developments for each industry, is directly reflected in the profitability, financial result of activities. (Akhmadov, 2015, p. 14)

Problem Statement

Research Questions

The significance of these characteristics of regional development depends on the overall performance of the entire socio-economic mechanism of the region’s specialization industries. The region’s branches are invisibly and entirely dependent on the savings contained in the underestimated consumption of electricity and fuels and lubricants, financial interests, and working time. Savings are necessary to maintain the consistency and clarity of production and technological operations (Fetisov & Oreshin, 2016).

One of the main components of the growth in the effectiveness of regional transformations of the development trajectory is the indicator (coefficient) of sustainable growth. The viable growth indicator provides an opportunity to assess in dynamics the growth and expansion of activity in three main directions, which in the classical understanding of regional studies can be defined as:

• social

• economic

• environmental.

As part of the analysis of sustainability indicators, a group of social factors contains information about demography, population protection, changes in education and healthcare systems, and many other criteria.

Purpose of the Study

A group of economic factors characterizes the average values of production and consumption of socially significant goods, indicators, and the structure of the import-export balance, and production growth in the field of import substitution (Chernyak, 2016).

The group of environmental factors directly reflects the performance and implementation of highly environmentally friendly solutions in production, economic, social, and other possible processes. Every year, the strengthening of environmental safety requirements dictates the transition to the minimum consumption of resources for manufacturers, while not reducing production capacity. Ensuring the high efficiency of introducing environmentally friendly technologies is a rather tricky task. However, the quick payback of technology and production, infrastructure equipment, and the development of supply systems can ensure the rational and practical development of the socio-economic complex of the region (Pole, 2017).

Research Methods

In our opinion, the characteristics of sustainable growth can be improved for complete analysis in the field of demonstrating production capacities by groups of production and innovation factors. In symbiosis, these groups determine the progressive development of the regional economy. This symbiosis is essential for understanding the prospects for the development of the region as a specific territory.

The group of production factors should fully reflect the current state and prospects for the development of production capacities in the region, their condition, and the need for reconstruction, modernization of fixed assets.

A group of innovative factors is necessary for the analysis and interpretation of promising directions for the development of the regional economy and the socio-economic system as a whole. So, these indicators should adequately provide information on the state and possibilities of expanding the scale of the introduction of innovations in production, directly economic, and social life support processes in the region. Innovations introduced and successfully operating in the regional economy should be at least 10 % of the total GRP of a particular territory. Visible and significant innovations in the field of mechanical engineering, instrumentation, and machine tool industry significantly distinguish certain regions in the overall results of the country. There are several difficult questions in this regard. The main issue is the inability to assess the effectiveness of innovation quickly. The process of introducing and testing specific innovative solutions and projects can drag on for several months or even years.

Let us turn to the research of theoretical and methodological developments in the field of criteria and indicators of sustainable development of the region. On this basis, we will present a triad of factors conditionally transformed by us, which in the author’s interpretation will look as follows (Figure 1 ).

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In our opinion, one dominant criterion is environmental dogmas and rules. This criterion directly affects each adjacent indicator. The implementation of ecological standards determines the bright strategic prospects for the existence of entire generations. Resources have long ruled the world. A few decades ago, it was possible to divide the states of the globe into territories endowed with raw materials or otherwise “deprived” of such. But today the situation has changed significantly. Countries that are initially not rich in natural resources show a real technological success. Such countries implement innovative developments and provide their own needs with raw materials and energy.

The environmental criterion is located in a definite relationship and in a dominant position based on the very meaning of the concept of sustainability, a place that is not achievable at the same time, but in the long run.

Findings

Reducing the cost of production ensures the current growth of the regional location. In turn, the growth of regional location can provide higher rates of reproduction cycles in certain areas of the regional economy.

It is possible to reduce the cycle of reproductive processes by minimizing the use of resources and optimizing infrastructure constraints and conditions. Through these processes, key results can be achieved in the area of cost savings and a combination of risk and performance indicators.

 Regions become successful and efficient due to their impressive scientific and methodological base for innovation. In the world, there are many examples of achieving market leadership through the practice of creating and introducing innovations.

But it should be borne in mind that innovation cannot be effectively implemented and pretended to be without creating the conditions for their successful functioning.

A group of indicators calculates the rating of innovative development of the regions of the Russian Federation (Abdrakhmanova, Bakhtin, & Gokhberg, 2017). This rating contains data on the socio-economic condition of the territories as a whole, on the development of scientific and technological potential and innovation. Annually demonstrate significant leadership in Moscow and the Moscow region. Traditionally follows St. Petersburg, the Republic of Tatarstan, Tomsk and Novosibirsk Regions. In the field of our research is the area of the North Caucasus Federal District. It should be noted that the North Caucasus Federal District can be characterized as medium-innovative. Although, according to some indicators, this region should be attributed to regions with a weak level of innovation.

In promising projects for the development of the North Caucasus Federal District, agriculture, tourism, and the recreation industry are being improved. Thanks to this, the rating of the republics of this region is gradually improving. The prospects for agricultural development are growing every year. Not only cost-effective projects are being developed. Thus, significant transformations of a social nature are being carried out, the infrastructure, places of recreation, the infrastructure of communication lines, and research institutes are being improved.

Conclusion

The future is a continuation of the present. Economic development models are aligned with the past. That is, economic development models are implemented, taking into account already formed conditions, restrictions of a territorial, financial, or other nature. There are general trends and the possibility of developing regional development in a spiral. There is the possibility of forecasting, extrapolation, adapted for socio-economic development of complexes and systems of the economy in integration and independently.

In the framework of the concept of modernization of the socio-economic system of the North Caucasus Federal District, we will characterize the possibility of extrapolation.

• Institutional framework for the development of innovation in strategic sectors that provide a regional budget.

• Getting rid of dependence on external investments.

• Self-sufficiency.

In our opinion, the economic development of the North Caucasus Federal District should be ensured within the framework of financing from domestic resources, avoiding foreign injections. It is necessary to take a set of systemic measures to identify the most significant progressive directions in the development of the socio-economic system of the region. One of the significant factors in the development of the region is a set of theoretical and methodological developments aimed at identifying and working out the necessary scientific, technical, infrastructural, and other limitations, opportunities, and reserve sources of resources that ensure the growth of innovation in the regional economy.

References

• Abdrakhmanova, G. I., Bakhtin, P. D., & Gokhberg, L. M. (2017). Rating of innovative development of the constituent entities of the Russian Federation. Moscow: HSE.
• Akhmadov, M. A. (2015). Development of a strategy for implementing reproductive potential within the framework of interregional and international integration. Bull. of Rostov State Econ. Univer. (RINH), 3(51), 11–15.
• Chernyak, V. (2016). Popular History of Economics and Business. Moscow: Veche.
• Fetisov, G. G., & Oreshin, V. P. (2016). Regional Economics, and Management. Moscow: RIOR.
• Glushkova, V., & Simagin, Y. (Eds.). (2017). Regional economy. Natural resource and environmental fundamentals. Moscow: KnoRus.
• Pole, G. (Ed.). (2017). Regional Economics. Moscow: Unity-Dana.
• Tumkhadzhiev, I. A., & Parkhomenko, T. V. (2017). Management of institutional conditions for the regional economic growth of the tourism industry of the Chechen Republic. Innovative achievements of green logistics: international experience and Russian practice. Mater. of the int. sci.-pract. Conf. XIII South Russian Logistics Forum (pp. 318–324).