Determinants of fast-growing SMEs’ concentration in the Russian regions
Many small and medium enterprises (SMEs) grow fast and play an important role in regional development. Fast-growing companies may contribute to more than 50% GDP growth (Europe INNOVA Gazelles Innovation Panel, 2008). There is interdependence between innovative development of regions and emergence of fast growing SMEs (‘gazelles’). Developed regional innovation systems create a fertile environment for increasing the number of fast-growing companies. We assume that regional innovation performance (as a share of R&D personnel in employment, share R&D expenditures in gross regional product, etc.) may be a significant factor for gazelles’ concentration. There were no papers on Russian regional data before that could prove it. The main objects of the article are factors, which can determine the proportion of fast-growing manufacturing SMEs during post-crisis period (2009-2012) in the Russian regions. An econometric analysis demonstrates a strong correlation between the share of fast-growing manufacturing SMEs and indicators of regional innovation performance. Market potential also plays an important role. Results could be used as a policy advice in Russia.
gazelles, Russian regions, human capital, market potential, firms, regional innovation system