Julia Dubrovskaya (p), Elena Kozonogova (p)

Raphael Bar-El

Assessing the impact of human capital on economic development is an urgent research problem. Its solution makes it possible to determine the optimal levels of state social expenditures that ensure maximum indicators of economic growth of territories.
The purpose of this work was to assess the contribution of human capital to the economic development of heterogeneous regions of the Russian Federation. The authors tested two hypotheses. Firstly, the assumption of the presence of spatial heterogeneity of the contribution of human capital across the regions of Russia was tested. Secondly, the presence of differentiation in the levels of human capital contribution to the economies of developed and developing regions was checked.
Spatial regression models based on panel data were used as methodological tools. The basic model for modification was the MRW-model. The statistical sample included data on 78 regions for 2010-2019.
In the course of the literary review, it was selected nine variables most frequently used by the authors in similar studies. Those variables characterize the level of education, health and culture in the regions of Russia as indicators of human capital.
In the process of testing the first hypothesis, Moran indices were calculated based on a binary neighborhood matrix. It has been proved that spatial effects are significant for human capital. At the same time, the estimates of regression models did not give clearly interpreted results. This is logically explained by the heterogeneity of the RF regions. To account for territorial differences, the clustering of regions by the level of innovative development was carried out. The main conclusions are as follows. Firstly, the maximum contribution to economic growth relative to other factors of human capital is provided by the level of healthcare. This means that in order to increase GRP in all types of regions the most effective strategy in Russia is to invest in improving the quality of public health. Secondly, a significant heterogeneity of the levels of the contribution of education to the gross products of different types of regions was revealed. According to the estimates, the contribution of education for developed regions is three times higher than in developing regions. These results are consistent with the previously obtained estimates of scientists analyzing data from developed and developing countries.
The study has clearly illustrated the heterogeneity of the influence of human capital on heterogeneous territories. This necessitates the creation of various mechanisms for managing territories of different types.

Min Jee Oh (p)

Julia Dubrovskaya

This study investigates the role of the information and communications technology on the regional economic development amongst Southeast Asian countries. The research utilizes panel data of the Association of Southeast Asian Nations (ASEAN) over the span of two decades (2000-2020) to measure the impact of the ICT sector indicators, together with control variables related to poverty, governance, education, and industry structure. The main findings are (1) ICT-related factors positively contribute to a country’s GDP; (2) ICT positively impacts a country’s growth under particular conditions such as good governance, reduced inequality and poverty, and presence of lower value-added sectors; (3) when independent variables interact with income dummies (lower and higher income countries), medium and high-tech exports had a significant negative effect on the GDP per capita for higher income countries. In light of the new ASEAN Digital Master Plan 2025, the study provides insight into the current academic discussions as well as the practical field in terms of policy implications to stimulate development of the ICT sector both within the individual countries and the Southeast Asian region.

Ivan Sergio (p), Anna Maria Feragina, Stefano Landolo

Min Jee Oh

The paper aims to study the regional propensity to innovate through patents focusing on the intra and extra-regional branching dynamics in the development of new specialization technologies specify the indicator to measure this: measured by a revealed technology advantage index (RTA). Furthermore, we consider the role of ICT technologies as a driver of regions technological diversification. Considering the attributed properties of ICT firms and their technologies – universally recognized as general-purpose technologies – and referring to theories of recombinant innovation, we argue that ICT knowledge and innovation could reduce the constraints arising from natural industrial branching attributable to technological branching, giving regions more room for developing technological diversification strategies. In our analysis we used data provided by the OECD on patent applications and economic taken from large region for the period 2000 – 2015. The aims of this paper are a) to demonstrate the existence of technological branching phenomenon; b) to underline the presence of spatial branching; c) to highlight that ICT affects technological branching. Our results show that the propensity to innovate of the regions considered is influenced by both spatial proximity and technological proximity.

Raphael Bar-El (p), Sharon Hadad, Liran Maymoni, Reut Megidish, Ran Ben-Malka

Ivan Sergio

Most theoretical and empirical research has identified a tendency of regional divergence of innovation and high-tech economic activities. Still, some recent research contends for the existence of advantages of peripheral regions and for the potential benefits of their integration in the innovation growth process. This article examines this controversy from the perspective of labor supply and demand, at various quality levels.
We adapt the approach of knowledge-based business activity and test the compliance of labor supply with labor demand at different knowledge levels, at the periphery and in the core region. We use the case of Israel comparing the southern peripheral region with the central metropolitan region. We use time series for the last two decades, with empirical data on supply and demand of different types of occupations.
Preliminary findings led to a few tentative conclusions. One is that local labor force responds positively to national innovation trends by improving its professional level and supplying higher professional levels. A second is that labor demand responds positively with the improvement of business economic structures in the periphery. A third is that the response of labor demand is less flexible than that of labor supply, leading to increased commuting of higher level labor force out of the peripheral region. In a way this can be expressed as a weaker adaptation of the local economic structure than the adaptation of the local labor force (as a similar to a weaker GDP growth than that of GNP growth).
We conclude that regional divergence forces induced by innovation processes may be constrained, but there is still a need for the intervention of public policy for the support of ecosystem factors, facilitating the attraction of appropriated economic activities to the periphery and/or improving transportation facilities.