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Industrial Potential Development of a Region (the Case of Irkutsk Region)

Student: Petukhova Marina

Supervisor: Alexander M. Khodachek

Faculty: Saint-Petersburg School of Social Sciences

Educational Programme: Public Administration (Master)

Year of Graduation: 2018

Recently, the world focuses on increasing the importance of intangible assets (human capital and information), as well as increasing the share of the service sector, but there is one common argument in favor of industrial development - the products of enterprises in the real economy will always be in demand, hence the need for it production. The concepts of the production subsystem of the region, industrial and economic potential of the region were studied. The social and economic situation of the Irkutsk region was assessed, the most significant industries were identified on the basis of the localization coefficient estimation, the SWOT analysis was compiled, the author's methodology for assessing industrial potential was developed, and then the industrial potential was estimated. It is concluded that the Irkutsk region has a rather high industrial potential in comparison with the regions of the SFO, there are distortions towards the extractive industries, there are also problems related to innovation, with an outdated technological base, and insufficiently developed transport infrastructure, which hampers the development of industry region. At the same time, the region has sufficient educational and human resources potential. Recommendations can be proposed to the Government of the Irkutsk region for inclusion in the Strategy of social and economic development of the region until 2030. Among the proposals are the formation of industrial clusters, increasing the investment attractiveness of the region, targeting manufacturing industries, developing transport infrastructure, personnel policy, etc.

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