This study examines the problems and difficulties faced by small and medium enterprises through the example of the St. Petersburg Union of Entrepreneurs. The bailout plan of the Russian government is aimed at supporting small and medium enterprises, providing measures to reduce administrative and tax burden, and protecting property rights. A radical change in the approach to import substitution policy is proposed, which would convert it into a modernization program. It is shown that the development of small and medium enterprises in St. Petersburg is rather sustainable despite adverse external effects. Aim. This study aims to propose a number of measures aimed at improving taxation practices and the relationship between small enterprises and local authorities through the example of St. Petersburg. Tasks. This study develops practical steps towards improving the sustainability of small and medium enterprises in the region, adjusting taxation, increasing personal responsibility of government officials and legislators for the possible consequences of their decisions. Results.It is necessary to introduce a principle of reasonable sufficiency, which implies that all innovations should be viewed through the lens of production efficiency, job creation, profit generation, development and, eventually, increase in tax revenues. Transparency of the authorities and the ability to discuss businessrelated decisions guarantees the adoption of reasonable action programs.

Aim. To prove the need of regional development of branches of economy on the basis of the organization of cluster associations. Goals. To analyze basic approaches to determination of the concept of “cluster”; to prove the need of separation of clusters as the most important instrument of business development. Methodology. General methods of scientific knowledge are used in the research. Results. Questions of economic entity of a cluster in the modern regional economy were studied. The main characteristics of modern clusters some of which can be considered as start premises when forming clusters in the region were considered. Its main objectives, tasks, the principles of creation and functioning were defined. The cluster is figured as one of the most effective ways of development of regional economy and the most important instrument of business in the modern world.

This study examines the criteria and factors of assessment of the competitive appeal of Russian regions through the example of St. Petersburg. It is proposed to assess the dynamics and sustainability of the region’s socio-economic development over a period of several years on the basis of positive or negative changes in its ratings. To this end, the competitive appeal of Russian regions is calculatedaccording to individual and composite indexes relating to four factors: economy, innovations, human potential, and life quality. It is shown that the development of St. Petersburg in 2010-2015 was sustainable and had an upward tendency in terms of the region’s enhancing competitiveness despite the adverse external effect on the economy. Two groups of indexes that show an increase or decrease in the city’s competitive appeal are examined. Aim. This study aims to propose and approbate one of the possible methods for the assessment of regional sustainability and competitiveness throug the example of St. Petersburg. Tasks. This study proposes the criteria and factors of the region’s competitive appeal for consumers and a calculation method; applies the calculation method to the assessment of the socio-economic development of St. Petesburg in 2010-2015; identifies directions and indices that show the highest and lowest sustainability of socio-economic development of St. Petersburg over the period. Methods. This study uses the method of multicriteria comparison of complex socio-economic systems based on criteria and indices that are the most relevant for development. Results. The leading role of St. Petersburg among Russian regions is substantiated, sustainability of the economy and social processes in the regions in the context of adverse external economic and political effects is shown.

Russia’s vast territories and its unique geographical features make it rather difficult to classify its citizens. However, classifying regions is crucial to identify consistent trends in their development. The purpose of this study is to develop a consistent classification of the Russian Federation’s regions. Aim. This study aims to develop a consistent classification of regions according to their levels of economic and social development. Tasks. This study reviews the literature on the subject of developed classifications and identifies flaws in existing methods. It then proposes a methodology for developing a consistent classification, determines the set of features that characterizes the economic and social development of regions, collects data from 2010 to 2014 and presents it in a structured format, applies the proposed methodology for regional classification to the collected data, and interprets the obtained results. Methods. This study proposes to construct an internal indicator of economic and social development of territories based on selected statistical figures and then perform a spatial and temporal classification of its values using the coefficients of auto- and transregional dynamics. A comparative analysis of the processes of economic and social regional development from 2010 to 2014 is performed based on the internal indicator values. Results. The study employs a spatial-temporal panel of statistical data (23 indicators for the years 2010-2014). The analyzed indicators are arranged into two blocks: social and economic. The proposed methodology takes the proportion of explained dispersion of the first principal component as a weighting coefficient. The social and economic blocks have weight ratios of 51% and 49%, respectively. The performed analysis shows an improvement in social and economic regional development from 2010 to 2014 since the average value of the indicator increased by 0.86 points and scored 3.64 out of 10 in 2014. The Moscow region (7.37), the Tyumen region (6.44), and the Republic of Tatarstan (5.36) had the largest indicator values in 2014. The least developed regions in 2014 were the Republic of Tuva (1.82), the Kurgan region (2.37), and the Transbaikal territory (2.43). Conclusion. The proposed classification, based on the calculated coefficients of auto- and transregional dynamics, makes it possible to arrange regions into three major groups. The first group has the most progressive development and insignificant systemic risks; the second group includes regions with less progressive development, which are inferior in terms of dynamics, i.e., the systemic risk is higher; and the third group comprises regions that lag in terms of development and have high systemic risk. The classification is performed in a spatial-temporal field, which makes it more consistent and reliable. In the future, it should be possible to notice similar behavior by analyzing how certain socio-economic indicators change within each group of regions and, thus, identify common trends in the development of entire regional clusters.

This study is dedicated to examining the current state of food consumption in the context of increasing external challenges and substantiating possible ways of overcoming the existing institutional problems. Aim. This study aims to develop the institutional component of the process of food consumption formation through the systematization of the crucial international and national statutory instruments aimed at ensuring food security and healthy nutrition. Tasks. This study shows major global trends in food consumption and specific problems that depend on the country’s economic situation; substantiates the need for internal food aid during the transition towards an extensive interpretation of the term “social state”; analyzes foreign experience with supplemental nutrition assistance programs; identifies the specific features of food consumption using a differentiated approach. Results. Complex spatiotemporal analysis of food consumption shows a correlation between the dynamics of real expenditures of the Russian population and average staple food consumption per capita over a period of three decades. Periods of increase and decrease in the examined parameters are identified as a result of effect of exogeneous and endogeneous factors. The correlation between staple food consumption and rational norms and minimum physiological subsistence level is shown with a breakdown by income groups of the population. It is determined that the actual food consumption level of low income groups is lower than both rational norms and minimum physiological subsistence level, which contradicts the fundamental national statutory instruments dealing with the physical and economic availability of food and healthy nutrition. Conclusion. In order to optimize food consumption, it is necessary to undertake the following measures: to increase the final output of the national agri-food complex, implement an import substitution policy, improve the government income and tax policy, promote sustainable consumption and healthy lifestyle, develop a government food aid system that would provide food assistance to the most vulnerable population strata and ensure stable demand for the national agri-food complex. The government system of internal food aid should include not only a food stamps program for individuals whose income is below the living wage, but also targeted programs to assist categories of the population that require adequate nutrition the most, i. e. pregnant and nursing women, children under three years of age, etc. Rational staple food consumption norms should be differentiated according to climatic zones and age-sex groups and enshrined in legislation, since the Food Security Doctrine of the Russian Federation is looking to meet these norms.

Nowadays, to enhance competitiveness and for economic growth, achieving global technological leadership is vital for any country. This study examines major factors of innovative technological developments in the Russian economy in the context of international comparisons and assesses the country’s capability of achieving global technological leadership. Equilibrium in the Russian economic structure plays a key role in its technological leadership. This is why it is so important, at the current stage of economic development, to pay close attention to the existing industrial structure, to identify key trends in ongoing structural changes, and to determine key mechanisms for its improvement. This study thoroughly examines existing government support measures relative to progressive structural changes in industry, the implementation of which will make it possible for Russia to achieve global technological leadership in the future. Aim. This study aims to assess Russia’s capability of achieving global technological leadership as a result of progressive structural changes in industry and to examine governmental support of Russia’s industrial sector. Tasks. This study analyzes major factors of innovative technological development in the Russian economy compared with the world’s leading countries, identifies countries that are current technological leaders, assesses Russia’s capability of achieving technological leadership, examines the structure of Russian industry and the dynamics of its structural changes, reviews government support measures that are being taken in relation to structural changes in Russian industry, and estimates the efficiency of their implementation. Materials. Official data provided by the Russian Federal State Statistics Service, the OECD, and the World Bank served as the statistical basis of this study. Results. The current state of technological development in Russia is analyzed in comparison with the world’s leading countries and Russia’s capability of achieving global technological leadership is assessed. The structure of Russian industry is analyzed, and structural changes over the past few years are reviewed. A series of government support measures in major industrial branches are examined, including those aimed to transition the industry toward the best available technology. The implementation results of these measures are also analyzed.

In the face of enhancing competition and its transition to the global level, most Russian companies are not prepared to compete due to the lack of a modern management system in many organizations. Complex data flow processing is the optimal method for handling the information processes of a management system. Therefore, it is appropriate to simulate a corporate management system is in accordance with the data cluster of the organization’s general information pattern. Aim. This study aims to examine and develop methodological approaches to establishing the optimal management system. Tasks. ◊ to analyze the data flows of the management system, ◊ to identify different types of management data, ◊ to propose an algorithm for identifying the type of management data, ◊ to determine the degree of correlation between the components of the data flow, ◊ to identify redundant data for decision-making. Methods. This study mainly uses such methods as data collection, consolidation and systematization, analysis and synthesis, comparison, systems approach and systems analysis, simulation. Results. The existing data flows in a corporate enterprise management system are analyzed. As a result, the benefits and drawbacks of the existing small enterprise management model and its impact on competitiveness are identified. Algorithms for calculating indicators through zero level indicators make it possible to avoid duplication of the latter, i.e. to eventually reduce the management costs. Methodological approaches to the improvement of the management systems of business structures through the formation of data clusters serving as a foundation for the divisions of the organizational management structure are proposed. Conclusion. A data flow diagram reflecting the data processing system of an enterprise should work in real time. In practice, this means data is processed as soon as it becomes available in the system, with due regard to the general diagram of hierarchy of data flow components. Zero-level components are required for the formation of higher-level components and the subsequent ones. In this regard, it is important to organize managerial decision-making in such a way that the workload on each decision-maker is equal throughout the entire workflow. However, the discrete nature of data flows creates an uneven flow of information, and, considering the decentralization of data processing, results in bottlenecks in the management process, which has a negative effect on the efficiency of managerial decisions and, consequently, the organization’s activity.

This study is dedicated to examining the process of regional convergence in terms of economic development level in the Russian Federation from 2000 to 2015. Aim. This study aims to evaluate the commencing blurring of the difference between the economic development level of individual subjects of the Russian Federation, and to characterize the overall dynamics and specific territorial features. Tasks. This study traces the development of the neoclassical growth theory based on the idea of convergence of systems that are at a different level of development; characterizes two empirical approaches to the convergence theory (β- and σ-convergence); empirically test various concepts of convergence based on the data provided by the Russian Federal State Statistics Service on the gross regional product per capita in the regions of the Russian Federation. Methods. This study uses general methods of scientific cognition as well as statistical and econometric methods based on the data provided by the Russian Federal State Statistics Service to analyze the commencing blurring of the difference Results. The absolute convergence hypothesis is substantiated for the period from 2000 to 2015, the β-coefficient of regression equation of the neoclassical growth model for the Russian Federation is predominantly negative and shows correlation with another factor of territorial differences - Gini coefficient. From 2000 onwards, the convergence process has intensified despite a certain downward trend by the end of the said period. Analysis of σ-convergence at the level of individual federal districts shows specific territorial features. The hypothesis of σ-convergence in the Far Eastern Federal District hasn’t been confirmed. Conclusion. The results of the study of Russian regions confirm β- and σ-convergence between the regions of the Russian Federation in terms of economic development level. Differences in the extent and focus of regional convergence are identified at the level of federal districts, which is due to extra government support of certain subjects.

This study examines the Russian government’s cluster support policy that is now being implemented extensively. Aim. This study analyzes the methodological approach to cluster support as a mechanism of economic growth and structural change in regional economies. Tasks: ◊ To determine the methodological approach at the heart of the government’s implemented policy. ◊ To examine innovations in the definition of clusters for government support purposes. ◊ To examine innovations in the formation of types of government support. ◊ To analyze methodologies that (a) assess the support for government cluster development and (2) monitor the methodological approach to cluster development. ◊ To provide theoretical justification of a cluster model, including the government’s support. Methods. Analysis of statutory instruments regarding the government’s support for cluster development serves as the methodological basis of this study. During the study, the author uses both a general systems theory and a systems approach. Results. The government’s current cluster development support policy is analyzed, and scientific innovations that should be included in the methodologies of theoretical research are identified. A “typical cluster model”, which includes government support, is developed. The relevance and novelty of the implemented policy are defined. Conclusion. Mechanisms of the Russian government’s support for clustering include an implementable model for the country’s economic growth when the systemic support of cluster development ensures the growth of cooperative chains of local enterprises and organizations doing business in local areas of economic growth. The government’s support of clustering is a deliberate policy to instigate structural changes in the country’s economy. Considerable attention has been paid to infrastructure development as a way to create systemwide conditions that identify and form clusters. Support is intended for all infrastructure objects and infrastructure organizations. Introduce efficiency into clusters as the main goal. A cluster structure is systematically defined as a new element of infrastructure. Introduce specialized cluster organization as the major driving force of cluster project identification. Lay out the formation of infrastructure and support in clusters, which are complex in many areas (i. e., transportation, energy, engineering, innovative and social goals, and education). Pay particular attention to support for technology transfers and patent protection, which lays the groundwork for technological breakthroughs in clusters and ensures high-quality economic growth. Target values of cluster development are comprised of intensive growth indicators, such as workforce productivity, an increase in the number of high-performance workplaces, and more added-value projects, which also affect the quality of the country’s economic growth. Introducing new forms of government clusters supports efficiency monitoring in the implementation of joint projects and complex investment projects. However, despite a significant number of innovations, present government policy lacks viable approaches to cluster modeling. The author proposes using a typical cluster model that can be applied in various fields based on statistical figures. The developed “Typical cluster model” is original and makes it possible to expand the range of tools for analysis and practical research.

This study is based on the global experience in the implementation and regulation of innovations in financial markets. Aim. This study aims to present the experience of various countries in the implementation and regulation of innovations in financial markets in a structured fashion with the purpose of developing a constructive model of financial market development. Tasks. This study provides a definition of financial innovation and determines its impact on the development of the financial market and identifies major principles of regulation in terms of facilitating harmonious development of the financial market. Methods. This study uses general methods of scientific cognition to examine in various aspects the examples of financial innovations and principles of financial market regulation in the context of a changing environment as part of a concept of transition towards a new paradigm. Induction technique is used to determine the role of innovations in financial market development. Results. Innovations introduced to the financial market often come not from banks and other conventional market participants, but from emerging financial institutions, which are not even subject to regulation. Such participants facilitate financial market development, but also bring about new risks. For innovations to cause national economic growth, regulators should constantly monitor the market, adjusting legislation and communicating with all market participants. Conclusion. Innovations are a prerequisite for economic development. The principles that should guide the regulator in order to achieve a positive effect from innovations include a positive-neutral attitude to new participants with continuous monitoring of their activity and optimization of the balance between recent developments and traditional elements of the financial market.

This study is dedicated to analyzing major problems that Russian banks have to solve on their way towards economic restructuring in the context of a complex geopolitical situation and continuation of anti-Russian economic sanctions. Aim. This study aims to analyze the sequence of activities of the Central Bank and the Russian government on their way towards economic restructuring and determine the efficiency of the applied tools for further consolidation of the national banking system. Tasks. Structural reforms and economic diversification present the most effective path towards economic recovery. This requires a healthy, stable banking system. In this article, the authors set objectives aimed at the further development of the Russian banking system. Methods. This study uses general methods of scientific cognition to analyze in various aspects and present in a structured fashion the problems of the modern banking system, examine the policy of the Central Bank and Russian government in the course of economic restructuring in Russia. Results. Russian banks are cut off from the cheap market funding due to sanctions and unavailability of lending activities in the West. Banks have to rely on Central Bank loans and deposits of legal entities as a source of shortterm funds, and deposits of private individuals for the medium term. Conclusion. The country’s banking system is inadequate to the requirements of the national economy and cannot provide sufficient resources for the modernization of the country. Its ability to fund the needs of the real sector is significantly hampered by the lack of longterm and cheap financial resources of the banks themselves.

This study is dedicated to a complex analysis of the specific features of business environmentalization from the perspective of adapting the existing types of entrepreneurial activity to environmental requirements set by changes in the structure of consumer demand and creating a new, environmentally friendly (green) business. Aim. This study aims to determine methods that the government can use to encourage production environmentalization based on the analysis of business operations and a shift in the quality of consumer demand towards cleaner and more environmentally friendly products. Tasks. This study analyzes the process of environmentalization both as an existing business and as a business built from scratch based on compliance with environmetal requirements set by the ongoing change in the structure of consumer demand. Methods. This study uses general methods of scientific cognition (analysis, comparison, etc.) to present the specific features of business environmentalization in a structured fashion by developing a program for the implementation of a mechanism for managing the environmental factor into the production process. Results. The author provides a comprehensive list of activity areas of an environmentallyoriented business by analyzing the stages of enterprise development with due regard to the implementation of the environmental factor into production. A plan for the environmentalization of an existing business is outlined. Conclusion. This study proves that business environmentalization is a natural stage in the development of the global market that is based on the management of environmental requirements as the crucial factor contributing to the achievement of a firm competitive position amid the enhancing competition in the global market.