Organizations employing a general tax system bear a heavy tax burden. Thus, the average tax burden by type of activity (as per the Russian National Classifier of Economic Activities) ranges from 5.22% in garment and textile manufacturing to 72.02% in real estate transactions. The Government of St. Petersburg aims to encourage investments in the city’s manufacturing industry as part of Strategy 2030. This goal can be achieved by creating free economic zones (FEZs) with a special tax regime. Aim. This study examines investment tax incentives and preferences granted to enterprises in St. Petersburg. Methods. This study employs general methods of scientific cognition through comparative and retrospective analysis. Results. The authors analyze St. Petersburg legislation, aimed at encouraging strategic and innovative investment projects, and the tax regime of the FEZs. They estimate the impact of tax incentives on the economy of the region and analyze the prospects of its implementation. They conclude that a system of investment tax incentives in the FEZs of St. Petersburg significantly contributes to the development of innovative industries. Other systems of tax incentives are underdeveloped and inefficient. For example, in the case of investment activity outside of FEZs, the rate of revenue withdrawal remains high. The tax burden of industries in St. Petersburg is disproportional and ignores the specific features of each industry.

This research is aimed at forming a new method of identifying clustering conditions in the socioeconomic space of the region. Aim. The purpose of this study is to develop an evaluation method of technical, technological, socioeconomic, and institutional factors required for clustering. The author(s) undertook the task of developing a new methodological approach, which is based on the properties of a cluster as a socioeconomic and organizational system, by allocating clusters in a region’s socioeconomic space. An additional task was to analyze the structures of dispersion, localization, specialization, and concentration of industrial production in regions of the Central Federal District of the Russian Federation, using types of economic activity to test the proposed iterative technology. Methods. In this paper, using common methods of scientific knowledge, as well as comparative and statistical analysis, the author(s) systematized the necessary and sufficient conditions for the formation of regional clusters. Results. The author(s) developed an iterative technique to identify actual and potential clusters in the region. The results of these calculations provide information on sectors, suggesting clustering in the Central Federal District and assessing the formation of clustering in the Voronezh region. Conclusions. The author(s) demonstrate that it is possible to apply iterative procedures to identify the conditions necessary for cluster formation within a socioeconomic space. An iteration procedure is applicable for all regions and macro-regions of the Russian Federation. The conclusion is that practical application of the proposed methodological approach will improve the efficiency of regional cluster policies.

This study examines the dynamics of project simulation during crisis management. Competent project simulation lowers costs and risks associated with its implementation. This problem is relevant owing to the unstable global economy following the downturn, which calls for a correction of the structure of conventional project simulation. Aim. This study examines the dynamics of project simulation during crisis management. In addition, it considers the key aspects of project simulation, including the simulation of project life cycle. Tasks. This study generalizes methodological approaches to the development of the life cycle of a start-up project, determines the structure of a project’s environment, and specifies the notion of project crisis management. Materials and methods. This study employs a structural and functional approach to determine the practical significance of crisis management methods; namely, methods of optimal accounting, manual management, time compression, and cost reduction. Results. This study examines the dynamics of project simulation during crisis management. Moreover, it determines methodological approaches to the development of the life cycle of a start-up project. The results reveal that the use of crisis management in projects simulated by the process interaction method, while partially possible, brings no direct benefits. The implementation of such projects during a crisis is appropriate only for large enterprises that produce adequate revenue to implement a project without sacrificing the budget allocated for the primary activity. Conclusion. The selection of a project life cycle model is particularly important during a crisis. The selection of a simulation method during an economic crisis should be based not only on the properties of the model but also on the feasibility of applying crisis management methods.

The need for enterprise management improvement is due to the ongoing negative trends in the Russian Federation’s economic development. Some of the long-standing management concepts and tools used today prove to be inefficient in the context of globalization of the world economy. Tension exists around the balance between the economic interests of various social groups. This study examines the fundamentals of enterprise management based on business value management. International practices of using the concept of company value management show that it is highly efficient in countries with a developed market economy. However, this approach has not been prevalent in Russia. Aim. This study aims to conduct a theoretical analysis of an effective approach to enterprise management in the Russian Federation. Results. Organizational system management processes are analyzed. As a result, goals are determined in accordance with the ultimate goals of management. Methodological approaches to business value management with due regard for the company life cycle are proposed to solve the problems that lower the effectiveness of enterprise operations. The applicability of various valuation methods at different stages of business development is assessed.

This study examines one of the industries of the creative economy-the fashion industry. Aim. This study systematizes the fundamentals of the strategizing process in the fashion industry. Tasks. This study describes the main stages of the industrial strategizing process; identifies a feature specific to strategizing in the fashion industry and types of applied investment strategies; determines specific principles of segmentation; systematizes basic economic models in the fashion industry as part of segmentation projection; and examines strategic risks in the fashion industry. Methods. This study employs general methods of scientific cognition to examine the strategizing process in the fashion industry in various aspects. Moreover, it determines the features specific to the modern state of the industry and conditions required to develop a successful investment strategy. Results. The fashion industry is a vivid example of the development of creative industries in the economy. In the fashion industry, innovative strategies determine the existence of a brand and its further development in the domestic and global markets. Segmentation in the fashion industry is a system for the classification of fashion brands according to various parameters. The most widespread segmentation classifies brands according to price (high, moderate, and low). Similar to any other industry, the fashion industry faces certain economic, political, and social risks. Economic risks can be categorized into production, financial, and currency risk. These risks are strategically important and specific to the fashion industry. Conclusion. Examination of the fundamentals of strategizing in the fashion industry, considering the features specific for this industry, enables the advancement of a successful strategy for brand development.

Despite the fact that the quality of bank management is a key indicator of the consistency of a financial institution, it is commonly ignored due to the lack of an objective assessment method. Aim. This study aims to assess the quality of commercial bank management based on a data-oriented approach. Methods. This study proposes a relatively new dataoriented approach for the assessment of bank management quality, i.e., Data Envelopment Analysis (DEA). Using this method, it is possible to calculate a scalar measure of the effectiveness or quality of management by multiple input-output transformations. Results. The study analyzes fifty of the largest Russian commercial banks in terms of net assets and net profit as of the 3rd quarter of 2015. The analysis shows significant differences in quality assessment between credit institutions. Moreover, the characteristics of banks with the highest and the lowest management quality ratings according to an input-oriented CCR model suggest that banks with higher quality management have optimal labor expenses per employee, which provides a high interest yield and a high number of open deposits. Thus, the DEA method, a form of nonparametric analysis, can be used as an additional tool for the assessment of a bank’s operation compared with other market players.

Changes in the gross domestic product are examined using the tools of vector analysis. Aim. The purpose of this study is to obtain a differential equation that binds scalar economic indicators with the rate of change of renewable production factors. Then, based on this equation, the study determines an indicator that shows stagnation, recession, or economic growth. Results. The study proved that the rate of change of GDP is equal to the integral of the dynamic product divergence of an economy’s marginal productivity when compared to the rate of change of aggregate production factors. It was found that the rate of change of production factors is equal to an integral of dynamic divergence from the rate of change of aggregate factors. The indicator is obtained from this integro-differential equation. The adequacy of this indicator is demonstrated by analyzing the economy of several European countries.

Currently, there is growing awareness of the importance of successful commercialization of innovations and the spread of knowledge, provided that an efficient relationship exists between management and scientific activity, to guarantee the stable development of the country in the context of global competition. This article discusses the possibility of solving strategic issues by supporting scientific research, contributing to the creation of scientific and technological advantages on the innovation market, and guaranteeing competitiveness and successful development of the national economy. Aim. The goal is to analyze structural problems in the modern, unstable economy that prevent sustainable and dynamic development in the fields of science, education, and innovation in Russia. Results. Using theoretical analysis of the problems associated with the development and implementation of effective national policies in the fields of science, innovation, and education, the author(s) concluded that better management processes, increased transparency, strengthened law enforcement, and sustained campaigns against corruption are needed to increase the benefit from investments in the fields of science, innovation, technology, and education. This paper explains the possibilities of achieving a balance between national and international participation in scientific research, fundamental and applied research, generation of new knowledge, generation of knowledge that is in demand in the market, science for the public good, and science as a driving force behind business. The article includes proposals on how to remove legal obstacles to enhance cross-border flows of knowledge, with the exchange of researchers, promotion of scientific coauthorship, and promotion of coownership of the legal rights to inventions.

During the past decade, stability became imperative in the socioeconomic development of many developed and developing countries. The achievement of stability depends largely on the role played by the banking system, which is designed to be not only a source of financing for economic growth but also an important condition for social development. The present study aims at researching the theoretical and methodological aspects of the banking system and its role in the sustainable development of the national economy. Aim. The goal of this paper is to determine the optimal framework for enhancing the role of the banking system in the sustainable development of the national economy. Tasks. The task of this study is to interpret the banking system, its basic purpose, and its functions. Results. This paper highlights the importance of social orientation in defining the role of the banking system in achieving sustainable economic development. The paper demonstrates that this orientation is largely determined by the existing banking system model and shows the positive and negative roles played by the banking system in achieving sustainable economic development. The paper notes that banking systems with the same intrinsic parameters (i.e., nature, purpose, and function) can have both positive and negative roles, depending on the level of a country’s economic development. The study’s main result is a definition of the framework for enhancing the positive role of the banking system to achieve the goal of sustainable development. Conclusions. When clear objectives are defined, features of the banking system are considered, appropriate legal system and regulations are created, and measures are taken that can solve problems, the banking system might play a significant positive role in the sustainable development of a nation’s economy.

A company’s activities, in a complex and multifaceted field such as the construction industry, are always fraught with risks and uncertainties. Uncertainty, a deficit of information about the possible states of a system, requires a special approach. Aim. The purpose of this article is to explain the necessity of using special methods to determine the possible outcomes of a company’s activity. Methods. The author proposes using entropy as a method to calculate the possible outcomes of construction projects and business activities and to determine the degree to which specific business practices influence the outcome of a project. Results. Entropy reveals problem areas in a project and prevents the emergence of possible risk situations. Systematization of the principal risks of construction enterprises, analysis of their position in the structure of a construction project’s life cycle, and an examination of the nature of their relationship with industry characteristics suggest the optimal way to manage risk. A company has a number of risk management options: prevention, elimination, reduction, acceptance, and transfer. This study presents the best ways to overcome these risk situations, considering specific conditions of the construction industry.

Russia’s partnership with Southeast Asian countries in the development of integration processes dates back to 1996. Cooperation with the Association of South East Asian Nations (ASEAN) is aimed at the development of regions through economic, social, and cultural collaboration, as well as the protection of regions from the competition of major powers. Aim. This study aims to examine the mechanics and specific features of the regional integration processes of ASEAN. Methods. This study uses general methods of scientific understanding to identify the specific features of ASEAN’s regional integration compared with similar processes in Western European countries. Results. The key idea and elements of cooperation in ASEAN are presented. Comparative analysis of regional economic integration processes in Western European countries and Southeast Asia allows for the estimation of the specificity of ASEAN’s integration model. The relationships in the field of economic cooperation between ASEAN member countries are assessed according to the history of decisions on economic integration.