INNOVATION PROCESS IN THE ARCTIC: GLOBAL TRENDS AND KEY ISSUES IN RUSSIA

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Andrey Krivorotov

Odintsovo Branch of MGIMO University, Odintsovo, Russia, a.krivorotov@odin.mgimo.ru, ORCID 0000–0001–8983–5378

Abstract. The pursuit of innovation-driven growth in the Russian Arctic aligns with global trends associated with the advent of a new Kondratieff cycle, which spurs demand for groundbreaking technologies. This article aims to identify significant trends and challenges related to innovation in the Arctic that require focused attention and further research. The concept of national and regional innovation systems serves as the theoretical framework, with a selective comparative study of Russian and international practices as the primary research method. Our analysis demonstrates that Russia lags behind the majority of Arctic nations in terms of innovation ratings, including the quality of institutions, the structure of the economy, and infrastructure development. Research and industrial policy priorities remain unclear. Innovations enter the Russian Arctic through large-scale projects within extractive industries, which rely on imported technologies and raw material exports. However, as Norway’s experience proves, these projects can leverage the research and production potential of the North if government support is provided. The article addresses corporate challenges associated with digitalization in the Arctic using fiber cable installation as a case study. Currently, the only operational lines are the line located off the Alaska North Slope and the first leg of the Russian Polar Express line, which provides Russia with an important competitive edge. We conclude that the government should play a crucial role in promoting innovations in the Russian Arctic, acting through state-owned enterprises, public agencies, and subsidized private entities. The novelty of the study lies in addressing phenomena that have received insufficient attention in Russian research while considering international practices. The practical relevance of the study lies in its potential application to strategic planning for innovation-driven growth in the Arctic. Further research should seek to identify and closely study specific challenges of the Russian Arctic innovation system in comparison with international best practices in order to provide concrete practical recommendations.

Keywords: innovation systems, Arctic, Russia, R&D, priorities, fiber optics

For citation: Krivorotov A. Innovation process in the Arctic: Global trends and key issues in Russia. Sever i rynok: formirovanie ekonomicheskogo poryadka [The North and the Market: Forming the Economic Order], 2023, no. 2, pp. 90–103. doi:10.37614/2220-802X.2.2023.80.006.

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