CREATIVE PRACTICES AS CATALYSTS FOR IMPORT SUBSTITUTION IN THE MACHINERY INDUSTRY  OF THE EUROPEAN NORTH AMIDST SANCTIONS

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Semyon L. Ivanov1, Svetlana V. Terebova2, Ksenia A. Ustinova3, Alexander P. Ermolov4

1, 2, 3Vologda Research Center of the Russian Academy of Sciences, Vologda, Russia

1slivanov2020@mail.ru, ORCID 0000-0002-4647-5824

2svetlana-ter@mail.ru, ORCID 0000-0002-2044-9521

3ustinova-kseniya@yandex.ru, ORCID 0000-0002-6198-6462

4Vologda Optical and Mechanical Plant, Vologda, Russia, ermolov_82@mail.ru, ORCID 0009-0001-0852-8630

 

Abstract. This article analyzes creative practices aimed at fostering the development of machinery manufacturers  in the European North against the backdrop of sanctions. The significance of this study arises from the adverse impact  of economic sanctions on machinery manufacturers and the imperative to devise strategies for mitigating these negative consequences. The research hypothesis posits that, within the current economic landscape, creative practices can significantly contribute to enhancing business activity and bolstering the potential of machinery manufacturers in the realm of import substitution. The article proposes a methodological approach that integrates both quantitative and qualitative assessments. This approach involves the identification of problems and the determination of development prospects for  the machinery industry, utilizing official statistical data in conjunction with insights obtained through case studies. Implementation of such an approach has facilitated the formulation of a list of priority areas for machinery manufacturers. This approach considers the core tenets of the import substitution concept in the context of economic sanctions, regional peculiarities of the industry, and the feasibility of incorporating and disseminating creative practices within it. The study scrutinizes key indicators reflecting the current state of the machine industry in Russian regions and evaluates the propensity of machinery manufacturers toward creative development. Additionally, the article presents case-study results of companies that, through the adoption of creative practices, successfully improved their business activities despite economic sanctions. The scientific novelty of the research lies in the development of the corresponding methodological approach, complemented by a clarification of essential concepts related to the research topic (“creative economy,” “creative industries,” and “creative practices”), enabling a precise differentiation between them. The practical significance of the research lies in the applicability of its results by machinery manufacturers, particularly those impacted by international economic sanctions, and by regional authorities overseeing the industrial development of their respective regions.

Keywords: creative practices, machine industry, import substitution, region, European North

Acknowledgments: the study is supported by Russian Science Foundation grant no. 23-28-01841, https://rscf.ru/project/23-28-01841/.

For citation: Ivanov S. L., Terebova S. V., Ustinova K. A., Ermolov A. P. Creative practices as catalysts for import substitution in the machinery industry of the European North amidst sanctions. Sever i rynok: formirovanie ekonomicheskogo poryadka [The North and the Market: Forming the Economic Order], 2024, no. 1, pp. 67–81. doi:10.37614/2220-802X.1.2024.83.005.

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