Importance The key element of economy modernization for innovation-driven growth is technological development that provides for cost reduction and product quality improvement. It is impossible to ensure the quality of development without appropriate level of production capacity of manufacturing industries. Objectives The objective of the study is to verify the hypothesis that effective implementation of the strategy of innovative development is based on certain level of production capacity of manufacturing industries. Methods To confirm the scientific hypothesis, we used a production function that characterizes the level of production capacity of manufacturing industries. Results The evaluation of production capacity confirmed the hypothesis that critically low rates of replacement of fixed assets not only hamper the pace of innovative development of the industry, but also affect the final price of finished product. Conclusions The research identified industries with maximum and minimum values of production capacity.
Keywords: production capacity, capacity utilization, average annual number of employees, production index, innovative development
References:
Anikin A.V. Yunost' nauki: Zhizn' i idei myslitelei-ekonomistov do Marksa [The youth of Science: Life and ideas of thinkers and economists before Marx]. Moscow, Politizdat Publ., 1975, 384 p.
Kinkel S. Trends in Production Relocation and Backshoring Activities: Changing Patterns in the Course of the Global Economic Crisis. International Journal of Operations & Production Management, 2012, no. 32(6), pp. 696–720.
Sirkin H.L. Fears of a U.S. Manufacturing-Skills Gap in the Near Term are Overblown. Available at: Link.
Greenspan A. Karta i territoriya: Risk, chelovecheskaya priroda i problemy prognozirovaniya [The Map and the Territory: Risk, Human Nature and the Future of Forecasting]. Moscow, Al'pina Pablisher Publ., 2015, 412 p.
Abdul E. Azeez. Utilization of Optimal Capacity in Indian Manufacturing, 1974–1996. Applied Economics Letters, 2001, vol. 8, iss. 9, pp. 623–628.
Ohanian L.E. Why Did Productivity Fall So Much During the Great Depression? The American Economic Review, 2001, vol. 91, iss. 2, pp. 34–38. doi: 10.1257/aer.91.2.34
Belton W., Cebula R. Capacity Utilization Rates and Unemployment Rates: Are They Complements or Substitutes in Warning About Future Inflation? Applied Economics, 2000, vol. 32, iss. 12, pp. 1521–1532. doi: 10.1080/000368400418934
Zheng J., Liu X., Bigsten A. Efficiency, Technical Progress, and Best Practice in Chinese State Enterprises (1980–1994). Journal of Comparative Economics, 2003, vol. 31, iss. 1, pp. 134–152. doi: 10.1016/S0147-5967(02)00010-0
Kalecki M. Selected Essays on the Dynamics of the Capitalist Economy: 1933–1970. Cambridge, Cambridge University Press, 1971.
Aigner D.J., Lovell C.A.K., Schmidt P. Formulation and Estimation of Stochastic Frontier Production Function Models. Journal of Econometrics, 1977, vol. 6, iss. 1, pp. 21–37. doi: 10.1016/0304-4076(77)90052-5
Brown D., Earle J. Competition and Firm Performance: Lessons from Russia. CEPR Discussion Papers, 2000, no. 2444.
Koopmans T.C. An Analysis of Production as an Efficient Combination of Activities. In: Activity Analysis of Production and Allocation: Proceedings of a Conference. New York, London, Sydney, John Wiley & Sons, Inc., 1951, pp. 33–97.
Debreu G. The Coefficient of Resource Utilization. Econometrica, 1951, vol. 19, no. 3, pp. 273–292.
Williamson O.E. The Economics of Discretionary Behavior: Managerial Objectives in a Theory of the Firm. Englewood Cliffs, N.J., Prentice-Hall, 1964.
Leibenstein H. Allocative Efficiency vs. X-Efficiency. The American Economic Review, 1966, vol. 56, no. 3, pp. 392–416.
Leibenstein H. Beyond Economic Man: A New Foundation for Microeconomics. Cambridge, MA, Harvard University Press, 1976, 297 p.
Meeusen W., Van Den Broeck J. Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error. International Economic Review, 1977, vol. 18, iss. 2, pp. 435–444.
Baumol' B. Sekrety ekonomicheskikh pokazatelei. Skrytye klyuchi k budushchim ekonomicheskim tendentsiyam i investitsionnym vozmozhnostyam [Secrets of economic indicators. Hidden clues to future economic trends and investment opportunities]. Moscow, Balans Biznes Buks Publ., 2007, 532 p.
Lozhnikova A.V., Rozmainskii I.V., Razvadovskaya Yu.V. [Technology as the national wealth of Russia: Institutional aspects, 'statistical illusions' and problems of forecasting]. Journal of Institutional Studies, 2015, vol. 7, no. 4, pp. 60–85. (In Russ.)
Blank A.I. Upravlenie ispol'zovaniem kapitala [Managing the capital utilization]. Kiev, El'ga Publ., 2002, 655 p.
Kleiner G.B. [Enterprise as a missed link in the chain of institutional transformations in Russia]. Problemy teorii i praktiki upravleniya = Theoretical and Practical Aspects of Management, 2002, no. 2, pp. 22–26. (In Russ.)
Razvadovskaya Yu.., Lozhnikova A.V., Shevchenko I.K., Samonova K.V. [Speed and level of capacity utilization under implementation of import substitution strategy in Russia]. Journal of Institutional Studies, 2015, vol. 6, no. 3, pp. 61–72. (In Russ.)
