Regional Economics: Theory and Practice

Productive network structures in the regional economy

Vol. 16, Iss. 6, JUNE 2018

Received: 26 March 2018

Received in revised form: 12 April 2018

Accepted: 25 April 2018

Available online: 15 June 2018


JEL Classification: D01, L12, L14, R11

Pages: 1097–1114

Glumov A.A. Ural State University of Economics, Yekaterinburg, Russian Federation

ORCID id: not available

Importance The article focuses on the specifics and opportunities of mutually beneficial cooperation between network structures and the region.
Objectives I examine the role and position of productive network structures in the regional economy, outline strategic areas and tools to enhance the interaction of the above economic agents.
Methods The methodological framework comprises basic principles of theories of regional and network economy, agency theory, transaction cost theory, resource-based theory of the firm, evolutionary and institutional theories. To study the interaction of networks and the region, form strategic lines of sustainable development, I use dialectical, systems, situational and reflexive approaches.
Results The article overviews contemporary trends in the interaction of the region and network organization. I substantiate the dualism of such interaction, i.e. partnership-driven development, expansion of large networks. If the region is an active partner and stakeholder of network structures, its economic development model is qualified as competitive and lucrative for investors. The expansion of large networks undermines the coordinating function of the State (regional authorities) and subdues an economic segment with regional autonomy. I systematize effects that the performance of regional and cross-regional structures have, and prove that the modification of networks influences the sustainability of socio-economic development in the region. I outline areas, methods and mechanisms for the region to support stakeholder in network structures so as to ensure the high level and quality of living for the population.
Conclusions The findings can be used to devise mechanisms for ensuring long-standing and sustainable development of the Russian regions by integrating interests and resources of business, society and authority.

Keywords: network, region, network economy, trade-off, sustainable development


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