Industrial Development Fund as an Instrument for the Shaping an Industrial Path: Regional Aspect

Abstract

The article examines what effect credit instruments of industrial policy provided by the Industrial Development Fund (the Fund) have on the industrial growth and shaping of an industrial path in the regions of Russia. The empirical base includes data on credit support of borrowing manufacturing companies by the Fund in the period 2015–2021 as part of 924 investment projects implemented in 73 regions of the Russian Federation. The study also provides aggregated data on the industrial production index for the same period for the Russian Federation regions. The regression analysis methods were applied to estimate the impact of the projects supported by the Fund on the indicator of the manufacturing industry production index by groups of regions, depending on the level of the average annual cost of investment projects supported by the Fund. The research findings show a positive effect of the Fund's activities in terms of the shaping of a new industrial path by implementing diversification of the industrial complex in the regions with a highly specialized and underdeveloped industry. At the same time, the Fund's support aimed at deepening specialization does not provide a sustainable positive effect on the industrially developed regions having a wide range of industrial specialization in terms of the industrial growth. Moreover, the study shows that the Fund’s support does not ensure transformation of the development trajectory of the current regional industrial path.