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How will the regional industry develop in the coming years and why is the «New industrialization» project important for every citizen of Voronezh region

Discussing the prospects for the industrial development: The head of the Department of Economic Security of Voronezh State Technical University reports on what ways of transformation of the Voronezh industry will lead to an increase in the population’s living standards.

Svetlana Sviridova:

«New industrialization is the way to the formation of competitive advantages of the Voronezh region in the field of industry»

Back in 2018, the Russian media actively began promoting the implementation of new industrialization in the regions in order to put the vectors of development of the main sectors of the economy under the control of society and fairly redistribute income. And the essence of the new industrialization is in the development of high – tech industries, digital industry, as well as traditional key industries in the region. Will the new industrialization help in solving the main issue-ensuring the growth of real incomes of the population?

«New industrialization – is a way to appearance of competitive advantage of the Voronezh region in industrial sphere»

In the industrial sector of Voronezh region the transformation began in 2020. The «New industrialization» project was successfully launched and presupposed to be completed up to 2024. The region is ready to the significant industrial transformation that will lead to an improvement in key indicators of socio-economic development and an increase in the living standard of the population.

Russian mass media started new industrialization implementation propaganda in regions in 2018 in order to put directions of fundamental industries of economy under society control and to make the allocation of income fairly. The matter of the new industrialization is to develop high-tech industries, digital production, as so as traditional crucial industries of the region. Would the new industrialization help to solve the key issue – ensuring real income growth of the population?

Difficulties of transformation

The economy of the Voronezh region is traditionally is industrial and agricultural, and its development is provided by the dynamics of the branches of mechanical engineering, metalworking, electric power, chemical industry, as well as the processing of agricultural raw materials. It is 80% of the total volume of industrial production.

It is possible to plan the development of industry in the medium term on the basis of the growth of the physical volume of industry exceeding the average Russian values - up to 104.1% in the region.

However, the strategic goal for the region is the entry of the Voronezh region into the top twenty leading regions in terms of the level of development of the manufacturing industry. And the main stage is to create at least 20,000
high-performance jobs. Though this goal is ambitious, it will improve the level and quality of life of the population.

Industrial development strategy in facts

The authorities started the path to improving the industrial development of the region more than 15 years ago. It is enough to recall the first Law adopted in 2006 in Russia «On technoparks in the Voronezh Region» (June 2006), support for the development of clusters in Voronezh on the basis of the departmental target program «Formation and development of cluster formations in the Voronezh Region in 2011 – 2013» (June 2011).

The next significant step for the region in the development of the industrial sector were strategic documents – «Forecast of scientific and technological development of the Voronezh Region until 2030» (March 2014), «Regional scheme (plan) for the development and deployment of the productive forces of the Voronezh Region (July 2015), «Strategy of socio-economic development of the Voronezh Region for the period up to 2035» (December 2018).

It should be noted that the Voronezh Region was one of the firs regions, that developed these documents, strategies and programs. All these measures were opportune and presented real prospects for regional development. But when it comes to their implementation, what are the future prospects for the region?

About the new industrialization

In the near future, our region is waiting for increased industrialization on a completely new basis.

The strategic project of the Voronezh Region «New Industrialization of the region» was launched in 2020. It is supposed to be implemented up to 2021-2024 and is aimed at increasing the role of the Voronezh Region in the national economy through the production of high-tech products and industrial diversification.

This project will cause significant transformations in the region, such as the formation of industrial infrastructure in the production sites of the region, the stimulation of scientific, technological activities of the region, the development of clusters on a fundamentally new basis, the construction of industrial network interaction and even the improvement of the innovation infrastructure of leading universities.

About state support measures

Any project, especially such a large-scale one, state support is undoubtedly needed and as relevant as possible nowadays. After all, industrial production in Russia by the end of 2020 decreased by as much as 2.9% according to Rosstat, regardless the conditions of the coronavirus pandemic and the economic crisis affected. At the same time, in June 2020, the «Consolidated Strategy for the development of the manufacturing industry of the Russian Federation until 2024 and for the period up to 2035» was approved and adopted for implementation. This strategy became a state support measure for industrial enterprises.

The financial compensation provided by the Ministry of Industry and Trade - one of the state support measures for the regions, operating until the end of 2023, has become a help for the budgets of the Kaluga, Samara, Voronezh, Novosibirsk, Tyumen regions when creating industrial technoparks and industrial parks.

A new vector of industrial development is associated with the digitalization of industry. It is also supported at all governmental levels. The implementation of projects on the introduction of digital and technological solutions within the framework of the «Digitalization of Industry» program is guaranteed by the Industrial Development Fund for the period up to 2030. This program is important for the Voronezh Region because it aims to ensure the competitiveness of products, optimize the production of new civil and dual-use products, organize digital production at all stages of the product life cycle.

The role of regional authorities

According to the Ministry of Economic Development of the Russian Federation, the backbone industries in the Voronezh Region are oil and gas engineering, furniture industry, mechanical engineering for the food industry, radio electronics, rocket and space industry as of December 2020.

The expansion of infrastructure and support for the development of production sites of the region - an industrial park, a special economic zone, a territory of advanced socio-economic development were identified as the key areas of the effective industrial transformation within the «New Industrialization» project by the head of the region Alexander Gusev.

The financing of the project is impressive - about 1 billion rubles next year. It is also important that all these sites are operating, and this is possible only if communication with residents is established and the stated development indicators are achieved, taking into account the support of the regional authorities.

From the new approach to the action

The first results of the industrialization development are already visible. The volume of manufacturing industry products are beginning to grow, but in order to become one of the leaders in the development of high technologies and the introduction of industrial innovations in 2021-2024, the industry needs to achieve a growth rate of at least 5% per year.

The project of new industrialization can be called successful in case the share of high-tech industries increases to 40% in the total industrial production of the region.

It is important to remember that the transformation of industry should be focused first of all on creating at least 5,000 high-performance jobs annually. To preserve the region's competitive status, we need to think about the real growth rates of labor productivity and its decent remuneration.

A course to improve the living standard

What are the region’s industrial development and living standards nowadays?

According to the Civil Society Development Fund, the Voronezh Region was at 17th place in top- 20 regions of the Russian Federation with the highest standard of living in the end of 2020. The rating basic indicators - the average monthly wage, the minimum cost of living, the index of industrial production growth, are important for every inhabitant of the region.

The RBC rating on the quality of life was also presented in April of this year. Our region entered the top five, scoring 5.51 points with an average level of 4.91 in Russia.

The Voronezh Region also entered the top-30 of the rating of regions for the welfare of families, taking the 29th place in 2020.

But what do the ratings mean for those who work at the industrial enterprises of the region? Are these indicators related to a real increase in the quality of life of employees? And how will the new industrialization affect them - will it give them new jobs with high salaries or will it make them think about moving to other areas of the economy?

All these questions can be answered by regional authorities, taking into account the new industrialization process that has already been launched, and results are expected from it already in 2021.

Already visible results and expected prospects for the future

The transformation of the industry is a long-term process, but it is already clear what to do. In order for the residents of the region to feel the changes in the near future, the first but significant steps are being taken;

- The start of the work of the «Lamplex Composite» plant on the territory of the special economic zone of the industrial and production type «Center» in May of this year. The company develops the production of composite materials based on its own technologies, master the production of technical laminates, pre-pregs and foil dielectrics;

- The construction of a plant for the production of LCD TVs in the Novousmansky district will start in 2022. It is planned to create almost 700 new jobs, with an increase in investments from 600 million rubles to 1.25 billion rubles.

- Development of the export potential of existing high-tech enterprises, expansion of the list of residents of the Voronezh special economic zone, search for new investments.

These results of the beginning of a new industrialization are known widespread and are really large-scale. And the next plan is the introduction of the course on the development of industrial sites, the search for investors, competitions of industrial business projects important for the Voronezh region. And we are waiting for the region to enter not only the top twenty of the best in Russia, but also to become a really worthy successor of the industrial traditions of the Voronezh land.

Expert

Doctor of Economics, Associate Professor, Head of the Department of Economic Security of the Voronezh State Technical University (VSTU)
Sviridova Svetlana Viktorovna.

 

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