New guidelines for choosing priority areas of economic diversification based on a system of situational centers

Source abstract

One of the important management functions of the situation center system is to ensure planning (strategic, medium term, and operational), which includes justification of goals, optimal allocation of resources to achieve the goals, taking into account economic complexity, evolutionary conditionality and innovation activity. There is no universal solution to promote economic development and structural change. It is necessary to take into account the peculiarities of the regions when developing and designing industrial and economic policies. An approach to assessing priority areas of diversification based on recommendations for the development of sectors is presented. The approach is focused on increasing the economic complexity of the regional economy, taking into account the evolutionary conditionality of its development, the impact of innovative activity of regions and the provision of sectors with resources. Its capabilities have been tested for 14 sectors of the economy of the Belgorod region on 2019 data. For each sector, estimates were obtained according to six criteria. Sectors whose characteristics have the property of Pareto optimality in the considered multiple choice problem are priority when choosing the direction of diversification of the regional economy. The implementation of the proposed approach using digital technologies in regional situation centers can ensure coordination of decisions taken by regions when choosing priority areas of diversification in order to increase economic security. The methodology used makes it possible to take into account and display in real time in the initial information considered by any region the decisions already taken by other regions, which is an urgent task for the system of situational centers.