MODERNIZATION AND INNOVATION DEVELOPMENT OF THE BORDER REGION (ON THE EXAMPLE OF THE REPUBLIC OF KARELIA)

Abstract

The processes of formation and development of innovative economy in Russia and the Republic of Karelia
are considered in the article. Theoretical justification for the reform of the main social and economic institutions
with the purpose of activation of innovation activities is proposed. Some alternatives for the further
economic development with consideration of current export conditions are introduced. It is shown that the
interaction of public authorities, universities, research institutes, organizations and industrial enterprises at
the level of “authority” – “science-education” – “production” is very weak, which is clearly insufficient for
the fulfillment of the whole innovative potential of the Karelian economy and science. Existing state educational
programs and continuing education for managers of organizations are not spread enough, especially in
the field of innovation. One of the main results is that the government is the leading investor in fundamental
scientific research, and with the help of its policy in the field of education it has a decisive impact on science
and on the training of scientific personnel. It is shown that the development of scientific potential in Karelia
is determined by the fact that the main source of funding of ongoing research and development works is the
federal budget and a slight concern on the needs of the Republic of Karelia, the lack of demand for innovative
projects and, as a result, the lack of competition as the main engine of innovation development.