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Human Capital and Knowledge-Intensive Industries Location: Evidence from Soviet Legacy in Russia

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  • Ivanov, Denis

Abstract

Do human capital endowments trump location for knowledge-intensive industries? This article takes advantage of a natural experiment created by the end of the Soviet planned economy in 1991, which had geographically distributed R&D manpower according to planned needs as opposed to a distribution determined by a market economy. It examines the extent to which the planned economy created a path-dependence in the location of post-Soviet human-capital intensive production. The study finds that regions with more R&D personnel in 1991 did better in the development of modern market-oriented knowledge-intensive business services, like engineering and IT. Several explanations are offered for this path-dependence, with an emphasis on human capital externalities being the most plausible.

Suggested Citation

  • Ivanov, Denis, 2016. "Human Capital and Knowledge-Intensive Industries Location: Evidence from Soviet Legacy in Russia," The Journal of Economic History, Cambridge University Press, vol. 76(3), pages 736-768, September.
    • Handle: RePEc:cup:jechis:v:76:y:2016:i:03:p:736-768_00
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    Cited by:

    1. Luisa Gagliardi & Enrico Moretti & Michel Serafinelli, 2023. "The World’s Rust Belts: The Heterogeneous Effects of Deindustrialization on 1,993 Cities in Six Countries," NBER Working Papers 31948, National Bureau of Economic Research, Inc.
    2. Ekaterina Zhuravskaya & Sergei Guriev & Andrei Markevich, 2024. "New Russian Economic History," Journal of Economic Literature, American Economic Association, vol. 62(1), pages 47-114, March.
    3. Buggle, Johannes C. & Nafziger, Steven, 2018. "The slow road from serfdom: Labor coercion and long-run development in the former Russian Empire," BOFIT Discussion Papers 22/2018, Bank of Finland Institute for Emerging Economies (BOFIT).
    4. Stepan Zemtsov & Vera Barinova & Roza Semenova, 2019. "The Risks of Digitalization and the Adaptation of Regional Labor Markets in Russia," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 13(2), pages 84-96.
    5. Maksim Vlasov & Sergey N. Polbitsyn & Michael Olumekor & Hossam Haddad, 2023. "Exploring the Role of Socio-Cultural Factors on the Development of Human Capital in Multi-Ethnic Regions," Sustainability, MDPI, vol. 15(21), pages 1-14, October.
    6. Sylvia Novillo-Villegas & Ricardo Ayala-Andrade & Juan Pablo Lopez-Cox & Javier Salazar-Oyaneder & Patricia Acosta-Vargas, 2022. "A Roadmap for Innovation Capacity in Developing Countries," Sustainability, MDPI, vol. 14(11), pages 1-20, May.
    7. Luisa Gagliardi,, "undated". "The World’s Rust Belts: The Heterogeneous Effects of Deindustrialization on 1,993 Cities in Six Countries," RF Berlin - CReAM Discussion Paper Series 2317, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    8. Sylvia Novillo-Villegas & Patricia Acosta-Vargas & Christian Cruz-Boada & Mateo Garzon & Andre Marin-Dett & Wendy Anzules-Falcones, 2022. "Sustaining the Path for Innovation Capability from a Developing Country Perspective: A Conceptual Framework," Sustainability, MDPI, vol. 14(19), pages 1-26, October.
    9. Johannes C. Buggle & Steven Nafziger, 2021. "The Slow Road from Serfdom: Labor Coercion and Long-Run Development in the Former Russian Empire," The Review of Economics and Statistics, MIT Press, vol. 103(1), pages 1-17, March.
    10. Alexander F. McQuoid & Yi Ding & Cem Karayalcin, 2017. "Fiscal Federalism, Fiscal Reform, and Economic Growth in China," Departmental Working Papers 57, United States Naval Academy Department of Economics.

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