Sustainable Development of Region’s AIC in the Conditions of the Digital Economy: Ecological Responsibility, “Green” Innovations and Circular Production

Abstract

Purpose: The purpose of this work is to determine the current level of sustainability of the agro-industrial complex (AIC) development in the regions of the North Caucasus Federal District of the Russian Federation and develop a mechanism to increase it in the digital economy. Design/methodology/approach: To determine the sustainability of AIC development we will analyze statistical data: about the index of agricultural production, about the share of enterprises carrying out “green” innovations, about the share of enterprises organizing circular production in the regions of the North Caucasian Federal District of the Russian Federation in 2018. Findings: The conclusion is made that the digital economy offers enhanced opportunities for sustainable development of the region’s agricultural sector. However, its organization should apply its own schemes, rather than template schemes from other industries. The regions of the North Caucasus Federal District of the Russian Federation already pay considerable attention to environmental responsibility, introduction of “green” innovations, and circular production. This creates the prerequisites for the implementation of new initiatives based on the capabilities of digital technologies—robots and artificial intelligence. Originality/value: The developed model of sustainable development of the region’s digital agriculture based on environmental responsibility, “green” innovations and circular production allows to overcome existing barriers to the implementation of relevant practices in the regions of the North Caucasus Federal District of the Russian Federation—to reduce the labor and resource intensity of these practices and increase their controllability through automation. This will result in a significant increase in the activity of agricultural enterprises in the regions with the implementation of measures to demonstrate environmental responsibility, introduction of “green” innovations, and ensuring circularity of production. It will also ensure the growth of the production capacities of agricultural enterprises and guarantee the reproduction of food products in the regions to maintain their food security.