Single-industry towns of Russia: Lock-in and drivers of innovative search

Abstract

The problem of single-industry towns has become increasingly relevant recently in light of the crises in the Russian and global economy. The present article attempts to examine this issue by using methodological approaches adopted internationally to analyse single-industry towns. At the heart of these approaches is the concept of path dependence, coupled with a method to identify the factors blocking innovative search in the so-called new industrial policy. The authors critically reevaluate the situation in single-industry towns, in contrast to the existing assessments that are widespread in Russian language research. Rather than analysing industrial sectoral specialization, they suggest studying the core of economic development i.e. a city's capacity to upgrade its local production system and to initiate innovative search. The article describes the main principles of new industrial policy, which is vulnerable not so much to a narrow specialization but primarily to a package of technological, political, and cognitive lock-ins. These lock-ins prevent the growth of an innovative sector in single-industry towns and stop local communities from being able to adapt to changing economic conditions. The authors show the possibilities and concrete directions of innovative search in various single-industry towns in Russia. They give recommendations on the key policy instruments that can help overcome the existing lock-ins in monoprofile Russian towns.