Innovative Import Substitution in Russia and the World: A Comparative Analysis

  • Alla V. LitvinovaEmail author
  • Natalya S. Talalaeva
  • Marina V. Ledeneva
Conference paper
Part of the Lecture Notes in Networks and Systems book series (LNNS, volume 91)


The purpose of the paper is to theoretically prove the role of innovations in import substitution, develop the performance benchmarks reflecting the impact of innovation on the import substitution as well as reveal the trends of innovative import substitution in different countries depending on the features of their external economic balance. The research methodology relies on the fact that the foreign trade turnover of each country where innovative import substitution occurs suffers structural changes, which are manifested in the growing proportion of innovative goods in exports and decreasing proportion of similar goods in imports. Therewith, the augmented export of innovative goods is proportional to the drop in the import thereof. An indicator of the positive impact of innovation on import substitution is simultaneous growth of costs associated with the innovation activity, and increasing export of innovative goods; moreover, the innovation component of exports should outstrip the innovation costs. The condition for innovative import substitution in countries with a very high or very low export-import coverage ratio of suitable values hereof (100–115%) against the background of the growing share of innovative goods’ exports. The authors investigated the dynamic changes of innovative import substitution in twelve countries of the world that representing various models of the establishment of foreign trade balance and applied the method of analytical equalization of the dynamic series. Analysis of target indicators of the positive impact of innovations on import substitution shows that all the countries under consideration to some extent perform innovative import substitution. We want particularly note Russia, the United States, Great Britain, Mexico, and South Africa. Regardless of the results achieved by the countries, the innovative import substitution should be developed towards the promotion of technological modernization of domestic production, enhancement of its efficiency and development of new competitive types of goods with high added value.


Import substitution Innovations Import Export Foreign trade balance Cross-country comparisons 

JEL Code

F14 O 39 O57 



The publication was prepared with the assistance of the Autonomous Non-Profit Organization “Institute of Scientific Communications” (Volgograd).

The research was conducted under financial support of the Department of Human and Social Sciences of the Russian Foundation for Basic Research in the framework of the research project “Comprehensive Assessment of the Import Substitution Efficiency and Its Impact on Economic Growth of Russia” (Project No. 19-010-00519 A).


  1. Vatolkina, N.Sh., Gorbunova, N.V.: Import substitution: foreign experience, instruments and effects. Sci. Tech. J. St. Petersburg State Pedagogical Univ. Econ. Sci. 6(233), 29–39 (2015)Google Scholar
  2. Zudin, N.N., Kuzyk, M.G., Simachev, Yu.V.: Foreign experience of pursuing the policy of import substitution: who look up to? Russia Trends Dev. Prospects 11-3, 267–273 (2016)Google Scholar
  3. Ivanchenko, A.D., Selishcheva, T.A.: Innovations as an engine of import substitution. In: Scientific Community of Students of the 21st Century. Economic Sciences: Collection of Mathematical Papers of the 27th International Student Research and Practice Conference, no. 12(27), pp. 287–291 (2014)Google Scholar
  4. Plakhin, E.S.: Import substitution as the main direction of improving the efficient use of innovations in the agrarian sector. In: Import Substitution of Agricultural Products at the Regional Level: Problems and Prospects: Proceedings of the Research and Practice Conference, Kursk: Publishing House of Non-State Educational Institution of Higher Professional Education “Regional Open Social University”, pp. 47–55 (2015)Google Scholar
  5. Babkin, A.V. (ed.): Innovation and Import Substitution in the Manufacturing Industry. Publishing House of Polytechnical University, St. Petersburg (2015)Google Scholar
  6. Ershova, I.G., Ershov, A.Yu.: Assessing the effectiveness of public regulation of the import substitution policy. Fundam. Res. 3, 375–379 (2016)Google Scholar
  7. Polyakov, R.K., Balyasnikova, E.V., Chumakov, A.S.: Sectoral sanctions: focus on import substitution and the development of innovations in the Russian Federation. Bull. Murmansk State Techn. Univ. 19(2), 502–511 (2016)Google Scholar
  8. Chernova, O.A., Klimuk, V.V.: Reasonable import substitution as a demand for the implementation of a new model of development of the Russian economy. Bull. Samara State Univ. Econ. 5(139), 34 (2016)Google Scholar
  9. Ukhanova, R.M., Raiskaya, M.V.: A model providing innovative import substitution in the Russian industry. Bull. Econ. Law Soc. Stud. 3, 78–81 (2016)Google Scholar
  10. Bondar, A.V., Kobzev, I.I.: Innovative import substitution. Consum. Cooperation 1(56), 13–18 (2017)Google Scholar
  11. Baer, W.: Import substitution and industrialization in Latin America: experiences and interpretations. Lat. Am. Res. Rev. 7(1), 95–122 (1975)Google Scholar
  12. Zhu, T.: Rethinking import-substituting industrialization. Development strategies and institutions in Taiwan and China. UNU-WIDER Research Paper, no. 76, pp. 260–279 (2006)Google Scholar
  13. Ogujiuba, K., Nwogwugwu, U., Dike, E.: Import substitution industrialization as learning process: sub Saharan African experience as distortion of the «Good» business model. Bus. Manage. Rev. 1(6), 8–21 (2011)Google Scholar
  14. Neumann, S.: Import substitution industrialization and its conditionalities for economic development – a comparative analysis of Brazil and South Korea. Central European University, Master thesis (2013)Google Scholar
  15. Kantemirova, M.A., Kuchieva, M.V., Balikoev, V.T.: Innovations as a factor of import substitution in regional agriculture. Fundam. Res. 4–2, 392–396 (2016)Google Scholar
  16. Kilicaslan, Y., Temurov, I.: Import substitution, productivity, and competitiveness: evidence from the Turkish and Korean manufacturing industry. Optimum J. Econ. Manage. 3(2), 67–83 (2016)Google Scholar
  17. Panov, A.I., Fedorov, N.Yu.: Import substitution, innovations, human capital in the context of regional economic policy. MIRBIS Res. Rev. 1, 52, 43–55 (2016)Google Scholar
  18. Kivikari, U.: Foreign trade liberalization during the economic transformation in Russia. Econ. Issues 8, 57–72 (1997)Google Scholar
  19. Fedorenko, N., Shagal, G.: The efficiency of Russia’s involvement in the international division of labor. Econ. Issues 7, 83–93 (2002)Google Scholar
  20. Russia and the World: Statistical Book. Rosstat (2012–2018)Google Scholar
  21. Chizhikov, Yu.N.: Analysis of the trade balance in the russian federation. Sci. Methodol. Electron. J. “Concept” 39, 311–315 (2017). Accessed 12 Apr 2019
  22. Dobrov, D.: Germany’s Trade Surplus Causes Concern in the USA and Europe (2017). Accessed 12 Apr 2019
  23. World Bank Statistics (2019). Accessed 12 Apr 2019
  24. International Trade Statistics Yearbook, vol. 1. Trade by country (2011–2017). United Nations, New York. Accessed 12 Apr 2019
  25. Fischer, K., Reiner, C., Starlitz, C.: Globale Güterketten. Weltweite Arbeitsteilung und ungleiche Entwicklung. Promedia, Wien (2010)Google Scholar

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  • Alla V. Litvinova
    • 1
    Email author
  • Natalya S. Talalaeva
    • 1
  • Marina V. Ledeneva
    • 1
  1. 1.Volzhskii Branch of Volgograd State UniversityVolzhskiiRussian Federation

Personalised recommendations