INNOVATIONS OF SMALL AND MEDIUM ENTREPRENEURSHIP AS ENDOGENOUS FACTOR OF REGIONAL ECONOMIC PRODUCTIVITY

Abstract

Introduction. This article examines the impact of small and medium-sized enterprises (SME) innovation on economic productivity growth in Russia's regions. The study's relevance stems from the need to identify internal sources of economic growth in the face of depleted extensive factors and technological heterogeneity across regions. The problem is that SME innovations do not always translate into increased productivity due to institutional, infrastructural, and cultural barriers. Materials and methods. The methodological basis of the study is the theory of endogenous technological growth developed by F. Aghion and P. Howitt, as well as the concept of knowledge accumulation and dissemination proposed by J. Mokyr, which explain the role of innovation, institutions, and cultural factors in shaping long-term productivity. The methodological tools include comparative and systemic analysis, an analytical review of strategic documents and statistical data, and elements of correlation analysis aimed at identifying the relationship between SME innovation activity and regional economic productivity. Research results. The article demonstrates that SME innovation activity has a statistically significant impact on regional economic productivity, but this effect exhibits significant spatial heterogeneity. Regions with a developed innovation infrastructure and stable institutions demonstrate higher returns on innovation. In conditions of a weak institutional environment and limited access to knowledge, innovation does not generate a cumulative effect and remains fragmented. Discussion and conclusion. SME innovation serves as an indicator of the institutional maturity of a regional economy and a mechanism for knowledge transfer, shaping long-term differences in productivity. The study's results can be used to design regional innovation development strategies, assess the effectiveness of entrepreneurship support measures, and formulate policies aimed at increasing economic productivity in Russia's regions