Contributions to Economics Elena G. Popkova Editor Russia and the European Union Development and Perspectives Contributions to Economics More information about this series at http://www.springer.com/series/1262 Elena G Popkova Editor Russia and the European Union Development and Perspectives Editor Elena G Popkova Volgograd State Technical University Volgograd, Russia ISSN 1431-1933 ISSN 2197-7178 (electronic) Contributions to Economics ISBN 978-3-319-55256-9 ISBN 978-3-319-55257-6 (eBook) DOI 10.1007/978-3-319-55257-6 Library of Congress Control Number: 2017941253 © Springer International Publishing AG 2017 This work is subject to copyright All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer 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company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Preface In the context of regionalization of the global economy, related to the growth of members of international economic relations, the role of formation of regional integration associations for the successful representation and protection of interests of their countries in the world arena increases Russia and the European Union are characterized by not only geographical proximity but by similar sociocultural specifics and common economic interests This provides possibilities and predetermines the necessity for expansion of cooperation and interaction between Russia and the EU However, despite obtaining mutual profit from such cooperation, its development has been stopped due to unfavorable influence of external factors caused by unfavorable geopolitical and geo-economic situation This leads to loss of profit for Russia and the EU, caused by the impossibility to realize the existing foreign economic potential and the potential for promotion of the common policy at the international level This special issue is devoted to the search for the solution to the problem of strengthening of foreign economic cooperation and development of Russia and the EU’s economies The basic precondition for creation of this special issue is the hypothesis that one of the most important obstacles on the path of development of foreign economic relations of Russia and the EU is insufficient substantiation of the need for it and lack of specific practical recommendations for its conduct This issue aims to fill this gap in modern scientific thought It specifies theoretical and methodological foundations of cooperation and interaction between Russia and the EU, studies applied aspects of investment cooperation and crisis management, substantiates perspective directions for improvement of state management, views integration and cluster processes in economies of Russia and the EU, and determines perspectives of development of regional economy and joint development of innovational sphere in Russia and the EU Volgograd, Russia Elena G Popkova v Contents Part I Problems and Perspectives of Territories’ Development in Macro-level Socio-economic Systems The Subjective Approach to Accessing the Quality of Life in the Regions of Russia Marianne Santalova, Konstantin Kosarev, Svetlana Nechayeva, Alex Kublanov, and Ksenia Sadykova Issues of Effectiveness of Communal Service in View of Variability of Apartment Blocks Management System Elena S Kryukova, Iurii S Povarov, Evgenia V Ruzanova, Valentina D Ruzanova, and Nikolai G Frolovskii Settlement System of Rural Areas: Trends and Spatial Aspects of Development Elena V Mikhaylova, Olga N Izyumova, and Ivan A Chusov Market-Oriented Approach to Management of Territorial Development: Discussion of Debatable Issues Daniil P Frolov, Vladimir G Sarkisyan, Apollon P Karibov, and Anastasia S Strekalova Regional & Climatic and Genetic & Physiological Determinants of Lawmaking Activities Vitalii A Ponomarenkov, Pavel A Paulov, Anna V Sidorova, Lilia G Sayfulova, and Igor V Ovod Strategic Planning of Regional Ecological Development: Adaptation of Elinor Ostrom’s Principles in Russia Daniil P Frolov, Elena G Popkova, Anastasia S Strekalova, and Irina V Marushchak 17 25 31 39 vii viii Contents Results of Innovational Activities of Russian Regions in View of the Types of Economic Culture Yuri Treshchevsky, Larisa Nikitina, Mikhail Litovkin, and Valentina Mayorova 47 Methodological Toolset of Regional Authority Bodies’ Cluster Policy Vasily Tarakanov, Alla Kalinina, and Elena Petrova 55 Micro-Level Financial Tools of Joint Overcoming of Crises in Socio-economic Sphere in the Context of Russian-European Cooperation M.A Filin, A.M Musaeva, A.S Hanchadarova, S.N Alborieva, and A.I Magomedov 63 Regional Peculiarities of State Support for Agriculture Feliks M Aliev, Dzhaniyat G Imashova, Patimat M Sheykhova, and Perizat M Kamalova Specific Risks of Implementation of Infrastructural Megaprojects in Regions of Modern Russia Inna Mitrofanova, Elena Russkova, and Marina Buyanova Anti-crisis Budget Policy of Russia in 2016–2018 Sergey P Sazonov, Gilyan V Fedotova, Lyubov V Perekrestova, and Yuri A Kozenko Import Substituting Approach to Development of Regional Economy of Russia and Europe Khadizhat D Mustafaeva, Umukusyum Z Mamaeva, Mina K Bammatkhanova, Paizat A Ibragimova, and Bariyat A Gamzatova Food Supply Regional Management System of the Consumer Market in the Modern Russian Economy M.A Ananiev, O.K Lukhovskaya, and E.S Vasilchuk 69 75 81 89 97 Application of the Tools of Cognitive Analysis in Formation of Regional System of Development of Small and Medium Entrepreneurship 105 Sergey A Korobov, Viktor O Moseyko, Ekaterina G Novoseltseva, Veronika S Epinina, and Elena Y Marusinina Computer Modeling of the Development of Russian Small Towns on the Basis of Cognitive Maps 113 Alexey F Rogachev Contents Part II ix Institutional Peculiarities of Functioning and Development of Modern Socio-economic Systems Economic Expedience of Certain Procedures of Insolvency Institute (Bankruptcy): Statistical and Legal Aspect 121 Alla A Pavlushina, Ekaterina A Anaeva, Larisa V Levchenko, Andrey V Loshkarev, and Valeria M Nikiforova Public-Private Partnership in Modern Russia: Models, Targets and Realization 131 Svetlana N Revina, Yulia A Dorofeeva, Elena B Kalashnikova, Irina E Milova, and Tatyana A Kalentyeva Customary and Legal Notions of Punishment of the Peoples of Nether-Polar Urals with Traditional Mode of Life 139 Vitalii A Ponomarenkov, Sergey A Kurushin, Tatyana S Cherevichenko, Aleksey L Zakharov, and Aleksandra P Korobova Amendments to the Civil Code of the Russian Federation: Contradictions of Theory and Practice 147 Agnessa O Inshakova, Alexandr I Goncharov, Oleg A Mineev, and Maxim V Sevostyanov Transformation of Human Rights in Information Society in Connection with Formation and Formulation of the Right to Oblivion by European Court of Human Rights 155 Svetlana N Revina, Olga E Surkova, Vladimir M Kroz, Grigory F Tselniker, and Pavel A Paulov Dissemination Issues of Legal Information: The Past and the Present 161 Svetlana N Revina, Anna V Sidorova, Aleksey L Zakharov, Grigory F Tselniker, and Sergey A Kurushin Establishment of the Institute of Audit as an Element of Market Relations and Object of Legal Regulation 169 Viktoria V Bolgova, Aleksey V Dashin, Natalya V Deltsova, Evgenia V Medentseva, and Svetlana V Startseva Transformation of Logistics Organizational Forms Under the Conditions of Modern Economy 177 Tatiana E Evtodieva, Dana V Chernovа, Natalia I Voitkevich, Elena R Khramtsova, and Tatiana E Gorgodze Demographic Function of Modern Russian State: Issues of Goal-Setting 183 Vladimir M Kroz, Olga E Surkova, Alexey N Churakov, Maksim A Zolotov, and Evgeny V Pisarev Public-Private Partnership in Russia: Myths and Reality 191 Svetlana A Kozhevnikova, Viktoria V Bolgova, Elena B Kalashnikova, Tatiana N Gorokhovitskaya, and Olga V Karsuntseva x Contents Contractual Forms of Public-Private Partnership in Russia: Problems of Application 199 Elena A Bratukhina, Tatiana S Bobkova, Yulia O Svyatun, Olga G Porunova, and Tatiana S Cherevichenko Labor as an Object of Legal Regulation in the Conditions of Modern Market Relations 207 Marina N Bronnikova Variability of Institutional Design in View of Anomalous Institutionalization Forms 215 Anna V Lavrentyeva, Marina A Katkova, and Daniil P Frolov Main Categories of Economics as an Object of Philosophical Analysis 221 Anna Guryanova, Nikolai Guryanov, Vyacheslav Frolov, Maksim Tokmakov, and Olga Belozerova Exaptation of Institutes of Development and Formation of Institutional Traps in the Russian Labor Market 229 Marina A Katkova, Nalalia V Mityaeva, Irina N Pchelintseva, Larisa V Sankova, and Elena V Yanchenko Issues of Instituting Administrative Action Against Legal Entities as Subjects of Entrepreneurial Activities 237 Ekaterina N Churakova, Galina Е Ageeva, Andrey V Loshkarev, Elmira K Gubaydullina, and Оlga N Kolesova Part III Actual Issues of Development of Modern Economic Systems Synergetic Effectiveness of Investing the Innovative Activities in Russian Food Industry 245 Elena V Sibirskaya, Innara R Lyapina, Maria A Vlasova, Elena V Petrukhina, and Svetlana A Timofeeva Economic and Legal Essence of Consignee Liabilities in Cargo Transportation Agreement 253 Vladimir P Kamyshansky, Yulia G Leskova, Vyacheslav Е Karnushin, and Evgenia Y Rudenko Model of Evaluation of Influence of Globalization on the National Stock Market 261 Viktoria I Tinyakova, Alexandr N Maloletko, Olga V Kaurova, Marina V Vinogradova, and Anna A Larionova Financial and Economic Effectiveness of Enforcement Proceedings in the Russian Federation: Ways of Improvement 273 Olga V Gritsay, Ramil Z Yusupov, and Vera V Kotlyarova Selecting Top-Priority Tools of Financial Incentives and Support for Organization’s Innovative Activities at the Regional Level (by the Example of Volgograd Oblast, Russia) Irina D Anikina, Albina V Gukova, Anastasiya A Golodova, and Anna A Chekalkina Abstract The paper clarifies the classification of financial instruments of stimulation of organizations’ innovative activities at the regional level and specifies the techniques of assessing the financial and investment potential of the region to reveal the sources of domestic financial resources for organizations’ innovative activities The methodology of assessing regional innovation potential has been adjusted to determine the feasibility of financial support for innovative activities of organizations at the regional level The methodology of selecting top-priority tools of financial support for innovation of organizations has been developed on the basis of assessing the financial, investment, and innovative potential of the region The paper provides recommendations for selecting and applying the instruments of financial support of organizations’ innovative activities in Volgograd Oblast based on the developed prioritization methodology Keywords Incentives instruments • Support instruments • Innovative activities • Volgograd Oblast • South federal district • Regional economy • Prioritization • Financial and investment potential • Innovation potential Russian economy is currently characterized by inertial tendencies of innovation development, innovation weakness, and as a result, by low competitiveness of the national economy Therefore to overcome these tendencies, it is particularly important to develop measures of financial support and incentives of organizations’ innovative activities both at the federal and the regional levels The important aspect of the study is the problem of substantiating the choice (prioritization) of instruments for financial support depending on the conditions defining innovative activities: financial, investment, and innovation potential of the region, which has not received due attention in the numerous studies on the topic I.D Anikina (*) • A.V Gukova • A.A Golodova • A.A Chekalkina Volgograd State University, Volgograd, Russia e-mail: kfbd@volsu.ru; kfbd@volsu.ru; kfbd@volsu.ru; kfbd@volsu.ru © Springer International Publishing AG 2017 E.G Popkova (ed.), Russia and the European Union, Contributions to Economics, DOI 10.1007/978-3-319-55257-6_61 475 476 I.D Anikina et al The necessity for selecting top-priority tools of financial support for innovative activities is explained by the scarcity of financial resources that economic agents have at their disposal Thus, the facts mentioned above make the solution to theoretical and practical problems of selecting top-priority tools of financial support for innovative activities at the regional level particularly actual The theoretical and methodological foundations for the current research are based on the fundamental research of Russian and foreign economists studying funding and support for organizations’ innovative activities at the regional level Nowadays, there is a great number of studies reflecting specific aspects of the problem under consideration General methodological basis of research on funding organizations’ innovative activities is presented in the papers of foreign researchers Drucker (1993), Mendel (1985), Mensch (1975), Mansfield (1989), Nelson (1993), Nixon (1990), Santo (2005), Twiss (1989), White (1982), Freeman (1997), Schumpeter (1982), et al Russian researchers Alekseev (2009), Danilov (2010), Zausajev (2005), Litvinova (2014), Lomovtseva (2015), Luksha (2013), and Sysoyeva (2011) have also made a considerable contribution to the study of financial aspects of organizations’ innovative activities The detailed analysis of the concept of regional financial potential, as well as the methodology of its assessment, is presented in the papers of the following economists: Borodin (2015), Ivanova (2007), Perekryostova (2011), Sabitova (2010), Sazonov (2013), Tolstolesova (2012), and Shakhovskaya (2011) They provide a considerable basis for the study of the mentioned problem Classification of Instruments of Organizations’ Innovative Activities Financial Support at the Regional Level It is reasonable to classify instruments of government financial support for organizations’ innovative activities on the basis of two criteria According to the first criterion, the allocation is carried out depending on the degree of involvement in innovative activities: for participation in the projects and innovation infrastructure In accordance with the second one, the allocation depends on the method of funding: direct funding and indirect innovation financial support All the instruments, depending on the degree of their impact on innovative activities, are divided into three groups in the current research Group A includes the instruments of direct funding of innovation projects Group B comprises the instruments of innovative activities financial support, related to direct funding and indirect financial support of infrastructure Group C is represented by the instruments of innovative activities financial support, indirectly affecting and mainly related to taxation Selecting Top-Priority Tools of Financial Incentives and Support for 477 The Methodology of Selecting Instruments of Organizations’ Innovative Activities Financial Support at the Regional Level The proposed methodology proves the feasibility of simultaneous record of financial-investment and innovation potentials of the region It is presented in Fig and comprises seven successive stages The financial-investment potential of the region is considered to be the source of domestic financial resources of the area (region) and is defined as a set of financial resources of economic agents net the final consumption and gross fixed capital formation Its assessment is a necessary condition for determining the opportunities for regional innovation potential implementation For the purposes of comparative analysis of regions in terms of developing their potential and data comparability we propose to evaluate the indices of gross and net savings per capita I Analytical block Stage 1.Assessing financial-investment potential of the region (as a source of domestic financial resources of the region) Stage Assessing innovation potential of the region (as an object of financial support) Stage Building the matrix for a set of regions under consideration (based on the correlation between financial-investment and innovation potentials) II Decision-making block Stage Determining the position of the region in the matrix (based on the data obtained at stage и 2) Stage Selectinginstrumentsinaccordancewiththematrixofprioritizinginstrumentsofinnov ativeactivitiesfinancial support on the basis of correlation between financialinvestment and innovation potentials of the region III Control block Stage Applying a complex of instruments considering their prioritization Stage Assessingthechangein potentials (revealing effects) Fig The methodology of selecting instruments of organizations’ innovative activities financial support at the regional level Source: Compiled by the authors 478 I.D Anikina et al The innovation potential is regarded as the object of financial support by regional authorities In the present paper it is assessed on the basis of applying a resource-factor approach, which has enabled to specify the indices of innovative potential factors for groups: technical-technological, human factor development, institutional, informational, organizational, and natural-material factors The proposed model includes 26 indices, which are grouped into six blocks Guidelines on the Assessment of the FinancialInvestment and Innovation Potentials of the Region For the purpose of the comparative analysis the assessment of the financialinvestment potential of the region should be made on the basis of gross and net savings in the region, calculated, unlike other methodologies, per capita, thus enabling to compare the data for different regions Gross and net savings in SFD regions between 2009 and 2013 are presented in Table Looking at the data in the table, we can see that there were no positive values of net savings per capita in SFD regions within the specified period, however, this negative value for Volgograd region is the minimal one among the SFD regions The analysis of SFD regions undertaken has shown the absence of domestic financial resources in all the regions within the specified period, which presupposes the prevailing use of indirect instruments of organizations’ innovative activities financial support at the regional level Thus, Volgograd Oblast has a minimal negative value in terms of net savings per capita among SFD regions within the period between 2009 and 2013 For the purpose of assessing the level of the regional innovation potential the methodology of calculating the integral value has been proposed, which takes into consideration the characteristics of potential factors mentioned above and determining the innovative activities of regional organizations The innovation potential of SFD regions between 2009 and 2013 is shown in Fig Table Net savings per capita in SFD regions (2009–2013), rublea 2009 2010 2011 2012 2013 a Republic of Adygea À49,977 À45,950 À65,045 À70,668 À90,280 Republic of Kalmykia À22,032 À20,955 À42,516 À50,330 À36,851 Krasnodar Krai À65,852 À97,799 À110,824 À114,046 À140,976 Astrakhan Oblast À58,846 À66,702 À73,046 À66,826 À73,920 Volgograd Oblast À17,906 À11,632 À12,783 À11,202 À12,815 Rostov Oblast À50,430 À42,695 À50,947 À65,052 À79,086 Calculated by the authors on the basis of the Federal National Statistics Agency data http://www gks.ru/ Selecting Top-Priority Tools of Financial Incentives and Support for 479 Fig Dynamics of change in innovation potential of SFD regions (2009–2013) Source: Compiled by the authors The top position among SFD regions in 2013 in terms of developing innovation potential belongs to Rostov Oblast (82 points), followed by Krasnodar Krai (60 points) and Volgograd Oblast (56 points) Astrakhan Oblastis the fourth (30 points), followed by Republic of Adygea (24 points) and Republic of Kalmykia (15 points) The Matrix of Financial Decisions on Selecting the Instruments of Organizations’ Innovative Activities Financial Support at the Regional Level The matrix is based on the correlation between levels of financial-investment and innovation potentials of the region The two levels of the innovation potential of the region (high and low) and positive and negative values of financial-investment potential find their correspondence to eight variants of financial decisions enabling regional authorities to choose more feasible instruments of organizations’ innovative activities financial support in the region, taking into account the availability of financial resources of the region, the degree of willingness to develop and implement innovation projects as well as strategic priorities of the region Depending on the assessment results of the financial-investment and innovation potentials, we propose to divide regions into eight sectors (Fig 3) I.D Anikina et al A!, C A!, B!, C! A!, C! В!, A!, C financial-investment potential innovation potential 480 C!, A C! A!, B!, C B!, C financial-investment potential Fig Matrix of financial decisions on selecting the instruments of organizations’ innovative activities financial support at the regional level Source: Compiled by the authors Sectors 1,2,3,4 have a positive value of the regional financial-investment potential, sectors 5,6,7,8—a negative one The intersection of the dotted lines with the coordinate axes corresponds to the average value in the tested set of regions The average value of the financial-investment potential depending on the sign (ỵ or ) is calculated separately Instruments of organizations’ innovative activities financial support are different and depend on a sector of a region location An exclamation mark next to a group of instruments (e.g., A!) indicates the priority (first order priority) of applying a given group of instruments A group of instruments without an exclamation mark has second order priority while a non-specified group in the matrix has the lowest third order priority Segmenting Regions in the Matrix of Financial Decisions To substantiate the feasibility of applying instruments of organizations’ innovative activities financial incentives in the regions it is important to determine the position of the region in the elaborated matrix of financial decision-making to compare actually applied instruments with the ones recommended in the matrix The complex assessment of analyzed potentials in SFD regions has enabled to describe the feasibility of using applied instruments and elaborate recommendations for their improvement Volgograd region in 2013 is located in sector 5, characterized by an aboveaverage value of financial-investment and innovation potentials among SFD regions (Fig 4) Selecting Top-Priority Tools of Financial Incentives and Support for 481 Fig Matrix of prioritizing instruments of organizations’ innovative activities financial incentives in SFD regions, 2013 Source: Compiled by the authors Applied top-priority tools of organizations’ innovative activities financial support in Volgograd Oblast are the instruments related to direct funding of innovation projects and indirect financial support of innovative activities (mainly through taxation) Such use of instruments in Volgograd Oblast will contribute to implementation of the regional innovation potential and as a result enhance the competitiveness of the region Thus, applying the methodology proposed in the current paper will enhance the implementation of innovation potential of a certain area through selecting the most appropriate (depending on the correlation between financial-investment and innovation potentials of the region) instruments of organizations’ innovative activities financial support at the regional level References Alekseev S (2009) Integral assessment of regional innovation potential Probl Mod Econ 2:306–308 Borodin A (2015) Conception of mechanism of managing business financial potential Tomsk State Univ Gaz 391:171–175 Danilov I (2010) Innovation potential of Russian regions: methods of analyzing structure and influence on economic growth efficiency Danilov I, Tarasov V Chuvash Univ Gaz (10):343–350 Drucker PF (1993) Innovation and entrepreneurship Harper Business, New York, 278 p Freeman C (1997) The economics of industrial innovation, 3rd edn Freeman C, Soete L Routledge, London Ivanova T (2007) Financial potential of regions: assessment and management decision-making Ivanova T, Prokopenko R Reg Econ Theory Pract 11:82–90 482 I.D Anikina et al Litvinova A (2014) The role of stimulating innovative activity in implementing strategic priorities and trends of country’s innovative development Litvinova A, Parfenova М State Advisor (5):56–64 Lomovtseva O (2015) The analysis of the innovation infrastructure of Belgorod region Lomovtseva O, Sopina N Sci Res 1(3):61–70 Luksha О (2013) Infrastructure of supporting projects of scientific and technical cooperation between Russia and EU: state and prospects Luksha О, Pilnov G Innovation 04:79–86 Mansfield E (1989) Social and private rates of return from industrial innovations Mansfield E, Rapport A et al Quart J Econ 91:221–240 Mendell S (1985) Looking at innovation strategies Mendell S, Ennis D Res Manag 28(3):33 Mensch G (1975) Das technologishe patt Innovationen üeberwinden Frankfurt/M Nelson R (1993) National innovation systems Oxford University Press, New York Nixon F (1990) The role of company management in providing quality and reliability Standard, Мoscow, p 231 Perekryostova L 2011 Methodology of assessing efficiency of regional development budget regulation Perekryostova L, Lyakova E Reg Econ Theory Pract 36:2–8 Sabitova N (2010) National financial policy: problem of goals Financ Credit 27:8–13 Santo B (2005) Innovation as a means of economic development Прогресс, Мoscow, p 376 Sazonov S (2013) Regional institutions of development and strengthening role of regions in innovational modernization of Russian economy Buchwald Е, Sazonov S, Mordvintsev A Bus Educ Law Volgograd Bus Inst Gaz 1(22):179–185 Shakhovskaya L (2011) Forming innovation infrastructure of entrepreneurial structures Shakhovskaya L, Beshanova J FES: Financ Econ Strat 3:61–66 Shumpeter J (1982) Theory of economic development Progress, Moscow, p 355 Sysoyeva Е (2011) Innovation development of Russia: stages, scenarios, indicators Sysoyeva Е, Treschevsky Y, Schedrov A Reg Syst Econ Manag 4(15):34–40 Tolstolesova L (2012) Financial and investment potential of raw regions: formation and implementation strategy St Petersburg, 35 p Twiss B (1989) Managing scientific and technical innovations Economics, Мoscow, p 271 White P (1982) Managing research and development In: Bobryshev D (ed), 160 pp Zausayev V (2005) Innovation potential of eastern regions of Russia Zausayev V, Bystritsky S, Krivoruchko N EKO 10:40–52 Engineering Control and Audit as a Tool of Joint Economic Crises Fighting in Russia and Europe Evgeniy Y Moskvitin Abstract The purpose of the research is to determine possibilities and perspectives of the use of engineering control and audit as a tool of joint economic crises overcoming in Russia and Europe The methodology of this research is based on the use of the method of regression and correlation analysis, logical modeling, analysis of causal connections, problem analysis, and method of strategizing The authors determine the presence and strength of connection between the real sector of economy and its overcoming of the crisis and conduct the analysis of the role of engineering control and audit in provision of innovational development of economy’s real sector As a result, they come to the conclusion that, firstly, the key to successful overcoming of economic crises lies in the real sector of economy, which is characterized by very high sustainability among the spheres of national economy, and, secondly, that activation of development of Russian and European industry requires development of the system of engineering control and audit that reduces the risk components of innovational projects For that, the authors offer the engineering model of innovational development of real sector in Russia and Europe for the purpose of joint economic crises fighting Keywords Engineering control and audit • Production sphere • Joint crises fighting • Economic crisis • Russia • Europe Introduction The sources of the recent global economic crisis lie in the financial sphere, which is a component of the service sphere It is not by mere chance, as this sphere is subject to spontaneous development and instability due to the fact that its structure is dominated by small and medium entrepreneurship, characterized by high mobility and low corporate responsibility E.Y Moskvitin Institute of the Service and Entrepreneurship Sphere (branch) of Don State Technical University, Shakhty, Russia e-mail: djulm@rambler.ru © Springer International Publishing AG 2017 E.G Popkova (ed.), Russia and the European Union, Contributions to Economics, DOI 10.1007/978-3-319-55257-6_62 483 484 E.Y Moskvitin As the practice of the recent years showed, the efforts to overcome economic depression with preservation of pre-crisis structure of GDP didn’t lead to any success That’s why we think that pure service economy, which is subject to crises, should be replaced by the modernized industrial economy, which proved its capability to function and develop in a stable way; therefore, two working hypotheses are offered: – Hypothesis H1: The key to successful overcoming of economic crises lies in real sector of economy, which is characterized by the highest sustainability among the spheres of national economy – Hypothesis H2: Activation of development of industry in Russia and Europe requires development of the system of engineering control and audit, which reduces the risk component of innovational projects The purpose of this research is to determine possibilities and perspectives of the use of engineering control and audit as a tool of joint economic crises fighting in Russia and Europe Theoretical, Informational and Empirical, and Methodological Grounds of the Research Theoretical basis of the research consists of publications of modern authors in the sphere of economic crises fighting (Dzhandzhugazova et al 2015; Kravets et al 2014; Popkova et al 2013; Skiter et al 2015; Gornostaeva et al 2014; Cruz-Mila´n et al 2016; Fischbacher-Smith and Fischbacher-Smith 2016; Zhabin et al 2016; Morel and Chauvin 2016; Hunter et al 2016) Engineering control and audit, which are an object of this research, are the process of control and audit of innovational projects in industry at the stage of their practical realization That is, they are a part of general engineering, within which engineering and consulting services in the real sector of economy are provided Various aspects of engineering control and audit are viewed in detail in the works by Raycheva et al (2016), Maczko et al (2016), Delatte (2016), Schon et al (2016), Sawyer (2016), Jaăckel et al (2016), and Zhang et al (2016) Methodology of this research is based on the use of methods of quantitative and qualitative economic analysis For determination of presence and determination of the character and strength of connection between the real sector of economy and its overcoming the crisis, the authors use the method of regression and correlation analysis, with the help of which they determine dependence between the level of GDP in constant prices (y1), value of economic components of Sustainable Society Index (y2), and the volume of industrial production (x) The research is performed on the basis of the official statistical data for 2014 by the example of Russia, Austria, Belgium, Estonia, France, Ireland, Lithuania, Malta, and Slovakia Using the system of automatized calculation, the authors Engineering Control and Audit as a Tool of Joint Economic Crises Fighting in 485 Table Initial statistical data for the research Country Austria Belgium Estonia France Ireland Lithuania Malta Slovakia Russia Gross domestic product in constant prices, EUR billion (y1) 307.26 393.45 17.41 2060.87 188.78 32.79 7.31 72.84 546.36 Value of economic component, of Sustainable Society Index, points (y2) 4.47 2.48 2.25 3.54 2.18 5.38 2.17 3.76 2.64 Volume of industrial production, EUR billion (x) 99.24 86.16 5.17 418.36 86.84 6.42 3.55 41.45 204.88 Source: Sustainable Society Foundation (2016); International Monetary Fund (2016) determine the value of correlation coefficient of these indicators and compile models of paired linear regression, which reflects dependence of y on x The initial statistical data for the research is given in Table Results As a result of regression analysis, we received the following models of paired linear regression: y1ẳ 4.72 ỵ 3.96x, y2 ẳ 1.69 ỵ 1.18 Economic sense of these mathematical expressions consists in the fact that with growth of the volume of industrial production by EUR billion in 2014 in the studied countries, the volume of GDP in constant prices grows by EUR 3.96 billion and the value of economic component of Sustainable Society Index grows by 1.18 points Correlation coefficients had the values of 98 and 99% for the received models Accordingly, the determined connection between these indicators is strong and direct This confirms the offered hypothesis H1 and proves that development of real sector of economy stimulates the achievement of sustainable economic growth in Russia and Europe and thus allows overcoming consequences of economic crisis Engineering control and audit play an important role in provision of innovational development of real sector of economy Firstly, engineering control and audit allows even small and medium business to conduct innovational projects—if it works in the real sector of economy Secondly, engineering control and audit increase effectiveness of realization of innovational projects for large business in the real sector of economy Thirdly, engineering control and audit reduce the risk components of innovational projects This confirms the offered hypothesis H2 and proves that development of the system of engineering control and audit stimulates activation and intensification of innovative activities in the real sector of economy of Russia and Europe By combining the conclusions from the both hypotheses, we see that engineering 486 E.Y Moskvitin control and audit have a large potential as a tool of overcoming of economic crises in Russia and Europe The most important problems of development of the system of engineering control and audit in modern Russia and Europe are the following: – Lack of highly-qualified personnel: despite the large number of specialists with higher education in the sphere of engineering, most of them not have necessary competences due to lack of practical experience and theoretical direction of the received education – Unique character of each innovational project: institutional ineffectiveness of economy causes high level of uncertainty of innovational projects in the real sector and impossibility to use standardized solutions in engineering, as well as unpredictability of their consequences – Unwillingness to consult the specialists in the sphere of engineering by industrial enterprises: for the purpose of saving money, most of entrepreneurial structures in real sector—especially small and medium—prefer to conduct innovational projects independently or refuse from them Based on this, the following engineering strategy of innovational development of real sector is offered for joint economic crises fighting in Russia and Europe (Fig 1) As is seen from Fig 1, the means of development of the system of engineering control and audit, aimed at fighting the determined problems, include training of specialists-practitioners with the help of a network of specialized applied training courses at the objects, strengthening of the institutional basis, and increase of marketing activity of engineering companies Goal: increase of effectiveness of measures in the sphere of crisis management in modern Russia and Europe Means of Specialists development of training engineering control and Development of − Increase of effectiveness and audit system the system of reduction of innovative Strengthening engineering activities’ risks of control and audit institutional Increase of basis marketing activity of engineering Activation of − Increase of innovational companies innovational activity of subjects of small, development of medium, and large the real sector entrepreneurship Fighting economic crises in Russia and Europe − Development of entrepreneurship, technological progress, economic growth Fig Engineering model of innovational development of real sector in Russia and Europe for joint fighting the economic crises Engineering Control and Audit as a Tool of Joint Economic Crises Fighting in 487 Conclusions and Recommendations Thus, the authors’ hypotheses were proved, and substantiation of the theses that industrial production is a perspective tool of crisis management, and that development of engineering model of innovational development of real sector in Russia and Europe for joint fighting the economic crises determines the theoretical significance of this paper Practical significance of this paper consists in the fact that within this model the development of системы engineering control and audit will stimulate activation of innovational development of real sector and thus will help fighting economic crises in Russia and Europe It should be concluded that despite the fact that transition from the industrial model of development of economic systems was not random and was caused by striving to quick economic progress, which it doesn’t allow achieving, it is necessary to return of this model, as it is a guarantee of stability necessary for fighting its consequences References Cruz-Mila´n O, Simpson JJ, Simpson PM, Choi W (2016) Reassurance or reason 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