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International Journal of Economics and Financial Issues | Vol 6 • Special Issue (S8) • 2016 245

International Journal of Economics and Financial 
Issues

ISSN: 2146-4138

available at http: www.econjournals.com

International Journal of Economics and Financial Issues, 2016, 6(S8) 245-250.

Special Issue for “Fundamental and Applied Research in Economics and Management: New Perspectives”

Agrarian Policy of the Region in Terms of Economic 
Development Innovation

Sergey M. Reznichenko1, Nadezhda K. Vasilieva2, Rustem A. Shichiyakh3, Yulia M. Medvedeva4, 
Yurii B. Mindlin5*

1Kuban State Agrarian University, Krasnodar, Russian Federation, 2Kuban State Agrarian University, Krasnodar, Russian 
Federation, 3Kuban State Agrarian University, Krasnodar, Russian Federation, 4National Research Nuclear University MEPhI 
(Moscow Engineering Physics Institute), Moscow, Russian Federation, 5Moscow State Academy of Veterinary Medicine and 
Biotechnology Named after K.I. Skrjabin, Moscow, Russian Federation. *Email: mindliny@mail.ru

ABSTRACT

One of actual problems of regional economies is the problem of the transition of inter-regional divergence and problematic regions to the model 
of “catching up” development, definition of the newest competitive domestic and world market, forms of development of the agrarian policy of 
the regional territories of the state. Being a successful model of public-private partnerships and interaction between businesses, agro-industrial 
innovative education economic level represents the source of competitiveness of the region increases its level of importance and implementation of 
global processes in the agricultural sector. The cluster campaign of agrarian policy created on the account of affirmative synergy effects of regional 
agglomeration, network effects, diffusion of innovations, able to act as an accelerator of socio-economic education development stagnated production 
processes of problem regions, prevent deprivation in rural areas. Plan for the development of agro-industrial economic cluster and the program of 
its implementation with the implementation of the comprehensive state support of innovative initiatives and education clustered development in 
regional areas. Thus, the imperative of ensuring the unity of economic space establishes the need for modernization of program target management 
of socio-economic development of problem regions, in rural areas the formation of cluster strategies and network models of cooperation in agro-
industrial complex.

Keywords: Innovation, Economy, Region, Competition, Cluster, Complex, State 
JEL Classifications: J43, O13, Q13, Q19

1. INTRODUCTION

The task of overcoming the recession in the region’s economy, at a 
time when the structure of its formation, all processes are moving 
into the recovery period, you must make a decision that contributed 
to the increasing importance of major economic processes 
in the region in an increasingly competitive world market, at 
different levels of the domestic market for basic manufactured 
products, and in various spheres of economic activities. In this 
context, the transition from the model of “catching up” to models 
of “advanced” development is possible only by increasing 
competitive capabilities: The cultivation of unique varieties of 
products, the introduction of the right policies for the livestock 

farming of the region and the overall agricultural potential of the 
region and state.

In the conditions of globalization of world powers, increase 
of competitors market, developing new varieties of products, 
breeding of certain breeds increases the competitiveness of 
the national economy and agriculture. This policy enhance the 
region’s economy depends on the efficiency of competitive new 
forms of production organization and industrial clusters, which are 
understood concentrated on a certain territory a group of related 
companies; suppliers of equipment, components and specialized 
services; infrastructure; research institutes; universities and other 
educational organizations, mutually reinforcing each other and 



Reznichenko, et al.: Agrarian Policy of the Region in Terms of Economic Development Innovation

International Journal of Economics and Financial Issues | Vol 6 • Special Issue (S8) • 2016246

strengthening competitive advantages of separate companies and 
organizations as well as the region’s economy as a whole.

Cluster approach the implementation of innovative approaches 
in the system of economic process in the management of 
agro-industrial development of the region is realized in the form 
of cluster policy efficiency of existing firms in the industry.

In the world, on the territory of the main leading in this direction 
powers, we can distinguish two models in which cluster policy is 
carried out in the region’s economy-liberal (US, UK, Australia, 
Canada), in which a cluster is regarded as a market body, and the 
role of the Federal government is removing barriers to its natural 
development, and dirigida (Japan, Korea, Singapore, Sweden, 
France, Finland, Slovenia), counting on the country’s active 
participation in the establishment and development of clusters.

Statistics held in Russia cluster policy confirm the formation 
dirigistic model, which, in our opinion, the most effective in the 
modern Russian conditions and aligned with the main legislative 
base of the state and basis of local government regions and 
localities.

2. MATERIALS AND METHODS

Theoretical and methodological basis for the writing of this article 
was the classics, economic and management publications in the 
definition of the innovative cluster, the understanding of agrarian 
policy in the field of innovative reforms and ways of formation and 
change of public sector agriculture, development of agricultural 
sector of the regions and their assistance on the economic shell 
of the state and the world powers. Special attention was devoted 
to the domestic and foreign scholars on the disclosure of major 
issues affecting the overall organizational formation of agricultural 
innovation clusters of enterprises and economic sectors, and 
economic processes of domestic and foreign policy activities of 
the innovation policy of the state and region.

The research methodology is built on the dialectical method, 
systemic and strategic approaches to analyze objects. Scientific 
provisions, conclusions and recommendations made in the article 
are based on the use of a range of methods of historical and logical 
analysis, comparison and synthesis, induction and deduction, 
economic-statistical method and expert evaluations.

The information base of the research were the laws of the Russian 
Federation, the official publication of the state statistics, bodies of 
management of social-labor relations in the sphere of innovation 
development of the cluster policy, territorial sector, International 
Labor Organization, thematic collections and reference books, 
information published in scientific editions and periodicals, 
Internet resources.

The main sources of information for writing this article is based 
on publications and reports, contemporary scientific approaches 
to research of features of development of agriculture, the 
agricultural associations in the region and the economy of the 
Russian Federation, as well as the works of domestic authors on 

the organization and development of agro-industrial clusters and 
their role in the economic system of the Russian Federation. We 
used the methods of comparative analysis, groupings; a systematic 
approach based on the matching and comparison of theoretical and 
practical material and solve practical problems.

3. DISCUSSION

Implementation of the state agro-industrial cluster policy involves 
the development of strategies focused on the formation of clusters 
in the agricultural unions.

Economic development the basic processes of the domestic market 
of the agricultural sector, envisages by 2017, the increase in the 
gross domestic product, which would be impossible without the 
global system, the reform of key areas of economic and agricultural 
development.

The policy of reforming the agricultural sector of the economy 
is a complex system of measures for efficient supply of the 
formation of agricultural industry and related sectors, which have 
a unique specificity in the stage of transition to an innovative 
way of formation, which is caused by the necessity of increasing 
the competitiveness of agricultural production and food supply 
security of the Russian market and the integration of domestic 
production into the world economy (Huhrin, 2012; Silnov and 
Tarakanov, 2015; Ksenofontov et al., 2016).

Future the process of implementation of market policy reforms in 
agricultural policy of the economic sector of the country represents 
a complex of measures with separation of the main and priority 
directions for the supply of efficient formation of the agricultural 
sector.

Agricultural economics system of the Russian Federation is 
searching for a unique and perfect forms and methods of economic 
activity that will be most acceptable to the market structure of 
the country.

Modern approaches to innovative implementations in the 
agricultural policy of the regions and the country as a whole are 
based on upgrades and modifications for the development of the 
agricultural sector and require the development of new priorities 
for the establishment of an agricultural complex.

A major role in the formation and embodiment in reality of the 
strategic course of innovative education of the agrarian sector of 
economy of the region belongs to the state management apparatus. 
The government should find a balance in cooperation with private 
business to abandon the practice of excessive interference in 
business as small scale and large businesses (Il’Yaschenko et al., 
2015).

Priority strategic directions of the formation of agro-industrial 
enterprises should be tailored to regional characteristics, state 
policy, among which, first of all it is necessary to allocate a 
high proportion of the rural population and the level of rural 
unemployment (Table 1). This allows you to define as priorities of 



Reznichenko, et al.: Agrarian Policy of the Region in Terms of Economic Development Innovation

International Journal of Economics and Financial Issues | Vol 6 • Special Issue (S8) • 2016 247

the cluster policy of the state support of development of regional 
agro-clusters.

The development plan of the agricultural sector should also 
be based on spatial potential of development of the Russian 
Federation.

The possibility of translating the strategy of development of 
agrarian society has targeted programs that represent a way of 
achieving assigned in the strategy goals.

Of course, innovative activity in each region should be supported 
and regulated by the state. This necessitates the creation of federal 
and regional bodies that will coordinate regulate and, if necessary, 
the unified management of innovative activity in various sectors 
of the economy, including the agricultural use of the experience 
of developed countries.

The experience of state support of innovative activity in developed 
countries shows (Silnov, 2015) that the government should 
formulate innovative policies that will ensure the competitiveness 
of the agricultural sector of the economy (Moskalenko, 2015; 
Kobersy et al., 2016).

Therefore, the strengthening of innovative activities should occupy 
the central place in realization of state policy in the agro-food 
sector of the Russian Federation.

In this regard, in order to ensure innovative development of the 
regions and the country as a whole required the adoption of the 
federal law “On innovative activity.”

It should be noted that most of the developed and implemented 
programs for the development of agriculture was front-covered the 
influence of socio-economic processes of large economic systems 
of a state or local-has been focused on improving the structure of 
cities, rural settlements or urban agglomerations.

Such programs are often done by way of budget co-financing of 
many disparate projects, but not as a means to supply progressive 
structural changes in the agricultural sector, the smoothing of 
social contradictions.

Effectively, in our opinion, is the program focal type, directed 
on formation of agrarian clusters on the basis of establishing a 
single orientation of agriculture, integrated development and use 
of territorial combinations of natural and economic resources, 
specialization and cooperation of production, territories and the 
competitive environment.

Research the state of the agrarian sector of the state, regions, 
settlements, market potential, competitive environment, allows us 
to identify the following potential agricultural clusters: A cluster 
for the production of meat and meat products, fruit cluster, the 
manufacturing cluster of wool products, the cluster of dairy 
products, etc.

Cluster structures occur in the institutional environment, 
characterized by certain qualitative properties that stimulate the 
clustering process.

Significant properties of institutions that contribute to the process 
of clusterization, is the significant level of competition, to 
encourage local entities to the integration interaction, and a high 
level of production concentration.

The prevalence of households in agricultural production of the 
state is evidence of the predominance of natural and small-scale 
production and the almost complete absence of competition 
between producers as a key element of the cluster forms of 
business organization. And so low competition and concentration 
of production plunged to a lack of a critical mass of members of 
agrarian cluster.

4. RESULTS

In this regard, important value is the development of small forms 
of managing in agrarian sector of the domestic economy. With 
this purpose, targeted programs are implemented, the States 
and regions, which determined the development of the peasant 
(farmer) farms to increase production and marketing of agricultural 
products through the supply conditions for the establishment, 
expansion and modernization of beginner farmers; organization 
of conditions for peasant (farmer) farms on the availability of 
financial resources; stimulation of transition of citizens, conducting 
a personal subsidiary economy, peasant (farmer’s) economy.

In the course of formation and development of innovation activity 
of agrarian policy of the region and its impact on key economic 
processes must take into account the specificity of agriculture, 
its development trends and benchmarks (Sen, 2016). The main 
production processes based on the use of land, plant and animal 
sector ensures the unity of technology and biological processes 
that determines the relationship between economy and ecology.

Based on these main components of the agricultural policy of 
the region innovation activity should be based and be aimed 
at the supply of effective and efficient growth of economic 
processes, rational use and consumption of intensive resource-
saving processes of agricultural production, bipolarization and 
ecologization of the production cycle, preservation of topsoil and 
other natural resources consumption.

Therefore, in the agricultural sector on a par with the already 
well-established areas of innovative economic activities, as well 
as with other types of innovation activity (organizational, social, 
industrial) is used selection genetic, reclamation-environmental 
and biotechnology-logical directions, which provide for the 

Table 1: The proportion of urban and rural population 
and unemployment rate in 2016, %
Country The proportion of urban 

and rural population
The unemployment 

rate
Urban Rural Urban Rural

Russian 
Federation

73.7 26.5 6.4 10.8



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International Journal of Economics and Financial Issues | Vol 6 • Special Issue (S8) • 2016248

formation and cultivation of new, not previously existing, highly 
productive and resistant to environmental influences of varieties 
and hybrids of plants and breeds of animals, the use and application 
of environmentally friendly and resource-saving technologies 
of processing of land and production of agricultural goods and 
the creation of biological resources to ensure conservation and 
protection of flora and fauna.

Specificity of the use of the most important definitions of the 
theoretical perception of the innovative capacity of the region 
to agricultural activities is also in the attraction of its main 
technological processes in the processes that occur in the 
environment-natural, in participating in the production process 
of organisms as well as other can be the object of innovative 
development of the agrarian policy and economic environment 
of the region.

Based on the established definition exists classification of 
innovative processes in agrarian sector of economy of region in 
clearly defined focus of operation, which relies on the account 
of specificity of both internal and external linkages agricultural 
industrial system and includes three groups of agro-industrial 
innovations (Polunin, 2013; Jose and Padmanabhan, 2016):
1. Innovations that are in their field use policies on the 

improvement of the production process;
2. Innovations that improve the interaction of internal processes 

of agricultural industrial system;
3. Innovations that improve the interaction of the external 

environment, the performance of agriculture.

State policy in the framework of the long-term target program 
of agricultural sector of regions and their innovative formation 
assumes a secure document on “Development of agriculture and 
regulation of markets of agricultural products, raw materials and 
food of the regions (2013-2020)” elaborated the sub-program 
“Innovative development and information security.”

The main objectives presented in this document for 2013-2020 
are:
• Supply effective-productive activities of executive authorities 

of the regions in the field of agriculture development and 
economic potential, as well as control of the markets of 
agricultural products, raw materials and food;

• Provision of advisory services to agricultural producers;
• Sustainable development of agricultural production with 

increase in production and processing of agricultural products, 
improvement of its competitiveness through the introduction 
of scientific developments.

• Development and implementation of the policy of creation 
of cluster of enterprises with introduction of innovative 
technologies to improve the economic level of the regions.

Basic policy for the maintenance of economically stable 
functioning of the agricultural sector determines the development 
of conditions that will encourage the process of agrarian 
clusterization in the future will make of a particular region or 
particular area of application of this policy cluster enterprises are 
the most attractive.

Many of the world’s countries prefer to have as the main investor 
in the area of agrarian innovation and the economy of the region 
so-called venture capital funds (Zakharov et al., 2016).

The main activities of these firms maintain their small business 
is carried out by maintaining the policy risk of investing funds in 
innovation projects, not previously used in the production process 
in order ultimately to no small profit which can compensate for 
their previous and current failed investment (Myrzaliev, 2014).

For such functioning, not big on their activities and the sphere 
of dissemination of the firms flexibility and simplified system 
management apparatus, there is a wide scope of individual 
initiative actions that have the possibility of a flexible system of 
NTP, can be traced to the active involvement of its core business 
innovators and inventors with unique ideas to improve the 
processes that are acceptable in the field of agricultural policy. The 
policy provides a substantial performance of its core activities of 
venture capital firms.

Many of these firms, with the involved personnel with clearly 
defined and developed program implementation and development, 
bring not small contribution in economic development of the 
region, the main innovation of the agricultural sector, projects for 
the introduction and manufacture of completely new products, 
progressive technologies.

Therefore, this impact is currently funding venture capital firms 
actively takes its origins and development in many countries of the 
world, but also in the territory of our state, creating a large-scale 
joint ventures-cluster agricultural complex in the so-called special 
economic zones located in certain areas.

Improving the investment climate in the period of recovery 
growth primarily involves carrying out active innovative policy 
of the state contributing the greatest application of intellectual 
and scientific resources.

Effective mechanisms of innovation policy of development of 
agrarian fields in conditions of recovery growth are:
1. The establishment of the budget the minimum cost of financing 

of science and innovation and imparting to these articles a 
status protected;

2. The organization of innovation centers, such as Innovative 
Consulting Center, center for agrarian reforms, center of 
scientific and technical information, and the coordinating 
council on innovation, carrying out analytical studies of 
innovative possibilities.

One of the defining conditions for the establishment of agricultural 
cluster performs diversified structure of the economy.

Analysis of the structure of the manufacturing industries of the 
economy suggests that agricultural sector produces primarily 
products of low added value (Goryushkina et al., 2016). While 
in the Russian Federation total per capita production of branches 
processing agricultural raw material exceeds the volume of per 
capita production of agricultural products, on average across 



Reznichenko, et al.: Agrarian Policy of the Region in Terms of Economic Development Innovation

International Journal of Economics and Financial Issues | Vol 6 • Special Issue (S8) • 2016 249

regions, the economic results of the industries of food and light 
industry per capita, taking into account included in the price the 
added value behind the economic results of agriculture.

Agro-industrial cluster policy should be based on supporting 
those industries and sectors of the economy, which are able to 
give a synergistic effect and give an impetus to the independent 
development of agricultural entrepreneurship. This effect, in 
particular, provides transportation infrastructure, which ensures 
the reliability of the relationships between entities, and consumer 
access to products. Analyzing the agro-cluster as a form of 
institutionalizing of economic interests, should note their key role 
in the growth of the degree of employment the rural population.

A necessary condition for the clusterization in the agro-industrial 
complex of the state, in our opinion, should be a restructuring of the 
system of trade and distribution of agricultural products and food.

5. CONCLUSION

The most important feature of the modern period of development of 
the agro-industrial complex is the need for maximum acceleration 
of scientific-technical progress as a process of gradual, technical, 
technological and socio-economic renewal and improvement of 
agricultural production to significantly enhance its effectiveness.

Scientific and technical progress, in turn, is a decisive factor of 
stability of development of agro-industrial complex solutions to 
complex socio-economic problems of the village. Agriculture, 
as you know, is a fairly complex system consisting of different 
organizational and functional subsystems, and the production 
process consists of certain stages, and that determines a large 
diversity of factors of scientific and technological progress in the 
industry. Here are the following groups of factors: Biological, 
technical, technological, informational, organizational and legal. 
Within these groups of factors determines the various directions, 
among which are at various stages of development of production of 
them are determined by the priority that is decisive for this period.

A certain realization and implementation of the basic processes 
of the scientific-technical process is carried out through the 
realization of major innovative forms of economic development of 
the region, the providence of innovation course in the agricultural 
sector and the production, which allows in the future to achieve 
a positive effect.

Research conducted by many scientists give a reflection of what the 
conquest of innovation and their attainment in agricultural policy 
and its distribution contributes not only to maintaining a certain 
level of production, but also accelerates some of the processes 
of growing, processing crops that as a rule is accompanied by 
the acceleration of the final result-the profit of the manufacturer, 
thereby guaranteeing a stable financial position and economic 
stability of the region.

A comprehensive analysis of the socio-economic trends, the 
implementation of innovative projects in the development of the 
region and its core activities of the agricultural sector, namely the 

development of an innovation cluster in the agricultural sector 
in conditions of recovery growth on the basis of the diagnostic 
indicators of its efficiency and effectiveness, as well as the spatial 
potential for the development of agriculture of the Russian 
Federation, it was evident that, despite the presence of a number 
of factors which have a deterrent effect on the functioning of the 
agrarian sector, low competitiveness, poor investment policy in 
the domestic agriculture formed the background of the transition 
to the cluster model of development, which in turn contributes to 
a more progressive stage of development of agriculture and the 
sphere of its influence.

It is established that the formation of cluster-forming conditions 
will require active public policy, public impact aimed at increasing 
the level of competition and degree of concentration of production 
in the agricultural sector, improving the innovation component 
of the investment climate, diversifying the economic structure, 
promotion of industries and sectors of the regional economy, 
which are able to give a synergistic effect.

For the formation of the resource base for support of investment 
projects it is necessary to make a state a grace exposure and 
funding, aimed at the formation and functioning of agro-industrial 
clusters of the agrarian sector means the basis of a single 
investment system, including institutions such as mutual fund 
agricultural consumer credit cooperatives, funds for mutual 
financial assistance, agricultural leasing funds, venture innovation 
fund and the institute of mortgage lending.

Only these projects are innovative updates of agrarian policy of the 
region, its economically stable activities will allow for effective 
performance of agro-industrial clusters and high-level qualitative 
indicators, derived products, which will enable the region and the 
country to reach the world level of market relations to improve and 
increase their competitiveness, striving to achieve the specified 
level in the leading countries.

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