INNOVATIVE AND INVESTMENT ACTIVITIES OF DOMESTIC ENGINEERING: STATUS AND TRENDS

Abstract

In today’s reality, Russia’s technological vulnerability problem requires an urgent solution. Therefore, intensifying investment and innovation activities in the mechanical engineering sector, the main system-forming sector of the economy, is crucial for the survival of our country. The author recognizes the close interdependence of investment and innovation processes and aims to conduct a comparative and correlation analysis based on official data from the Federal State Statistics Service for one type of activity related to mechanical engineering. The study reveals that the crisis in Russian engineering, which began in the 1990s, is ongoing, with extremely low levels of innovation and investment. These factors are insufficient for the technical and technological re-equipment of the country’s machine-building sector. Additionally, the depreciation of partially and completely worn-out equipment exacerbates the crisis. The author believes that the development of mechanical engineering and related sectors in the Russian economy can only occur when the ruling elites implement a radical change in the direction of state policy. This change should prioritize the integrated use of state support measures to systematically address the identified problem. The author emphasizes that such a change in policy should follow a rhetoric of innovation and investment by the ruling elites.