Theoretical Basis for Composition of Economic Strategy for Industry Development

E.A. Ivanova, M.M. Mackay, T.K. Platonova, N.V. Elagina
European Research Studies Journal, Volume XX, Issue 1, 246-256, 2017
DOI: 10.35808/ersj/614

Abstract:

The article deals with the issues related to analysis of domestic engineering problems with the assessment of the current state of the industry as a whole. Considering the prospects of exiting the current crisis, as well as long-term economic growth we expect general welfare within the sector. As the object of the study the authors have selected the engineering industry of the country. The subject of research is the economic relations between producers and consumers of engineering products, as well as issues of strategy formation and development of the engineering industry. The authors analyzed the state of machine-manufacture and highlighted the problems, the solution of which is most relevant given the government policy of increased import substitution and enhanced productivity. Further analysis was carried out in the sphere of sources of financing and attraction of investment resources for all kinds of enterprises of mechanical engineering, on the basis of which economic development strategy for the industry may be constructed. In addition, the authors propose measures and concrete ways of solving the problems identified by the formation of economic strategy of development of the industry, involving plans of achievement of all the defined targets. As a result of the study authors concluded that the need to stop subsidizing loss-making enterprises, creating a favorable climate for the development of venture companies, in order t introduce innovative technology as soon as possible. These technologies could subsequently be exported together with products of greater added value.


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