Impact of Budget Investment on Labor Productivity in Resource Models of Intellectual Capital (on the Example of Russian Regions) *

ABSTRACT

This paper investigates the influence of budget investment in intellectual capital on labor productivity in Russian regions. The study shows that investments in fixed assets of the education sector, investments in the creation of new information technologies, investments in the field of research and development (R&D) directly related to human intellectual activity can be considered as the main areas of investment that form the intellectual capital of the region, and also as resource factors of economic growth in addition to the basic factor - the dynamics of the capital-labor ratio. Econometric models of the influence of private and budget investments in fixed assets (including federal and regional), investments in ICT, education and R&D on labor productivity, built using the production function and panel regression, are based on data for 85 constituent entities of the Russian Federation for 2017-2019 years, presented on the websites of the Federal State Statistics Service and the Unified Interdepartmental Information and Statistical System (EMISS) of the Russian Federation. The results of modeling showed the significant impact of budget investments in ICT, as well as training and retraining of personnel on labor productivity in Russian regions.