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Advances in Intelligent Systems and Computing 908

Svetlana Ashmarina
Anabela Mesquita
Marek Vochozka Editors

Digital Transformation
of the Economy:
Challenges, Trends and
New Opportunities
Advances in Intelligent Systems and Computing

Volume 908

Series editor
Janusz Kacprzyk, Systems Research Institute, Polish Academy of Sciences,
Warsaw, Poland
e-mail: kacprzyk@ibspan.waw.pl
The series “Advances in Intelligent Systems and Computing” contains publications on theory,
applications, and design methods of Intelligent Systems and Intelligent Computing. Virtually all
disciplines such as engineering, natural sciences, computer and information science, ICT, economics,
business, e-commerce, environment, healthcare, life science are covered. The list of topics spans all the
areas of modern intelligent systems and computing such as: computational intelligence, soft computing
including neural networks, fuzzy systems, evolutionary computing and the fusion of these paradigms,
social intelligence, ambient intelligence, computational neuroscience, artificial life, virtual worlds and
society, cognitive science and systems, Perception and Vision, DNA and immune based systems,
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research results.

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Chairman
Nikhil R. Pal, Indian Statistical Institute, Kolkata, India
e-mail: nikhil@isical.ac.in
Members
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Clara, Cuba
e-mail: rbellop@uclv.edu.cu
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e-mail: escorchado@usal.es
Hani Hagras, School of Computer Science & Electronic Engineering, University of Essex, Colchester, UK
e-mail: hani@essex.ac.uk
László T. Kóczy, Department of Information Technology, Faculty of Engineering Sciences, Győr, Hungary
e-mail: koczy@sze.hu
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e-mail: vladik@utep.edu
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e-mail: ctlin@mail.nctu.edu.tw
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e-mail: Jie.Lu@uts.edu.au
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e-mail: epmelin@hafsamx.org
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e-mail: nadia@eng.uerj.br
Ngoc Thanh Nguyen, Wrocław University of Technology, Wrocław, Poland
e-mail: Ngoc-Thanh.Nguyen@pwr.edu.pl
Jun Wang, Department of Mechanical and Automation, The Chinese University of Hong Kong, Shatin,
Hong Kong
e-mail: jwang@mae.cuhk.edu.hk

More information about this series at http://www.springer.com/series/11156

Svetlana Ashmarina Anabela Mesquita
• •

Marek Vochozka
Editors

Digital Transformation
of the Economy: Challenges,
Trends and New
Opportunities

123
Editors
Svetlana Ashmarina Anabela Mesquita
Department of Applied Management School of Accounting and Administration
Samara State University of Economics Polytechnic Institute of Porto
Samara, Russia São Mamede de Infesta, Portugal

Marek Vochozka
Institute of Technology and Business
České Budějovice, Czech Republic

ISSN 2194-5357 ISSN 2194-5365 (electronic)

Advances in Intelligent Systems and Computing
ISBN 978-3-030-11366-7 ISBN 978-3-030-11367-4 (eBook)
https://doi.org/10.1007/978-3-030-11367-4

Library of Congress Control Number: 2018966835

© Springer Nature Switzerland AG 2020

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Contents

Russia and the World in the Digital Epoch

Digital Economy Institutional Traps: A Regional-Sectoral Approach . . . 3
T. E. Stepanova and R. K. Polyakov
Countering the Financing of Terrorism in the Conditions
of Digital Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Anastasia Andrianova
Robots Liability or Liability for Products? . . . . . . . . . . . . . . . . . . . . . . 32
Sergey Petrovich Bortnikov
The Power Grid Complex of Russia: From Informatization
to the Strategy of Digital Network Development . . . . . . . . . . . . . . . . . . 42
O. V. Danilova and I. Yu. Belayeva
Features of Information Support of Export Marketing in the
Conditions of Digitalization of the Global Economy . . . . . . . . . . . . . . . . 54
S. V. Grankina, N. A. Kryuchkova, and Ya. G. Sayamova
Human Capital Evaluation in the Digital Economy . . . . . . . . . . . . . . . . 66
Tatiana Anatolyevna Korneeva, Olga Nikolaevna Potasheva,
Tatiana Evgenyevna Tatarovskaya, and Galina Aleksandrovna Shatunova
The Problem of Energy Saving and Its Solution in the Conditions
of Formation of a New Model of Economic Development . . . . . . . . . . . 79
Olga Evgenevna Malikh, Maria Evgenevna Konovalova,
Olga Yurevna Kuzmina, and Alexander Michailovich Michailov
Regulation of Tax Havens in the Age of Globalization
and Digitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
Svetlana Nikolaevna Revina, Pavel Alexandrovich Paulov,
and Anna Viktorovna Sidorova

v
vi Contents

Socio-ethical Problems of the Digital Economy: Challenges and Risks . . . 96

A. V. Guryanova, I. V. Smotrova, A. E. Makhovikov,
and A. S. Koychubaev
The Transition to a Digital Society in the People’s Republic
of China (Development and Implementation of the Social
Credit Score System) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
E. A. Timofeeva
Target Indicators and Directions for the Development
of the Digital Economy in Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
N. N. Belanova, A. D. Kornilova, and A. V. Sultanova
Reforming the Institutional Environment as a Priority
for Creating the Digital Economy in Russia . . . . . . . . . . . . . . . . . . . . . . 119
K. N. Ermolaev, Yu. V. Matveev, O. V. Trubetskaya,
I. A. Lunin, and A. V. Snarskaya
Adapting of International Practices of Using Business-Intelligence
to the Economic Analysis in Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
S. Mitrovic
Human Transformation Under an Influence of the Digital
Economy Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
A. V. Guryanova, S. V. Krasnov, and V. A. Frolov
Targeting as an Instrument of State Financial Policy
in the Digital Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
M. B. Tershukova, O. G. Savinov, N. G. Savinova, and L. N. Milova
Digital Economy – Information Era: Retrospective Analysis . . . . . . . . . 163
V. S. Grodskiy and G. R. Khasaev

Digital Transformation of Economy: Trends and Prospects

Analysis of Entrepreneurial Activity and Digital Technologies
in Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
A. V. Shafigullina, R. M. Akhmetshin, O. V. Martynova,
L. V. Vorontsova, and E. S. Sergienko
Risk Identification in the Sphere of Quality Under the Conditions
of Digital Economy Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
T. A. Korneeva, I. A. Svetkina, E. S. Morozova, and A. S. Zotova
Innovation Clusters in the Digital Economy . . . . . . . . . . . . . . . . . . . . . . 200
Ruslan Polyakov and Tatjana Stepanova
The Competitiveness of Single-Industry Cities in the Digital
Transformation of the Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216
M. S. Guseva and E. O. Dmitrieva
Contents vii

Problems of Digital Technologies Using in Employment and

Employment Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
M. K. Kot, F. F. Spanagel, and O. A. Belozerova
Peculiarities of Unstable Employment in the Era of a Digital
Economy from Data of Social Media of Russia . . . . . . . . . . . . . . . . . . . 235
V. N. Bobkov, M. V. Simonova, N. V. Loktyuhina, and I. A. Shichkin
The Use of Identical IP Address by Tender Participants
as an Indication of Cartel Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244
Ju. A. Dorofeeva and M. A. Tokmakov
Structural and Functional Analysis of Requirements to Managers
of Innovative Companies in the Conditions of the Digital Economy . . . . 253
V. V. Mantulenko, A. V. Mantulenko, E. P. Troshina,
and M. V. Vorotnikova
Problems of the Development of the Digital Economy
at the Regional Level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260
V. A. Savinova, E. V. Zhegalova, J. V. Semernina, and A. S. Kozlova
Digital Farming Development in Russia: Regional Aspect . . . . . . . . . . . 269
A. V. Shchutskaya, E. P. Afanaseva, and L. V. Kapustina
Analysis of the General Development Trends and the Level
of Digitization of the Pharmaceutical Market
in the Russian Federation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280
A. L. Beloborodova, N. G. Antonchenko, A. V. Pavlova,
A. D. Hajrullina, and A. A. Soldatov
Clusters, Digital Economy and Smart City . . . . . . . . . . . . . . . . . . . . . . . 291
L. V. Ivanenko, E. A. Karaseva, and E. P. Solodova
Human Capital Accounting Issues in the Digital Economy . . . . . . . . . . 296
O. Yu. Kogut, R. Es. Janshanlo, and K. Czerewacz-Filipowicz
Risk Management of Innovation Activities in the Conditions
of the Digital Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306
T. N. Syrova

Market Paradigm of the Digital Economics

Transformation of the Institution of Money in the Digital Epoch . . . . . 315
M. E. Konovalova, O. Y. Kuzmina, and S. Y. Salomatina
Business Analytics of Supply Chains in the Digital Economy . . . . . . . . . 329
T. E. Evtodieva, D. V. Chernova, N. V. Ivanova, and O. D. Protsenko
viii Contents

Monitoring as a Tool to Ensure the Quality of Services Provided in the

Interaction of Service Organizations and Municipal Authorities in
Economy Digitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337
M. V. Vesloguzova, L. S. Petrik, K. M. Salikhov, and O. A. Bunakov
Prospects for the Integration of Environmental Innovation
Management on the Platform of Information
and Communication Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345
I. V. Kosyakova, N. Yu. Zhilyunov, and Yu. V. Astashev
Social Media Marketing as a Digital Economy Tool of the Services
Market for the Population of the Republic of Tatarstan . . . . . . . . . . . . 356
S. Shabalina, E. Shabalin, A. Kurbanova, A. Shigapova, and R. Vanickova
Model of the Internet Escrow’s Legal Regulation as a Factor
of Efficiency of Its Use in E-Commerce . . . . . . . . . . . . . . . . . . . . . . . . . 368
M. A. Tokmakov
Development of the Practice of Sharing Economy in the
Communicative Information Environment of Modern
Urban Communities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 376
B. Nikitina, M. Korsun, I. Sarbaeva, and V. Zvonovsky
The Internet of Things: Possibilities of Application
in Intelligent Supply Chain Management . . . . . . . . . . . . . . . . . . . . . . . . 395
T. E. Evtodieva, D. V. Chernovа, N. V. Ivanova, and J. Wirth
The Use of Technology of Digital Economy to Create
and Promote Innovative Excursion Products . . . . . . . . . . . . . . . . . . . . . 404
G. V. Aleksushin, N. V. Ivanova, and I. J. Solomina
Intellectual Algorithms for the Digital Platform
of “Smart” Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 411
T. B. Efimova, V. A. Haitbaev, and E. V. Pogorelova
Networks of Competences of Subjects of the Local Food Market
in the Conditions of Formation of Digital Economy . . . . . . . . . . . . . . . . 419
N. V. Sirotkina, O. G. Stukalo, N. V. Nikitina, and A. A. Chudaeva

Education of the Future: New Professional Frames and Jobs

in Conditions of Digital Economy
Readiness to Changes as One of Educational Values
of Innovation-Oriented Procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . 429
L. V. Averina, E. P. Pecherskaya, and A. R. Rakhmatullina
Gaps in the System of Higher Education in Russia in Terms
of Digitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437
S. I. Ashmarina, E. A. Kandrashina, A. M. Izmailov, and N. G. Mirzayev
Contents ix

Training Employees in the Digital Economy with the Use

of Video Games . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 444
L. V. Kapustina and I. A. Martynova
Legal Education in Conditions of Digital Economy Development:
Modern Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455
M. A. Yavorskiy, I. E. Milova, and V. V. Bolgova
Potential of the Education System in Russia in Training Staff
for the Digital Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 463
E. A. Mitrofanova, M. V. Simonova, and V. V. Tarasenko
Open Educational Resources in the Digital Economy:
Legal Regulatory Framework for Free Software License . . . . . . . . . . . . 473
N. V. Deltsova
Matrix Model of Cognitive Activity as One of the Meta Basis
of Digital Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 481
N. A. Tymoschuk, E. N. Ryabinova, O. A. Sapova, and V. Oddo
Information and Education Means of Social Educational Networks . . . . 494
A. S. Zotova, V. V. Mantulenko, N. A. Timoshchuk, and L. Stašová
Information Modeling of the Students’ Residual Knowledge Level . . . . 502
S. I. Makarov and S. A. Sevastyanova
Effective Staff Training for the Contract System in the Conditions
of the Digital Economy: Opportunities and Limitations . . . . . . . . . . . . . 510
L. V. Averina, E. P. Pecherskaya, and O. V. Astafeva
Political Economy Assessment of the Educational System Promotion
in Russia in the Conditions of Digital Economy Formation . . . . . . . . . . 518
V. A. Noskov and V. V. Chekmarev
Gamification for Handing Educational Innovation Challenges . . . . . . . . 529
Z. Yordanova
The Model for Meeting Digital Economy Needs for Higher
Education Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 542
E. V. Bolgova, G. N. Grodskaya, and M. V. Kurnikova

Digital Economy in the Socio-Economic Development of Enterprises

Innovation Activities of Enterprises of the Industrial Sector
in the Conditions of Economy Digitalization . . . . . . . . . . . . . . . . . . . . . 559
A. V. Zastupov
On Collaborations Between Software Producer and Customer:
A Kind of Two-Player Strategic Game . . . . . . . . . . . . . . . . . . . . . . . . . . 570
I. V. Yakhneeva, A. N. Agafonova, R. V. Fedorenko, E. V. Shvetsova,
and D. V. Filatova
x Contents

Digitalization as a Source of Transformation of Value Chains

of Telecommunication Companies Using the Example of PAO
Megaphone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 581
S. I. Ashmarina, E. A. Kandrashina, and Ju. A. Dorozhko
Industrial Enterprises Digital Transformation in the Context of
“Industry 4.0” Growth: Integration Features of the Vision Systems for
Diagnostics of the Food Packaging Sealing Under the Conditions
of a Production Line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 590
R. K. Polyakov and E. A. Gordeeva
Digital Ecosystem: Trends in the Retail Segment . . . . . . . . . . . . . . . . . . 609
N. S. Kisteneva, D. V. Ralyk, E. V. Loginova, and T. E. Gorgodze
Integrated Reporting of Public Educational Institutions: Challenges
of Modern Times . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 622
O. I. Averina, N. F. Kolesnik, and V. A. Manyaeva
Characteristics of Russian Government Financial Resources:
Historical Overview and the Situation Under Digital Economy . . . . . . . 635
T. M. Kovaleva, E. N. Valieva, and E. V. Popova
Current Problems of Enterprises’ Digitalization . . . . . . . . . . . . . . . . . . . 646
A. B. Vishnyakova, I. S. Golovanova, A. A. Maruashvili, P. Zhelev,
and D. V. Aleshkova
Innovative Approaches to Quality Monitoring of Medical Services
in the Digital Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 655
A. D. Khairullina, A. V. Pavlova, N. V. Kalenskaya,
and G. R. Mukhametshina
Cyber Risks for Insurance Company . . . . . . . . . . . . . . . . . . . . . . . . . . . 669
G. N. Kaigorodova, A. A. Mustafina, G. K. Pyrkova, M. G. Vyukov,
and L. M. Davletshina
Digital Technology in Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 678
A. A. Mustafina, G. N. Kaigorodova, P. D. Alyakina, N. Y. Velichko,
and M. R. Zainullina
Crises and Digital Economy: The Territorial Aspect of the Problem
of Networking of Stakeholders in the Food Markets . . . . . . . . . . . . . . . 686
N. V. Sirotkina, O. G. Stukalo, N. V. Nikitina, and M. V. Filatova
Analysis and Assessment of Quality of Medical Services
in Conditions of Digital Transformation . . . . . . . . . . . . . . . . . . . . . . . . . 693
E. S. Rolbina, E. N. Novikova, N. S. Sharafutdinova, O. V. Martynova,
and R. M. Akhmetshin
Contents xi

Electronic Interaction in the Sphere of Physical Culture

and Sports Services in Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 703
A. O. Aleksina, D. V. Chernova, and A. Y. Aleksin
Author Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 715
Russia and the World in the Digital
Epoch
 Digital Economy Institutional Traps:
A Regional-Sectoral Approach

T. E. Stepanova and R. K. Polyakov(&)

Kaliningrad State Technical University, Kaliningrad, Russia

tatyana.stepanova@klgtu.ru, polyakov_rk@mail.ru

Abstract. The article presents the results of the authors’ research the subject of
which are issues of the region fisheries industry development in a digital
economy. The paper presents the main problems of entrepreneurship in the
region, due to its exclave position. Those problems were the main deterrent on
its way to a competitive position among the Baltic Sea countries.
The article is devoted to the analysis of the institutional space of the Kalin-
ingrad region in the fisheries industry from the standpoint of the institutional
traps theory. The study allowed the authors to identify existing institutional traps
in the industry. There are institutional traps associated with the development
subsidy model, with the format of the region as a special economic zone (SEZ),
with the lack of small enterprises.
The authors of the article studied the issues related to the growing pressure of
the digital economy and determined the regulating directions of the fisheries
industry institutional traps in the Kaliningrad region.
The study offers the author’s view on a significant impact of the institutional
traps in the fisheries sector of the region in the context of the global transfor-
mation of the country and the increasing pressure of universal digitalization.

Keywords: Digital economy
Digitalization
Fisheries industry

Innovation
Institutional traps
Technology

1 Introduction

The theory of institutional traps is one of the most priority areas of scientific research,
which allows developing practical recommendations for the transformation of institu-
tional space at various levels of management, including digital economy. Let us turn to
the study of the institutional traps of a specific region - the Kaliningrad region, which
has more than once played the role of a pilot region for Russia, where advanced models
of economic development were introduced and tested such as the “Yantar” SEZ, and
free customs zone. This is the first in Russia special economic zone which brought
various innovations (Kaliningrad citizens were the first who benefited) and then
“exported” them to other regions of the country. However, in the last five to seven
years, Kaliningrad’s status of the innovator has been lost in a large extent, which
immediately affected its socio-economic situation. Almost all exclave territories have a
limited domestic consumer market, which is the main problem of the region
entrepreneurship development. The problem can be solved by expanding markets for

© Springer Nature Switzerland AG 2020

S. Ashmarina et al. (Eds.): Digital Transformation of the Economy: Challenges,
Trends and New Opportunities, pp. 3–19, 2019.
https://doi.org/10.1007/978-3-030-11367-4_1
4 T. E. Stepanova and R. K. Polyakov

goods either for export or to other regions of the country in transit through neighboring
states. As a result, there is an increase in the cost of goods due to an increase in
transportation costs in terms of customs clearance and cargo escort, transit fees. In
addition, we can see a decline in the competitiveness of goods and products of the
exclave, a slowdown in the turnover of the working capital invested in them, an
increase in the payback period of the invested capital.
Consequently, the most acute problems of entrepreneurship in the region, due to its
exclave position, become a brake on the development of the regional economy. Among
the factors that negatively affect the economic development of the Kaliningrad region,
it is necessary to highlight the reduction in industrial production and the number of
enterprises, especially in the small business sector, the low level of solvency of the
population and enterprises, the underdevelopment of the general infrastructure of
entrepreneurship as a whole, and transport and information infrastructure.
Based on the most of the indicators of innovation impact on the economy of the
Kaliningrad region we can say that the exclave is seriously lagging behind the leading
innovative economies, including those of the Baltic region. The region has not become
a leader in the European market, because its high-tech products are characterized by
insufficient competitiveness. In addition, the risks of falling into a “loop of stagnation”
increase with a multiple lag from European countries in most of the considered
indicators.

2 Materials and Methods

Liberalization of foreign economic activity, as follows from the experience of the

exclave region, sharply stimulates the development of entrepreneurship, increasing its
investment attractiveness due to the possibility of profit transfer. Attracting and
securing capital in the regional economy can be facilitated by a multi-level business
stimulation system, where first-level incentives encompass enterprises whose activities
include export-import operations on priority goods for the region, second-level firms
that carry out only part of their trade operations (warehousing, packing, partial pro-
cessing of goods, transshipment of goods), the third level - local producers.
The adoption of the Federal Law “On the Special Economic Zone in the Kalin-
ingrad Region” [1] significantly worsened the working conditions of newly created
small enterprises. The law did not solve the existing problems with import substitution,
but reinforced the “shadow” sector of the regional economy: it prolonged the special
economic zone effect of customs privileges for ten years for the old participants of the
market. The main factor in increasing socio-economic stability could be the cultivation
of efficient small business in local conditions. However, government reckoned on large
investors, hoping to strengthen the influence of domestic capital as an alternative to
Western capital. Such an approach could be justified only if a local industrial park of a
certain specialization was formed in Kaliningrad. In practice, in the conditions of the
Kaliningrad region, the Law created a conflict situation with unequal rules.
In addition to the above factors, other factors also have a significant deterrent effect
in the Kaliningrad region [2]:
 Digital Economy Institutional Traps: A Regional-Sectoral Approach 5

• the presence of a high level of criminalization of the business sphere, the “shadow”
sector of the economy, whose indicators are significantly higher than the permis-
sible parameters;
• significant tax burden on small businesses, insufficient differentiation of taxation of
various categories of entrepreneurs are one of the main factors for the growth of the
“shadow” sector of the economy;
• unresolved problems associated in practice with the elimination of unjustified
administrative barriers, and, above all, by the regulatory authorities;
• high values of investment risk indicators, the current structure of investment, not
stimulating the development of production;
• increasing manifestations of unfair competition in relation to small businesses in
commodity markets (imposing contracts on unfavorable terms, price dumping,
creating artificial barriers to entering the market, etc.);
• the predominance of an inadequate level of professional training in the business
environment, the existence of discrimination in labor relations between employers
and employees in this segment of economic activity.
It should be noted that the problems of small business are determined by state
policy, as well as the confrontation of small business with administrative barriers.
The latter are not just an obstacle to the development of especially small business
and entrepreneurship, but a state problem: when confronted with administrative bar-
riers, small enterprises go into a “shadow” economy in an effort to reduce transaction
costs (overhead) and bureaucratic risks [3].
The reasons are objective: the interception of initiatives by other Russian SEZs, the
abolition of customs privileges, the ruble fall, etc. Nevertheless it does not make the
situation easier. In fact, the subsidy model of development was imposed on the region -
the most conservative format, which can implemented only in a Russian hinterland. We
believe that by all immanent signs this is a real institutional trap (subsidy model of
development). Given this, this region is not capable of becoming a guide for the
European exclave of Russia, which is one-step away from industrial centers of world
importance.
The subsidy model was originally conceived as a transitional one. It should be
replaced by an investment model when the region develops and earns itself, using the
benefits of an exclave position and compensating for its shortcomings. This is not only
about the new Law on Territory - in any case, it will be a compromise between the
needs of the region and the possibilities of Moscow. We can do a lot for the devel-
opment of the region itself, relying on our own resources.
The advanced model of the Kaliningrad region in the era of the digital economy -
what should it be at the new historical stage? What specialization will ensure the
sustainability of our economy and what is the role of small and medium businesses in
it? Can it only become one of the pillars of the development of the domestic market, if
the SME (small and medium enterprise) sector is freed from administrative pressure?
Are there any world analogues of the Kaliningrad exclave - and how have the local
modernization practices provided these territories with an economic breakthrough? Is
Kaliningrad capable of becoming a “European window of Russia”? All these questions
are remained open.
6 T. E. Stepanova and R. K. Polyakov

3 Results

Today, some regions are growing faster than others are, and at times, this is contrary to
economic theory. In the current digital whirlwind, the economic climate for the regions
is becoming unpredictable, and the tools that policymakers choose are not always the
ways to stimulate new and sustainable growth in the region. Therefore, these features
are central to this work. The authors of the article investigated the regulation of the
institutional traps of the fishing industry of the Kaliningrad region in the conditions of
digitalization of the economic space.
The study by Antonelli [4], the OECD “Regions Matter” [5] suggest that regions
grow in very different ways, and the simple concentration of resources in the region
does not lead to long-term growth. The authors of the latter report [5] state that there is
no unique model of sustainable growth. Concentration of economic activity does not
necessarily lead to higher levels of productivity or higher growth rates. Growth
opportunities exist in all types of regions throughout the territory and depend on how
well the region is able to mobilize its assets in order to take full advantage of its
potential growth.
The speed with which technological changes occur is constantly increasing [6].
This is confirmed by a number of studies in recent years. Therefore, in their work, Wei
and Liu [7] analyze technological changes and evaluate the role they play in economic
growth. In another paper, the author Perera-Tallo [8], using the developed growth
model, answers the question of how technological changes increase the share of rev-
enues of reproducible factors at the expense of non-reproducible.
Technological congruence understanding is an important factor in economic
growth, both at the firm level and at the aggregate level [4]. Using this knowledge, one
can increase the competitiveness of regions and significantly stimulate technological
progress [9].
The accumulation of technological knowledge creates an increasing return [10],
while a region with such a technological knowledge base has more chances to activate
learning processes that will increase the ability to create new technological knowledge
compared to the regions without it [11]. Consequently, the stock of knowledge accu-
mulated in the region increases its future inventiveness/innovative ability [9].
The rapid development of breakthrough technologies poses new challenges to
global leaders in digitalization, those who are already involved in the digital trans-
formation processes, and those who are only at the beginning. The risks of “subver-
sive” impact, naturally associated with new technologies, make decision-making
processes at the state level more complex and multifaceted. The government has to
ensure an increasingly complex balance between protecting the basic interests of the
country and its subjects, on the one hand, and using new technologies to ensure the
country’s competitiveness and accelerate economic growth, on the other.
Despite the fact that Russia has developed a clear vision and strategy for digital
transformation and set ambitious goals, much work needs to be done to prepare detailed
action plans and roadmaps to implement this strategy. The results of the assessment of
Russia’s readiness for the digital economy are presented in Fig. 1.
 Digital Economy Institutional Traps: A Regional-Sectoral Approach 7

Public policy and strategic planning

5
Social and economic effects Leadership and institutions
4
Digital citizens Law
3

2
Digital Business Transformation Human capital
1

0
Digital transformation of the public sector R & D and innovation

Digital economy Business environment

New Digital Technologies Trust and security

Digital platforms Digital infrastructure

Fig. 1. Results of an assessment of Russia’s readiness for the digital economy [12] (Source:
Analysis of the current level of development of the digital economy in the Russian Federation.
World Bank, Institute of the Information Society, October 2017)

The more detailed Russia’s assessments in the framework of digital development

are presented in the World Bank’s 2016 “World Development Report: digital dividends
review” [13]. This report examined the socioeconomic effects of digital transformation,
that is, digital dividends, and the conditions for obtaining them.
However, it is already clear what is necessary for the country to make significant
efforts to optimize the management of this process, in order to identify the best tools for
monitoring and evaluating ensuring the effectiveness of Russia’s development in the
digital space.
It is also extremely important to develop a mechanism for the active participation of
all major stakeholders in the transition to a digital economy and constant coordination
at the federal, regional and municipal levels.
In recent years, Russia has invested in the development of broadband Internet
access and has built a fairly powerful and developed digital infrastructure, including a
competitive telecommunications market. This infrastructure has allowed the creation of
large domestic and localized digital platforms.
An assessment of Russia’s readiness for the digital economy in terms of the digital
infrastructure is on the Fig. 2.
In recent years, Russia has achieved some success in the development of digital
government, with technological changes affecting the relationship between the cus-
tomer and the seller. There are tools online sales that allow you to meet the basic needs
of customers: speed, convenience and simplicity.
Next, we will conduct an economic assessment of the development of the Kalin-
ingrad region on the subject of fisheries industry institutional traps of the region in the
digital economy.
A general description of enterprises and organizations of the Russian Federation is
presented below [14] (Fig. 3).
8 T. E. Stepanova and R. K. Polyakov

Broadband internet access

5
4
3
Information Security Mobile Cellular Networks
2
1
0

Maturity level of national data Price availability of broadband

analytics industry access

Data centers and cloud technologies

Fig. 2. Assessment of Russia’s readiness for the digital economy: Digital infrastructure [12]
(Source: Analysis of the current level of development of the digital economy in the Russian
Federation. World Bank, Institute of the Information Society, October 2017)

6000000
4886432 4886007 5043553
4823304 4866620 4843393 4764483
5000000 4767260

Number 4000000
of units
3000000

2000000

1000000 610736 631766 622277 601863 612415 616159 640810 616017

0
2005 2010 2011 2012 2013 2014 2015 2016

Year

Russian Federation Northwestern Federal District

Fig. 3. The number of enterprises and organizations in Russia (by the end of the year) (Source:
compiled by the authors according to Rosstat) [14]

During the analyzed period, the number of enterprises and organizations in the
country decreased by 2,777 units or 0.1% (Fig. 4). In the Northwestern Federal Dis-
trict, the opposite trend is observed: their number increased by 5281 units or 0.9%.
Moreover, the proportion of enterprises of the exclave in the district grew steadily
(from 7.6 to 9.0%) (Fig. 4).
The general trend in the number of enterprises in the Kaliningrad region indicates
their significant growth. Thus, their number increased in 2016 compared to the same
indicator in 2005 by 8957 units or 19.3% (Fig. 5).
However, at the beginning of 2017, the number of enterprises in the fisheries sector
in the region was only 157, which is less than a percent of the total number of
enterprises in the region (Fig. 5).
 Digital Economy Institutional Traps: A Regional-Sectoral Approach 9

56000 54541 55261

54000 52688 53023
51420 52004 50840
52000
50000
Number 48000 46304
of units
46000
44000
42000
40000
2005 2010 2011 2012 2013 2014 2015 2016
Year

Fig. 4. The number of enterprises and organizations in the Kaliningrad region (at the end of the
year) (Source: Compiled by the authors according to Rosstat) [14]

agriculture, hunting fishing, fish farming, mining, 130, 0%

and forestry, 1316, 4% 157, 0%

manufacturing
industries, 5530, 17%

wholesale and retail

trade; repair of motor production and
vehicles, motorcycles, distribution of
household goods and electricity, gas and
personal items, 18179, water, 290, 1%
56%

building, 7031, 22%

Fig. 5. Distribution of the number of enterprises and organizations by types of economic

activity in 2016 (at the end of the year) in the Kaliningrad region (Source: compiled by the
authors according to Rosstat) [14]

The share of enterprises in the fisheries sector of the North-West Federal District in
the total number of enterprises in this sector of Russia in 2016 was 13.3%, and the
Kaliningrad region - 1.9%. The share of enterprises of the exclave industry in the
district is also insignificant - 14.4% (Table 1).
Another institutional trap for the fishery in the Kaliningrad region is the shortage of
small enterprises in the industry. This is eloquently shown by the following data
(Tables 2 and 3) [15].
Over the past five years, the dynamics of the number of enterprises in the fisheries
industry in the region shows a reverse trend in the development of the total number of
organizations in the region. There was a reduction of 14 economic entities or 8.2%, i.e.
there is an outflow of capital from the industry.
The data in Table 3 confirm the previously made conclusion with respect to small
enterprises in the industry: over the past five years, their number has decreased by 12
units or 8.7%. As shown in Fig. 6, they make up only 0.03% of the total number of
small enterprises of the exclave.
10 T. E. Stepanova and R. K. Polyakov

Table 1. Distribution of the number of enterprises and organizations by type of economic

activities in Russia in 2016
Name Enterprises By type of economic activities
in total among them
Rural Fishing, Mining Manufacturing Production Building Wholesale
household, fish industries and and retail
hunting farming distribution trade; repair
and forestry of of motor
electricity, vehicles,
gas and motorcycles,
water household
goods and
personal
items
Russian 4764483 133140 8187 18187 38717 31846 49786 1585030
Federation
Northwestern 616017 14846 1088 1684 51091 3318 68286 205538
federal district
Kaliningrad 55261 1316 157 130 5530 290 7031 18179
region
Source: compiled by the authors according to Rosstat [15]

Table 2. Distribution of economic entities by type of economic activity in the Kaliningrad

region
Number of organizations (end of year) Year
2012 2013 2014 2015 2016
Total: 50845 52695 53029 54549 55261
Including:
Agriculture, hunting and forestry 3230 3131 1295 1293 1316
Fishing, fish farming 171 173 174 170 157
Mining 100 103 101 114 130
Manufacturing industries 5137 5230 5361 5446 5530
Production and distribution of electricity, gas and 268 268 278 285 290
water
Building 5613 6037 6480 6852 7031
Wholesale and retail trade; repair of motor vehicles, 15862 16538 17329 17923 18179
motorcycles, household goods and personal items
Source: compiled by the authors according to Rosstat [15]

The following Table 4 presents the main economic indicators of the activities of
small enterprises in the Kaliningrad region.
Despite the fact that the Kaliningrad region occupies a leading position in com-
parison with the all-Russian indicators, the general situation in the development of
small business in the region and the city is rather controversial.
The risks associated with small businesses in the Kaliningrad region are specific:
the domestic consumer market is organic in capacity due to the exclave position of the
region, its remoteness from the rest of the country does not allow entrepreneurs to
redistribute goods to their markets in response to market changes. On the other hand,
 Digital Economy Institutional Traps: A Regional-Sectoral Approach 11

Table 3. Number of small enterprises (including micro enterprises) by type of the economic
activity in the Kaliningrad region (units)
Indicator Year
2012 2013 2014 2016
Total 24340 21538 21779 28308
Including:
Agriculture, hunting and forestry 522 367 378 436
Fishing, fish farming 93 59 47 81
Mining 47 30 38 64
Manufacturing industries 2883 2156 2345 2900
Production and distribution of electricity, gas and water 109 81 74 99
Building 2357 2650 2783 3671
Wholesale and retail trade; repair of motor vehicles, 10699 8319 8179 10359
motorcycles, household goods and personal items
Hotels and restaurants 805 641 717 816
Transportation and communication 2316 2173 2150 2960
Real estate operations, rental and provision of services 3600 4089 4028 5514
Health and social services 275 298 278 423
Education 53 61 52 64
Provision of other community, social and personal services 395 423 474 616
Source: compiled by the authors according to Rosstat [15]

agriculture, hunting and

provision of other
forestry fishing, fish farming
education community, social and
0.016 0.003
0.002 personal services
0.022
mining
0.002

health and social services manufacturing industries

0.015 0.104

production and
real estate operations, distribution of electricity,
rental and provision of gas and water
services 0.004
0.197
building
transportation and 0.131
communication
0.106
wholesale and retail
hotels and restaurants trade; repair of motor
0.029 vehicles, motorcycles,
household goods and
personal items
0.370

Fig. 6. Distribution of small enterprises (including micro enterprises) by types economic

activity in the Kaliningrad region, in %. (Source: compiled by the authors according to Rosstat)
[15]
12 T. E. Stepanova and R. K. Polyakov

access to the markets of the European Union countries is hampered by existing barriers
in the form of stringent quality requirements, certification and labeling of goods, and
customs restrictions.

Table 4. Main economic indicators of Kaliningrad region small enterprises for the period from
2012 to 2016
Гoд Total number of enterprises Including microenterprises
Number of enterprises (by the end of the year), units
2012 24340 22173
2013 21538 19437
2014 21779 19145
2015 27014 24904
2016 28308 26105
Average number of employees, thousand people
2012 88,5 27,9
2013 94,6 32,6
2014 120,3 49,7
2016 128,5 64,1
The average number of employees (without external part-
timers), thousand people
2012 83 25,5
2013 90 30,5
2014 115,5 48,2
2016 123 61,1
Turnover of enterprises, mln. rub.
2012 192195,8 92608,7
2013 201583,1 90542,4
2014 256277,1 87650,9
2016 363557,5 197811,5
Source: compiled by the authors according to Rosstat [15]

Consequently, the state and development of small business in the region is directly
dependent on the economic situation in it. Economic ties with other regions of the
country and foreign countries are burdened with high transport and other expenses.
The weak export orientation of small businesses in the Kaliningrad region has
become a threat during the liberalization of Russian customs legislation related to
Russia’s accession to the WTO.
At the same time, the small business of the Kaliningrad region continues to operate
in international and regional markets. Accents are made on the growth of the com-
petitive goods production, the search and attraction of new investments, the search for
business partners and markets, the provision of modern equipment and the introduction
of innovative technologies.
 Digital Economy Institutional Traps: A Regional-Sectoral Approach 13

At the beginning of December 2017, the governor of the region A. Alikhanov

noted: “Amendments to the law on the Kaliningrad SEZ improve conditions for
business in the region, reduce the fiscal burden, and also enable the introduction of
electronic visas for foreigners” [16].
The Federal Law “On Amendments to Certain Legislative Acts of the Russian
Federation on the Socio-Economic Development of the Kaliningrad Region” was
signed by President Vladimir Putin on December 5. Earlier, on November 28, the head
of state approved amendments to the Tax Code, which also concern residents of the
SEZ in the region.
He noted that many entrepreneurs were waiting for the adoption of amendments
and postponed investment in new projects, until conditions improved. “In the full sense
of the word, we can say that it (the law) is long-awaited for all of us. We worked on it
for quite a long time, almost for two years” - said Governor Alikhanov [16], adding that
not all proposals from the region were included in the final document, but work on
improving the law could be continued. According to him, the Kaliningrad SEZ has
always been a leader in innovations for business and amendments to the law can return
this title to it.
Amendments to the law on the Kaliningrad SEZ suggest, in particular, the mini-
mum amount of investment 10 million rubles required to obtain the status of a SEZ
resident for projects in the field of health and pharmaceuticals and in 1 million rubles -
for the IT sphere; as well as exemption of residents from VAT on export goods, and for
goods imported from the territory of the Kaliningrad region - deferment of VAT for

Table 5. Investments in the fixed capital of small enterprises by type of economic activities (in
actual prices; mln. rubles)
Indicator Year
2012 2013 2014 2016
Total 2384,6 4186,1 3774 9084,9
Including:
Agriculture, hunting and forestry 607,6 1835 949,9 1487,7
Fishing, fish farming – – – 18,6
Mining 29,4 21,9 79,9 3
Manufacturing industries 997,1 1060,2 956,9 1358,2
Production and distribution of electricity, gas and – 296,5 156,7 130
water
Building 276,3 99,2 101,3 2712,8
Wholesale and retail trade, repair of motor vehicles, 136,8 126,4 154,9 650,6
motorcycles, household goods and personal items
Hotels and restaurants 0,2 30 15,8 34
Transportation and communication 35,9 303,9 458,2 321,9
Real estate operations, rental and provision of 140,5 247,8 719,2 1904
services
Health and social services 10 14,7 23 56,7
Provision of other community, social and personal 2,3 0,1 0,3 –
services
Source: compiled by the authors according to Rosstat [15]
14 T. E. Stepanova and R. K. Polyakov

180 days, compensation for railroad transportation expenses as well as zero profit tax
will be available for residents throughout the first six years of work in the SEZ.
Electronic visas are introduced for up to eight days, when issued, residents are
exempted from consular fees. For projects in the SEZ, the timeline for conducting a
state environmental review is reduced from three months to 45 days, and for state
examination of project documentation and engineering survey results from 60 to 45
calendar days.
One of the most important points in the regional government consider a reduction
in the rate of social contributions for residents from 30 to 7%, as well as the abolition of
the utilization fee for agricultural and construction equipment imported into the region.
The validity of the Kaliningrad SEZ is extended until 2045, while it was proposed to
establish a period until 2095. The proposal to lift the ban on commission trade in goods
from local agricultural producers, which were expected in the region, was not included
in the law.
Amendments to the law “On the Special Economic Zone in the Kaliningrad
Region” and the Tax Code turn the region into the most profitable territory for doing
business in the country from the costs standpoint. As a result - investments from South
Korea and Germany. One of the institutional traps in this branch of the region is the
investment trap (Table 5).
It should be noted that in the given data on investments in the fixed capital of small
enterprises there is no sector at all. The investment to fisheries industry small enter-
prises began only in 2016.
Further from Fig. 7 it is clear that the use of information and communication
technologies in organizations is growing rapidly. Organizations are actively investing
in the development of the digital capabilities of their organizations.

100
90
80
70
% 60
50
40
30
20
10
0
2005 2010 2012 2013 2014 2015 2016
Year

Personal computers Servers

Local Area Networks Global information networks

Organizations that had a website

Fig. 7. The use of information and communication technologies in organizations. (Source:

compiled by the authors according to Rosstat) [14]
 Digital Economy Institutional Traps: A Regional-Sectoral Approach 15

However, this is not enough for the breakthrough opportunities of the region.
Studies show that budget allocations for the development of fisheries and fish farming
in the region do not provide for articles on increasing the rate of digitization of the
regional industry.
The volume of budget allocations of the state program: the total funding of the state
program at the expense of the regional budget is 567,750.56 * thousand rubles. (ex-
cluding subventions from the federal budget to the regional budget for the imple-
mentation of powers in the field of organization, regulation and protection of aquatic
biological resources in the amount of 686 thousand rubles), including on an annual
basis (see. Fig. 8) [17].
Let us consider the expected results of the program:
• comprehensive modernization of seven Kaliningrad region fisheries industry
enterprises;
• private investment in the regional sector amount to more than 2 billion rubles;
• the expected increase in the efficiency of use of the raw material base up to 95%;
• production of fish products by enterprises of the region should reach 410 thousand
tons per year.

1,60,000.00 1,44,929.2
1,40,000.00 1,21,836.9
1,14,136.9
1,20,000.00
1,00,000.00
Thousand
80,000.00
rubles
60,000.00 46,336.9 48,736.9 48,536.9
43,236.9
40,000.00
20,000.00
0.00
2014 2015 2016 2017 2018 2019 2020

Year

Fig. 8. The amount of state program funding at the expense of the regional budget for 2014–
2020. (Source: compiled by the authors according to the data of the state program of the
Kaliningrad region “Development of the fisheries complex”) [17]

Over the past three years, the modernization of the fishing fleet has begun at the
expense of budget support within the regional state program for the development of the
fisheries sector of the exclave. Eight small fishing trawlers were re-equipped: modern
fish pumps and cooled fish tanks were installed. That will allow, according to experts,
to increase labor productivity twice as much and to improve the quality of fish entering
processing significantly. A large-scale project is being implemented by a group of
companies-investors of the Unified Marine Complex in the city of Svetly, the Kalin-
ingrad region. A small fishing trawler was rebuilt at the local ship repair site: the hull
was rebuilt, the first fishing tanks were installed, and field and electrical equipment,
power plants, navigation and communications equipment were completely replaced. As
a result, cargo capacity will increase to 120 tons. Raw materials of higher quality will
16 T. E. Stepanova and R. K. Polyakov

go for processing. Fishing trawlers comparable in class are not built anywhere in the
Russian Federation. Investments exceeded eighty million rubles. According to the
Kaliningrad region Agency for Fishery, 30% of the costs are subsidized to fishers from
the regional budget: for the modernization of vessels and the payment of loans interest.
Since 2013, about 20 million rubles have been allocated for these purposes.
Currently, in connection with the introduction of amendments to the law of the
Russian Federation “On the Special Economic Zone (SEZ) in the Kaliningrad Region”,
the investment situation in the region may improve. It is expected that deferred
investment will come in 2018 to the economy of the region. Summing up all the above
mentioned, it can be argued that the shortcomings of the institutional environment are
the main causes of the unstable situation in the Kaliningrad economy.

4 Discussion

Why the Kaliningrad “tiger” did not jump?

The main reason is as follows. The Kaliningrad Special Economic Zone was unable
to adapt to changes in economic conditions. Among the Russian regions, simultane-
ously with the creation of local SEZs in the Kaluga, Lipetsk regions, Tatarstan and
other territories that provide the same privileges on property, land and profit taxes,
competition for investors is intensifying. In addition, competing special economic
zones as additional preferences began to provide, for example, transport tax rebates or
free connection to utilities. Nothing of the kind was provided for residents of the
Kaliningrad SEZ.
Later on, in the Far East and in Siberia, special areas of special socio-economic
development (ASSED) were organized with facilitated payments to social funds, which
became a powerful incentive for the creation of highly skilled jobs and the development
of the digital economy. A special economic zone has appeared in Crimea with an
unprecedented amount of both tax and non-tax benefits.
What else did seriously reduce the attractiveness of the Kaliningrad SEZ? There
was a significant depreciation of the ruble exchange rate, as a result, the rise in prices
for imports of raw materials, components and equipment. The process of modernization
of regional enterprises began to slip, the competitiveness of products in the markets of
the Eurasian Economic Union decreased, taking into account transport costs and the
loss of customs preferences. All this allows us to consider its Kaliningrad SEZ format
as an institutional trap for the region.
The need to develop and transition to a new economic model in the digital era,
focused on the development of the production of high-tech goods and specialized
services, including those intended for export, was raised in the economic literature
more than a decade ago (for example, in the monograph edited by G.Z. Bunatyan
“Kaliningrad region: new challenges, new chances” [18]).
According to the national innovation report [19], it is clear that the current state of
the Russian innovation ecosystem is in an unsatisfactory state. Weaknesses can be
traced to a whole group of areas, such as research and development, commercialization,
innovation, infrastructure and industry maturity, in state institutions and business
values.
 Digital Economy Institutional Traps: A Regional-Sectoral Approach 17

The results of cluster analysis (Fig. 9) clearly show that countries with a similar
level of development of the innovation system have approximately the same devel-
opment parameters. Therefore, when improving the legislation and management sys-
tem of the Kaliningrad region, it is necessary to pay attention to the best practices that
the group of countries “Technological Leaders” have developed.

Countries
Scandinavian
comparable by Long-lived middles Technology leaders
countries
dynamics
Lifespan -1,1442 0,548 0,559 0,507
Productivity -0,993 0,092 0,299 0,917
Energy efficiency of production -0,364 0,038 -0,406 0,589
Global leadership in high-tech markets -0,588 -0,31 -0,535 1,263
Global Innovation Index Ranking -1,142 -0,256 1,163 1,006
Human Development Ranking -1,101 -0,109 0,799 0,994
Global Competitiveness Ranking -1,121 -0,014 0,915 0,865
Doing Business Ranking -0,923 -0,24 1,275 0,679
Food Safety Ranking -1,201 0,038 0,465 1,131
Global Cybersecurity Index -0,805 -0,111 0,43 0,834
Environmental Performance Index -0,662 0,035 1,536 -0,032

Russia Austria Denmark Great Britain

Bulgaria Belgium Finland Netherlands
Hungary Spain Sweden Ireland
Greece Italy Germany
Poland Portugal France
Romania Czech USA
Slovakia

Fig. 9. Results of cluster analysis: countries with a similar level of development of the
innovation system (Source: compiled by the authors according to National Innovation Report in
Russia - 2017 [19])

Experts believe that it is necessary to take a closer look at the international expe-
rience of the development of exclaves. This is an example of institutional transplan-
tation, import institutions. There are examples of successful exclaves (Macau, Hong
Kong, British Gibraltar) that can be used for Kaliningrad.
It is worth paying attention to the West Berlin experience. The geopolitical position
of West Berlin in the second half of the twentieth century was very similar: not very
friendly geographical environment. Systemic transit restrictions, remoteness from the
economically developed centers of the state, and, consequently, the loss of competi-
tiveness of local goods are characteristic of both regions. The economic situation
significantly worsened in both cases: the lack of funds for the “reanimation” of the
economy, the lack of production links with other regions of the country, the urgent
need for qualified personnel, and high political risks reduced the investment attrac-
tiveness. West Berlin, like the Kaliningrad region today, reacted more sharply to the
slightest changes on its borders than others. At the same time, the city’s economy
coped: a well-built system of economic incentives allowed West Berlin to not only
survive, but also to develop progressively. In the future, it was the West Berlin
experience that was used to reform the economy of East Germany. We have a clearly
visible analogy with the Kaliningrad region, which experience in creating a special
economic zone has become a model for other regions of Russia.
In the domestic economic literature there are concerns that the wide preferences of
the Kaliningrad region may lead to its excessive autonomization, but this position is
quite controversial. In the work of E.Y. Vinokurov “The Theory of Enclaves” [20] it is
substantiated that the ethnocultural community of the parent state and exclaves make
18 T. E. Stepanova and R. K. Polyakov

such a development illusory. In regard to these features, the Kaliningrad region can
really become a special region for testing and improving innovative technologies,
creating high-tech industries in the growing conditions of the digital economy.
We believe that Russian economics has not fully studied the world experience;
therefore, it is advisable to investigate it systematically and use legislation to develop
similar exclaves in practice. In the future, the Kaliningrad experience can be suc-
cessfully used in other regions of the country.

5 Conclusions

Thus, the current expansion of access to digital technology brings countries a wealth of
choice and greater convenience. By enhancing integration processes, increasing effi-
ciency and introducing innovations in the fisheries industry, the region is able to avoid
problems associated with probable institutional traps.
By implementing the steps identified by the government of the Russian Federation
in practice within the framework of the federal target program “Digital Economy of the
Russian Federation” [21], the regions have a chance to receive dividends and create
stable conditions for the flourishing of competitive digital economies.
At the same time, the Kaliningrad region should take into account that in the current
digital whirlwind, the economic climate for the region becomes unpredictable, and
tools that choose politicians are not always ways to stimulate new and sustainable
growth in the region. Under these conditions, digital pressure will only increase and the
exclave needs to identify and regulate institutional traps, including in relation to the
fisheries sector of the Kaliningrad region.
Institutional traps studied on the example of the fisheries industry in the region,
under the conditions of the process of digitization of the economy, are systemic and, as
analysis showed, they are not visible in key regional bills. In this regard, the key focus
on the development of the exclave region should be a policy to stimulate innovation
and the development of innovative ecosystems, including in the fisheries industry.
Due to these features, the Kaliningrad region can really become a special region for
testing and improving innovative technologies, creating high-tech industries under
conditions of digital pressure.
We believe that Russian economics has not fully studied world experience;
therefore, it is advisable to systematically investigate and use in practice legislation to
develop similar exclaves. In the future, the Kaliningrad experience can be successfully
used in other regions of the country.

References
1. Executive Order of the Government of the Russian Federation of 04.05.2005 N 536-p “On
the draft federal law” On the Special Economic Zone in the Kaliningrad Region
2. Information on the socio-economic development of the Kaliningrad region https://gov39.ru/
economy/situation. Accessed 16 Oct 2018
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 Royal Frozen Fruit Cup
1 package Royal Orange or Lemon Gelatin
1 cup boiling water
⅓ cup sugar
1 cup shredded pineapple
3 oranges cut in small pieces
Juice from prepared fruit

D ISSOLVE Royal Lemon or Orange Gelatin in boiling water; add

sugar and cool. Measure juice from fruit, add water if necessary
to make two cups; add to gelatin mixture. When thoroughly cold add
fruit and turn into a freezer. Turn crank for 5 minutes only or until
mixture is slightly thickened and fruit thoroughly chilled. Serve at
once in sherbet or cocktail glasses garnished with maraschino
cherries. Serves 6.

Pineapple Orange Charlotte

1 package Royal Orange Gelatin
1 cup boiling water
1 cup cold water
1 egg white beaten stiff
Pineapple, fresh or canned, (grated)

D ISSOLVE Royal Orange Gelatin in boiling water; add cold water.

Set dish (metal preferred) in pan of cracked ice or very cold
water; when almost set, whip with egg beater to very stiff froth. Fold
in stiffly beaten egg white and continue to beat until mixture will hold
its shape. Put 2 tablespoons of pineapple in the bottom of sherbet
glasses and pile orange charlotte lightly and very high on the
pineapple. Serve at once, or keep in cool place until ready to serve.
Serves 12.

Apple and Orange Squares

1 package Royal Orange Gelatin
1 cup boiling water
1¼ cups cold tart apple sauce
D ISSOLVE Royal Orange Gelatin in boiling water. Add the cold
apple sauce and pour into a mould or shallow pan and chill until
firm. Cut into squares and serve with top milk or cream. Serves 6.
This is a new and delightful way to serve apple sauce and is
especially popular with children.

Apple and Orange Squares

 Peach Dessert
1 package Royal Orange Gelatin
1 cup boiling water
1 cup cold water
1 can halved peaches

D ISSOLVE Royal Orange Gelatin in boiling water; add cold water.

Chill. Drain syrup from peaches. Place peaches with cut side
down in muffin pans or individual moulds and pour over each the
gelatin mixture to just cover the peaches. Chill until firm. When ready
to serve turn out on plate; fill hollow of each peach with whipped
cream. Serves 10.

Chocolate Soufflé
1 package Royal Orange or Lemon Gelatin
¾ cup sugar
1 cup boiling water
3 egg whites
3 squares unsweetened chocolate
2 teaspoons vanilla extract

D ISSOLVE Royal Orange or Lemon Gelatin and sugar in boiling

water. Cool. Beat egg whites very stiff and dry. When gelatin
mixture has become syrupy but not very thick, add gradually to egg
whites, beating in after each addition. Add melted chocolate, beating
in very thoroughly. Add vanilla. Set in pan of cracked ice or very cold
water, and beat with spoon until thick enough to hold its shape.
Place in a mould or angel cake tin and chill. Serve with whipped
cream, sweetened and flavored with vanilla. Serves 8-10.

Orange Date Jelly

1 package Royal Orange Gelatin
1 cup boiling water
1 cup chopped dates
1¼ cups cold water
⅛ teaspoon salt

C OOK dates in a double boiler with ¼ cup of the cold water until
they are reduced to a paste. Cool. Dissolve Royal Orange
Gelatin and salt in the boiling water. Add remainder of the cold water.
Cool. When gelatin begins to thicken, mix in the date paste, pour into
small moulds and return to chill. Serve with top milk or whipped
cream. Serves 6.

Spanish Dessert
1 package Royal Orange or Lemon Gelatin
1 cup boiling water
2 cups milk
½ cup sugar
¼ teaspoon salt
2 egg yolks
2 egg whites
⅓ cup maraschino cherries cut in small pieces
⅓ cup candied pineapple cut in small pieces
CALD milk, sugar and salt in double boiler. Pour slowly onto slightly
beaten egg yolks, stirring continually. Return to double boiler
S and cook until mixture thickens and forms coating on spoon.
Cool. Dissolve Royal Orange or Lemon Gelatin in boiling water;
cool. Set in pan of ice or very cold water and stir until mixture begins
to thicken. Add cold custard mixture and stiffly beaten egg whites.
Beat until thick as whipped cream. Fold in fruit. Pile into sherbet
glasses or mould in small forms; chill until firm. Serve with whipped
cream. If desired ⅓ cup chopped nuts or 3 tablespoons candied
orange peel, cut in very small pieces, may also be added. Serves 8.

Royal Cocoanut Cream

1 package Royal Orange or Lemon Gelatin
1 cup boiling water
2 cups milk
¼ cup sugar
¼ teaspoon salt
1 egg yolk
1 cup grated cocoanut
1 egg white

M AKE custard by adding sugar and salt to egg yolk and mixing in
the milk. Cook in double boiler stirring until custard thickens;
then set aside to cool. Dissolve Royal Orange or Lemon Gelatin in
boiling water; cool; set in pan of ice or cold water. When, dessert
begins to thicken, beat in cold custard, cocoanut and beaten egg
white. Pour into moulds and chill. Serve plain or with milk or cream.
Serves 8.
Plain Orange
 Four Easy Ways of Preparing Royal
Fruit Flavored Gelatins
PLAIN

Lemon

P LAIN or clear Royal gelatins are most easily made. Simply put
contents of one package in bowl; add one cup boiling water and
stir until thoroughly dissolved. Add one cup cold water, stir. Pour into
mould and put in cool place to stiffen. Serve cold either plain, with
sweetened whipped cream or with any sauce desired.

Fruit Gelatin Sauce

1 package Royal Fruit Flavored Gelatin (any flavor)
1 cup boiling water
2 cups cold water

D ISSOLVE Royal Gelatin in boiling water; add cold water. Chill

until it begins to thicken and serve on puddings, custards or ice
cream.

Custard Sauce
2 cups milk, scalded
2 egg yolks
¼ cup sugar
⅛ teaspoon salt
½ teaspoon flavoring

B EAT egg yolks slightly, add sugar and salt. Add milk slowly,
stirring constantly. Cook in double boiler, stirring until thick
enough to coat spoon. Chill and add flavoring. If curdled, beat with
egg beater until smooth. Flavor with lemon, orange, vanilla or bitter
almond according to Royal Gelatin on which served.

Fruit Sauce
½ cup sugar
1 tablespoon flour
1 cup crushed fruit (strawberries, raspberries, black berries, red currants, peaches,
apricots or cherries)
Few grains salt
¼ cup boiling water

M IX sugar and flour and salt. Slowly stir in boiling water. Boil
about 5 minutes; chill and add crushed fruit. Serve cold on any
cream Royal Fruit Flavored Gelatin dessert.
 SALADS

Macedoine of Vegetable Salad

A NY desired combination of fruit or vegetables added to Royal

Fruit Flavored Gelatins and served with either French or
Mayonnaise Dressing makes most delicious salads. Fruits and
vegetables are added when the gelatin mixture begins to thicken.
This prevents the heavier fruit and vegetables from settling or lighter
ones from rising to the top. Salads are then moulded and chilled.

Macedoine of Vegetable Salad

1 package Royal Lemon Gelatin
1½ cups clear meat stock or bouillon
¼ cup vinegar or lemon juice
1 teaspoon salt
¼ teaspoon paprika
⅛ teaspoon pepper
½ teaspoon onion juice
2 cups cooked vegetables well drained—Peas, carrots and string beans cut into
strips, and potatoes diced
ISSOLVE Royal Lemon Gelatin in boiling meat stock or bouillon. Add
vinegar and seasonings. Cool. When it begins to thicken, add
D prepared vegetables and turn into Royal Baking Powder tins or
small moulds. Remove from moulds and serve on lettuce with
mayonnaise. Serves 6.

Pineapple Jelly and Fruit Salad

1 package Royal Lemon Gelatin
1 cup boiling water
1 cup canned pineapple juice

D ISSOLVE Royal Lemon Gelatin in boiling water. Add pineapple

juice. Turn into shallow square pan which has been rinsed in
cold water; chill until firm. Cut into cubes and toss lightly together
with fruit prepared for salad. Serve with cream mayonnaise on
lettuce. Serves 6.
 JELLIED FRUITS

Royal Fruit Compote

T O MOULD fruits in Royal Fruit Flavored Gelatin, drain fruit well

before moulding. Add to cold gelatin mixture, turn into mould and
chill. Stir occasionally while gelatin is stiffening to prevent the fruit
from settling—or chill Royal Fruit Flavored Gelatin mixture only until
it begins to thicken, then mix in the fruit; turn into mould and chill. To
mould fruit in design use cold liquid Royal Gelatin. Set mould to be
decorated in pan of cracked ice or cold water. Pour in enough
Gelatin mixture to form a thin coating on bottom and on sides of
mould. To coat sides, tip the mould slowly to allow jelly to set. When
firm, arrange fruit in desired position, add carefully, more cold Royal
Gelatin a little at a time to cover fruit; chill; when firm add more fruit,
then more gelatin and chill. Continue until mould is filled.

Royal Fruit Compote

1 package Royal Strawberry or Cherry Gelatin
1 cup boiling water 1 cup stewed or canned fruit juices
1½ cups mixed stewed or canned fruit (peaches, pears, prunes, apricots or any
combination desired)

D ISSOLVE Royal Strawberry or Cherry Gelatin in boiling water;

add fruit juice. Cool; when it begins to thicken slightly, add fruit
cut into pieces. Mould in large or individual moulds. Chill until very
firm. If large mould is used the whole fruits, stoned, make a very
attractive dish. Raisins instead of prunes, make a good combination
with the other fruits. Serves 6.
 WHIPPED

Strawberry Whip

T O MAKE Royal Whips prepare as for plain or clear jellies. Chill in

bowl, preferably metal, either by setting in cool place or in pan of
cracked ice or very cold water. When almost set, like molasses or
honey, place in pan of cracked ice so gelatin will continue to thicken
while beating. Whip, using rotary egg beater, until gelatin is frothy
and thick enough to hold its shape, like whipped cream. Pile into
sherbet glasses or turn into mould and chill.

Banana Fluff
1 package Royal Lemon Gelatin
1 cup boiling water
3 or 4 ripe bananas
 DD boiling water to Royal Lemon Gelatin. Rub bananas thru a
sieve; add to Royal Lemon Gelatin and cool. When almost set,
A
place in bowl in pan of cracked ice or very cold water; beat with egg
beater to very stiff froth. Pile lightly in glasses. Serve at once or chill
until ready to serve. Serves 8.

Royal Fruit Whip

1 package Royal Strawberry Gelatin
1 cup boiling water
1 cup canned cherry juice
1 cup canned white cherries stoned and cut in pieces
6 marshmallows, cut in pieces

D ISSOLVE Royal Strawberry Gelatin in boiling water. Add cherry

juice. Set bowl in cracked ice and when mixture is almost set,
beat with egg beater to stiff froth. Fold in fruit and marshmallows.
Serve at once or turn into moulds and chill. Serves 12.
 Royal
Strawberry
All the piquant deliciousness of the
real strawberries is sealed in
delectable Royal Strawberry.

Strawberry Snow Pudding

1 package Royal Strawberry Gelatin
1 tablespoon sugar
1 cup boiling water
½ cup cold water
2 egg whites

D ISSOLVE Royal Strawberry Gelatin and sugar in boiling water.

Add cold water and chill until mixture begins to thicken. When
almost set, whip with egg beater. When light and frothy, add egg
whites beaten stiff. Continue to beat until mixture holds shape. Pile
into sherbet glasses or place in moulds and chill. Serve with custard
sauce. Serves 8.

Strawberry Mousse
1 package Royal Strawberry Gelatin
⅓ cup sugar
⅛ teaspoon salt
1 cup boiling water
1½ cups cold water
1 teaspoon lemon juice
2 cups strawberries, crushed
1 cup cream, whipped

D ISSOLVE Royal Strawberry Gelatin, sugar and salt in boiling

water. Add cold water. Cool by setting in pan of ice or very cold
water. When mixture begins to thicken, beat with egg beater until
frothy. Add lemon juice, fruit and cream. Pour into a mould; cover
and seal tightly. Bury in two parts of ice and one part salt. Allow to
stand for 3 hours. Serves 10.

Ribbon Jelly
1 package Royal Strawberry Gelatin
1 package Royal Lemon Gelatin
2 cups boiling water
2 cups cold water
⅓ cup cream, sweetened and whipped

P UT contents of 2 packages Royal Gelatin in large bowl. Dissolve

in boiling water; mix thoroughly; add cold water; cool. When very
thick but not set, draw cream through Royal Gelatin mixture, a little
at a time, using fork or wire whisk. Do not beat. This will give a
marbled appearance. Chill until firm. Serves 12.

Strawberry Layers
(A delightful dessert for a child’s party)
1 package Royal Strawberry Gelatin
1 cup boiling water
1 cup cold water
2 teaspoons lemon juice
⅛ teaspoon salt
Strawberry jam
Small cup cakes or sponge cake

D ISSOLVE Royal Strawberry Gelatin in boiling water; add cold

water, lemon juice and salt. Pour into individual moulds to depth
of about ½ inch. Chill until firm. Cut cakes in small rounds, about ¼
inch thick. Spread with jam. Place one layer of cake on firm gelatin in
each mould; fill with gelatin and chill until firm. Serves 6.

Pineapple Strawberry Bisque

1 package Royal Strawberry Gelatin
1 cup boiling water
1 cup canned pineapple juice
1 cup cream, whipped
½ cup pineapple, diced
½ cup strawberries, crushed

D ISSOLVE Royal Strawberry Gelatin in boiling water. Add

pineapple juice and chill until mixture becomes thick. Whip with
egg beater until frothy. Fold in cream and fruit. Pile into parfait
glasses. Serve cold and garnished with unhulled strawberries.
Serves 10.

Strawberry Layers

Royal Cherry
Delicious sun-ripened cherries yield their
juices that this wonderful flavor may be
possible. While there are innumerable
desserts devised for Cherry, with a flavor
so delicate and a color so beautiful you
may perhaps find Royal Cherry at its best served plain.
 Royal Cherry Gelatin

Cherry Sponge
1 package Royal Cherry Gelatin
1 cup boiling water
1 cup cold water
2 egg whites stiffly beaten

D ISSOLVE Royal Cherry Gelatin in boiling water; add cold water.

Chill until it becomes very thick but not set. Whip with egg
beater in a metal bowl, surrounded with cracked ice or very cold
water, until frothy and very thick. Whip in stiffly beaten whites until
well blended. Put into moulds or serving glasses and chill until firm.
Garnish with Maraschino Cherries. Serves 10.

Cherry Cream Parfait

1 package Royal Cherry Gelatin
1 cup boiling water
1 cup cold water
¼ cup cream, whipped
Few grains salt

D ISSOLVE Royal Cherry Gelatin in boiling water; add cold water.

Fill parfait glasses about ½ full, using only ⅔ of Royal Cherry
Gelatin. Chill until firm. When remaining ⅓ begins to thicken, whip
with egg beater to a stiff froth. When very stiff beat in stiffly whipped
cream, to which the few grains of salt have been added. Pile lightly
on top of plain Royal Cherry Gelatin in the glasses. Serves 6.

Cherry Monticello
2 packages Royal Cherry Gelatin
⅛ teaspoon salt
2 cups boiling water
2 cups cold water
¼ cup cream, whipped

D ISSOLVE 1 package Royal Cherry Gelatin in one cup boiling

water; add 1 cup cold water. Chill in bowl until firm. Dissolve
other package Royal Cherry Gelatin and salt in one cup boiling
water; add one cup cold water. Chill until it thickens but is not set.
Whip to stiff froth with a rotary egg beater in metal bowl surrounded
with cracked ice or very cold water. Fold in whipped cream and mix
well. Pour into large ring mould and chill until very firm.
To serve: Remove cream mixture from ring mould and heap up
center with spoonfuls of the plain Royal Cherry Gelatin. Serves 10 to
12.

Almond Fruit Mould

1 package Royal Cherry Gelatin
1 cup boiling water
1 cup cold water
2 or 3 halves of canned pears, sliced
½ cup white grapes, halved and seeded
¼ cup blanched almonds, halved