Kaliningrad region in ‘core-periphery’ spatial hierarchy

Stepan Zemtsov
Director
Centre for Economic Geography and Regional Studies, RANEPA
Moscow, Russia

Vyacheslav Baburin
Professor
Department of Economic and Social Geography of Russia
Lomonosov Moscow State University (MSU)
Moscow, Russia

For the purposes of improving the regional policy in the Baltic region, it is important to understand the position of the Kaliningrad region in the spatial hierarchy. One way to describe it is to use the core-periphery concept. It is argued that the core is an indispensable element of any self-organizing system, which acts as a source of innovation for the surrounding periphery. In this logic, the Scandinavian regions and North Germany can be attributed to the core structure of the entire Baltic macroregion because the industrial production per capita is the highest. The sub-core in this context includes Lithuania, the Leningrad region of Russia and Estonia. The Kaliningrad region, along with Latvia and St. Petersburg, forms an industrial sub-periphery. If we consider the indicators of innovative activity[i], then only the regions of Sweden (Sydsverige, Östra Mellansverige), Finland (Helsinki-Uusimaa) and Denmark (Midtjylland) belong to the innovative leaders in terms of the number of PCT patents to GDP. St. Petersburg (1.6 PCT-application per billion dollars GDP) can also be attributed to leading regions. The Kaliningrad region (0.42) is more of a moderate or emerging innovator. To overcome the lagging, a separate program of socio-economic development was implemented in Kaliningrad region, the Immanuel Kant Baltic Federal University was established. Also, in recent years, a significant amount of foreign investment has come to the Kaliningrad region from Germany and other industrialized countries.

If we consider Kaliningrad region among other Russian territories, it has semi-enclave position in the north-west with no direct land border with the main territory. Such a geographical location, although peripheral in relation to the main centers (Moscow, St. Petersburg), is potentially beneficial, since the region is located near the largest market of the European Union[ii], has access to the sea, as well as relatively favorable natural and climatic conditions. The region could be more integrated into the EU economy, becoming a testing ground for working out cross-border ties. But in the current conditions, such a situation brings high risks, and therefore the intensity of interaction will most likely decrease; some foreign companies have already announced the suspension of their activities. In other words, the macroregional peripherality of the Kaliningrad oblast may increase in the future.

The Kaliningrad region ranks 50th out of 85 regions of Russia in terms of population (about 1.02 million people). Over the past 10 years, the population has grown by 8.2%, ranking 10th in terms of growth rates (only 30 regions grew during this period). Obviously, the region was highly attractive for Russian and foreign highly qualified specialists[iii] due to natural amenities and the presence of large high-tech companies (Lukoil, Avtotor, Rolsen, Polar, GS Nanotech, etc.). Therefore, the region ranks 45th in terms of GDP, while it has grown by 25% since 2010 (25th) and 26th in terms of foreign direct investment. The region ranks 36th in terms of GDP per capita. The Kaliningrad region, like the countries of the Baltic macroregion, is characterized by a high level of digitalization, in addition, the region ranked 24th in terms of the number of international PCT patents for inventions[iv]. The region ranks 7th in terms of the density of high-tech start-ups[v]. In other words, it is a fast-growing medium-developed region of Russia with extensive international ties. The region should rather be called semi-peripheral with active movement towards the “core”.

Within the region, there is an overconcentration of socio-economic potential in the regional core – Kaliningrad agglomeration with 77% of the population, 92% of industrial production and 87% of investments. The most dynamically developing Svetly and Guryevsk are among the leaders in terms of the industrial production per capita.

The Kaliningrad region is one of the sub-core in Baltic microregion and a moderate emerging innovator. It was a fast-growing medium-developed Russian region with extensive international ties. In new environment, the macroregional position of the Kaliningrad oblast may become less favorable in the future.

[i] Regional innovation scoreboard 2021. URL: https://op.europa.eu/en/publication-detail/-/publication/b76f4287-0b94-11ec-adb1-01aa75ed71a1/language-en/format-PDF/source-242412276

[ii] Zemtsov, S. P., & Baburin, V. L. (2016). Assessing the potential of economic-geographical position for Russian regions. Ekonomika regiona, (1), 117-138.

[iii] Barinova, V., Rochhia, S., & Zemtsov, S. (2022). Attracting highly skilled migrants to the Russian regions. Regional Science Policy & Practice, 14(1), 147-173.

[iv] Zemtsov, S., & Kotsemir, M. (2019). An assessment of regional innovation system efficiency in Russia: the application of the DEA approach. Scientometrics, 120(2), 375-404.

[v] Zemtsov S., Chepurenko A., Mikhailov A. (2021) Pandemic Challenges for the Technological Startups in the Russian Regions. Foresight and STI Governance, 15(4), 61–77.

Email: spzemtsov@gmail.com

Email: vbaburin@yandex.ru

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