Reindustrialization, Innovative Sustainable Economic Development, and Societal Values: A Cluster Analysis Approach

Our paper explores the challenges of industrial development by examining two contrasting theoretical frameworks: (i) the mainstream economic approach which emphasizes capital accumulation, innovation, and profit maximization within a globalized context, and (ii) the classical institutional economics...

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Main Authors: Elena Maslyukova, Vyacheslav Volchik, Wadim Strielkowski
Format: Article
Language:English
Published: MDPI AG 2024-12-01
Series:Economies
Subjects:
Online Access:https://www.mdpi.com/2227-7099/12/12/331
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author Elena Maslyukova
Vyacheslav Volchik
Wadim Strielkowski
author_facet Elena Maslyukova
Vyacheslav Volchik
Wadim Strielkowski
author_sort Elena Maslyukova
collection DOAJ
description Our paper explores the challenges of industrial development by examining two contrasting theoretical frameworks: (i) the mainstream economic approach which emphasizes capital accumulation, innovation, and profit maximization within a globalized context, and (ii) the classical institutional economics perspective, rooted in the so-called “Veblen Dichotomy”. The latter contrasts monetary institutions focused on short-term profits with those centered on organizational, social, environmental, and business values that foster long-term technological progress. We analyze reindustrialization processes and assess the hypothesis that the conflict between these divergent institutions and social values plays a critical role in creating an institutional environment conducive to innovation and economic development. Our research highlights how technological advancements contribute to the physical and geographical fragmentation of industrial activities, thereby driving the spatial restructuring of economies. Furthermore, this paper addresses the growing prominence of intangible production, noting how deindustrialization, driven by shifts toward service-based economies, is closely related to the broader processes of globalization. The paper employs cluster analysis to explore the links between reindustrialization, institutional dynamics, and societal values across four groups (clusters) of countries. Our results reveal differences and similarities between these groups of countries and offer policy implications and suggestions for improvements. These results might be of special interest for relevant stakeholders and policymakers, as well as for researchers focused on innovative industrial and economic development.
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spelling doaj-art-211817e6bfe640b4abd41daf6b1934152025-08-20T02:53:25ZengMDPI AGEconomies2227-70992024-12-01121233110.3390/economies12120331Reindustrialization, Innovative Sustainable Economic Development, and Societal Values: A Cluster Analysis ApproachElena Maslyukova0Vyacheslav Volchik1Wadim Strielkowski2Department of Economic Cybernetics, Faculty of Economics, Southern Federal University, Bolshaya Sadovaya str. 105, 344006 Rostov-on-Don, RussiaDepartment of Economic Theory, Faculty of Economics, Southern Federal University, Bolshaya Sadovaya str. 105, 344006 Rostov-on-Don, RussiaDepartment of Trade and Finance, Faculty of Economics and Management, Czech University of Life Sciences Prague, 165 00 Prague, Czech RepublicOur paper explores the challenges of industrial development by examining two contrasting theoretical frameworks: (i) the mainstream economic approach which emphasizes capital accumulation, innovation, and profit maximization within a globalized context, and (ii) the classical institutional economics perspective, rooted in the so-called “Veblen Dichotomy”. The latter contrasts monetary institutions focused on short-term profits with those centered on organizational, social, environmental, and business values that foster long-term technological progress. We analyze reindustrialization processes and assess the hypothesis that the conflict between these divergent institutions and social values plays a critical role in creating an institutional environment conducive to innovation and economic development. Our research highlights how technological advancements contribute to the physical and geographical fragmentation of industrial activities, thereby driving the spatial restructuring of economies. Furthermore, this paper addresses the growing prominence of intangible production, noting how deindustrialization, driven by shifts toward service-based economies, is closely related to the broader processes of globalization. The paper employs cluster analysis to explore the links between reindustrialization, institutional dynamics, and societal values across four groups (clusters) of countries. Our results reveal differences and similarities between these groups of countries and offer policy implications and suggestions for improvements. These results might be of special interest for relevant stakeholders and policymakers, as well as for researchers focused on innovative industrial and economic development.https://www.mdpi.com/2227-7099/12/12/331reindustrializationindustrial developmentsustainable developmentinstitutional economicssocietal valuescluster analysis
spellingShingle Elena Maslyukova
Vyacheslav Volchik
Wadim Strielkowski
Reindustrialization, Innovative Sustainable Economic Development, and Societal Values: A Cluster Analysis Approach
Economies
reindustrialization
industrial development
sustainable development
institutional economics
societal values
cluster analysis
title Reindustrialization, Innovative Sustainable Economic Development, and Societal Values: A Cluster Analysis Approach
title_full Reindustrialization, Innovative Sustainable Economic Development, and Societal Values: A Cluster Analysis Approach
title_fullStr Reindustrialization, Innovative Sustainable Economic Development, and Societal Values: A Cluster Analysis Approach
title_full_unstemmed Reindustrialization, Innovative Sustainable Economic Development, and Societal Values: A Cluster Analysis Approach
title_short Reindustrialization, Innovative Sustainable Economic Development, and Societal Values: A Cluster Analysis Approach
title_sort reindustrialization innovative sustainable economic development and societal values a cluster analysis approach
topic reindustrialization
industrial development
sustainable development
institutional economics
societal values
cluster analysis
url https://www.mdpi.com/2227-7099/12/12/331
work_keys_str_mv AT elenamaslyukova reindustrializationinnovativesustainableeconomicdevelopmentandsocietalvaluesaclusteranalysisapproach
AT vyacheslavvolchik reindustrializationinnovativesustainableeconomicdevelopmentandsocietalvaluesaclusteranalysisapproach
AT wadimstrielkowski reindustrializationinnovativesustainableeconomicdevelopmentandsocietalvaluesaclusteranalysisapproach