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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| Format: | Article |
| Language: | English |
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MDPI AG
2024-12-01
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| Series: | Economies |
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| 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. |
| format | Article |
| id | doaj-art-211817e6bfe640b4abd41daf6b193415 |
| institution | DOAJ |
| issn | 2227-7099 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| 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 |