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This paper aims to analyze the relationship of regional innovative capacity and economic performance. To address this question we developed integral Russian Regional Innovative Capacity Index (RRICI) for the eighty Russian regions – all regions of the first level of official classification (except three autonomous areas due to the data absence) for 2009 and 2010. Empirical analysis shows that RRICI is significant and positively related to the GRP per capita. This means that there is evidence of the relationship between regional innovative capacity and regional economic growth. We also performed Granger causality testing, which revealed that RRICI causing GRP per capita at 10% level of probability.
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