The article raises one of the most urgent problems of the region’s industrial development – enhancing diversification of its structure. Nowadays, the focus on industry diversification is one of the main objectives of region’s strategic development. The study proves that the Vologda Oblast is characterized by a low level of industry diversification, as export-oriented raw-materials branches have mostly developed during the years of market transformations. It reveals that the prevalence of metallurgy and chemical industries and the small share of engineering and innovation production industries in the region’s industrial structure do not presuppose qualitative growth of the industry. These industries’ development has certain risks, aggravating the region’s socio-economic situation, which should not depend on the situation in one or more commodity markets. The result of the investments structure analysis is the following: the funds, allocated to processing industries, are not enough for their upgrade and technological re-equipment and, consequently, for the transition to innovation way of development. The current investment policy of the region does not encourage changes in the industry structure. The article justifies the fact that more balanced structure should become one of the main results of the industrial sector diversification. What is more, balance is a new equilibrium state of the structure, formed due to a new stage of economic development and technological requirements of a new system. The analysis of the industry’s technological structure in the Vologda Oblast has showed that the share of high-and medium technological productions of the region and Russia is significantly lower than their share in the developed countries. The article concludes that it is advisable to promote diversification in order to ensure stable and sustainable development of both the industry and the region in general
Keywords
industrial policy, industry diversification, industrial development