Intellectual Capital Development in Traditional Economy

During econometric analysis conducted by the authors the following hypotheses were substantiated. Firstly, we found the most pronounced correlation between the number of innovative products, works and services in the total amount of shipped goods, performed activities and technological innovation costs per one person. This demonstrates the need for planning and implementing state programs on raising intellectual capital in multicultural regions with traditional economics. Secondly, we have identified clear interdependence between the number of smaller enterprises per 1000 people and the share of Russian people in ethnically aboriginal regions. Therefore, the influence of the Russian nationality ensures formation of entrepreneurial culture in aboriginal regions and continuous development of intellectual capital. Thirdly, there is a correlation between life expectancy and population density in aboriginal regions. This demonstrates low level of life in the regions with low population density and strong influence of traditional economy. Creation of hi - tech companies and larger amounts of goods fabrication requires creation of local unions, developing the share of scientists and entrepreneurs and formation of government programs: these are the most important success factors. To achieve that we must create a cooperation program covering all parties participating in intellectual capital development in the region. State regulation of intellectual capital development must take into consideration peculiar features of social and cultural development of aboriginal region strongly influenced by traditional economy. This direction of regional development will be available only in case of equal dialogue between business and authorities. Suggested options for using traditional knowledge for developing intellectual capital can improve economic position of the region, create new workplaces and, therefore, improve the level of life of population in the regions strongly influenced by traditional economy.