Strategy for sustainable development of the region and recentralization of industry integrated structures

Abstract

The article explains the core idea behind the recentralization of regional and sectoral production complex development, which lies in restoring the controllability of interdependent production units as a system with a defined purpose. Regardless of the strategies used, decentralization should benefit the majority of regional stakeholders, including the state and the territorial populace. Production structures may interact differently throughout decentralization, typically through vertical or horizontal integration. If the reintegration process aligns with the overall goals of recentralization, new (previously non-interacting or newly created) companies may be involved. However, obtaining a monopoly or controlling market power for specific stakeholders or their organizations cannot be the aim of recentralization. The exception includes foreign markets and/or measures taken in the Russian Federation’s best interests to guarantee the nation’s defense capabilities and/or assert its dominant position on international markets. Recentralization can be applied in interregional interaction or within a single region. The author discloses the process for creating a decentralization strategy based on developing digital platforms. Using IDEF0 notation to create a functional model that illustrates the structure and functions of key processes, the article shows that implementing such a strategy is closely related to establishing an effective business process.