Innovation-driven activities of small and medium-sized enterprises in the North and the Arctic: Insights from the Komi Republic

In the contemporary context, fostering the development of Russia’s northern and Arctic territories through an innovation-oriented approach is essential. This necessitates boosting the innovation-driven activities of small and medium-sized enterprises (SMEs), with government support playing a key role. Using the Komi Republic as a case study, this article aims to identify the factors hindering the innovation-driven development of SMEs in the North and the Arctic from the perspective of SME stakeholders. It also seeks to propose recommendations to address these challenges, including improving the effectiveness of government support measures and advocating for the development and implementation of a more efficient corporate governance system tailored to SMEs. The study identifies key barriers preventing the full utilization of innovative potential, evaluates the effectiveness of existing government support mechanisms for SMEs in northern and Arctic regions (with a focus on the Komi Republic), and proposes measures to foster innovation-driven activities among SMEs. The scientific contribution of this research lies in formulating a set of policy recommendations to strengthen government support for innovative SMEs and in developing and substantiating elements of a corporate governance framework as a more advanced organizational model. This model is designed to address the challenges and risks impacting the ecosystem of innovative SMEs in the North and Arctic. The findings of this study provide a foundation for the development of additional regional policy measures aimed at fostering innovation among SMEs in these regions. Moreover, they contribute to further research on the role of SMEs in ensuring regional economic security and mitigating population outflow, as well as guiding improvements in the corporate governance structure within the entrepreneurial ecosystem.