ORGANIZATIONAL AND ECONOMIC MECHANISMS BOOSTING THE PROCESSING INDUSTRY

The processing industry is a cornerstone of Russia's national economy, vital for generating value-added, employment, and technological innovation. However, in an era defined by globalization, digitalization, and stringent environmental standards, the sector faces major challenges. These include low productivity due to obsolete technologies and inefficient management, a lack of investment in modernization and innovation, weak infrastructural support, and underdeveloped organizational mechanisms that poorly integrate R&D, production, and regional governance. Further impediments encompass economic barriers—such as a high tax burden, constrained access to credit, and fragmented supply chains. Given the heterogeneity of processing sub-sectors, which vary in their levels of competition and production processes, a differentiated approach to policy stimulation and institutional development is essential. This is particularly critical for the Arctic vector of processing, which is predominantly focused on resource processing (e.g., metallurgy, oil refining, and fisheries). This study aims to develop a conceptual framework of organizational and economic mechanisms for boosting the processing industry, grounded in institutional theory and tailored to the distinct characteristics of both concentrated and fragmented industries. Employing a methodology of sectoral and comparative analysis, synthesis, and generalization, this research identifies the key factors constraining industrial development, with specific attention to the Arctic segment. The scientific contribution lies in the systematization of effective stimulatory mechanisms by means of institutional theory and the performance of a comparative analysis between concentrated and fragmented industries. Based on this analysis, the study proposes targeted government support measures for processing businesses. The findings are relevant to national industrial development strategies. Future research could explore differentiated support mechanisms for concentrated and fragmented industries.