Role of innovations in provision of competitiveness and innovational development of economy and overcoming of “underdevelopment whirlpools” in Russia and countries of Eastern Europe

Purpose: The purpose of this paper is to determine the role of innovations in provision of competitiveness and innovational development of economy and overcoming of “underdevelopment whirlpools” in Russia and countries of Eastern Europe with the help of a special proprietary methodology. Design/methodology/approach: The authors substantiate the concept and methodology of calculation of “underdevelopment whirlpools”, perform the analysis of development of “underdevelopment whirlpools” in Russia and countries of Eastern Europe and evaluate the influence of “underdevelopment whirlpools” on competitiveness of these countries’ economy. Findings: The authors determine the perspectives of overcoming the “underdevelopment whirlpools” in Russia and countries of Eastern Europe and increasing their competitiveness with the help of innovation and develops practical recommendations for creation of innovational economy for the purpose of provision of high competitiveness and overcoming of “underdevelopment whirlpools” in Russia and countries of Eastern Europe and overcoming of strong and growing differentiation of the level of socio-economic development of their sub-systems. Practical implications: Creation of innovational economy in Russia and countries of Eastern Europe is hindered by multiple obstacles (socio-economic and institutional), the success of overcoming of which determines the realization of a certain scenario of development of events. Originality/value: The main conclusion is that creation of innovational economy can and should become a new vector of economic growth in Russia and countries of Eastern Europe and overcoming of strong and growing differentiation of the level of socio-economic development of their sub-systems.