Investment in Technological Modernization of Industry: Analysis of Structural Problems

The study analyses investments in the technological modernization of Russia’s industrial sector between 2019 and 2023. It identifies key structural trends and challenges in the investment process, including an increase in nominal investments, which is offset by modest real growth due to inflation and sanctions. A notable shift in investment structure has been observed, with domestic investors playing a dominant role as foreign capital inflows decline, reflecting the economy’s adaptation to sanctions. The study reveals a reduction in investments in the industrial sector and a deterioration in production infrastructure, which poses risks to technological advancement and the competitiveness of Russia’s industrial complex. Within manufacturing, investment priorities have shifted towards the chemical and metallurgical industries; however, overall modernization efforts remain insufficient. The decline in investment efficiency and the shrinking proportion of funds allocated to reconstruction underscore the urgent need for increased government support and incentives for private investment. Conclusions: The findings emphasize the necessity of a comprehensive approach to Russia’s investment policy, aimed at improving investment quality, fostering innovation, and creating favorable conditions for attracting investors. Such measures are essential for ensuring sustainable economic growth and the technological renewal of the industrial sector.