Industrial Development in Russia amid the Transition to a Circular Economy and Industry 5.0

Authors

DOI:

https://doi.org/10.17059/ekon.reg.2026-2-13

Keywords:

circular economy, Industry 5.0, industrial development, technological development, sustainable development, methodological tools, integral assessment

Abstract

The transition to a circular economy and the rise of Industry 5.0 are creating an increasing demand for comprehensive tools to assess industrial transformation. This study develops a methodological approach for evaluating the levels of industrial development in Russia under these twin conditions and applies it to the period 2015–2024. Empirically, the study draws on official statistical data on Russia’s industrial production, selected according to criteria of comparability and completeness. The methodology integrates structural and logical analysis, a comparative economic approach, min–max normalization of indicators, and integral assessment, complemented by a systematic review of relevant theoretical and empirical literature. The principal output is a CE × I5.0 matrix that enables the classification of industrial development levels across nine quadrants. Analysis of positioning dynamics reveals an uneven trajectory of change. In 2015, industry was situated in Quadrant VI, reflecting moderate circular practices alongside low technological development. Between 2016 and 2018, incremental gains shifted positioning to Quadrant VIII, indicating evolutionary progress without substantial qualitative transformation. By 2019, improvements in both CE and I5.0 indicators signalled a transition to Quadrant V, suggesting gradual adaptation to emerging technological and institutional conditions. Regressions were recorded in 2020 and 2022, attributable to systemic constraints and declining investment activity, while recovery phases in 2021 and 2024 returned industry to Quadrant IV, consolidating a foundation for sustainable development. The empirical findings confirm a robust relationship between the adoption of circular economy principles and the level of industrial technological development. Their joint implementation produces a synergistic effect, manifested in improved economic efficiency, reduced resource dependence, and enhanced long-term resilience of industrial production. The findings offer practical value for the design of industrial and technological modernization programs.

Author Biographies

Vera V. Yurak , Institute of Economics of the Ural Branch of RAS

Vera V. Yurak — Dr. Sci. (Econ.), Associate Professor, Senior Researcher, Institute of Economics of the Ural Branch of RAS; Chief Researcher of the Department of Nature Management Economics, Ural Federal University named after the first President of Russia B. N. Yeltsin; Professor of the Department of Industrial Economics, Empress Catherine II Saint Petersburg Mining University; Researcher of the Research Laboratory of Disturbed Lands’ and Technogenic Objects’ Reclamation, Ural State Mining University; Scopus Author ID: 57190411535; https://orcid.org/0000-0003-1529-3865  (29, Moskovskaya St., Ekaterinburg, 620014, Russian Federation; 19, Mira St., Ekaterinburg, 620062, Russian Federation; line, no. 2, 21, Vasilievsky Island, Saint Petersburg, 199106, Russian Federation; 30, Kuibysheva St., Ekaterinburg, 620144, Russian Federation; e-mail: vera_yurak@mail.ru).

Maria A. Gureva , Industrial University of Tyumen

Cand. Sci. (Econ.), Associate Professor, Associate Professor of the Department of Economics and Organization of Production, Institute of Service and Industry Management; Scopus Author ID: 57190414129; https://orcid.org/0000-0002-6059-2533  (38, Volodarsky St., Tyumen, Russian Federation, e-mail: gurevama@tyuiu.ru).

Irina G. Polyanskaya , Institute of Economics of the Ural Branch of RAS

Cand. Sci. (Econ.), Associate Professor, Head of Sector, Scientific Secretary; Scopus Author ID: 55764050500; https://orcid.org/0000-0002-0073-2821 (29, Moskovskaya St., Ekaterinburg, 620014, Russian Federation; e-mail: irina-pol2004@mail.ru).

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Published

26.06.2026

How to Cite

Yurak , V. V., Gureva , M. A., & Polyanskaya , I. G. (2026). Industrial Development in Russia amid the Transition to a Circular Economy and Industry 5.0 . Economy of Regions, 22(2), 414–430. https://doi.org/10.17059/ekon.reg.2026-2-13

Issue

Section

Sectoral Economics