ABSTRACT
The paper describes a linear multi-factor regression model based on outcomes of interest for the last 27 years with trend forecasting regarding the construction industry of the Russian Federation. The authors prove that it is impossible to use the model when forecasting results of innovation and investment solutions since it does not consider the following important properties: stochasticity, non-linear relationships, system potential, high dynamism of the structure, and a tendency for information misrepresentation. They provide a rationale for the relevance of the regression and differential approach when modeling the investment and construction sector and strategic decision support.
