This paper examined TFP growth-rate differentials across Soviet regions and the percentage share of TFP contribution to industrial development by region. TFP can be regarded as an indicator of technological development;hence,it may be supposed that high TFP growth rates would be observed in advanced areas. However,such regions as Russia and the Baltic states showed rather low TFP growth,whereas the percentage share of TFP contribution to growth in these areas was large. This may be attributable to the equalization-oriented Soviet governmental policy,which brought about the introduction of newly developed technology to peripheral regions. On the other hand,these developed regions were already abundant in social capital but had very low population growth rates;therfore,these material inputs played only a limited role in development processes in Slavic / Baltic states. In this regard,this paper somewhat clarified the inefficient development policy implemented during the Soviet era.