February 15
- Making Russia More Attractive as a Jurisdiction for Investors An enormous amount of work has recently been carried out to improve Russia’s legal system. This includes large-scale reforms of the Civil Code and changes to the commercial arbitration system. Reforms to oversight are also being introduced. Modern...
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An enormous amount of work has recently been carried out to improve Russia’s legal system. This includes large-scale reforms of the Civil Code and changes to the commercial arbitration system. Reforms to oversight are also being introduced. Modern legal standards have been introduced to the Russian system, allowing even the most complex investment projects to be realized. Assurances and guarantees, escrow accounts, shareholder agreements, and many other legal instruments are already part of legal reality in Russia. The speed and efficiency of the commercial arbitration process in Russia are the result of organizational changes to state courts, as well as reforms to the procedure for setting up arbitration courts and the expansion of their authority, among other modifications. All of these changes are the subject of widespread discussion in the legal world. Despite this transformation, however, business owners and senior managers in Russian companies are often still imprisoned by myths about the exclusivity of English law. What are the strengths of the Russian legal system? What new opportunities for business are there within the jurisdiction of the Russian Federation? How successful have measures introduced to reduce administrative pressure on business proven to be? What impact is the increasing appeal of Russia as a jurisdiction having on attracting investment?
- New Industrial Models: Contract Manufacturing and Interregional Cooperation as a Tool for Attracting Investment It is not possible for industry to develop rapidly or for enterprises to increase labour productivity without an influx of investment from major companies that have proven industrial competence and forward-looking development plans. This challenge...
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It is not possible for industry to develop rapidly or for enterprises to increase labour productivity without an influx of investment from major companies that have proven industrial competence and forward-looking development plans. This challenge can be tackled with the help of new industrial models that improve the quality of proposals to potential investors, plus a target-oriented approach to the implementation of investment projects that takes account of federal and regional technology priorities, based on the skills that the region needs and has developed. One of these new industrial models is the concept of technology competence centres operating along the lines of an ‘open’ contract manufacturing service, enabling industrial enterprises to boost productivity and cut costs. Industry clusters are another effective industrial model for attracting investment. These take advantage of interregional cooperation to integrate production chains, allowing for the needs and technological competence of the regions. How can the potential of existing industry clusters be harnessed to develop regional industry? How are the regions creating new investment niches? How can the potential of interregional industrial cooperation be mobilized to attract investors to the regions?
- How to Raise a Unicorn: Attracting Investment to the Innovation Sector Over the last 30–40 years, the role of knowledge and innovation in the socioeconomic development of society has been growing at an unbelievable pace. The innovative economy is today taking on a particular relevance as one of the mechanisms acceler...
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Over the last 30–40 years, the role of knowledge and innovation in the socioeconomic development of society has been growing at an unbelievable pace. The innovative economy is today taking on a particular relevance as one of the mechanisms accelerating economic growth. Investment resources are playing a key role in this. There is currently a shortage of long-term investment in Russia, including in terms of resources from institutional investors in the innovation sector, at a time when contributions from such investors are forming a significant share of investments abroad. Startups serve as a major generator of innovative products. Every newcomer to innovative business dreams of raising a unicorn company. Giants like Uber and Airbnb have demonstrated that raising a unicorn really is possible! A programme is already being implemented in Russia to provide state support to ‘national champions’ – fast-growing companies with the potential to increase export revenue, although the growth of companies like these is limited unless significant investment can be attracted or they go public. Who are these unicorns exactly – are they a myth, or a reality? Is there a future for Russian unicorn startups? Could the Moscow Exchange become a key mechanism for ‘rearing’ companies like these? What government support tools could be used to help unicorn companies? How realistic is it for a Russian technology company to float on the Russian stock exchange? What conditions need to be put in place in order to attract funds from institutional investors into the innovation sector of the Russian economy? What new tools need to be developed for investment in innovative companies?
- Is it Easy to be an Entrepreneur? Perspectives from Business and Government Sberbank Panel Session Small and medium-sized businesses create a great many jobs worldwide, facilitating economic diversification and increasing resistance to economic shocks. In the Russian economy, they account for 21% of GDP. While this represents an increase, their...
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Small and medium-sized businesses create a great many jobs worldwide, facilitating economic diversification and increasing resistance to economic shocks. In the Russian economy, they account for 21% of GDP. While this represents an increase, their potential is undoubtedly greater still. The appearance of new enterprises is associated in many respects with economic modernization and greater efficiency. Small and medium-sized companies are more rapidly able to react to the demands of the market, create niche products, and adapt to ever-shortening product lifecycles. So what is preventing this potential from being realized? Why isn’t entrepreneurship as popular in Russia as it should be, with only 5% of the population describing themselves as prepared to open a business within the next three years? Entrepreneurs complain about excessive red tape, especially unscheduled inspections, difficulty accessing loans, and a lack of infrastructure needed to develop. However, equally serious obstacles to development are a lack of entrepreneurial skills and a shortage of qualified workers. How can special educational programmes for business be created and made accessible to all? Small companies need to gain access to regional, national, and global knowledge bases, and to create systems for managing the implementation and integration of this knowledge. The Russian government has developed a long-term strategy for developing entrepreneurship and is currently implementing it with success. But is it enough? Can we expect a technological breakthrough and a growth in technological exports from this sector? How do entrepreneurs rate the efforts of the government and development institutions?
- Social Enterprise as a Resource in Regional Development Today in Russia, a new phenomenon has arisen in the entrepreneurial sphere – social enterprise. ‘Social enterprise’ is about the voluntary participation of entrepreneurs in solving acute social challenges, not with the goal of exacting maximum pro...
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Today in Russia, a new phenomenon has arisen in the entrepreneurial sphere – social enterprise. ‘Social enterprise’ is about the voluntary participation of entrepreneurs in solving acute social challenges, not with the goal of exacting maximum profit, but rather of achieving maximum social effect. A bill to reinforce the concept of social enterprise has now been developed and submitted to the Russian Federation Government. Comprehensive measures are being put in place to develop this area of entrepreneurship. Social enterprise is one of the priorities of current state social policy, and work in this area should be continued. What is the present status of social enterprise in Russia’s regions? How can the involvement of social entrepreneurs facilitate the resolution of acute social problems and regional development? What support measures are already being provided, and what others are needed? Is major business ready to provide support to social enterprise? How does Russian experience in social enterprise compare with global best practices?
- Smart Energy: Challenges and Strategies A digital revolution is taking place in all sectors of the economy. Only a small proportion of these transformations are noticeable to the consumer, whereas a large number of them are invisible to the naked eye, but will have a revolutionary effec...
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A digital revolution is taking place in all sectors of the economy. Only a small proportion of these transformations are noticeable to the consumer, whereas a large number of them are invisible to the naked eye, but will have a revolutionary effect on the efficiency of all economic processes. The fuel and energy industry is no exception. The widespread deployment of sensors, the Internet of Things, and the growth of computing power and artificial intelligence capabilities are making it possible to optimize manufacturing processes and reduce the costs of production. In addition to a sharp intensification of competition on the global energy market, this could lead to the emergence of new technological leaders and a loss in competitiveness among those who fail to participate in the digital race. For Russia, a global energy leader, these questions are especially relevant. How long will the resilience of traditional energy producers allow them to survive without implementing new breakthrough technologies? What is the price of transformation? What has already been done to lay the foundations for the coming IT leap, and what must Russia still do in order to preserve and improve its competitiveness in the global energy arena?
- Cities and Regions: A Creative Environment and Development Institutions Russia’s cities and regions exhibit significant potential for economic growth. One of the key factors constraining development in cities and regions is the institutional landscape: regulation of the most important sectors for urban and regional de...
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Russia’s cities and regions exhibit significant potential for economic growth. One of the key factors constraining development in cities and regions is the institutional landscape: regulation of the most important sectors for urban and regional development and the system for allocating authority among governmental bodies. Changes to the legal landscape in such areas as the management of state and municipal property (including land resources), the regulation of urban planning, and support for the creation and operation of investment infrastructure, among other things, could help to unleash economic growth in cities and regions, increase their competitiveness, and implement comprehensive regional development projects. Cities are the foundation of the creative economy, because it is in cities that dense networks of collaborating individuals are concentrated together with production and sales markets for innovative goods and services. Global digital technologies have made it possible to increase connectivity between cities and led to an increase in their creative capital and human potential as a result of direct access to knowledge and information. The contemporary city implies the development not only of an effective urban infrastructure, but also of a fully-fledged creative environment, with a high degree of cultural openness, economic diversification, social responsibility, and comfortable surroundings. It is this creative environment which attracts a highly qualified workforce and potential investors.
- Quality as the Foundation of Competitiveness Contemporary approaches to managing enterprises and organizations view quality as a set of criteria to be applied to all business processes, from cost management to consumer interactions. International experience shows that a systematic approach o...
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Contemporary approaches to managing enterprises and organizations view quality as a set of criteria to be applied to all business processes, from cost management to consumer interactions. International experience shows that a systematic approach of this kind not only makes it possible for enterprises to increase labour productivity and production efficiency, but also ensures positive change at a macroeconomic level. Could quality become the foundation for a national strategy, and what is its role in creating the ‘country of origin’ effect? What is the role of regional brands in this process? What are the specific features of investment projects in the field of quality? What tools have already been introduced in Russia to encourage domestic enterprises to produce quality products and services, and how effective are these proving to be?
- Infrastructure Mortgages: Public–Private Partnership 2.0 ROSINFRA Infrastructure Congress Event International assessments suggest that in order to ensure the stable growth of the Russian economy, investment in developing infrastructure must be more than doubled – to RUB 4.4–5.4 trillion annually. At a time of reduced budgetary funding for in...
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International assessments suggest that in order to ensure the stable growth of the Russian economy, investment in developing infrastructure must be more than doubled – to RUB 4.4–5.4 trillion annually. At a time of reduced budgetary funding for infrastructure, it is important to encourage private investment into this area. In order to achieve this, the Russian Ministry of Economic Development has come up with an ‘infrastructure mortgage’ programme, at the initiative of the President. The programme includes improvements for current public-private partnership schemes and the creation of a fundamentally new mechanism for attracting investment, measures to develop more convenient and transparent legislation and guarantees for investors in infrastructure, and the development of measures for pre-project financing, among others. Will the proposed measures be effective? What results will they make it possible to achieve? Will they be sufficient to solve problems arising from the lack of infrastructure development? What else must be done to achieve a breakthrough in terms of infrastructure?
- Russian Goods on Global Markets: a Glance into the Future Creating and promoting brands for domestic goods is one of the key challenges involved in expanding exports of finished products. Promoting strong and competitive Russian product brands helps to create stable consumer demand and reinforce a positi...
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Creating and promoting brands for domestic goods is one of the key challenges involved in expanding exports of finished products. Promoting strong and competitive Russian product brands helps to create stable consumer demand and reinforce a positive national image. What are the basic tools for promoting the ‘Made in Russia’ export brand, and how can it be safeguarded from a legal point of view? What role are product brands playing in promoting the image of Russia’s regions? What is the significance of franchising in promoting the image of Russian brands? What challenges are Russian companies in non-commodity sectors overcoming in gaining access to foreign markets? What role is the introduction of new industrial technologies playing in boosting the export potential of competitive domestic products? What position do regional SMEs fill in the export of finished products from Russia?
- The Contribution of Innovative Clusters to Regional Investment Attractiveness A great deal of activity is in evidence today surrounding the formation of companies and the scaling-up of their operations – startups and scaleups. The largest contribution to employment growth is being provided by just 3% of the most dynamic com...
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A great deal of activity is in evidence today surrounding the formation of companies and the scaling-up of their operations – startups and scaleups. The largest contribution to employment growth is being provided by just 3% of the most dynamic companies. This poses a new challenge for national economic policy. Some answers may be found in a cluster policy. The structure of a cluster is formed by existing companies which have already established themselves, cemented their position in business or science, and matured to the point of being able to undertake joint action. Clusters can help strengthen the demonstration effect for fast-growing companies by facilitating more intensive and open communication between their members. A number of existing fast-growing companies (for example, from the list of ‘national champions’) whose competitiveness is chiefly dependent on their local surroundings, can form clusters around themselves, attracting new organizations and transforming existing ones. Are traditional support measures in the sphere of small and medium-sized businesses and innovation sufficient to stimulate the scaling-up of successful companies? What new tools can be proposed for the support of fast-growing companies, and how can old tools be reoriented for these purposes? What is the role of leading Russian clusters in the realm of cutting-edge technologies and in transforming the stream of startups into a stream of fast-growing companies?
