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?
February 16
- Creating Ecosystems to Develop E-Commerce: Challenges and Opportunities The introduction of information and communications technologies and changing consumer preferences have led to the rapid growth of online commerce, which is opening up opportunities for Russian companies to enter not only domestic but also foreign ...
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The introduction of information and communications technologies and changing consumer preferences have led to the rapid growth of online commerce, which is opening up opportunities for Russian companies to enter not only domestic but also foreign markets. Russia’s e-commerce sector has expanded at a brisk pace in recent years, and continues to grow with confidence. Experts assess the value of the e-commerce market in Russia in 2017 at RUB 1.1 trillion. To accelerate the pace of e-commerce, it would be a good idea to establish an ecosystem based around a technology platform, which would bring together sellers, buyers and service companies, marketing and delivering goods to consumers in every region of the country and overseas. This would give companies easier market access for their products. Companies would simply need to decide what to produce and offer for sale. Manufacturing and supply, marketing, the website, accounting functionality, warehousing, financing and delivery would all be provided through such a platform. What is currently determining the development of domestic and external e-commerce? How can digital economy ecosystems help to radically change the landscape in this sector? What impact might a platform have on the growth of small and medium-sized business?
- Investment in Tourism: Attractive Segments of the Sector and Preparations for the 2018 World Cup The tourism industry is a promising area for investment. One rouble invested in tourism can yield as many as five roubles in return. As part of a targeted federal programme to develop domestic and foreign tourism in the Russian Federation over the...
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The tourism industry is a promising area for investment. One rouble invested in tourism can yield as many as five roubles in return. As part of a targeted federal programme to develop domestic and foreign tourism in the Russian Federation over the period 2011–2018, a large number of investment projects are being implemented which are centred around the creation of tourism, recreation, and motor tourism clusters. Individual Russian regions are also progressing with their own investment initiatives. In 2018 Russia will host the FIFA World Cup. Preparations for this important sporting event will involve new challenges and new investment opportunities. What segments of the tourism sector are the most promising today, and what are the factors that determine their investment attractiveness? What are the specific features of industrial, cruise-based, ethnographic, and other kinds of tourism from the point of view of investment? What role can domestic and inbound tourism play in improving a region’s investment appeal? What will the 2018 World Cup contribute to the development of the sector from an investment point of view, and how can effective use be made of the ‘championship legacy’ once the matches are over?
- Small and Medium-Sized Businesses in Agroindustry: How to Increase Profitability Strengthening small business and creating a favourable environment to promote entrepreneurial activity in rural areas are priorities for the government. Agroindustrial SMEs fulfil an important social function and make a significant contribution to...
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Strengthening small business and creating a favourable environment to promote entrepreneurial activity in rural areas are priorities for the government. Agroindustrial SMEs fulfil an important social function and make a significant contribution to the sustainable development of Russia’s regions. At a time when Russia is successfully entering global food markets, SMEs are faced with the challenge of effectively integrating into the global value chain. At the same time, new niches are appearing in local markets, reflecting shifts in Russian consumer preferences, and SMEs are best placed to fill those niches. How can Russian SMEs monetize their market potential in the modern agroindustrial sector? What is their competitive advantage in the global food market?
- Updating Russia’s Linen Industry Revitalizing the Russian linen industry, which has lost its position in the Russian and global markets over the course of the last two decades, is a top priority of state industrial policy on domestic light industry and one of the key focuses of t...
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Revitalizing the Russian linen industry, which has lost its position in the Russian and global markets over the course of the last two decades, is a top priority of state industrial policy on domestic light industry and one of the key focuses of the light industry development strategy in the short term. Limiting factors in the development of the linen industry are a shortage of quality raw flax fibre, a lack of modern technology for growing and processing flax, and an absence of funds. In order to revitalize the linen industry, approaches to its growth and redevelopment need to be substantially transformed. Creating interregional clusters and organizing cooperation between agricultural producers of flax and the textile industry is one of the first steps to be taken in this direction. How did the present situation faced by the linen industry come about? What proposals are there for concentrating existing support mechanisms provided by the Russian Ministries of Agriculture and Industry, and what new approaches to modernization of the linen industry are available?
- Does Small Business Have a Place in Exports? A View from Entrepreneurs Only 0.5% of Russian small and medium-sized businesses presently export their products, whereas this figure exceeds 30% in Germany and is as high as 70% in Japan. In order to achieve economic growth, it is essential to increase exports as one of t...
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Only 0.5% of Russian small and medium-sized businesses presently export their products, whereas this figure exceeds 30% in Germany and is as high as 70% in Japan. In order to achieve economic growth, it is essential to increase exports as one of the major indicators of competitiveness. How do small businesses rate their export potential? What are the difficulties faced by Russian small businesses, and how can these be overcome? How can the share of small and medium-sized business in the export of goods and services be increased?
- Women’s Leadership: The Energy of the Future One of the most pressing priorities for Russia is to capitalize on new drivers of growth. Female entrepreneurship is undoubtedly one of these. Businesses owned by women form a significant and rapidly growing proportion of small and medium-sized en...
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One of the most pressing priorities for Russia is to capitalize on new drivers of growth. Female entrepreneurship is undoubtedly one of these. Businesses owned by women form a significant and rapidly growing proportion of small and medium-sized enterprises. As well as in sales and services, women are also now engaged in the agroindustrial, construction, high-tech, and banking sectors. In some countries, companies with female directors contribute 50–60% of gross domestic product. Female business is now a substantial component of entrepreneurship as a whole. What obstacles do women have to overcome on their way to success? What is the real position of women in top management? The keys to women’s success in business. Opportunities that the modern market offers Russian women. What models can be followed and what specific steps taken to achieve success?
- Public Finance. Developing Mechanisms for Crowdfunding, Crowdinvesting, and Crowdlending An investment crowdfunding mechanism is being actively applied in today’s economy with the objective of structuring investments more efficiently. Crowdfunding will eventually make it possible to attract investors to innovative venture projects dir...
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An investment crowdfunding mechanism is being actively applied in today’s economy with the objective of structuring investments more efficiently. Crowdfunding will eventually make it possible to attract investors to innovative venture projects directly and within short periods of time, reducing transactional costs. Countries like the UK, the USA, and Israel are actively applying crowdfunding and crowdlending mechanisms as tools for attracting investment. Russia presently lacks specialized crowdfunding regulation, which is making it more difficult to develop the mechanism. One important issue in the development of crowdfunding today is that of ICOs. Currently, most regulators have defined an approach to regulating this phenomenon which takes into account possible risks. What might the consequences of a crowdfunding mechanism in Russia be? Is it possible to use international experience as a basis to take crowdfunding in Russia to a new level? What are the prospects for crowdfunding as a mechanism for financing innovative projects? Could ICOs present an alternative to venture investments? How can general financial market infrastructure be adapted to fund innovative projects?
- Business Events: Is There a New Tool That Could Boost the Investment Attractiveness of Russia’s Regions? Global experience indicates that holding major international events creates a significant economic impact in diverse sectors of the economy. Many national governments worldwide, together with regional and local authorities, are working purposefull...
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Global experience indicates that holding major international events creates a significant economic impact in diverse sectors of the economy. Many national governments worldwide, together with regional and local authorities, are working purposefully to facilitate the construction of associated infrastructure in their cities, improve transport systems, and build hotels and convention venues. Russia has also seen positive developments in this area in recent years. In particular, an organization has been created specifically to promote the convention infrastructure found in the regions on the international stage and attract international convention events. Organizing new events in Russia’s regions will first and foremost help to create new jobs. It will also contribute to attracting investment and developing a positive image of Russia’s regions at an international level. In this way, business events can constitute an important factor in attracting investment for regional development. What steps must government and business take in order to attract major international events to Russia’s regions? How important is the role of Russia’s regions in attracting international events? What is the role of the National Convention Bureau in promoting regions and attracting business events of various formats? To what extent can business events help to realize regional export potential? What steps must be taken to promote the investment and economic potential of Russia’s regions domestically and abroad?
- Creating Ecosystems for Young Enterprise Businesses run by young people represent a significant segment of small enterprise. One of the priority areas for government support of small and medium-sized enterprises covers measures to encourage young people to engage in entrepreneurial activ...
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Businesses run by young people represent a significant segment of small enterprise. One of the priority areas for government support of small and medium-sized enterprises covers measures to encourage young people to engage in entrepreneurial activity. It is the present generation of young people and young enterprise that will make up our country’s image in 10 years’ time: helping young people in business to develop today will determine the rate of economic growth and of Russia’s national development tomorrow. What are the particular features of young enterprise? What is needed to develop it? What can be done to help overcome its weaknesses and develop its strengths? Is it possible to apply international experience in supporting and developing young enterprise?
- Improving Labour Productivity: A National Priority Ever since Toyota introduced ‘lean manufacturing’ technology, it has proven to be effective in improving labour productivity on the production lines of major enterprises around the world. Today, lean is not just a technology, it is an ideology foc...
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Ever since Toyota introduced ‘lean manufacturing’ technology, it has proven to be effective in improving labour productivity on the production lines of major enterprises around the world. Today, lean is not just a technology, it is an ideology focused on efficiently organizing processes within an enterprise, with applications outside the industrial sector. How can we encourage enterprises to genuinely engage with a programme to increase productivity? Can this experience and methodology be applied to public administration? How can we create a high-performing regional administration?
- A New Structure for the Economy of Russia’s Regions: Where are the Sources of Efficiency? The model for the sustainable socioeconomic development of Russia’s regions is based on global and national factors in achieving efficiency within these regions, which are competing for access to investment resources and human capital. New directi...
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The model for the sustainable socioeconomic development of Russia’s regions is based on global and national factors in achieving efficiency within these regions, which are competing for access to investment resources and human capital. New directions for regional structural policy: regional competitiveness as an objective and long-term resource for progress. What contemporary tools of government regional structural policy are the most relevant and productive? Where can room for modernization be found in the sectoral structure of Russia’s regions? How can a historically high level of regional diversity in terms of the level and dynamism of socioeconomic development be used to the country’s advantage? Can a compromise be found between international integration processes and the preservation of regional identity?
- Russian Companies Can Produce. They Need to Know What and Why Russian companies traditionally treat spending on R&D as a burdensome secondary concern, which is the first thing to be jettisoned in challenging times. If, on the other hand, they are serious about producing goods which will sell on the market, h...
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Russian companies traditionally treat spending on R&D as a burdensome secondary concern, which is the first thing to be jettisoned in challenging times. If, on the other hand, they are serious about producing goods which will sell on the market, how can they do this without studying the market and conducting research into consumer behaviour? How is it possible to operate within a country at all without understanding it or showing interest in it? How simple and inexpensive is it to improve relations between producers and consumers?
- Family Values: How is Business Helping to Make Russian Families Richer? Family companies account for between 50% and 80% of jobs in the global economy, and represent more than two thirds of companies worldwide. The growth rate of family businesses in Russia is lagging behind global indicators. According to expert data...
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Family companies account for between 50% and 80% of jobs in the global economy, and represent more than two thirds of companies worldwide. The growth rate of family businesses in Russia is lagging behind global indicators. According to expert data, family businesses are more crisis-resistant. Today, Russia is lacking the concepts and definitions of ‘family business’ and ‘family enterprise’. Removing imperfections in the regulatory framework and creating the best possible conditions for family businesses to be run will make it possible to take Russian business to a new level, increase the prosperity of the Russian population, and transition to an innovative form of economic development. What incentives should the government offer citizens in order to significantly increase the proportion of family companies in Russia? What steps must be taken in order to make running a family business viable and economically advantageous?
