Successes and Difficulties of Small Innovative Firms in Russian Nuclear Cities Proceedings of a Russian-American Workshop (2002) / Chapter Skim
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Activities of the Obninsk City Administration Aimed at Supporting Small Innovative Firms
Activities of the Obninsk City Administration Aimed at Supporting Small Innovative Firms
Pages 167-181
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From page 167... ...
Activities of the Obninsk City Administration Aimed at Supporting Small Innovative Firms Igor M Mironov Obninsk City Administration CURRENT STATE OF SMALL- AND MEDIUM-SIZED ENTERPRISES IN OBNINSK A total of 3,937 small businesses are registered in the city of Obninsk, accounting for 85 percent of the total number of all registered enterprises and organizations.
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From page 168... ...
In particular this can be done using funds from the Obninsk science city program. In addition the Obninsk Center for Science and Technology (OCST)
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From page 169... ...
To make our city truly attractive for investments, we are using our main advantages, namely our highly qualified labor force and its intellectual potential, innovation opportunities primarily in high-tech products, and the availability of the principal institutions of the market economy. However, the imperfection of the current Russian tax system is hindering
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From page 170... ...
The investment council was established in 1999 to develop and implement investment policy in the city. It makes decisions on granting tax incentives according to the Temporary Resolution on Support for Investment Activity and supervises implementation of city investment projects and application of incentives for investors.
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From page 171... ...
Therefore, once the Science City Program was launched, there was no further need for the Small Business Support Program, and its planned activities were taken over by the Science City Program. RESULTS OF CITY GOVERNMENT SUPPORT FOR SMALL INNOVATIVE BUSINESSES Results of Legal and Regulatory Affairs Support In accordance with the Temporary Resolution on Support for Investment Activity and the decision of the Investment Council of Obninsk, tax agreements were concluded with three city companies in 2000.
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From page 172... ...
· By using its experience in developing packaging materials, including those intended for use with unique made-to-order scientific instruments, the company facilitates small shipments for other local firms, which in turn helps these firms get their products to the market, as packaging plays one of the key roles in product promotion. · The company chose to locate in Obninsk because of its science city status, as well as the possibility of hiring highly qualified specialists and the availability of tax incentives.
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From page 173... ...
At present the fund has assets of 700,000 rubles, which are used for operating activity. Together with additional funds from the Science City Program, the fund's total assets exceed 1.5 million rubles.
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From page 174... ...
RESULTS OF THE CITY ADMINISTRATION'S ACTIVITIES AIMED AT SUPPORTING SMALL INNOVATIVE BUSINESSES Successes · Thanks to the assistance of the city administration, a diversified infrastructure for the support of small high-tech businesses has been created in Obninsk. The city is a cofounder of a number of innovation infrastructure enterprises (OCST, the Obninsk Regional Agency for the Promotion of Investment and Technology [RAPIT]
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From page 175... ...
, the Fund for the Support of Small Business, other institutions, and foreign specialists, a number of workshops and consultations were organized and have produced positive results. · Owing to implementation of the Program for the Development of Obninsk as a Science City, the circulating capital of the fund was significantly increased, making it possible to provide increased financing for investment projects selected on a competitive basis.
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From page 176... ...
. PROSPECTS FOR THE DEVELOPMENT OF SMALL INNOVATIVE BUSINESSES IN OBNINSK Long-Range Plans of the City Administration for the Support of Small Innovative Businesses These plans are defined in the Program for the Development of Obninsk as a Science City, the entire strategy of which is of course devoted to
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From page 177... ...
The technopark project calls for the construction of an industrial complex under the auspices of the Science City Program and using program funds. It is designed so that enterprises that have outgrown the business incubator can lease municipal space where they can grow to maturity.
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From page 178... ...
A great number of institutions have recently been created to support the high-tech business sector, including different agencies, technoparks, business innovation centers, and business incubators. Such a comprehensive innovation infrastructure provides effective support for innovative businesses, but only in those locations where the innovation business itself is highly developed namely the major scientific industrial centers, such as Moscow, St.
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From page 179... ...
However, it is understandable that the heads of these institutes prefer renting space to highly profitable manufacturing firms instead of innovative enterprises that face a long and difficult stage of getting up to speed. The state system of preferential terms for the rental of institute facilities to small innovative enterprises could serve as a substantial stimulus to the development of high-tech production.
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From page 180... ...
Established with the participation of the Obninsk Institute of Nuclear Power Engineering, the Franco-Russian Institute of Business Administration, and the Minatom Central Institute for the Improvement of Professional Skills, this training center could offer educational services to high-tech business specialists from all the nuclear cities. Infrastructure Support Despite the well-developed nature of the innovation infrastructure network, the services it offers are too expensive for the majority of innovative start-up companies.
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From page 181... ...
Consequently, the first thing that is needed is a mechanism for providing research institutes with incentives for transferring technologies to private businesses. Second, conditions must be created so that intellectual property valuation is accessible to the majority of inventors.
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