Successes and Difficulties of Small Innovative Firms in Russian Nuclear Cities Proceedings of a Russian-American Workshop (2002) / Chapter Skim
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Steps Being Undertaken by the Snezhinsk City Administration to Support Small Innovative Companies
Steps Being Undertaken by the Snezhinsk City Administration to Support Small Innovative Companies
Pages 190-199
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From page 190... ...
The effectiveness of this policy determines the ability of domestic manufacturers to incorporate new ideas, work actively, and above all compete successfully in the world market. Therefore, the current status of innovation activity and the problem of promoting innovation processes in our country are more urgent today than ever before.
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From page 191... ...
Thus, the lack of regional investments in small business development in our oblast represents a serious financial and economic oversight on the part of the oblast administration. As for the Snezhinsk city government, the city administration and Snezhinsk City Council have chosen their own way of developing the innovation activities of small business.
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From page 192... ...
Our policy of attracting and allocating investment funds is based on the principle of providing investors with an economic interest in creating new production assets and establishing new production facilities in the closed city of Snezhinsk through various forms of support provided by local government agencies." To varying degrees, these documents highlight the top priorities for small business development in the city. These priorities include expanding the production of competitive science-intensive products; accelerating the transfer of technologies to the production sphere; developing a technology transfer support infrastructure; creating employment opportunities for highly qualified engineers, technicians, researchers, and specialists; and promoting small-scale industrial manufacturing and the production of consumer goods that can replace imports.
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From page 193... ...
developing competition by attracting and efficiently using financial resources to implement targeted programs for the support and development of small business. The primary areas of the funds' activities are the following: · participation in the development, expert review, competitive selection, and implementation of municipal programs focused on small business support and related projects in the small business field, including demonopolization of the economy, development of competition, satisfaction of the goods market, and creation of new jobs · participation in the formation of a market infrastructure providing equal conditions and opportunities for small business operations · support for entrepreneurial innovation activity, stimulation of the development and manufacturing of fundamentally new types of products, assistance in putting new technologies and inventions into practice · assistance in attracting domestic and foreign investments to pursue top-priority objectives in creating a competitive environment and developing small business To achieve their primary objectives, the funds are involved in the following activities: · accumulating monetary resources (nonbudget)
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From page 194... ...
For the sake of clarity, Table 1 presents quantitative data and the volumes of financial resources provided by the Snezhinsk municipal funds in 2000-2001 for supporting and developing small- and medium-sized businesses, including those involved in innovation activity: In addition, the Snezhinsk City Administration participates in the foundation of economic entities, with a portion of the shares of the new enterprises being secured under municipal ownership. The following organizations may be cited as examples: Bars-70 The city administration is one of the founders of this limited liability company.
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From page 195... ...
The company also pursues research and production activity concerning the development and application of new technologies in production; the implementation of scientific-technical achievements in the mining and processing of precious and rare stones and metals; and the development and application of low-waste, environmentally clean, and resource-saving technologies. Spectrum-Conversion is currently carrying out the following innovation projects: · organization of serial production of high-temperature electric heat.
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From page 196... ...
The IDC is a nonprofit organization with the following main areas of activity: · promoting a favorable investment environment in the closed city of Snezhinsk · aiding in the search for investors for industrial diversification projects and assisting with market analyses · organizing training for employees laid off from nuclear enterprises · providing information to enterprises about access to financial resources to fund projects and activities · helping to identify and create new favorable economic opportunities in the closed city of Snezhinsk · providing consulting and informational support for the investment activities of state and municipal enterprises and private businesses and in the preparation and development of promising technologies and production facilities · providing assistance in developing and conducting expert reviews of investment projects and programs aimed at supporting the economy in the closed zones · helping local government agencies to develop investment stimulation programs, strategic plans, and development concepts · rendering information and consulting services to businesses and local government agencies in the field of investment opportunities On October 24, 2000, a conference for entrepreneurs entitled "Small Business in Snezhinsk: Problems and Prospects" was held in Snezhinsk. Having heard and discussed the reports and presentations made by local government leaders, representatives of municipal nonbudget funds, other city organizations and institutions, entrepreneurs, and small business managers, conference participants stated that the city has created a functioning system for providing financial support to small business.
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From page 197... ...
· The possibility of using city funds to construct office and production space for start-up companies should be considered. Unfortunately Russia is ill prepared to initiate efficient development of the venture capital business, and Snezhinsk is no exception.
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From page 198... ...
However, the following general defects are noted: · no clear market positioning of products and company trademarks and no qualitative comparative analysis of competitors · unresolved intellectual property and patent protection issues, in many cases At the same time, one of the most substantial factors hindering the development of innovation-oriented business lies in the undeveloped nature of the information infrastructure focused on serving the interests of both investors and entrepreneurs. In conclusion, I would like to add that the investment policy of Snezhinsk local government is aimed at supporting and assisting small
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From page 199... ...
SNEZHINSK CITY ADMINISTRATION 199 business, not creating it. The Municipal Fund for the Support of Small Business has conducted a sociological study entitled "Focus on the Small Business." Based on the results of this study, specialists reached the following conclusion: "Entrepreneurs are rather well informed about available municipal forms of small business support, but in fact almost none of them ever use this information in practice."
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