role of smes in regional innovation systems in russia
TRANSCRIPT
Role of SMEs in regional innovation systems in Russia
26-27 August 2015 Lisbon
The Russian Presidential Academy of National Economy and Public Administration
Vera Barinova Stepan Zemtsov
Alla Sorokina
SMEs in regional innovation systems in Russia:
1. What are SMEs in Russia?
2. Do they innovate?
3. How are they supported?
4. What else is to be done?
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1. What are SMEs in Russia?
More companies are now considered SMEs 3
2014 - - - >>> 2015 (№156-FL of 29.06.15)
N
employees Turnover The external companies’
capital share in the equity capital
Micro 1-15 <60 mln
rbls
25%
Small 16-100 400 mln
rbls
25%
Mediu
m
101-250 1000 mln
rbls
25%
N
employees Turnover The external companies’
capital share in the equity capital
Micro 1-15 120 mln
rbls
49%
Small 16-100 800 mln
rbls
49%
Mediu
m
101-250 2000 mln
rbls
49%
1 euro – 80 roubles
2. Do companies innovate in Russia?
• The share of industrial production firms, that implement technological, marketing or organizational innovations (in total number of industrial production firms):
• Corporations’ R&D investment (in total R&D investment):
• Fast-growing SMEs – “gazelles”
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Russia – 10% (Rosstat)
Germany – 80%, Belgium – 61%, the EU – 53%, Poland – 28 (European
regional innovation scoreboard, 2013)
Russia – 30-34%, OECD – 70% (OECD Main Science and Technology Indicators, 2012)
“GAZELLE” (Birch, 1987): a company with
income from 2 to 30 mln $,
which has a 20% real (inflation adjusted) growth rate during latest
5 years,
>10 people
“Gazelle” SMEs
The tech-up rating 2014: a typical gazelle
5
PWC, I-regions Association, SME-Bank, Investment fund etc. (national survey http://www.ratingtechup.ru/en/rate/)
• 5% of all companies (Russia 5%-10%)
• 75 – 80% new workplaces, contribute more than 50% to GDP growth (Gazelles Innovation Panel 2006, 2011)
• Fast-growing: >20% revenue growth rate a year, age>5 years (Eurostat OECD)
Addressing challenges for high-growth companies. Summary and conclusions of the Europe INNOVA gazelles innovation panel//Europe INNOVA paper 6 Mitusch K., Schimke A. Gazelles-High-Growth Companies Final report. Task 4 Horizontal Report 5, 2011.
MEDIUM SIZE (to large): 2014 revenue 100 mln - 10 bln RUR FASTGROWING: Average annual growth rate is above 15% for 3 years (12-14). INNOVATIVE:
At least 1 new product or service based on company’s intellectual property launched to the market in 12-14 Share of company’s turnover generated by them -at least 30% in the last 3 years (12-14). Average R&D spending for the last 3 years (2012, 2013, 2014) of not less than 5% of the revenue. Average technological innovation spending for the last 3 years (12-14) of not less than 10% of the revenue.
NOT STARTUPS: Minimal time in the market of 4 years.
Tech-up “Gazelles”
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Number of companies
Companies’ revenue (bln rbls)
TechUp 2014 http://www.ratingtechup.ru/rate, TOP-50 analysis
St.Petersburg (N-W)
Moscow (Central)
Central
Southern
Privolzhsky
Ural
Siberian
N-W
The Russian “gazelles” are operating in 33 of the 85 regions of Russia. ~ 30% of them belong to Moscow and St.Petersburg, specializing in • ICT (16%), • professional
equipment (15%), • biotechnologies (9%) • other high-tech
industries.
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SPARK “Gazelles” (2013, % of all SMEs in Russia)
Manufacturing ind., 24%
• Manufacturing 24% (concrete, general-purpose machinery, plastic products, metal structures and products)
• Construction 24% • Wholesale
trade&retail 13% • Real estate
operations -15%
1. The SMEs’ financial support program of the Russian Ministry of economic development:
subsidizing the Russian regions for SMEs’ support (on terms of cofinancing)
More than 40 support measures, including direct support (subsidizing) and indirect support (development of the financial, consulting etc. infrastructure)
3. How are SMEs supported in Russia?
Specific infrastructure to promote innovations: clusters development centres, engineering centres, prototyping centres, standartization and certification centres etc.
SMEs’ financial infrastructure: business-incubators, science and technical parks, industrial parks
2. Some administrative preferences and tax incentives:
• Simplified taxation system;
• 2-years with no taxes for startups;
• 3 years without audit and tests of the supervising authorities
3. How are innovations supported in Russia?
9
2011: the Innovation Development Strategy of the Russian Federation 2020
Quantitative goals
2013
(real)
2013
(planned
)
2020
The share of firms, introducing technological innovations (in the total number of
firms)
% 8,9% 9,6% 25%
The share of high-tech and knowledge-intensive goods and services (in the total
number of goods and services produced by the manufacturing industry)
% 8,9 7,2 25
The share of industrial production firms, that implement technological, marketing or
organizational innovations (in total number of industrial production firms)
% 10,1 24 60
The share of firms that use the Broadband WL (Internet) (in the total number of
firms)
% 88,1 85 98
The average (mean) age of a researcher year
s
48* 47,5 43
The share of federal governmental services to be provided electronically (in total
number of such services)
% 80 98 100
Rosstat, www.gks.ru
How to promote SMEs’ innovations? < - > What drives SMEs’ innovations?
• Internal factors (management, history, personnel - education, R&D investment)
• External factors (access to key resources – financial, intellectual, institutional, etc).
4. What else is to be done?
The fast-growing companies 2013 analysis: • the latest 5 years of the post-crisis period in Russia (2009-2012), • SPARK database (Professional market and company analysis system) - income, owners, location, industry,
financial indicators. + number of patents per firm (Russian patent office) + R&D expenditures, R&D employees, urbanization rate, human capital, investment climate, etc. (Rosstat)
• national survey of high-tech firms (“Rating-TechUp” http://www.ratingtechup.ru/en/rate/) 2013 database. • 419 manufacturing ‘gazelles’ from 9220 companies in database, which is ~5%.
Internal factors: the regression analysis results
• The technical innovations investments increase the labour productivity (measured as revenue per employee);
• The more the new products share in the revenue is, the more the labour productivity is;
• The R&D investments and training costs increase the company’s growth rate (although it slows with time);
• Companies specialized in ICT grow fast for a longer period of time
success factors(management, history, personnel, R&D investment,
partnerships, large clients, new products, governmental support) + luck
Internal factors: case study results
• ABBYY (Moscow, 1989) – linguistic products, programs: MIPT graduates – new product and new market (Lingvo) - diversification(FineReader) – large clients (Pension Fund of the FR) – ABBY department in MIPT – foreign markets – large foreign partners (Acer, Microsoft, Epson, Xerox)
• “IT” group of companies (Moscow, 1990) – IT infrastructure, programs: MSU – Intel partnership – lectures – spin-offs – large clients (RusAl, RusHydro, TNK-BP)
• ZAO «Diakont» (St.Petersburg, 1990) – videomonitoring and diagnostics: R&D, videomonitoring and diagnostics of the nuclear reactor (Rosatom) – diversification – large clients (Gazprom)
External factors: regression analysis results
• The concentration of gazelles was above 0.45% higher in a region with 1% higher R&D intensity:
the number of researchers per capita; the number of PCT- applications per economically active population; the proportion of employees with higher education in the total population of working age; the number of national patent applications per economically active population.
• Manufacturing gazelles prefer to localize in the regions with a high share of manufacturing in GRP than in the highly urbanized regions
A trend: creation a company in a region with high innovation potential Moscow, St Petersburg, the Moscow region, the Tomsk region etc. –
41% of techup companies- 3 regions,
68% - 10)
Conclusions: supporting SMEs and innovations 1. Most SMEs that innovate in Russia are “gazelles”
2. We need to diversify the support measures: “ordinary” SMEs (aim - employment) and fast growing SMEs (aim – innovations)
3. Supporting innovative SMEs, priority sectors are to be identified: manufacturing, ICT, biotech, energy efficiency
4. Some educating programs for SMEs should be introduced to share the best practices
5. To promote R&D and training investments, tax incentives and other administrative measures should be used
6. To promote the business-science and education-governmental interaction is a priority at a regional level: • ICT infrastructure, infrastructure for innovations
• new courses and universities’ departments
• SMEs’ clusters development, governmental programs -to promote the integration, accumulation and coordination of different SMEs’ support measures
SMEs support: http://smb.gov.ru/
How are innovations supported in Russia?
Financial support programs (mln roubles)
Moscow
St Petersburg
Sevastopol
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