Goal: analysis of the current state of Russian manufacturing firms with the focus on their global competitiveness, including comparative research of firms in the global context.
Methodology: Mostly the instruments of statistical and econometric analysis of empirical data are being used. For reaching the goal the research has been conducted in several fields, including the following tasks:
- The empirical database has been collected, which included the data of the large scale survey of 2000 Russian manufacturing firms, conducted in 2014, the financial data for those firms from the available firm-level databases, as well as the data from the European EFIGE project, collected in 2009 in the framework of the similar EU research for 7 EU countries;
- Labor productivity on a firm-level has been calculated and the comparative analysis conducted for the Russian and European firms; the heterogeneity of firms in EU and Russia have been evaluated;
- The main barriers for growth of firms have been analyzed for the SME firms in Russia;
- Econometric models for estimating the impact of competition on innovation behavior of firms have been developed, that into account the relative technological level of firms;
- Comparative analysis of firms with different ownership status has been done, including the category of so called “family businesses” in Russia and in European countries; as well as the analysis of trends in the distribution and concentration of ownership and control in Russian manufacturing in pre-crisis and post-crisis periods and comparative analysis of firms with different practices of management and decision-making (centralized vs decentralized);
- Models build and estimated to reveal relationships between state and business in the context of state procurement, and the models of “models of exchange” between firms and state institutions at different levels of state and local governance;
- The most sensitive to sanctions and to deterioration of trade and other channels of cooperation groups and types of firms have been revealed, major characteristics determining sanctions risk-perception have been analyzed.
The empirical data includes:
- Survey data of 2014 survey of 2000 Russian manufacturing firms;
- Financial and other performance data from RUSLANA Database;
- Survey data on 14, 000 firms in 7 EU countries linked with financial data from Amadeus database;
- Data on Russian regions from the database created by ICID (International Center for the Study of Institutions and Development), which includes both official statistics and expert evaluations for business climate in Russian region;
- The BEEPS database of the World Bank and EBRD.
- Labor productivity indicators for industries and size groups have been calculated, the gaps between Russian and European manufacturing firms have been assessed, including gaps in the segment of SMEs.
- Barriers for firms’ growth in the SMEs segment of Russian firms revealed and analyzed. The major barriers are related to low efficiency and low competitiveness as well as the deficiencies in the regional business climate.
- The positive impact of competition and mostly of import competition pressure on product innovations for Russian manufacturing firms. The nonlinear form of this relationship has been found (inverted U-type relationship) for the least technologically advanced firms.
- The trend in re-distribution and concentration of ownership in Russian manufacturing analyzed between 2009 and 2014 and the impact of ownership changes on the performance and behavior of firms. Found that the basic trends in the ownership and corporate governance have not changed, though the are definite improvements in the segment of state co-owned enterprises in terms of innovation activity (but not in investment activity).
- Trends in managerial innovations in terms of introduction of the quality control systems, informational systems for management, etc. at Russian manufacturing enterprise have been assessed. Major structural features facilitating managerial innovations implementation revealed and analyzed. In particular the results show that, other factors being equal, the implementation of the decentralized management practices are more common for firms with foreign co-owners and significantly less for firms with the state among owners.
- The prerequisites for firms to participate in the state procurement have been revealed, as well as the impact of participation in the state procurement for the performance and behavior of firms. It was proved that the state co-owned firms much more often are involved in state procurement and also that the fact of “support” by a firm to the state executive institution significantly increases the chance to participate in public procurement activity. In general we found that the intensity of state firm-supporting practices has increased and much more often a firm gets both financial and organizational support from the state.
- The analysis of firms participating in business-associations showed there are certain changes in the model of business-state relations. While the participation rate has been decreasing, the correlation between participation in the associations the probability of getting state support has become more prominent. Those changes can be seen on all levels of governance but mostly evident for regional level.
The practical implementation of results, recommendations for implementation or results of implementation:
The results of the research project can be used as the base for developing recommendations for improvements of state economic, RD and industrial policies, adequate to the current economic situation and the goals of changing the model of economic growth in Russia.