Russian government embraces cluster strategy

Первый проректор НИУ ВШЭ Леонид Гохберг об итогах Кластерного саммита в Москве

Fifty percent of the world's economies are now using 'cluster strategy' to achieve growth, and as Russia attempts to wean itself off its dependence on natural resources, it's embracing the same this line of economic development, setting up various clusters across its vast territory. VoR’s Dasha Chernyshova reports from the 2013 Cluster Summit in Russia.

A cluster, or a group of related firms and economic institutions specializing in the same industry and located near one another, is believed to bring about synergies for small and mid-size businesses.

And though the strategy has been taken up only recently, there are success stories in the oil-rich country.

Some regions specialise in car manufacturing, some in pharmaceuticals, others in IT or aeronautics – many industries that are part of global trends are being developed in regional clusters across Russia.

Ben Aris, Editor in Chief of Business New Europe thinks clusters have already proved successful in Russia: "And they already are. For example, there is a huge cluster in St Petersburg for light manufacturing, alcohol, and car manufacturing which is already proving very successful. They are pulling in more and more investment, because the infrastructure is there, the work force is there and everything is in place. Kaluga, a region not particularly rich in minerals in oil, or anything, has been very successful in creating business environment."

Kaluga – 200 kilometers off Moscow - has been one of the pioneers, attracting car manufacturers to the region, inviting investment and providing ample opportunities - human resources and consumer market.

Mordovia has become a centre of Russia’s lighting industry, with plants manufacturing lighting equipment working for the benefit of the entire country, along with lighting design companies and distributors.

In 2012 Russia’s Ministry of Economic Development approved 25 innovative territorial clusters in Russia and 14 receive state subsidies.

Artyom Shadrin, Head of Innovation Development Department at Russia’s Ministry of Economic Development said: “We had a competition and could choose not only from the regions with significant science and technical potential, but most importantly the regions ready for clusters and efficient work. So, it was not a mere analytic selection, and we didn’t pump them with money. We had 94 applications, and we selected 14 in the first wave, and 25 in the second. So, we expect these clusters to yield results.”

According to Artyom Shadrin, the volume of subsidies is more or less equal and amounts to two million pounds per cluster.

All of them have different models of territorial organisation, as well as various ration of science-technological activity and manufacturing capabilities.

Yet, all feature high growth of production volumes, R&D potential and educational facilities based within every cluster.

Another appealing initiative in Russia is special economic zones that provide tax breaks.

Leonid Gokhberg, Director of the Institute for Statistical Studies and the Economics of Knowledge and First Vice Rector at The Higher School of Economics, said: “In my view there are definite advantages when we talk about special economic zones. Since they have been long established and have clear advantages in attracting investors. On the other hand, clusters can be more transparent – where you can identify immediate contacts for setting deals and immediate investment.”

Clusters are a relatively young initiative but there is hope they will bring about growth of Russia’s economy in long-term.

Some of the clusters across Russia have gone beyond national boundaries and can boast international cooperation – with France, Germany, Belgium, the Netherlands – to name a few.

So clusters help not only to attract foreign investors but also Russian companies to go abroad, as it is easier for a business to find overseas partners if it is part of a larger entity such as a cluster.
Read more: http://voiceofrussia.com/uk/news/2013_11_15/Russian-government-embraces-cluster-strategy-6043/