Russia to Pump $500M Into Venture Capital Fund for Innovative Projects
The Russian government plans to pump up to $500 million into a venture capital fund that will invest in innovative projects.
Apr 19, 2006
The Russian government plans to pump up to $500 million into a venture capital fund that will invest in innovative projects, the country’s Economy Minister German Gref said on Wednesday, April 19. "We will allocate up to half a billion dollars for this purpose next year," Gref said, quoted by RIA Novosti. He added that he hoped a resolution on creating Russia’s first fund for venture capital investment would be signed this year.
Gref said the fund would encourage venture investment, and added that a strategy was being drafted to foster the development of venture infrastructure - high-tech businesses - in 2006-2008.
Gref said 10 percent of all transnational corporations would enter the Russian market in the next three or four years. The minister cited a UN report that said Russia was the sixth most attractive country in terms of innovation capabilities, after China, the United States, Japan, India and the United Kingdom.
Russia has three agencies responsible for encouraging investment in hi-tech industries, including one that oversees special economic zones (SEZ) designed to foster technological and industrial development. Special economic zones will offer Russian and foreign companies customs and tax breaks for up to 20 years. Agency head Yuri Zhdanov said in early April that six zones would be put into operation by the end of 2007.
Gref said Russia also planned to create five technology parks — advanced and comprehensive centers for research and development of knowledge-based industries — and business "incubators" across Russia to help businesses become established and profitable during their start-up phase.
He said he hoped Russia would carve out a reputation as a leading producer of hi-tech products and services, rather than solely as a major supplier of raw materials, adding that the country planned to open private business schools to train efficient managers, currently in great demand, which would help achieve the objective.
Gref said the fund would encourage venture investment, and added that a strategy was being drafted to foster the development of venture infrastructure - high-tech businesses - in 2006-2008.
Gref said 10 percent of all transnational corporations would enter the Russian market in the next three or four years. The minister cited a UN report that said Russia was the sixth most attractive country in terms of innovation capabilities, after China, the United States, Japan, India and the United Kingdom.
Russia has three agencies responsible for encouraging investment in hi-tech industries, including one that oversees special economic zones (SEZ) designed to foster technological and industrial development. Special economic zones will offer Russian and foreign companies customs and tax breaks for up to 20 years. Agency head Yuri Zhdanov said in early April that six zones would be put into operation by the end of 2007.
Gref said Russia also planned to create five technology parks — advanced and comprehensive centers for research and development of knowledge-based industries — and business "incubators" across Russia to help businesses become established and profitable during their start-up phase.
He said he hoped Russia would carve out a reputation as a leading producer of hi-tech products and services, rather than solely as a major supplier of raw materials, adding that the country planned to open private business schools to train efficient managers, currently in great demand, which would help achieve the objective.