Ivanov and Reiman Develop New Support Program for ICT?
The Minister of communication Leonid Reiman making a speech at a meeting held by the First Vice-Premier Sergey Ivanov proposed a package of measures to support communication industry and ICT by the state.
Oct 11, 2007
The given measures cover targeted projects, state purchases, financial and technical support, and favorable environment establishment. Besides, the Minister of Communication approved of the experience to create holdings, such as Avionika or the Joint Shipbuilding holding, being built up now.
‘Our global task is to develop the Russian Economy using IT. ICT is rapidly developing at present. In 2006 the industry volume went up by 20% and came up to 1 trillion 162 bln. rubles ($ 46.547 bln.),’ – Sergey Ivanov says. He said any state can develop dynamically provided modern IT infrastructure is created. The First Vice-Premier also highlighted the importance of domestic software development: ‘Software development should become a strategic task’.
‘IT industry plays the key role when providing for high growth rate of the economy’, - Leonid Reiman emphasizes in his speech. According to the minister, state support of all the IT domestic segments might help the Russian production value to increase 3-fold up to $ 32.5 bln. According to the Minister of Communication, the increase in demand for communication and IT products in Russia provides equal development opportunities for domestic companies and requires various mechanisms of state support depending on the source of demand.
Thus, according to the Ministry of communication estimates, ICT state support in 2007-2010 might result in the production value of domestic semiconductor devices to grow from $ 300 mln. to $3 bln., computer techniques from $ 600 mln. to $ 2 bln., software production from $ 5 bln. to $ 17 bln., management systems from $ 5 bln. to $ 8 bln., telecommunication equipment from $ 1.1 bln. to $ 2.5 bln.
However, the given possibilities implementation is impeded by the high industry fragmentation, complexity in entering foreign markets, absence of effective system of technology commercialization and shortage of qualified managers. Mr. Reiman emphasizes the following types of state support as the most effective: stimulating the internal demand for domestic goods, setting up regulations and standards for domestic developments and their promotion at the international level.
Leonid Reiman points out to the creation of an interdepartmental coordinating body to implement targeted programs, as well as the possible expansion and incorporation of enterprises as one of the key measures facilitating to the domestic IT sector development. To establish a favorable investment environment, according to the minister, it is necessary to attract foreign anchor companies into Russia, support technologic clusters and techno park creation, foster capital investment and venture finance system development. Speaking about the positive experience, the minister highlighted IPO held by domestic manufacturers in the Russian stock exchanges. The Group of Companies Armada has held such an IPO in 2007.
The implementation of large-scale projects to improve the economic efficiency of Russia was highlighted by Leonid Reiman as an example of state support provided to the IT sector. ‘For example, the program to link up all Russian schools to the internet resulted in the increase in demand for the broadband access. Production value of the given type of equipment in Russia grew 4-fold, i.e. by 15% in 2006, while in 2007 the growth rate might come to 25%. Our country prospects regarding commercialization of GLONASS are also immense’, - the minister highlights.
The issues of state support to ICT, raised by the first Vice-Premier Sergey Ivanov and the Minister of Communication Leonid Reiman, are supposed to be considered by the Government Committee on industry, transport and communication, whose session is planned for October 19th under the Chairmanship of Sergey Ivanov.
‘Our global task is to develop the Russian Economy using IT. ICT is rapidly developing at present. In 2006 the industry volume went up by 20% and came up to 1 trillion 162 bln. rubles ($ 46.547 bln.),’ – Sergey Ivanov says. He said any state can develop dynamically provided modern IT infrastructure is created. The First Vice-Premier also highlighted the importance of domestic software development: ‘Software development should become a strategic task’.
‘IT industry plays the key role when providing for high growth rate of the economy’, - Leonid Reiman emphasizes in his speech. According to the minister, state support of all the IT domestic segments might help the Russian production value to increase 3-fold up to $ 32.5 bln. According to the Minister of Communication, the increase in demand for communication and IT products in Russia provides equal development opportunities for domestic companies and requires various mechanisms of state support depending on the source of demand.
Thus, according to the Ministry of communication estimates, ICT state support in 2007-2010 might result in the production value of domestic semiconductor devices to grow from $ 300 mln. to $3 bln., computer techniques from $ 600 mln. to $ 2 bln., software production from $ 5 bln. to $ 17 bln., management systems from $ 5 bln. to $ 8 bln., telecommunication equipment from $ 1.1 bln. to $ 2.5 bln.
However, the given possibilities implementation is impeded by the high industry fragmentation, complexity in entering foreign markets, absence of effective system of technology commercialization and shortage of qualified managers. Mr. Reiman emphasizes the following types of state support as the most effective: stimulating the internal demand for domestic goods, setting up regulations and standards for domestic developments and their promotion at the international level.
Leonid Reiman points out to the creation of an interdepartmental coordinating body to implement targeted programs, as well as the possible expansion and incorporation of enterprises as one of the key measures facilitating to the domestic IT sector development. To establish a favorable investment environment, according to the minister, it is necessary to attract foreign anchor companies into Russia, support technologic clusters and techno park creation, foster capital investment and venture finance system development. Speaking about the positive experience, the minister highlighted IPO held by domestic manufacturers in the Russian stock exchanges. The Group of Companies Armada has held such an IPO in 2007.
The implementation of large-scale projects to improve the economic efficiency of Russia was highlighted by Leonid Reiman as an example of state support provided to the IT sector. ‘For example, the program to link up all Russian schools to the internet resulted in the increase in demand for the broadband access. Production value of the given type of equipment in Russia grew 4-fold, i.e. by 15% in 2006, while in 2007 the growth rate might come to 25%. Our country prospects regarding commercialization of GLONASS are also immense’, - the minister highlights.
The issues of state support to ICT, raised by the first Vice-Premier Sergey Ivanov and the Minister of Communication Leonid Reiman, are supposed to be considered by the Government Committee on industry, transport and communication, whose session is planned for October 19th under the Chairmanship of Sergey Ivanov.