Russia to compel state-owned firms to innovate?
The Ministry of Economic Development has published a draft resolution requiring the change
Aug 27, 2015
State-owned companies in Russia may be required by a government decree to allocate at least 2% of the value of their procurement contracts for the purchase of innovative products, the US-Russia Business Council reported, citing an official Russian source.
The Ministry of Economic Development has published a draft resolution requiring the change.
In addition, at least 1% of the value of the procurement contracts must be spent on high-tech products from small- and medium-sized enterprises (SMEs) specifically. By 2018, the minimum may be increased to 5% for total spending on innovative products and 2.5% on goods from SMEs.
The government resolution would enter into force on January 1, 2016 and companies would be obligated to submit an annual report on their procurement of innovative products. The draft is open for public comment until September 14.
The resolution does not specify that the innovative goods must be of Russian origin. According to experts from the Higher School of Economics, the cost of innovative products in Russia tripled from 2010 to 2013 but the quality has not improved. They assert that only 15% of innovative products produced in Russia fully meet the requirements of businesses and only 23% at least partially meet those requirements.
The new rule would apply to any state-owned company with annual revenues in excess of 1 billion rubles ($15.2m).
The Ministry of Economic Development has published a draft resolution requiring the change.
In addition, at least 1% of the value of the procurement contracts must be spent on high-tech products from small- and medium-sized enterprises (SMEs) specifically. By 2018, the minimum may be increased to 5% for total spending on innovative products and 2.5% on goods from SMEs.
The government resolution would enter into force on January 1, 2016 and companies would be obligated to submit an annual report on their procurement of innovative products. The draft is open for public comment until September 14.
The resolution does not specify that the innovative goods must be of Russian origin. According to experts from the Higher School of Economics, the cost of innovative products in Russia tripled from 2010 to 2013 but the quality has not improved. They assert that only 15% of innovative products produced in Russia fully meet the requirements of businesses and only 23% at least partially meet those requirements.
The new rule would apply to any state-owned company with annual revenues in excess of 1 billion rubles ($15.2m).