Innovative business lacks funding

20 may 2015

A roundtable "Update of the Innovative Development Strategy: innovative business" took place at the Analytical Center. The discussion touched upon key barriers of the organization of cooperation of large, medium and small businesses within innovative activities and identify key barriers in organization of cooperation of the business and the science within innovative activities to update the Innovative Development Strategy.

Vasily Pushkin, the Deputy Head of the Analytical Center, recalled that the Analytical Center generates suggestions for updating the RF Innovative Development Strategy for the period up to 2020. "We have already held several roundtables devoted to goal setting of the Strategy and its priorities and technology", the expert said. "We have also reviewed the innovation ecosystem, discussed possible changes in individual sections of the Strategy and the possibility of revising the document as a whole." Mr. Pushkin said that the issues related to the business innovation need to be addressed, because this problem affects important areas of any enterprise operating in the Russian Federation.

Victoria Lizunova, the Deputy Head of the Department for Social Research Programs of the Analytical Center talked about basic problems of innovative businesses that have been identified as a result of a survey conducted by the Analytical Center in 2014 among 870 respondents. "It is important to note that barriers, faced by large, medium and small businesses are different", said Ms. Lizunova. "The main problem of the large business is the lack of highly qualified professionals who need to maintain innovations. Secondly, shortcomings of the tax policy." According to the expert, the main difficulty for small and medium-sized enterprises is the lack of ability to get state orders, followed by the problem of the government funding. There are also problems of personnel and the intellectual property protection. "As a result of our study we also identified problems such as corruption, but we did not discuss them," added Ms. Lizunova.

Maria Glukhova, the Managing Director for the Economic Policy and Competitiveness of the Russian Union of Industrialists and Entrepreneurs (RUIE), talked about barriers in innovation activities. "Every year we ask companies a few questions related to their innovation activities. At the same time we interviewed only companies-members of the RUIE,"said the expert. According to her, there is no significant difference between large, small and medium-sized businesses in the framework of innovation. "In the first place we have lack of own funds. More than a half of respondents talked about that. Secondly, it is the difficulty of attracting credit resources for innovative companies, and the third - the lack of applicable tax incentives. So, the main problem, which is derived from three answers, is the lack of financing, directly or indirectly," said Ms. Glukhova. Among other problems, she talked on low predictability of the business environment and the lack of specialists. At the same time, according to the expert, 20% of respondents believe that there are no barriers to implementation of innovative projects.

Ms.Glukhova considers that the business does not understand on which state document they need to rely on in the first place, as there are both the state program, affecting innovation, and the strategy, and a number of other documents on innovations. "To establish the order it is necessary to establish a clear hierarchy of documents," said the expert.