“The state policy for the development of the country’s export potential and the state import substitution policy are closely interrelated and yet there are significant differences between them. Increasing the country’s export potential is directly related to the development of science and technology as well as creation of new industries and training highly skilled labor to fill vacancies in those new industries,” said the Analytical Center expert Inna Karakchieva speaking at a conference titled Practical Mechanisms for Attracting Private Investments to Research and Development.
One of the most important and powerful mechanisms to ensure state support for the development of the country’s export potential is the state budget and state programs financed from it. However, those programs were created when the problem of developing export potential was not quite as acute so solving them now requires reallocation of resources, Ms. Karakchieva believes. At the same time, the expert also points out that support should be provided through all state programs, both those directly related to foreign business activities as well as those aimed at developing the real sectors of the economy and programs aimed at supporting the state’s social commitments.
The importance of science and technology can hardly be overestimated, Ms. Karakchieva noted. “Domestic spending on R&D in higher education has gone up by a factor of 1.2 in the past two years,” she noted. “Only as part of carrying out direct state instructions, Russia’s higher education schools conducted 2,558 research studies in 2015. However, what we still have on the agenda today is training human resources for new industries.”
In order to implement the policy of developing the country’s export potential, the state is also using the banking mechanism that includes state support for backbone banks. The state’s goal is clear: create an environment that would incentivize businesses to raise external financing and direct the funds into priority programs and projects. The foundation for this kind of change is built on the terms that financing is made available to business. Key state measures in this respect include preferential lending terms. Other successful mechanisms for developing export potential include public-private partnership, small and medium sized businesses and insurance of export deliveries. Additional measures for the development of export potential also include refinement of the organizational and information assistance mechanisms, and promotion of domestic products and services in international markets, Ms. Karakchieva believes.