SME and Clusters in Russian Regions > Cases and Lessons for SME Policy

Transcription

1 SME and Clusters in Russian Regions > Cases and Lessons for SME Policy Alexey Prazdnichnykh Bauman Innovation, Academy of National Economy VII Knowledge Economy Forum Ancona, Italy, June

2 Content 1. SME performance of Russian economy 2. Cluster specific barriers for SME development > 3 Cases from Russian regions 3. Lessons for SME Policy 2

3 SME underperformance of Russian economy is a challenge for the economic and industrial development Small business (<50 people) share of total employment, 2003 Industry structure of small business sector in Russia Italy Spain Portugal Norway Austria Sweden France Germany Finland Real estate, renting and business activities 8% Other industries 13% Agriculture 15% Manufacturing 14% Ireland Great Britain Switzerland Wholesale and retail trade 37% Construction 13% USA, 2000 Russia* 0% 10%20%30%40%50%60%70%80%90%100% Source: OECD (2005), RCSME (2004), Rosstat (2007), analysis by Bauman Innovation *Employment data corresponds to the international definition of small enterprises (50 people or less). Industry statistics on small business in Russia corresponds to the national definition of small business (excl. farm employment), which includes enterprises with employment for some sectors 3

4 Small business share of manufacturing employment and capital investment in Russia is also comparatively low Small business (<100 people) share of employment in manufacturing, 2002 Small business (<50 people) share of capital investment in manufacturing, 2002 Korea, Rep. Italy Portugal Spain Japan Norway Australia Poland Czech Rep. Hungary Finland Great Britain Austria USA, 2001 France Ireland Germany Slovakia Russia, % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Italy, 2003 Portugal France, 2003 Great Britain Sweden Czech Rep., 2003 Hungary Austria Australia Poland Korea, Rep., 2003 Slovakia Japan, 2003 Russia, % 10% 20% 30% 40% 50% 60% 70% 80% 90%100% Source: OECD (2005), Rosstat (2007), analysis by Bauman Innovation *Employment data refer to firms with 100 or less employed for all countries. Investment data for countries except Russia refer to firms with 50 or less employed (international definition of small enterprises). Investment data for Russia refer to firms with 100 or less employed, excl. individual entrepreneurs 4

5 Entrepreneurial activity, SME and cluster development are 3 important interrelated ingredients of Russian economy diversification and regional development Entrepreneurships SME development SME integration in cluster 5

6 Low level of entrepreneurial activity in Russia can also explain low level of SME development Total entrepreneurial activity, % Total entrepreneurial activity index (TEA), % 15% 10% 5% Columbia Jamaica Philippines Indonesia China Tailand Uruguay India Brazil Malaysia Argentina Chile Croatia Turkey Latvia Mexico South Africa Russia Hungary Czech Rep. Greece Slovenia UAE Australia Island Spain Canada Netherlands Great Britain Singapore Denmark Finland Germany France Sweden Italy Belgium Japan Ireland USA Norway 0% GDP per capita PPP, 2005 Source: Global Entrepreneurship Monitor (2007), World Bank (2007) 6

7 Content 1. SME performance of Russian economy 2. Cluster specific barriers for SME development > 3 Cases from Russian regions 3. Lessons for SME Policy 7

8 Enabling environment is becoming more important for SME development in Russian regions but now it is driven by endowment factors Relations with anchor company (i.e. OEM) Cooperation among SMEs Specialized service providers Administrative barriers Industry and issues specific regulation Process technology and equipment Technological level of suppliers 6 Administrative barriers & regulation 5 Technological capacity 1 Access to the market & competition 7 Ecosystem of suppliers 4 Infrastructure Human Capital Access to the market Access to raw materials Competition Structure of industry 2 3 Financial resources Engineers Skilled workers Managers Specialized educational programs Financial recourses for starting and development of company Source: Bauman Innovation, OPORA 8 Production (industrial) real estate Logistic infrastructure Incubators Electricity supply

9 Barriers for SME development are cluster and regional specific and regional and local administration can play important roles Архангельская область Кластер продуктов из дерева Forest products cluster in Arhangelsk region Chemical products cluster in Perm region Пермский край Химический кластер Agro & food processing cluster in Krasnod region Краснодарский край Агро-пищевой кластер Interviews with companies (10-15) Survey of companies (35-50) Structured meeting/workshop with key companies Республика Татарстан Автомобильный кластер Automotive cluster in Tatarstan region Томская область Кластер информационнокоммуникационных технологий ICT cluster in Tomsk region 9

10 Case 1 - Agro & food processing cluster in Krasnodar region 10

11 Enabling environment for agro & food processing cluster in Krasnodar region (1/2) Negative assessment Positive assessment 1 Availability and quality of raw materials Access to the market & Distributors and efficiency of market channels competition Market power of buyers (consolidation) 2 Availability of skilled workers Human Capital Availability of engineers and related specialists Availability of business development educational programs 3 Financial resources Availability of short term financial resources (less than 1 year) Availability of long term financial resources (more than 5 years) Availability of leasing services Source: interviews and survey of companies in the cluster, Bauman Innovation, OPORA 11

12 Enabling environment for agro & food processing cluster in Krasnodar region (2/2) Negative assessment Positive assessment 4 Quality of logistic infrastructure Infrastructure Availability of production (industrial) real estate Availability of land 5 Technological capacity Availability of new process technology and equipment Technological level of companies Technological level of suppliers 6 Administrative barriers & regulation Level of administrative barriers Quality of tax administrative processes Customs procedures Source: interviews and survey of companies in the cluster, Bauman Innovation, OPORA 12

13 Cooperation in agro & food processing cluster in Krasnodar region Intensity and efficiency of SME s cooperation Anchor company Joint promotion on national market Goals for cooperation New product development SMEs SME s cooperation with Research Institute Human capital Quality improvement & cost reduction Joint procurement University Technical School Joint promotion on int. market Source: interviews and survey of companies in the cluster, Bauman Innovation, OPORA 13

14 Case 2 Automotive cluster in Tatarstan region 14

15 Enabling environment for automotive cluster in Tatarstan region (1/2) Negative assessment Positive assessment 1 Availability and quality of raw materials Access to the market & Procurement policy of the anchor company (OEM) competition Availability of foreign customers 2 Availability of skilled workers Human Capital Availability of engineers and related specialists Availability of business development educational programs 3 Financial resources Availability of short term financial resources (less than 1 year) Availability of long term financial resources (more than 5 years) Availability of leasing services Source: interviews and survey of companies in the cluster, Bauman Innovation, OPORA 15

16 Enabling environment for automotive cluster in Tatarstan region (2/2) Negative assessment Positive assessment 4 Availability of production (industrial) real estate Infrastructure Quality of transport infrastructure Quality of electricity supply 5 Technological capacity Technological level of companies Availability of new process technology and equipment Technological level of suppliers 6 Administrative barriers & regulation Level of administrative barriers Quality of tax administrative processes Industry specific regulation Source: interviews and survey of companies in the cluster, Bauman Innovation, OPORA 16

17 Cooperation in automotive cluster in Tatarstan region Intensity and efficiency of SME s cooperation Anchor company Joint promotion on national market Goals for cooperation Human capital SMEs SME s cooperation with Research Institute New product development Quality improvement & cost reduction Joint procurement University Technical School Joint promotion on int. market Source: interviews and survey of companies in the cluster, Bauman Innovation, OPORA 17

18 Case 3 ICT cluster in Tomsk region 18

19 Enabling environment for ICT cluster in Tomsk region (1/2) Negative assessment Positive assessment 1 Government procurement Access to the market & IPP regulation competition Availability of foreign customers 2 Availability of engineers and related specialists Human Capital Availability of business development educational programs Quality of Life in region for human capital retaining 3 Financial resources Availability of venture capital Availability of financial resources for commercialization of technology (seed and pre-seed) Availability of leasing services Source: interviews and survey of companies in the cluster, Bauman Innovation, OPORA 19

20 Enabling environment for ICT cluster in Tomsk region (2/2) Negative assessment Positive assessment 4 Infrastructure Availability of production (industrial) real estate Availability of office space Availability of business incubator space 5 Technological capacity Quality of technology transfer/commercialization office Technological level of companies Availability of new product and process technology 6 Administrative barriers & regulation Level of administrative barriers and industry specific regulation Quality of tax administrative processes Customs procedures Source: interviews and survey of companies in the cluster, Bauman Innovation, OPORA 20

21 Cooperation (with partners in Russia) in ICT in Tomsk region Intensity and efficiency of SME s cooperation Anchor company Joint promotion on national market Goals for cooperation Human capital SMEs SME s cooperation with Research Institute New product development Quality improvement & cost reduction Joint procurement University Technical School Joint promotion on int. market Source: interviews and survey of companies in the cluster, Bauman Innovation, OPORA 21

22 Content 1. SME performance of Russian economy 2. Cluster specific barriers for SME development > 3 Cases from Russian regions 3. Lessons for SME Policy 22

23 Short and medium term challenges for SME policy in Russia SME & clusters in Russian regions and Lessons for SME policy Low level of SME development in Russian economy in general and in manufacturing sectors Entrepreneurship activity, SME and cluster development are 3 important interrelated ingredients Current SME drivers in Russian regions are based on endowment factors like market size Regional specific enabling environment is becoming more important for SME & cluster development Competitive strategy of SMEs in Russia is more regional and national market oriented Intensity and efficiency of SME s cooperation is low Access to the market (i.e. market channels, OEM procurement policy and government procurement) is important enabling factor Availability of financial resources and cluster specific infrastructure is also important Differences in enabling environment across Russian regions and clusters are key challenge for national SME policy Some of regional differences can be explained be efficiency of SME policy of regional administration Regional and local governments will play more important role in SME development Regional SME policy (short and medium term) can be focused on some important issues: infrastructure (i.e. industrial/suppliers park), availability of financial resources, regional innovation infrastructure and administrative barriers Two different models of regional SME policy is emerging in Russia ( less involvement and more dirigistic ) National SME policy should be more focused on stimulating and supporting regional SME policy 23

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