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Frances Hume
Russia and business: A new high-tech city
There's a story going around about some Russians who want to build a home for technology breakthroughs. Think something like Silicon Valley, only this Russian version doesn't need start-up money. The Russian government has already approved it and blessed it with $200 million just to make sure it gets off to a good start.
You folks in the 'States, sit up and pay attention. Russia needs to diversify its economy. It is taking steps to internationalize. It must expand its manufacturing capability and develop new products for consumers who want high-quality goods.
This is the first attempt to build a technology incubator since Soviet times. It's a blend. Think something between Russian traditional and Western modern.
Writer Andrew E. Kramer reported in the April 9 edition of the New York Times online publication that the science city's start-ups will get generous tax holidays and government grants until they become profitable. There's also a proposal on the table that would liberalize a variety of rules affectiing taxes, trade and immigration, among others.
Folks, do not call this place "Kupertino-2," as some bloggers are doing. The place hasn't been given a name yet. The property belongs to a state agricultural institute close to the Moscow School of Management - Scolkovo.
The idea is to encourage innovators to develop new consumer technologies. Start-ups will get generous tax holidays and government grants until they become profitable. There's also a proposal on the table that would liberalize a variety of rules affectiing taxes, trade and immigration, among others.
Infrastructure will be in place in about three years. A government-financed foundation will build and run the city. Directors of existing state-financed tech companies will serve on the board and contribute money. A scientific council will decide which companies can locate at the site.
We need to find a way to sell more of our products to Russian consumers. What are they importing?
Frances Hume is an entrepreneur and marketing specialist who promotes trade between the U.S., Finland and Russia. Before entrepreneurial interests pulled her toward building international businesses, she created content for global trade magazines, cable television companies, e-commerce sites and newsprint publications. Learn more.
