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Russia on the Path Towards a New Technology-Industrial Policy: Exciting Prospects and Fatal Traps

Author

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  • Yuri Simachev

    (Interdepartmental Analytical Center, Russia)

  • Mikhail Kuzyk

    (Interdepartmental Analytical Center, Russia)

  • Boris Kuznetsov

    (National Research University Higher School of Economics, Russia)

  • Evgeniy Pogrebnyak

    (Vnesheconombank, Russia)

Abstract

The article aims to discuss the practical problems and inconsistencies of industrial policy in Russia since 2000, to analyze positive and negative experiences, and to draw up some lessons which are essential for a new technology-industrial policy. The evolution of approaches to industrial policy in Russia is considered, which results particularly in convergence between innovation and industrial policies. Basic state interest groups are revealed, whose interaction determines the industrial policy design. The authors compare two recent significant industrial policies: in automotive industry and nanoindustry. On this basis, we highlight some prerequisites for successful policies. The following main lessons are drawn: First, global experience shows that the requirements for industrial policy and its opportunities change significantly with time. Such policies in any given country and at any particular point of time need new ideas and solutions; it is extremely difficult to replicate the success of different countries’ industrial policies. Second, examples of successful industrial policy typically aim to enter a foreign market, become globally competitive, and attract foreign investment. The implementation of industrial policy without definite and sufficient conditions for the free entry and exit of major players and without the participation of foreign partners is doomed to merely simulate progress, to have strong informational asymmetry, and to create antagonist images of what is actually happening in the economy in the eyes of the society and the public authorities. Third, the problem of correctly assessing the scientific and technological potential is of great importance for implementing technological-industrial policy. Numerous assessments appear to be unreliable since they do not take into account changes in business demand for technology. The tendency to use the legacy of past decades sometimes becomes a political problem, blocking new approaches and the development of international technology co-operation. Fourth, a negative attitude towards particular policies should not be regarded as a ‘taboo’ against studying related issues. Due to the fact that for a long time in Russia it has been as if ‘there were no kind of industrial policy’, the country now has a low quality of both industrial policy and research.

Suggested Citation

  • Yuri Simachev & Mikhail Kuzyk & Boris Kuznetsov & Evgeniy Pogrebnyak, 2014. "Russia on the Path Towards a New Technology-Industrial Policy: Exciting Prospects and Fatal Traps," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 8(4), pages 6-23.
  • Handle: RePEc:hig:fsight:v:8:y:2014:i:4:p:6-23
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    References listed on IDEAS

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    1. Daron Acemoglu & Philippe Aghion & Leonardo Bursztyn & David Hemous, 2012. "The Environment and Directed Technical Change," American Economic Review, American Economic Association, vol. 102(1), pages 131-166, February.
    2. Mikhail Kuzyk & Yury Simachev, 2013. "Russia's Innovation Promotion Policies: Their Evolution, Achievements, Problems and Lessons," Published Papers 164, Gaidar Institute for Economic Policy, revised 2013.
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    5. Yu. Simachev & M. Kuzyk & D. Ivanov., 2012. "Russian Financial Development Institutions: Are We on the Right Way?," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 7.
    6. Nathan Nunn & Daniel Trefler, 2010. "The Structure of Tariffs and Long-Term Growth," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(4), pages 158-194, October.
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    8. Karl Aiginger, 2007. "Industrial Policy: A Dying Breed or A Re-emerging Phoenix," Journal of Industry, Competition and Trade, Springer, vol. 7(3), pages 297-323, December.
    9. Mikhail Kuzyk & Yury Simachev, 2008. "Public Corporations: main development directions and trends in 2007-2008," Working Papers 0056, Gaidar Institute for Economic Policy, revised 2013.
    10. Simachev, Yu. & Kuzyk, M., 2012. "The State Anti-Crisis Support of Russian Companies: Assistance and Restrictions," Journal of the New Economic Association, New Economic Association, vol. 13(1), pages 100-125.
    11. Yuri Simachev & Mikhail Kuzyk & Boris Kuznetsov & Evgeniy Pogrebniak, 2014. "Industrial Policy in Russia in 2000–2013: Institutional Features and Key Lessons," Published Papers 198, Gaidar Institute for Economic Policy, revised 2014.
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    Cited by:

    1. Simachev, Y. & Kuzyk, M. & Pogrebnyak, E., 2018. "Federal Industrial Policy: Basic Models and Russian Practice," Journal of the New Economic Association, New Economic Association, vol. 39(3), pages 146-154.
    2. V. Tsvetkov A. & I. Stepnov M. & Yu. Kovalchuk A. & В. Цветков А. & И. Степнов М. & Ю. Ковальчук А., 2016. "Реализация Стратегий Новой Индустриализации Экономики // Implementation Of The New Industrialization Strategy In The Economy," Финансы: теория и практика/Finance: Theory and Practice // Finance: Theory and Practice, ФГОБУВО Финансовый университет при Правительстве Российской Федерации // Financial University under The Government of Russian Federation, vol. 20(6), pages 19-30.
    3. Yury Simachev & Mikhail Kuzyk & Nikolay Zudin, 2016. "Import Dependence and Import Substitution in Russian Manufacturing: A Business Viewpoint," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 10(4), pages 25-45.
    4. E. B. Lenchuk, 2016. "Course on new industrialization: A global trend of economic development," Studies on Russian Economic Development, Springer, vol. 27(3), pages 332-340, May.
    5. Evgeniy Kutsenko & Yaroslav Eferin, 2019. "“Whirlpools” and “Safe Harbors” in the Dynamics of Industrial Specialization in Russian Regions," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 13(3), pages 24-40.

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    More about this item

    Keywords

    industrial policy; science; technology and innovation policy; priority industries; priority technologies; interest groups; policy evaluation; state institutions;
    All these keywords.

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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