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«Russian revolution” – Skolkovo builds a technology empire! e-zone (China), 24.07.2014 Russia has been experiencing rapid growth with its economic and political development. Russia is aiming to develop its next economic pillar, which is to inject resources to support its technology sector. Skolkovo Foundation, also known as the science park of Russia, has been developing aggressively over the past years. Igor Bogachev, Vice-President, Executive Director of Information Technology Cluster, said for the past three years, Skolkovo has gained the support of the Russian Government to help start-ups set up businesses. The technology industry currently accounts for 2% of Russia’s GDP. Bogachev hopes that the development of technology can bring greater diversification to the Russian economy instead of reliance on its service and business sector. He thinks Russia has a competitive edge with its technology expertise, especially in the technology and software sector which can complement what other Asian countries are lacking. For now, more than 1,000 enterprises have been operating at the Skolkovo Foundation and there are 3,000 new applications every year. Applicants are chosen through an intensive selection process and those selected can enjoy up to 20% tax free on their business. Bogachev said there is no bias toward Russian-based companies, as their goal was to nurture the technology industry and raise the industry development by 25% a year. Skolkovo is currently still under expansion and Bogachev, who visited Hong Kong’s Science Park, said both parks share similarities and can learn from each other. It is estimated for the next five years, Skolkovo will become an integrated project that can provide 14,000 jobs and homes for 20,000 people. More eco-friendly infrastructures will be built and the area will also be dedicated to electronic cars, which aims to maintain the clean air and high quality of living. Pekka Viljakainen, Advisor to the President of Skolkovo at Skolkovo Foundation, stated that the development of innovative technology needs support from many areas. Besides top notch technology, having a good packaging is vital too. Currently, he felt Russia is lacking in top business masterminds, talents in product design which answers market needs and also quality marketing skills. Ed Kanalosh, Chief Investment Officer of Skolkovo, said the start-ups at Skolkovo are 3 times more successful in attracting investors than normal enterprises. He revealed that more than half of the matching funds are from Russia, yet this doesn’t mean that investors are only supporting Russian-based companies. The lower tax bracket is also a big selling point for start-ups as it can reduce the operation costs of a company.
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