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Gorbatova A. A non-for-profit effect. http://strf.ru/material.aspxCatalogId=37188&d_no=42310 16.09.2011.

RUSSIAN ECONOMY IN trends and outlooks The NSF awards grants to each Center in the region between USD 2m and 5m a year, and such a support is provided over a long period of time (usually, in a span of two 5-year long cycles). The NSF encourages cooperation between different participants, Centers' delivery of business services, and creates incentives for their sustainable operations in future, which should be secured through diversification of sources of financing.

The structure of spending of the grant funding of the Centers' operations is worth a particular notice. While in Russia the bulk of funding is spent on equipment purchases, the US Centers spent on that an average 12% of the NSF grant, with the bulk of financing, some 60-65% of the grant, being spent on labor compensations to students, postgraduates, and postdocsworking at a Center and, partly, on university professors' salaries2. That equipment purchase costs appear relative small can be ascribed to the Centers being established, as a rule, on the basis of universities that already are in possession of a modern material base. Established at different times and with an emphasis on different areas, the Centers are currently linked to each other and even integrated into a single nationwide shared facilities network.

Equally important factor is that the NSF periodically monitors the Centers' performance, with contribution to advance discovery and broader impacts as major criteria. There are just a few quantitative indicators, while the major assessment is expert, informal one, with the quantitative indicators being interpreted in the context of the Center's specialization and other operational peculiarities. That is why support is extended to very versatile centers, be those monospecialized or diversified, large or small ones. This ensures the much-needed degree of flexibility of the system of material support of research.

The development of the apps base of research in Russian public sector, including, in particular through CCUEs, appears uncoordinated, and a systemic approach to its shaping and renewal is missing. This results in duplication of equipment and in the number of very expensive units not operating at full capacity. These problems were not tackled in 2011, nonetheless, with the Government shifting the focus of attention onto building megascience apps.

Indeed, significance of such centers for the country is hard to overestimate, for they enable one both to obtain fundamentally new research products and technologies, and breakthrough discoveries across a broad array of subjects. By bolstering international cooperation, arresting the brain-drain, and, potentially, forming the basis for the rise of innovation clusters, such centers engender an inflow of qualified cadres.

The Russian Government appears divided on the issue of the path dependency with respect to megascience apps. While some members of the Cabinet believe it is imperative to build supercenters similar to CERN and the likes, others propone the need to strengthen a number of existing infrastructure facilities so that they would be able to cope with the tasks complementing experiments run at the largest international centers. In all likelihood funds will be allocated to beef up the existing capacities to tackle individual problems for the sake of furthering studies into subjects performed using the largest overseas apps. The Government has already approved establishment of at least six facilities to complement international megas Postdoc is an acronym for Postdoctoral Fellowship, which is a stipendium for a fresh PhD for a 1 to 3 yearlong internship with an overseas university or a research center different from the one where his/her PhD was awarded. Accordingly, the successful applicant for Postdoctoral Fellowship is also called Postdoc (with the official title being Postdoctoral Fellow).

The National Science Foundations Material Research Science and Engineering Centers Program: Looking Back, Moving Forward. National Research Council of the National Academies. The National Academies Press, 2007.

Section Social Sphere cience ones, of which two facilities will be located at institutions under the auspices of the RRC Kurchatov Institute1.

It is important to make sure the funding of new apps is concomitant with solutions to the problem of approaches to, and mechanisms of, their operation. Continuation of the policy that provides for allocation of budget funds exclusively for the purpose of equipment purchases along with cutting costs of its further use and scaling back the maintenance staff and operators payroll will substantially lower the potential of use of new research infrastructure facilities.

5.4.6. Small-Sized Innovation Businesses The year of 2011 saw no unambiguous assessment of the process of advancement of smallsized innovation businesses. With no uniform database on their performance, any assessments are based upon a set of more or less random evidence, which is why observations that claim such businesses are on the rise co-exist with those suggesting the opposite. Contraction in the number of SSIBs is typically explained by the continuous crisis and the consequent fall in small businesses activity (as evidenced, in particular, by assessments made by EBRD and OPORa of Russia). Meanwhile, expansion of small businesses is often ascribed to the role played by institutions of development whose number, as well as the rainbow of programs they are implementing, is on the upsurge, and with a changing normative-legal environment for SSIBs functioning, primarily for those of them which were founded in compliance with Federal Act No. 217-FZ2.

According to the data on registration of SSIBs established in compliance with the above Act, their number continued to rise and stood at 1,250, of which research institutes became founders only in 39 such firms, while the others were established by universities3. Results of the monitoring run by the RF ministry of Education and Science suggest that roughly onethird of these firms are operational, rather than established for the sake of reporting to the Ministry4. The surging number of companies established exclusively for the said purpose remained a persisting challenge. Furthermore, in 2011, the size of the companies authorized capital continued to shrink, which is most likely to suggest further increase in the share of paper companies.

Meanwhile, the normative-legal regulation of companies established under research institutes and universities kept on improving, and more favorable conditions of financing were established for them when compared with other small-sized firms. More specifically, the management of the Foundation for assistance to development of small form of enterprises in the scientific-technical sphere noted that support of the firms established in the frame of Fed Sterligov I. Megascience will cost the nation Rb 133bn. http://strf.ru/material.aspxCatalogId=221&d_ no=40914 06.07.2011. Sterligov I.V. The Russian Ministry of Education picked six megascience finalists.

http://strf.ru/material.aspxCatalogId=37188&d_no=40541 24.06.2011.

Federal Act of Russian Federation of 2 August 2009 No. 127-FZ on introducing amendments to individual legislative acts of Russian Federation on matters of creation by budget research and educational institutions of economic companies for the purpose of practical application (introduction) of results of intellectual activity Gorbatova A. Minors always have the green light here. http://strf.ru/material. aspx CatalogId=223&d_no=44139 20.12.2011.

Sterligov I. One-third of small-sized companies under universities exists on paper only. http://www.strf.ru/ material.aspxCatalogId=223&d_no=41450 02.08.2011.

RUSSIAN ECONOMY IN trends and outlooks eral Act No. 127 forms a priority task for the Foundation. As of early 20111, financial support was granted to more than 100 of such companies, while by the end of the year more than SSIBs had received funding from the Foundation2 by winning respective competitions 3.times oftener than other small-sized firms.

The list of normative-legal novelties comprises the following ones:

1. Corporations established under Federal Act of 02.08.2009 No. 217-FZ are permitted to employ a simplified taxation system (per Federal Act of 27.11.2010 No. 310-FZ); in particular, they may pay corporate profit tax at the rate of 6%. Plus, in compliance with Federal Act of 16.10.2020 No. 272-FZ3, they can enjoy benefits with regard to insurance premiums (in 2011-2017, the insurance premium tariff for such organizations will be 14%, in 2018 - 21%, and in 2019 - 28%).

2. In compliance with Federal Act of 08.05.2010 No. 83-FZ4, budget institutions now have a possibility to contribute with cash, equipment and other assets with a value of up to Rb 500,000 to authorized capital of created economic companies.

3. Federal Act No. 22-FZ5 grants to budget institutions the right to rent out to economic companies temporarily idle assets and facilities without holding a tender or an auction.

Meanwhile, according to the procedure of conclusion of the rental contract6, while entering in such agreements with respect to federal assets (except for those of the state academies of sciences), the size and procedure of payment of rental charges are set following the conditions below:

a) year one into the agreement 40% of the amount of the rental payment;

b) year two 60% of the amount of the rental payment;

c) year three 80% of the amount of the rental payment;

d) year four and thenceforward 100%of the amount of the rental payment.

That said, it was just a handful of small firms that managed to take advantage of the benefits in question and switch to the simplified taxation regime in 2011, as the Acts had become effective right before the deadline for submission to tax authorities of the respective notification for the next year. That is why it is premature to judge how the tax novelties have affected the state of affairs in the area of small investment business.

Thanks to legislative novelties, the possibility to establish SIBs with participation of research institutions or universities as their founders became more appealing to large corpora Start in a new manner. Interview with S.G. Polyakov, Director General of Foundation for assistance to development of small form of enterprises in the scientific-technical sphere //Innovation, 01.02.2011.

http://fasie.ru/mass_media/Pressa_o_nas_stat_/press_stat_start-ponovomy.aspx Gorbatova A. Minors always have the green light here. http://strf.ru/material.aspxCatalogId=223&d_ no=44139 20.12.2011.

Federal Act of 16.10.2020 No. 272-FZ On introducing amendments to the Federal Act On insurance premiums to the Pension Fund of RF, the Social Insurance Fund, the Federal Fund for compulsory medical insurance and territorial funds of compulsory medical insurance and Article 33 of the Federal Act On compulsory pension insurance in RF.

Federal Act of 08.05.2010 No. 83-FZ On introducing amendments to individual legislative acts of RF in connection with improvement of the legal status of public (municipal) institutions).

Federal Act of 01.03.2011 No. 22-FZ on introducing amendments to Article 5 of Federal Act On science and the public scientific-technical policy and article 171 of Federal Act On protection of competition.

Procedures of conclusion of leasing agreements with respect to public and municipal assets of public educational institutions of tertiary vocational education (including those established by state academies of sciences) or municipal institutions of tertiary vocational education (including those established by state academies of sciences). Approved by Resolution of the RF Government of 12.08.11 No. 677.

Section Social Sphere tions too. They de facto were given a new way to optimize their R&D-related taxes by incorporating their R&D into small-sized enterprises established jointly with a research institution or a university. On the one hand, this can be viewed as tax dodging, but, on the other hand, if an enterprise is established to develop products and technologies the corporation needs, such a partnership optimizes the R&D logistics and helps drive research and business closer to each other. Notably, such ties emerge on their own, without governments interference or special compulsive measures.

5.4.7. Large Corporations: Creation of the System of Incentives to Innovation It was in 2011 that after a long period of negligence large corporations exhibited a growing interest in innovation activities, with the focus of their attention being on holding or commissioning R&D, rather than technology purchases. Apparently, their production renewal resources and borrowing overseas in the first place were about to exhaust, especially for corporations competing on international markets. Thus, according to a PriceWaterhouse Cooperss survey, 58% of Russian companies operating on the domestic market have innovation technologies in their portfolios, while for those operating both in Russia and overseas the respective index is 85%1. A series of interviews the NRU HSEs Institute of Management 2ran on large industrial corporations revealed that none of them scaled back on R&D spending.

Rather, they displayed a renaissance of interest in the domestic sector-specific research.

That said, nationwide, the average statistical interest of the business sector in funding R&D has not been great, which can be evidenced by the dynamic of extrabudgetary funding of R&D with regard to projects implemented under the aegis of FTPs. The planned volume of the 2011 allocations for extrabudgetary financing of measures under the target programs dwindled vs. the respective figures for 2009 and 2010. Some decrease in the absolute volume of extrabudgetary financing on FTPs can be partially attributed to modification of the composition of respective works. More specifically, the specific weight of the component known as generation of expertise, which does not require extrabudgetary financing, was on the rise.

It cannot be ruled out that exposed by surveys corporate sectors interest in remnants of the sector-specific research and outsourcing of R&D is dictated by new government measures aiming at sgrengthening ties between businesses and the public scientific sector (primarily, universities). In this respect it is possible to single out four major measures which appear to some extent intertwined:

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