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in American businesses. However, I am aware that in Russia it is common. When it is necessary, it is best that the regional administration or administrator's share is limited to 10 or 15 percent, not a controlling interest.

SUMMARY

Businesses need to clarify the relationships discussed above for the following reasons:

  • to achieve long term profitability. Following this advice will help maximize efficiency and minimize disputes. In a business the right hand needs to know what the left hand is doing.

  • to comply with Russian laws covering articles of incorporation (ustav), shareholder agreement (dogovor), and licensure

  • to obtain financing, from Russian banks, but especially from any private foreign investors, international organizations, foreign governments, or financial institutions

Yesterday we heard a great deal of discussion among scientists and government bureaucrats about how government can help business. There are some things government can do, but they are limited to helping with technoparks and incubators. Meanwhile, businesses must grow up and stand alone. The main thing government can do is tax reasonably, regulate fairly, grant licenses and clear customs quickly, and leave you alone. Local administrations need to focus primarily on how they can help businesses in this second way.

Technoparks and incubators can be helpful, but businesses need to focus more on their own business plans, structure, development, and marketing. Businesses need to work with one another. Institutes and businesses wishing to develop markets for their technology should take Dr. Trivelpiece's repeated suggestions to contact and invite foreign companies. This should be done now, and there is no reason to wait or rely on government to begin these initiatives.



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