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  • Support for innovation activity must come primarily from the federal government at the state policy level. I am referring to the passage of the federal law and appropriate regulatory acts regarding innovation processes. Furthermore, I believe that such a package of legislation must not be of a merely declaratory character; it must create a real mechanism for implementing this policy.

  • A targeted policy must be pursued to maintain and stimulate development of innovative technologies and products developed at city-forming enterprises. These projects must be developed individually but with the active participation of the base enterprises, including the provision of the necessary space, equipment, and specialists. I believe that this work must be done with the focused support and incentives of the industry's ministry (Minatom). As a start, Minatom could propose that specialists from the city-forming enterprises develop their ideas and mechanisms by spinning off innovative projects into separate independent businesses that could then form the basis for the appropriate legal acts and targeted programs.

  • Support is needed from various structures—technoparks, technology incubators, science cities—to develop and promote linkages among innovation projects. Special preferential tax advantages need to be created for such structures.

  • My next recommendation concerns sources of financing for innovation projects. I would suggest creating special innovation funds that would have rights as investors to participate in the implementation of projects. This plan should include a system of incentives and benefits for such financing organizations. Furthermore, existing resources could be used, namely the federal Program for the Development of Closed Administrative-Territorial Zones. Existing budget legislation places strict limits on the use of these funds, which makes it impossible to use them to finance innovation projects with long recoupment terms and increased risks regarding completion.

In conclusion I would like to note that despite the lack of favorable conditions for harnessing innovation potential, this process is beginning to gain momentum, as directly confirmed by the examples I have cited. A great deal depends on our efforts and on initiatives at the local level.

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