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Solving these problems requires attracting investments to new conversion-oriented production enterprises. The Sarov City Administration and the management of the city-forming enterprises—VNIIEF and Avangard—are working to support conversion enterprises by means of several targeted programs. The measures included in these programs are aimed at achieving a number of goals, namely,

  • creating and developing conversion-oriented production facilities

  • increasing output volumes for high-tech and science-intensive civilian products and commercializing technological developments

  • expanding job opportunities for employees displaced from the defense sector

  • creating a favorable business climate to aid in attracting investments

To achieve these goals, the following objectives should be addressed:

  • stabilizing and creating conditions for the city's economic development

  • modernizing existing production facilities and creating new ones in the civilian sector

  • ensuring employment for the population and creating new jobs

  • improving and developing the production and innovation infrastructure

  • preserving and developing the social infrastructure

This report covers the activities of the Sarov City Administration and the management of the city-forming enterprises in support of small innovative businesses and conversion-oriented production facilities. It cites data on investments and describes the concept of the Innovative Technology Center being established in the city as a key element in the innovation infrastructure.

TAXPRIVILEGES GRANTED BY THE CITY ADMINISTRATION TO SMALL INNOVATIVE FIRMS

The Sarov City Duma grants certain taxation privileges to enterprises and other institutional taxpayers having community development-oriented investment projects and owing no tax debts as of the date of filing their tax declarations. This action is taken to provide incentives for business activity, attract additional funds on the revenue side of the Sarov city budget, preserve existing jobs and create new ones, and implement welfare programs in the Sarov closed administrative zone. The privileges are granted in accordance with the provisions of Articles 1 and 56 of the



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