Institutionalization of the state policy for neo-industrial structural changes of the Russian economy

This paper considers the problems and institutional forms of the neo-industrial structural policies establishment in Russia. Since the implementation of market reforms in the Russian economy, a significant part of the state institutions regulating economic activities were broken down. At the same time, there were negative structural changes that set back the country for several technological generations and slowed down the reproduction of fixed assets followed by the wave of post-privatization bankruptcies of industrial companies. The authors affirm that today there is a need for targeted structural reforms in the Russian economy, the innovative development of manufacturing and the establishment of hi-tech productions, id est for its neo-industrialization. The institutional environment of Russian business in the period of market reforms has been developing under the conditions of speculative redistribution, financial speculation, and extraction and export of raw materials. Beyond these sectors of the Russian economy, there are no clear rules and regulations, stimulating investors' interest to the hi-tech and processing enterprises, the training of the relevant personnel, and to applied science. This leads to high risks and unprofitability of the processing enterprises. The paper reveals the possibilities for institutionalization of the connections between business and the state in the hi-tech and processing sectors. The study also suggests the framework for the innovative development policy in the following areas: the shift of business from "participation in power" to "participation in innovations", transition from external resources to involvement in the production of basic intellectual, internal financial, and marketing resources; the targeted changes in the mechanism of fixed assets reproduction, the encouragement of hiring the employees with post-industrialized skills, the vertical integration of the processing and raw material enterprises, financial companies, and academic institutions. The institutionalization of innovative connections between the business and the state analyzed by the authors includes the establishment of alliances and associations of hi-tech companies, public and public-private banks of development, innovative and industrial investment banks. Making agreements on transfer of the technologies, mutual investments, establishment of business-angels and private ventures, innovative subcontracting and innovative entrepreneurship are also very important.

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