Learning-by-export effects in the russian software industry

Learning-by-export effects exist due to the nature of the creation, accumulation, transfer of knowledge, as well as the companies’ absorption capacity to accumulate and adapt the best experience, competences borrowed from abroadwithin the organization. The length and direction of exports have a significant impact on the innovation activities of organizations, while innovations do not always encourage the leaders to initiate export activities. In the course of empirical research, we have identified the following rules in relation to Russian IT-firms:1) New IT-exporters have no visible link between the introduction of new products, technologies and the start of exports. Investments in research and development, which may have been initiated after entering foreign markets or at the same time, have not yet yielded results. 2) Stable export activity encourages IT-companies to apply new technological, process and marketing innovations that were not previously part of the firm's plans, much more often than firms in the local market. 3) The impact of external knowledge effects on the productivity of IT-companies depends on the geographical direction of exports: a) the markets of the near abroad (CIS countries) and Russia itself;b) the markets of the far abroad. 4) Investments in R&D, marketing and production of new products are more typical for companies located in capitals (Moscow and Saint-Petersburg). On the contrary, the relationship between the presence of an international office and the introduction of innovations has not been proven. The size of companies has only affected the production of new technologies: if a company is a medium-sized enterprise or a larger one, the probability of innovation is increased by 22%. 5) The smaller the firm, the lower its desire to participate in extensive innovation networks, increase the number and diversity of external relations. The size of the company determines the level of influence of cooperation with other market participants on its internal innovation processThe article discusses the classification of knowledge spillover effects, the methodology of the study, the analysis of the economic impact of the process "flow" as a result of entering foreign markets. The paper’s emphasis is on assessment of recipients’ capabilities to accumulate new knowledge in the course of export activities, to extract advantages in terms of future development such as increasing innovation activity and, consequently, attractiveness, resulting in higher performance efficiency

Networks in the Russian Market Economy

If Russia has become a market economy, how does it function on a grassroots level? In addition to market mechanisms, what kinds of social and moral principles are at work in the new Russian economy? Is the 'Soviet legacy' still present in post-Soviet business practices? This book searches for answers to these questions, by investigating the networking practices of the Russian software industry. It examines what kinds of resources are transmitted through the personal networks of Russian IT directors and managers, and which mechanisms govern this transmission. The volume opens a rarely available grassroots-level view into the business practices of the new Russian knowledge-based economy. This book is essential reading for all interested in Russian society, culture and economy

SOFTWARE ENTREPRENEURSHIP: KNOWLEDGE NETWORKS AND PERFORMANCE OF SOFTWARE VENTURES IN CHINA AND RUSSIA

This study examines the impact of entrepreneurs’ network structure and knowledge homogeneity/heterogeneity of their network members on product development, and revenue growth of software ventures in China and Russia. The empirical data are composed of structured interviews with 159 software entrepreneurs in Beijing and Moscow. The study found that structural holes and knowledge heterogeneity affect positively product diversity in interactive ways. The study also found that knowledge homogeneity accelerates product development. Product development speed enhances revenue growth in the long term. However, the combination of speed with dense and homogeneous networks harms revenue growth over time. The effects of structural holes and knowledge heterogeneity on product diversity and revenue growth over time are more salient in Russia due to the unique institutional, social, and cultural conditions present in the country.http://deepblue.lib.umich.edu/bitstream/2027.42/40137/3/wp751.pd

SOFTWARE ENTREPRENEURSHIP: KNOWLEDGE NETWORKS AND PERFORMANCE OF SOFTWARE VENTURES IN CHINA AND RUSSIA

This study examines the impact of entrepreneurs’ network structure and knowledge homogeneity/heterogeneity of their network members on product development, and revenue growth of software ventures in China and Russia. The empirical data are composed of structured interviews with 159 software entrepreneurs in Beijing and Moscow. The study found that structural holes and knowledge heterogeneity affect positively product diversity in interactive ways. The study also found that knowledge homogeneity accelerates product development. Product development speed enhances revenue growth in the long term. However, the combination of speed with dense and homogeneous networks harms revenue growth over time. The effects of structural holes and knowledge heterogeneity on product diversity and revenue growth over time are more salient in Russia due to the unique institutional, social, and cultural conditions present in the country.networks, knowledge, entrepreneurs, software, China, Russia.

Information Technology and Russia's Social Modernization

Information technologies play a very important role in modernizing Russia's economy and society as whole. Its competitive advantage lies in the availability of highly educated labour resources. Russia accounts for approximately 9% of researchers in the world as opposed to a share of about 0.3% in the world innovation market. Our approach is based on identifying ways to set up IT innovation centres and create an organizational and economic mechanisms making possible the transfer of new technologies to production processes and the creation of tools for innovative management. In the markets of high technology Russia will concentratie on software tools for IT security, applied modelling information systems, various types of software, and cryptographic systems, some types of specialized computing systems. In the Education Project two main mechanisms of systemic change are envisaged: to identify and support leading higher educational institutions; to introduce on a grand scale new knowledge-management methods and put mechanisms into practice. Among the main intentions of the Education Project the following should be mentioned: the modernization of its material-technical base, the internetization of education, the expansion of innovation centres on the pattern of universities and scientific and research institutes, the creation of Russian "Siliceous Valley"- Skolkovo complementary clusters of small, innovative companies. In the framework of the Health Care 2020 Programme. Activities are underway to introduce a Federal Register of the most widespread diseases, to operate waiting lists of those who need high technology medical help, and to centralize access to the common database of normative and reference information. Drafts of their electronic presentation formats are developed on the basis of international ISO standards. An Internet market for various types of medical and information services is being set up; telemedicine technologies are being taken into account. The social orientation of IT development will improve educational and health care systems, accelerate progress in extending the number of qualified professionals in IT (according to experts, the demand for these in 2012 will increase by up to 550,000 persons, and even then the country's demand will only be satisfied to the degree of 15%). A model enabling Russia to enter the group of countries with a high development of intellectual potential demands more intensive introduction of IT in modernization of Russian society. --codes Information technology,human factor,modern economy,social factors,telecommunication,education,personal training,medicine,national healthcare,telemedicine,social networks,internatization

Between vision and reality: promoting innovation through technoparks in Kazakhstan

A common motivation for the technopark movement is the belief that technoparks promote innovation and economic growth at regional and/or national levels. The paper analyses the role of technoparks as instruments of innovation promotion in Kazakhstan using data from a firm survey and interviews. Our results suggest that, unlike what is assumed in the innovation policy literature, technoparks do not house firms dealing with the commercialisation of innovations that are ready for introduction to the market. Technopark firms are no more innovative than other firms. They are oriented largely towards the local market, and operate in traditional sectors; the frequency and intensity of their external links are more developed than are their internal links. The key motivations for relocating to a technopark seem to be lower rents and the possibility of accessing finance. Overall, Kazakh technoparks seem to be successful in terms of facilitating business incubation, but much les so in terms of innovation promotion and diversification of the economy. Currently, Kazakh industry does not make any demands for local R&D, and its sources of competitiveness lie in non-R&D activities. This suggests that innovation policy should focus on assisting companies to upgrade their technological capabilities to the level that they can articulate their R&D demands. Focusing on technoparks as the main mechanism to improve competitiveness and diversify the economy is an ineffective and uncertain a policy option at this stage of the country's economic development. However, there seems to be significant scope for supporting business incubation. These conclusions are of relevance to other emerging economies

Forecasting Russian Foreign Trade Comparative Advantages in the Context of a Potential WTO Accession

This paper proposes a new approach of forecasting “prospective" comparative advantages based on relative prices differences between countries in the context of economic liberalization. An empirical analysis based on the example of Central and East European countries that have already passed the transition period from specialization mainly in natural resource- and labor-intensive goods to \high-tech" goods confirms a significant influence of our “prospective" advantages on comparative advantages dynamics. Using this method we identify a set of industries in Russia that seem to be most promising for formation of comparative advantages in the context of its economic liberalization and joining the WTO agreements. These industries include high and medium technological industries like machinery building, pharmaceutical products, railway transport, electronic and medical equipment.comparative advantage, competitive advantage, economy in transition, Balassa index, Lafay index.

Forecasting Russian Foreign Trade Comparative Advantages in the Context of a Potential WTO Accession

For the private and public sector in any particular country it is crucial to know, which industries may exhibit comparative advantages, that for some reasons are not realized. This can efficiently help all current and potential actors to improve their economic strategy both at the micro- and macroeconomic level. In this paper we propose an approach of forecasting comparative advantages dynamics in foreign trade. The instrument is based on relative price differences and is efficient for countries in the process of economic liberalization. An empirical analysis based on the example of Central and East European countries confirms a good performance in the sense of predictive power of this instrument. On the example of Russia, experiencing a period of economic liberalization and with the prospect to join the WTO agreements, we demonstrate which sectors are most likely to contain comparative advantages in the near future.comparative advantage, economy in transition, Balassa index, Lafay index

Обучающие эффекты экспорта в российской софтверной индустрии

Learning-by-export effects exist due to the nature of the creation, accumulation, transfer of knowledge, as well as the companies’ absorption capacity to accumulate and adapt the best experience, competences borrowed from abroadwithin the organization. The length and direction of exports have a significant impact on the innovation activities of organizations, while innovations do not always encourage the leaders to initiate export activities. In the course of empirical research, we have identified the following rules in relation to Russian IT-firms:1) New IT-exporters have no visible link between the introduction of new products, technologies and the start of exports. Investments in research and development, which may have been initiated after entering foreign markets or at the same time, have not yet yielded results. 2) Stable export activity encourages IT-companies to apply new technological, process and marketing innovations that were not previously part of the firm's plans, much more often than firms in the local market. 3) The impact of external knowledge effects on the productivity of IT-companies depends on the geographical direction of exports: a) the markets of the near abroad (CIS countries) and Russia itself;b) the markets of the far abroad. 4) Investments in R&D, marketing and production of new products are more typical for companies located in capitals (Moscow and Saint-Petersburg). On the contrary, the relationship between the presence of an international office and the introduction of innovations has not been proven. The size of companies has only affected the production of new technologies: if a company is a medium-sized enterprise or a larger one, the probability of innovation is increased by 22%. 5) The smaller the firm, the lower its desire to participate in extensive innovation networks, increase the number and diversity of external relations. The size of the company determines the level of influence of cooperation with other market participants on its internal innovation processThe article discusses the classification of knowledge spillover effects, the methodology of the study, the analysis of the economic impact of the process "flow" as a result of entering foreign markets. The paper’s emphasis is on assessment of recipients’ capabilities to accumulate new knowledge in the course of export activities, to extract advantages in terms of future development such as increasing innovation activity and, consequently, attractiveness, resulting in higher performance efficiency.Существование обучающих эффектов экспорта обусловлено характером создания, накопления, трансфера знаний, а также абсорбционной способностью компаний аккумулировать и адаптировать внутри организации лучший опыт, компетенции, позаимствованные из‑за рубежа. Протяженность и направленность экспорта оказывают значительное влияние на инновационную деятельность организаций, при этом новации не всегда подталкивают руководителей ИТ-компаний инициировать экспортную деятельность.В ходе эмпирических исследований нами были выявлены следующие закономерности в отношении российских ИТ-компаний:1) У новых ИТ-экспортеров нет видимой связи между внедрением новых продуктов, технологий и началом экспорта. Вложения в исследования и разработки, которые, возможно, были инициированы после выхода на зарубежные рынки или одновременно с ним, пока что не принесли результатов.2) Стабильная экспортная деятельность стимулирует ИТ-компании применять новые технологические, процессные и маркетинговые инновации, которые ранее не входили в планы фирмы, намного чаще по сравнению с фирмами на локальном рынке.3) Влияние внешних эффектов знаний на производительность ИТ-компаний зависит от географического направления экспорта: рынки ближнего зарубежья (страны СНГ) и непосредственно сама Россия; рынки дальнего зарубежья.4) Вложения в исследования и разработки, маркетинг и выпуск новой продукции больше характерны для столичных компаний. Взаимосвязь наличия международного офиса и внедрения новаций, напротив, не была доказана. Размер компаний повлиял лишь на продуцирование новых технологий: если компания относится к типу среднего предприятия или является более крупной, то вероятность изобрести новации повышается на 22%.5) Чем меньше фирма, тем ниже ее стремление к принятию участия в обширных инновационных сетях, повышению числа и многообразия внешних связей. Размер компании предопределяет уровень влияния кооперации с другими участниками рынка на ее внутренний инновационный процесс.В статье рассматриваются классификация спилловер-эффектов знаний, методология их исследования, проводится анализ экономического эффекта процесса «перетока» в результате выхода на внешние рынки. Акцент сделан на оценке способностей реципиентов аккумулировать новые знания в ходе ведения экспортной деятельности для извлечения преимуществ в плане будущего развития: повышения инновационной активности и, соответственно, привлекательности, выливающихся в увеличение производственной эффективности