Long-term efforts: city administration's support to entrepreneurs
Moscow has kept its top positions in the national investment rankings, with economic projects winning prestigious awards.
Digitalisation of public services, support to industry and entrepreneurs, search for new personnel and care for existing specialists — this and much more makes Moscow the best Russian region successfully competing with the largest megacities. Read in the article by mos.ru about the key accomplishments of the complex of economic policy and property and land relations in Moscow.
In 2019, Moscow was the first in the Russian investment climate ranking among Russian regions. Experts assessed the endeavours of the regions to provide favourable business conditions and identified best practices. The survey is based on 44 performance indicators in four areas such as regulatory environment, business institutions, infrastructure and resources, support for small businesses.
Besides, Moscow once again topped the overall ranking of investment attractiveness of Russian regions by RAEX (RAEX Analytics). Moscow was declared to have the best investment potential and social infrastructure quality and the lowest investment risks.
In the World Bank's ranking Doing Business 2020, Russia was ranked 28th (70% hinged on Moscow). Back in 2010, Russia ranked 123rd out of 183. Russia's success was made possible by reducing the time required to connect enterprises to the power supply system, streamlining procedures for obtaining a construction permit and prompt registration of property rights.
In 2019, Moscow participated in the OECD's pilot project 'Territorial Approach to the SDGs' for the first time.
The project aims to implement the global UN agenda to achieve sustainable development goals, such as eradicating poverty, preserving the planet's resources and ensuring wellbeing. By 2030, experiment participants are to reach performance figures set by OECD experts.
The pilot project was launched in 2016 in seven countries: Denmark (Region of Southern Denmark), Germany Bonn), Norway (Viken district), Iceland (municipality of Kópavogur), Belgium (Flanders region), Spain (Valencia), Argentina (province of Córdoba). In 2019, Russia (Moscow) and Brazil (Paraná state) joined the list.
“Joining the initiative will establish a comprehensive system of long-term Moscow’s development, in compliance with international standards and sustainable development policies of the UN and OECD. The first project results are to be announced by July 2020,' said Vladimir Yefimov, Deputy Mayor for Economic Policy and Property and Land Relations.
Moscow Technopolis' success
Moscow Technopolis topped the 3rd National Ranking of Investment Attractiveness of Special Economic Zones (SEZ). Technopolis residents are engaged in development and innovation in high-tech production, including microelectronics, instrumentation, information and telecommunications technologies, medical equipment.
'By December 2019, these companies had invested about RUB 24.4 billion in the development of their production facilities and created more than 5,800 jobs. SEZ resident status holders enjoy benefits provided by city administration, such as tax benefits, ready-made engineering infrastructure, free customs zone regime and others,' commented Head of the Moscow City Department of Investment and Industrial Policy Alexander Prokhorov.
Support to enterprises
In 2019, 10 Moscow enterprises were granted the status of an industrial complex. It entitles to receive benefits for income, land and property tax, as well as to reduce land lease rates. These benefits allows businesses and investors to reduce the tax burden by 17–25 per cent.
The Moscow Government currently supports 53 industrial complexes, 36 technoparks, 10 anchor residents, 9 priority investment projects and one car manufacturer. In total, these are 109 companies employing over 113,000 people.
For five years, investments of all Moscow industrial complexes have made up more than RUB 34 billion. In 2018, these companies paid RUB 12 billion of taxes to the budget.
Access to world markets
To help Moscow industrial enterprises expand their presence in foreign markets, the Mosprom Centre opened in Moscow to both at solve individual issues and provide support steps necessary for large companies.
Search for foreign buyers is one of the most popular types of support. This year, the Centre has already organised more than 1,500 business meetings with foreign buyers. Thanks to Mosprom, Moscow companies have signed eight export contracts worth RUB 3 billion and 15 agreements with a potential of RUB 10 billion.
Supplier Portal's innovations
Supplier Portal is a digital resource designed to automate small purchases. Launched in 2013, today it covers 34 Russian regions.
The portal is growing popular. While it used to have about 3,000 registrations per month before, by the end of 2019 the figure reached 11,000.
This year, Supplier Portal users got the opportunity to use cloud-based electronic signature technology to publish offers and sign contracts. Both of these resources have been combined to make it convenient for entrepreneurs working on Supplier Portal and in the Moscow region e-store. You no longer need to log back to access all tools.
Supplier Portal team has launched an English version of the website for foreign users to study the portal's tools for sharing experience.
Supplier Portal was granted a special Trust and Transparency award established by the Directorate of the All-Russian Digital Tops Award jointly with the Support of Russia public organisation.
Digitalisation of Moscow public property services is in progress. Today, legal entities and individual entrepreneurs can apply for 21 functions, using five electronic services. Since the beginning of 2019, over 360,000 entrepreneurs have made use of this opportunity.
'Since April 2019, three new services for real estate cadastral valuation have been launched: cadastral valuation clarification, cadastral value error correction request, and a declaration on the property characteristics,' reported Minister of the Moscow Government, Head of the Department of Municipal Property Maxim Gaman.
Since August, city real estate lessees can pay charges on financial and personal accounts online. In four months, this service has been used over 4,800 times.
For the first time, a multi-format project 'Moscow Competition Days' took place in Moscow, attended by about 15,000 people, including officials, business and expert community representatives, students and schoolchildren.
A unique perspective on the project was offered by the theatrical community in the stand-up show 'All-Time Competition'. Performing short sketches with the audience, the actors and a descendant of the Abrikosov dynasty told the story of five Moscow entrepreneurs, whose products were marked with a special distinctive sign of the Imperial court: a textile factory owner Anna Krasilshchikova, fashion designer Nadezhda Lamanova, tea merchants Perlov, perfumer Henri Brocard, and chocolate king Alexei Abrikosov.
The book 'Moscow Suppliers: History of Persons' was one of the highlights of the 'Moscow Competition Days', according to Gennady Dyogtev, Head of the Moscow Department for Competition Policy.
'When working on the project, we often had to turn to history and draw parallels between the past and the present. Apparently, competition was much tougher in the pre-revolutionary Moscow than today. And industrialists of that time employed a lot of techniques entrepreneurs use today. I am glad see business community representatives as active participants of the ‘Moscow Competition Days’' project. According to them, we should talk about competition, we should not be afraid of it, as it is a potent development driver,' he said.
Support for future engineers
In December, Promfest's first forum of young engineers 'Rust-Free Profession' took place in Moscow Technopolis SEZ. It was attended by officials, business, industrial and scientific sector representatives, specialists and technical and IT students of 35 universities.
The forum's highlight was a job fair for students to be employed right on the spot. Tours of innovative companies residing in Moscow Technopolis proved to be very popular, too.
Besides, would-be engineers eagerly attended master classes, such as Flying Drones, Electronics, Industrial Robotics, Graphic Design and others. Over 100 engineering students took part in the classes on modern competences.
In total, the forum saw over 500 guests.
Sports contest for professionals
1 June till 21 September, the first Mosprom sports contest took place in Moscow for corporate teams and engineering students competing in six sports: athletics, volleyball, futsal, streetball, table tennis, and chess.
Some 3,000 people took part in the project, representing 102 enterprises and 14 specialised Moscow universities. Over 7,000 fans attended the final day of the competition.
The contest promoted a healthy lifestyle among industry workers and future professionals willing to work at Moscow industrial enterprises.
Introduction to the industry
In 2019, the information and educational Оtkroy#Mosrpom project launched. More than 340 tours of industrial enterprises were held in Moscow in four rounds, attended by about 8,000 people.
The project was especially popular with schoolchildren and students. They found out about the specialties currently in demand in the labour market.
Apart from the tours, the project included intellectual games, professional training sessions, master classes, lectures, Night at the Factory campaign and other events.
Leading Moscow enterprises of the defence, engineering, furniture, perfume, cosmetics and food industry have joined the project. The campaign is expected to keep running in 2020.