Russian Industry at the Crossroads: What Prevents Our Firms from Being Competitive (The Report by SU-HSE)

Abstract

The report views competitiveness of manufacturing industry as its capacity to produce goods and services with high productivity and sufficient profitability. The authors use the empirical survey of large and medium enterprises to search for the internal and external factors, which are expected to affect the position and growth perspectives of Russian enterprises. They have analyzed the way the enterprises invest and innovate, the quality of management, financial and personnel policy, as well as their learning capabilities. About 20 components of the investment climate have been studied as external factors effecting the competitive stand of companies. The situation at the factor markets and location characteristics have also been attributed to the external foundations of productivity and growth. The study has estimated the available industrial policy instruments and developed recommendations concerning efficient ways to stimulate competitiveness at the microlevel.