18 ECONOMY OF BELARUS No. 4, 2010 of BelarusMagazine. the majorpointsofstrategyinaninterviewwithEconomy of businesses.EconomyMinisterBelarusNikolaiSnopkovreveals technologies andintroducingincentivestoencourageinnovationactivity competitiveness oftheeconomybymeansembracingcutting-edge and high-techenterprises.Thestrategyprovidesforenhancingthe restructuring ofthenationaleconomy,andcreatenewscience-intensive facilitate to promotetheinnovativedevelopmentofcountry, Belarus’ technologicaldevelopmentstrategyfor2011-2015isdesigned www.belarus-economy.by conducive toinnovations andan ating aneconomicenvironment paradigm. thefourth of traditional enterprises of grade andtechnicaltechnologies) up- aswelltechnologies asbiological andcommunication(information paradigmssixth technological thefifthand of eign technologies progressive for- and adoptionof domestictechnologies tation of the development andimplemen- value added. competitive goodswithahigh of enablingnologies theproduction tech- cuttingedge mentation of new generationproducts, imple- velopment andmanufacture of work isthede- area of important potential.Anotherup theexport andbuildreliance onimports products toreduce thecountry’s outnew typesof sumption, turn andmaterialdown con- onenergy to increase labor efficiency, cut traditionalindustries upgrade pursue? strategy to come. What goalsdoesthis thecountryinyears ment of social andeco ? The strategy focuses oncre- strategy The provides for strategy The all,we are goingto First of strategy essential for the strategy called anew technological Belarus PresidentThe of nomic develop- On theWaytoTechnological tion intoholding companies;in- and theirincorpora- enterprises in thefollowing two ways: sian economy willbe optimized businesses andhouseholds. of ed andincrease theearnings products withahighvalue add- competitive innovation put of boosttheout- economic reforms, investors outstructural tocarry mate for domesticandforeign to create afavorable business cli- products. manufacturing high-tech export andindustriesties, enterprises newceptually production facili- ve-year periodistocreate con- fi- theforthcoming challenge of technologies. to embracenew knowledge and forcrucial thenational economy iswhy This tic enterprises. itis by innovation-aggressive domes- promoted technologies ern-day tific knowledge anddevise mod- on itsability togeneratescien- perspectiveslong-term willhinge and ucts inthemedium-term innovative prod- global market of tem. extended national innovation sys- ratruhi h cnmcdvlpeto Belarus breakthrough of intheeconomicdevelopment etutrn ftraditional Restructuring of theBelaru- structureof The To thisend,we are determined Therefore, thenumber one country’sThe positiononthe The forthcoming five-year periodwillmarkThe forthcoming five-year amajor INNOVATION –INVESTMENTINITIATIVE Breakthrough eiivns fpetiti-veness of factor mszdcmais raino companies,um-sized creation of smalland medi- cant number of focus oninnovations, asignifi- businesses, sound competition, latitudement meansgreater for thisenvironment? of economy. What isyour vision of intellectual property rights. intellectualproperty of R&Dproducts andprotection of vides for thecommercialization leading companies. withtheworld’sgic partnership andstrate-domestic technologies andindustriesbasedon terprises holding companies; R&Dcentersintothese clusion of ? Innovation-friendly environ- The new legal framework newThe legal pro- new high-tech en- Creation of viewed as an important asanimportant viewed on-friendly environment is innovati- creationThe of contributing tothecom- the national ing across allthelevels. education andprofessional train- plies theradicalimprovement of of-the-box solutions which im- professionals out- who canoffer specialists. try’s demandfor highly-qualified states topromptly meetthecoun- neers from theCISandnon-CIS system for innovation activities; advanced training); tions (training,re-training and ments; collective labor agree- er useof the real economy sectorviaawid- employees of andmanagers of and non-financialrecognition ums, bonuses), socialpackages tive payments (rewards, premi- labor productivity; systemtoenhance tariff-based ment mechanisms besidesthe products;import-substituting new anddeveloping technologies companies who are implementing production volume andpricesby scientists; to R&Dcompaniesandindividual royalty payments tory transferof ferences; panies shouldbegiven taxpre- novations. Innovation-active com- company’s in- decisionregarding thatregulations caninfluence a toms, administrative andother innovations. includes: This strong incentives toencourage is why we needtocomeupwith limited useintheeconomy. This petition. companiesamidsttoughcom- of essential conditionfor survival expected tomake innovations an the economy. liberalization The is into theinnovation locomotive of thenational business turning tion, isamajorpre-condition for taxlegisla- ing optimization of economic liberalization, includ- big state-private companies. The Top istraining on theagenda Hiring scientistsandengi- insurance development – of qualifica- enhancement of – – toughercontrol over incen- the right touseotherpay- – the freedom todetermine – themanda- of legalization – cus- the improvement – of At present R&Dproducts have INNOVATION –INVESTMENTINITIATIVE day aftertomorrow. tomorrow andthe but thoseof notjusttoday,tion theneedsof takingintoconsidera- reforms economictural andtechnological struc- of all,for thepurposes of attract foreign investment, first common economicpolicy aimto thecountry’s of aspart property state ment andprivatization of Manage- all theeconomicagents. ment for innovation activities of favorable environ- creation of at shouldbetargeted in general relations property of ormation state andref- property tion of be minimized. control over should enterprises in thegiven industry. direct The thestate economicpolicy tion of should focus ontheimplementa- latter The istries andconcerns. therelevant min- functions of relations andstreamlining of property on theoptimization of novation activity shouldbebased ? Management andprivatiza-Management marketThe incentives for in- economy are impossible wit- the of reforms structural It goeswithoutsaying that strategy are budgetfundsallo- strategy development technological term jects andimplementingthelong- fundingprioritypro- source of agreements. tor of the state asinitiator andguaran- ty withtheleadingrole played by business, scienceandcivil socie- thestate, of efforts concerted shouldbebasedonthe longrun thenational economy in ness of cal development andcompetitive- priority? thetop vestment areas are of investments? What in- quality of done toboostthevolume and capital. What isplannedtobe investment inputof hout alarge venture andotherfunds. projectagreements, financing, through concessionpartnership thepublic and private role of we willhave tostrengthen the high-risk applied R&D projects specific and implementation of corridors technological tion of andstate funds.grams cated underspecificbudgetpro- Therefore anindispensable Investments boostingtechni- In order to safeguard forma- In order tosafeguard www.belarus-economy.by viral infections respiratory treat acute to preventand drug, Fluestop, a newantiviral has introduced Akadempharm 19 ECONOMY OF BELARUS No. 4, 2010 www.belarus-economy.by INNOVATION – INVESTMENT – INITIATIVE

– setting up sectoral associa- tions of producers and exporters and a wide network of sales rep- resentation outlets abroad.

Today developed economies are about to complete tran- ? sition to the sixth techno- logical paradigm. Unfortuna- tely, in our country there are not many companies that are ready to make this transition. What is set to be done to bring the Belarusian industry closer to the level of developed countries?

Among the key indices of the economic development of Be- larus for the next five years are those assessing efficiency of per- formance of the industrial sec- tor. Thus, in the next five years the profitability of industrial sales is projected to go up from Cutting-edge Other major sources of invest- It is necessary to put in pla- an estimated 7.5% in 2010 to 14- technologies 15% in 2015, the average share of and high ments include proprietary funds ce a set of measures to protect qualifications of companies and bank loans. and support economic interests the shipped innovation products are the basis Raising foreign investments, first of exporters in compliance with should jump from an estimated for producing competitive and of all, direct ones should remain the current strategies and plans. 11% in 2010 to 20-21% in 2015. quality products high on the agenda as well. I would like to single out the fol- Besides, in line with a presiden- at Polotsk Steklovolokno. We will have to fund creation lowing measures: tial instruction it is necessary Prime Minister of and development of innovation – providing state support in to double the share of science- Belarus Sergei infrastructure comprising tech- the form of targeted export in- Sidorsky visited intensive and high-tech products the company in noparks, business incubators, surance and lending, insurance in the total Belarusian exports by November 2010 technology transfer centers; to of export loans to shield export- 2015. Reaching these targets will boost investments in the innova- ers from commercial and politi- only be possible by modernizing tion sector and personnel devel- cal risks. Export insurance may production facilities, introduc- opment programs (by supporting be provided in the form of state ing cutting-edge technologies and higher learning institutions and guarantees under export loans; setting up new high-tech manu- – providing state support to in- professional education programs, facturers. etc.), innovation companies and novation and investment projects The first step to setting up clusters. to produce high-tech goods which high-tech production facilities This is quite logical, as key will significantly increase their of the fifth and sixth technologi- factors of their development in- credibility in the eyes of domes- cal paradigms based on domes- clude a sophisticated university tic and foreign investors; tic high technologies will be a network integrated with the in- – developing leasing of export- drastic increase in R&D expen- ternational educational system, oriented high-tech products; transport infrastructure ensur- – ensuring a free amortization ditures, first of all, the share of ing public mobility (airports, policy and creating high-tech proprietary funds of industrial high speed motorways and high- production facilities with special companies. In particular, in the way networks), large and diversi- amortization standards for main next five years domestic expendi- fied labor markets that increase assets; tures in the area will grow from importance of satellite towns – introducing official account- an estimated 0.64% in 2010 to 2.5- around big cities and make the ability statistics of high-tech 2.9% of GDP, i. e. the same level life of their dwellers more com- products sales; of expenditures as in such devel- fortable. – providing exporters with in- oped countries as Switzerland, formation, consultation, market- Denmark and Austria. This tar- How are you going to sti- ing and technical support; get is attainable. For instance, in mulate national high-tech – providing scientific support the Republic of Korea the R&D ? products exporters? to high-tech export development; expenditures grew from 0.77% 20 visable tointroduce amendments products. Inthisrespect itisad- ties specializinginhigh-tech end high-tech production facili- of innovation projects oncreation sole tradersinimplementing tosmallcompaniesand support innovation activities andprovide young scientistsandstudentsin universities inorder toinvolve parks inalloblast capitals and it isnecessarytosetupsci-tech commodities. For thispurpose companies producing high-tech smallinnovation-active ment of sci-tech park Polesye inPinsk. Minsk aswell asabiotechnology optoelectronics sci-tech park in anelectronics and foundation of in 2015. GDP are settoreach 1.3-1.55%of non-budget R&Dexpenditures GDP).InBelarus, 1.98%of of expenditures were at thelevel GDP(in2003business 1.18% of creasing more thannine-fold to with business expenditures in- GDPto1.58%in1985 in 1980of The third step willbedevelop- thirdThe step willbethe secondstep The INNOVATION –INVESTMENTINITIATIVE re we willrely ontheexperien reign high-tech companies. He- createdalso at by enterprises fo- andand smallorganizations cro ratories), including thoseat mi- centers(labo- science-technology private research and motion of tive enterprises. smallinnovation-ac- projects of venture preferential financingof Innovation Fundwillprovide izations Belarusian (funds).The venture capital organ- creation of companies we willpromote the smallinnovation-active ing of panies (financialresources). andprivateand technology) com- companies (production facilities state-run(intellectual property), ciations comprisinguniversities panies but alsoeconomicasso- to setupnotonly unitarycom- ties andscientificorganizations universi- and secure therightof Belarus” ties intheRepublic of to stimulate innovation activi- March 2009“Onsomemeasures to presidential decree No. 123of The fourth step isthepro- step fourth The In order toensure thefinanc- notersac etro manu- into theresearch sectorof centers, redeploy R&Dpersonnel private research tablishment of thees- it necessarytoencourage dustrial commercialization. research products andtheirin- sic research results intoapplied ba- create conditionsfor turning life. to Itisimportant quality of advanceics ontechnological and semiconductorelectron- pact of can becompared withtheim- nanophotonics cial impactof the future andso- technological crystals. According toexperts, on photonicsand6thphotonic total citesonnanocrystals, 16th tific, isranked Belarus 20thby according Scien- totheThomson scientific potential.For example, production. hasahigh Belarus than asimpleincrease inthe losophy becomemore profitable asupply-demand phi- ment of anddevelop-tellectual property in- knowledge, thecreation of countries. Israel,Chinaandother ce of For we deem thesepurposes In aneconomy basedon www.belarus-economy.by Budrevich engineer Mikhail Krishtofik and GRID Anatoly program SKIF- of theUnionState Executive Director Lavrinenko, project Alexander engineer ofthe processors. Chief based on12-core supercomputer the SKIF-GRID have developed Sciences ofBelarus Academy of of theNational Science Institute United Computer Scientists ofthe 21 ECONOMY OF BELARUS No. 4, 2010 abroad. Belarusian domestic projects, research centers tenders inspace not onlyexecute space research center inMinsk Belarus’ space are indemand receiver ofthe Pictured isthe 22 technologies international but alsowin exploration. ECONOMY OF BELARUS No. 4, 2010 n fthemajor economiccri- one of and manufactures,enterprises projects todevelop high-tech of the development andselection “industrialoutput”.During of ed” in2012andabandoning that theindicator “value add- tion of tation. that are proposed for implemen- investment (innovation) projects leveltechnological andexpected ontheir willdepend ganizations ingly, toor- government support development (paradigm).Accord- technological mine thelevel of todeter- existingfacilities of private research laboratories. industry,facturing including in www.belarus-economy.by The sixth step istheintroduc- sixth step The istheappraisal fifthstep The global ranking? advancehelp Belarus inthe organizations. of ing andstatistical reporting the value addedintheaccount- forthe regulations determining the necessaryamendmentsto in 2011we are planningtomake Therefore,statistical reporting. added” intheiraccountingand “value of not usedtheconcept have domestic organizations far at least$60,000peryear). So new workplace shouldaverage one new job(theproductivity of teria isavalue addedperone ? development will strategy the technological tation of Do you thinktheimplemen- INNOVATION –INVESTMENTINITIATIVE science management, expandedscience management, We have improved thesystemof andinnovationlogical potential. and promote scientific, techno- out workcarried topreserve theworld. of create anew image technological response toglobalchallengesand area technologies infact These humanactivity.various areas of theirpotentialapplication in of scienceinterms new areas of growth tonew and technologies flexible network structures. of thedevelopment stimulation of business, of forms ganizational andor- onmanagement nologies search; multidisciplinary scientificre- manufacturing industry; the sectorsof dium-technology intheme- hightechnologies ern technologies; ment include: develop-tific andtechnological existing industries. new andproducts technologies in brand be created onthebasisof willIn addition,new enterprises perspective. andlongterm short among them,may inthe emerge economic sectors, nano-industry paradigms,technological new paradigms.logical reach inprevious techno- out of ties andparameterswhich were vices that willhave theproper- traditionalgoodsandser- of industries andtheproduction fundamentally new of emergence through andensure boththe for anew break- technological willprovidetry technologies fuel cross-indus-paradigms). These (fifthandsixthtechnological ogy technology, ITandnanotechnol- the latest achievements inbio- theireconomiesusing base of anew technological ing toform In recent years, has Belarus thesetrends provides Each of new tech- growing impact of – of growing importance – mod- of increasing diffusion – increasing convergence– of maintrendsThe inthescien- new of During theformation Developed countriesare start- automotive andtractorindustri- to achieve tangible results in ment inrecent years have helped applied research anddevelop- of diation safety, etc. results The environmental sustainability, ra- gies, andbiotechnology, genetics technolo- rials, energy-efficient andnanomate- nanotechnology computerization andsoftware, tific communityinsuch areas as scien- ate withtheinternational economy tosuccessfully cooper- allow scienceand theBelarusian and new scientificachievements ideasandconcepts, previous of ics, andnew materials. fund The tal research inphysics, mathemat- fundamen- tions insomeareas of tive enterprises. and create smallinnovation-ac- velop therelated infrastructure manufacturing industry, tode- the innovativeness of the level of vation, taken measures toraise scienceandinno- framework of and strengthened theregulatory Belarus holdsleadingposi- Belarus INNOVATION –INVESTMENTINITIATIVE focus for usistoenhancedomes- itiveness. Therefore, thestrategic tably r rowed foreign inevi- technologies development fueledonly by bor- its economy.of Technological competitiveness of mining factor acountryisthedeter- opment of sources. innovations from different of ness entitieswithawiderange busi- activities of awiderange ininnovativeimplies engaging theinnovation economy ment of their own expense. develop- The machinery andequipmentat of is associated withtheacquisition novation activity isongoingand companieswhere in- of ble group ismainlyrus generatedby asta- Bela- manufacturing industryof the sist. Innovative activity of in scienceandinnovation per- technology. equipment andmedicines, sensor es, medical municipaltransport, h ee fscientificdevel- levelThe of However, somenegative trends dcstelvlo compet- educes thelevel of new level. technological sian economy toaqualitatively ly will),we willraisetheBelaru- we have planned(andwe certain- business entities. prove theinnovative activity of develop market incentives toim- education, scienceandindustry, of ditions for theintegration existingcon- maximum useof novation system,andmake the aneffective national in- ment of need toaccelerate thedevelop- We corridors’. ing ‘technology economy by identifyingpromis- ge-intensive, resource-conserving globally competitive knowled- goods(services). of fundamentally new kindsoffer high-tech industriesthat can of throughstructuring thecreation economy anditsre- opment of include devel- thetechnological capacity. tic scientificandtechnological fwe materializeeverything If maintaskistocreateThe a nextfive-yearThe priorities www.belarus-economy.by for commuting can beused 120km/h and accelerate to The tramcan Belkommunmash. assembled at tram 84300Mis A newhigh-speed 23 ECONOMY OF BELARUS No. 4, 2010