Cashback promised to exporters // Manufacturers will be able to compensate part of their R&D and homologation costs

The government approved the rules for granting budget subsidies to exporters of high-tech products. With these funds, companies will be able to offset a significant part of their R&D expenditures when creating new industrial products for foreign markets, as well as when bringing them up to foreign standards. The money will be allocated on a competitive basis – for such support for the next three years, the budget provides 11.9 billion rubles.

Prime Minister Mikhail Mishustin approved the rules for granting subsidies to exporters of high-tech products. The government decree stipulates that industrialists will be able to receive compensation for up to 70% of their R&D expenditures to create “new competitive products” (previously not produced or with new characteristics). The funds received can be spent on paying salaries, carrying out new development work, purchasing equipment and components, making product samples, renting buildings and equipment.

In addition, according to the decree, manufacturers will be covered up to 30% of the costs of homologation (improvement of technical characteristics, including to meet higher quality standards) of existing industrial products exported in order to meet the requirements of foreign markets.

The maximum subsidy for one project to create competitive products is 900 million rubles, for homologation – 200 million rubles. To be included in the register of recipients of subsidies, companies will have to pass a competitive selection – applications will be submitted on the State Information System of Industry of the Ministry of Industry and Trade (GISP). In total, this year, 660 million rubles are provided for such support in the budget, in 2022 – 5.53 billion rubles, in 2023 – 5.68 billion rubles.

According to the Russian Export Center (REC, acts as the government’s agent for the distribution of subsidies), the support will cover costs incurred by the manufacturer no more than 12 months before the date of the tender announcement or will incur within 36 months after that. According to the vice-president of REC Sergey Vologodsky, against the background of the pandemic and the recession in world trade, the volume of expenditures on research and development work in industries over the past year has significantly decreased. Reimbursement of expenses by the state is intended to stimulate investment in the creation of new products.

According to UNESCO, in Russia the share of expenditures on research and development in GDP is 0.99% (in 2014 it was 1.07%), while the global average share of such expenditures in GDP increased from 1.73% in 2014 -m to 1.79% in 2018. In 2019 (the last year for which data are available), internal expenditures on research and development (R&D) in the Russian economy amounted to RUB 1.13 trillion, or 1.03% of GDP, experts from the Institute for Statistical Research and Economics of Knowledge of the Higher School of Economics calculated. In constant prices, the growth compared to 2010 was 13.4%, but in relation to GDP the indicator decreased (1.13% in 2010). The main source of R&D funding is still the state, with a share of 66.3% against 70.3% in 2010. The share of companies’ investments (against the background of a decrease in the total volume of expenses) during this time increased from 25.5% to 30.2%.

Tatiana Edovina

Leave a Reply

Your email address will not be published. Required fields are marked *