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Putin calls for bigger role of small business in innovation development

The prime minister stressed that domestic enterprises should make truly competitive products

MOSCOW, April 23 (Itar-Tass) —— Prime Minister Vladimir Putin called for a bigger role of small and medium-sized business in the innovation development of state-owned companies.

Speaking at an expanded meeting of the board of the Ministry of Economic Development on Monday, April 23, Putin said about 3 trillion roubles would be earmarked for this purpose in 2011-2013, primarily from off-budget sources.

Another effective tool for supporting innovations created by the Ministry of Economic Development is technological platforms that help consolidate the efforts of research centres, higher educational institutions and enterprises, thus reducing the period between research and its implementation.

The prime minister stressed that domestic enterprises should make truly competitive products based on modern technologies and needed not only inside the country but also on international markets.

In order to encourage small and medium-size business to play a bigger role in innovation activities, a draft law has been submitted to the State Duma, which exempts small and medium-size enterprises that use intellectual technologies and industrial knowhow from the VAT and profit tax.

The exemptions will apply only during the period of time when a company has exclusive rights to the production of intellectual products and provision of services but for no more than five years.

The authors believe that small and medium-size enterprises in Russia are not properly integrated into the innovation system and as a result of that there is little interaction between science and innovation business.

The explanatory note to the document says that “adoption of the draft law will help create an effective system of state support to small and medium-size business”.

According to the authors, the draft law is economically effective. They claim that the annual shortfall in consolidated tax revenue after the enactment of the amendments will amount to 121.5 million roubles, including 83.4 million roubles in the federal budget.

Prime Minister Vladimir Putin said earlier that the tax system should play a bigger stimulating role in order to spur economic and social renovation and support innovations.

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