Putin greets KamAZ-Master team - winner of Silk Way RallySport July 22, 15:20
Agreements on East Ghouta zone in Syria signed - Defense MinistryWorld July 22, 14:20
PAK FA offers practically unlimited opportunities to pilot - commanderMilitary & Defense July 22, 11:29
Ukraine's National Broadcasting Board issues fine to Public Radio for 0% Urkainian songsWorld July 22, 5:39
Femen movement activists faces 5 years in jail for trying to frustrate summit meetingWorld July 22, 4:38
Russian Deputy PM dismisses allegations he will arrived in Moldova on warplaneRussian Politics & Diplomacy July 22, 2:46
Russian top diplomat shares his impressions from meeting with US leaderRussian Politics & Diplomacy July 21, 20:31
Lavrov bewildered US special services give no facts of Russia’s meddling in US electionRussian Politics & Diplomacy July 21, 19:46
Putin says USSR collapse had greatest impact on himSociety & Culture July 21, 18:37
Localization of manufacturing with a pool of local producers of parts, feedstock and equipment clustering around a foreign enterprise, is a straight-forward way to promote import substitution. Examples in Russia include Siemens locomotive production, which has gathered about 100 Russian suppliers, and plants of Volkswagen, Peugeot & Citroën, and Volvo, having altogether formed an automotive cluster in the Kaluga Region. The Russian authorities are determined to roll out this experience to other regions and industries.
The expansion of cross-industry clusters is a priority of Russia’s industrial development strategy through 2035. Those are set to become the local powerhouses and drive socio-economic development, encouraging the growth of both large producers, and small and medium-sized businesses.
An efficient tool of the cluster economy is localization of manufacturing, which creates a pool of local suppliers around an enterprise with foreign equity participation.
An example is the Kaluga automotive cluster centred around Volkswagen Group Rus, Peugeot-Citroën Mitsubishi Automotive and Volvo.
Another successful example is Siemens.
The segment has a bright outlook as some promising projects backed by federal and local governments are in the pipeline:
However, some challenges are still there.