DAVOS, January 22. /ITAR-TASS/. Kaluga Region has turned from a subsidized region into a self-reliant one thanks to an innovative model implemented over less than ten years, Governor, Anatoly Artamonov, told the World Economic Forum in Davos.

The region is often mentioned among Russia’s advanced territories with a favorable investment climate and attractive business environment, he said Wednesday during Russia's Regions: Drivers of Growth session.

“The hectic days of the 90s challenged us not only to overcome the situation, but also to form a skillful strategy for the future,” Artamonov said. The region felt the urgent need to transfer to the “innovative economic model impossible without state-of-the-art technologies, knowledge of how to make business”. The regional authorities, he added, aimed for investor’ needs.

Successful model

The new investment policy started from a legislative base that granted investors a number of tax exemptions, in particular for property tax and corporate tax. Moreover, Artamonov added, “all administrative barriers were removed, formal procedures - simplified, and no investor faced corruption in the last years”.

Interaction with the authorities and international financial institutions is helpful in creating an attractive investment climate, Artamonov believes, so development institutions were set up to assist investment projects at each stage.

The region is now experiencing a boom of automobile and pharmaceutical clusters. Last year it retained leadership by attracting investments.

“The region opened 17 new operations in industry and agriculture, among them some large plants - NLMK-Kaluga, Fuyao Glass and Continental Kaluga. Over 10 months 2013 Kaluga Region saw 109.1% year-on-year industrial production growth against Russia’s average of 100%,” said Artamonov.