Speaker: Sergey Sosnovskikh, University of Greenwich, UK.
Chair and discussant: Ilja Viktorov, CBEES, Södertörn University.

In Russia, industrial development has significantly slowed down for the past 30 years, and the federal government strives to seek new methods to attract investments into regional development and stimulate economic growth. Special Economic Zone (SEZ) and Industrial Park (IP) policies are actively implemented as effective tools to expand and diversify exports, increase employment, attract foreign direct investments and launch technology/knowledge sharing.

The basis of these policies is the conventional industrial cluster model. It emphasises significance of local competition and supplier networks within the cluster, as well as combination of geographical peculiarities and state regulations, which result in innovation and productivity growth that create competitive advantage.

The standard industrial cluster model is not applicable within the Russian context due to ineffective bureaucracy, state interference into the business processes and a special mindset of both state officials and entrepreneurs. Business activities are pursued as if a capitalist economy already exists in Russia, yet the remnants of the mentality of the command economy are present in reality.

This study proposes an adapted cluster management model for the successful development of SEZs and IPs in Russia’s context. It suggests the importance of personal networks between private investors, regional authorities and federal government, which reduce the uncertainty and create a favourable business environment alongside the provision of just-in-time funding, and appropriate state regulations. The presentation highlights also the few successful cases of SEZs and IPs in Russia against the general background of systemic failure of these policies.

Sergey Sosnovskikh is a postdoctoral researcher at the University of Greenwich, UK. His PhD research project was devoted to industrial cluster development in Russia with special economic zones and industrial parks as case studies. His research is based on fieldwork such as collecting interviews with Russian economic agents and bureaucrats, questionnaires, and secondary statistical data. He has also a strong professional background as a research analyst as a number of London-based private companies.