Abstract
The paper is devoted to the need of production cooperation with knowledge-intensive industrial companies. The authors note that the priorities of industrial development of the Russian Federation imply, first, development of knowledge-intensive, high-tech industries of economy; second, production of new types of products with high added value; third, replacement of low production technologies and implementation of innovation technologies; fourth, import substitution stimulation. In this regard the industrial development of the Chechen Republic shall happen in strict compliance with the priorities of industrial development of the country. Thus, the production of new types of products with high added value requires close cooperation between suppliers and consumers of these products. The task of improving the production cooperation may be addressed through industrial clusters, industrial parks and technoparks established in different regions of Russia. The paper refers to the best technoparks of Russia in the field of metal working and machine-tool industry. Thus, it is vital for modern plants of the republic to develop production cooperation with successful and knowledge-intensive industrial companies (senior partners) seeking for reliable younger partners, which are able to supply parts, to perform assembly works, to render any services in due quality, in due time and at the agreed price. It is concluded that the production cooperation with leading companies of technoparks and industrial clusters will trigger the development of goods and services commercially successful on the modern market of instrument making. First of all, there is a need to search for business partners and free market niches.
Keywords: Industryprivatizationdenationalizationprivate propertyChechen Republic
Introduction
Modern priorities of industrial development of the Russian Federation imply, first, development of knowledge-intensive, high-tech industries of economy; second, production of new types of products with high added value; third, replacement of low production technologies and implementation of innovation technologies; fourth, import substitution stimulation. In this regard the industrial development of the Chechen Republic shall happen in strict compliance with the priorities of industrial development of the country. There is a need to withdraw from the regional policy to recover the production of the past century running on obsolete technological base. Such attempts are doomed to bankruptcy – the release of resource-intensive products with obsolete consumer properties make any production unprofitable and incapable to produce competitive goods. The production of new products with high added value requires close production cooperation between suppliers and consumers of these products, as well as production cooperation between suppliers of products and producers of accessories.
Problem Statement
The task of improving the production cooperation may be addressed through industrial clusters, industrial parks and technoparks established in different regions of Russia. An industrial cluster is a set of industrial participants connected by relations in a certain sphere due to proximity and functional dependence, which are located in one territorial subject of the Russian Federation or in several territorial subjects of the Russian Federation (Resolution of the Government of the Russian Federation, no. 779, 2015). The participants of a cluster jointly create the added value. Concentration and high extent of cooperation of cluster participants leads to the efficiency increase of each enterprise, effective inclusion into the national and world system of differentiation of labor. As of 2018, the industrial clusters are established in 28 regions of Russia, they include about 1,500 enterprises with production output of over 1.3 trillion rubles per year. The state support of industrial clusters makes all enterprises of a cluster more investment-attractive. Active inflow of Russian and foreign investments provides for dynamic development of enterprises.
Research Questions
The study is focused on the analysis of economic relations of industrial enterprises during production cooperation within foreign economic activity with other subjects of economy management and the state.
Purpose of the Study
The purpose of the study is to develop production cooperation with successful and knowledge-intensive industrial companies (senior partners).
The Ministry of Industry and Trade of the Russian Federation has been supporting industrial clusters since 2015. At the regional level the authorized executive authorities, association of industrialists, special cluster managing companies ensure state support of formation and development of industrial clusters. The key measures include methodical, organizational, expert-analytical and information support of an industrial cluster (Idigova, Khadzhieva, Chazhaev, & Dudaev, 2018). It is important to integrate a project of cluster participants into the regional development strategy. An efficient measure of support is the inclusion of the project into investment programs of network organizations, other measures of state support of demand stimulation. The state budget of Russia subsidizes costs for infrastructure of a forming cluster, covers some costs for implementation of cluster projects, grants loans on easy terms and guarantees liabilities of a borrower to a bank, an investor. The state provides tax benefits to cluster participants, reduces administrative barriers. In 2018, the register of the Ministry included 38 industrial clusters meeting the requirements of the Russian Government (Resolution No. 779). In October, 2018 the Ministry of Industry and Trade of the Russian Federation summarized the results of the Tender Committee meeting on the selection of joint projects of industrial cluster participants. It considered 24 joint projects with the general need for subsidies amounting to over 6.8 billion rubles (subsidizing up to 50% of production costs for import substitution). Following the results of the Tender Committee meeting 17 joint projects with the planned subsidies of 4.7 billion rubles until the end of 2022 were approved. Besides, the total amount of off-budget investments into projects will exceed the volume of subsidies by almost 3 times and will make 13.8 billion rubles. Four enterprises of North Caucasian Federal District became the winners of the competition: StavStal, Arnest, Stroimontazh Yug in Stavropol Krai and Chechenneftekhimprom in the Chechen Republic. It was decided to subsidize part of the interest rate on investment loans of these enterprises (Resolution of the Government of the Russian Federation, no. 1218, 2017).
Research Methods
The study is based on general scientific methods within comparative, logical and statistical analysis. Thus, it is revealed that for modern plants of the republic it is vital to develop production cooperation with successful and knowledge-intensive industrial companies (senior partners) seeking for reliable younger partners, which are able to supply parts, to perform assembly works, to render any services in due quality, in due time and at the agreed price. It is important that Russia does not lag behind global trends and joins the ranks of countries-technological leaders (Hill, 2004). The cooperation of the republican enterprises with Russian and more advanced foreign partners in the field of electronics and mechanical engineering is an important task. South Korea is considered the world innovative leader of radioelectronics. Cooperation of producers is especially developed within the instrument making industry. According to an American marketing specialist Hill (2004), “electronic companies receive 73% of their products from outside”. JSC Chechenneftekhimprom has experience in doing business with the companies of South Korea in light of the investment project on the production of Li-ion batteries with 125 MWh a year. Besides, the initiator of the project Kh-B. Alviev follows the initial tactics of South Koreans – production in Grozny based on license agreements. The 2018 report of the Ministry of Industry and Energy of the Chechen Republic indicates facts of business meetings with the representatives of LLC Siemens in the Southern Federal District and North Caucasian Federal District concerning cooperation, visit of the ambassador of India in the Russian Federation Mr. Pankaj Saran to JSC Chechenavto (Law of the Chechen Republic, 2006). Some once large instrument-making enterprises of the republic and new production shall be focused on the role of contractors among the world leaders of instrument making, first of all, electronic instrument making. This refers to the following enterprises. LLC Electropult-Grozny with the production area of 5,061 sq.m, total area – 1.16 hectares. The enterprise specializes in the production of low- and medium-voltage electrical distribution equipment (switchboard and transformer equipment). Promavtomatika, a famous scientific and production enterprise well-known in the Soviet time, was reorganized into LLC Promavtomatika in 2017. In 2017, SUE Spetsavtomatika was reorganized into LLC Art Polymer Plant. The enterprise specializes in the production of heat-insulating pipes, spring blocks, foam rubber. The investment projects on the development of instrument making in the Chechen Republic are included into the federal target program
Findings
The situation of 2018-2019 differs considerably from that of the national economy in the period of high oil prices and lack of international sanctions against Russia. Now the budgetary costs are cut in every possible way. The production cooperation with leading companies of technoparks and industrial clusters will trigger the development of goods and services commercially successful on the modern market of instrument making. First of all, there is a need to search for business partners and free market niches (Table
Table
To increase the utilization of production areas of the plant, development of material and technical resources and nomenclature of products the residents of the following clusters may serve the potential partners for mutually beneficial cooperation (Table
As a reliable business partner LLC Neftemashservis is also valuable since the plant pays much attention to the development of its labor potential. The plant cooperates with the Russian State Geological Prospecting University, Southern Russian State Polytechnic University and Grozny State Oil Technical University on the issues of providing the best university graduates and ensuring professional development of specialists of the plant. The products of the plant are certified against the GOST standards. In September, 2018 LLC Neftemashservis received the Quality Management System Certificate of Conformity to requirements of the GOST P ISO 9001-2015.
Conclusion
Thus, having removed the “fetters of state unitary enterprises” paralyzing the economic initiative, the industrialists of the Chechen Republic shall start seeking for partners, fitting into cooperation technological chains, developing business reputation as reliable contractors (Idigova, Betilgiriev, Taymaskhanov, Mintsaev, & Bataev, 2016). Besides, they shall invest their earnings to enhance competitive advantages of enterprises, purchase shares and stocks to become full-fledged owners of plants where they have worked for years. Of course, the administrative risks in the republic were not reduced at all, and the courts still do not correspond to their intended purpose. In this case there are also methods to protect the property and investments. For example, there is a need to stipulate the courts located outside the republic or the country to consider economic disputes; to attract such contractors that do not only make the first-class products, but have strong legal services capable to protect, if necessary, not only the business interests, but also the interests of a junior partner.
References
- Aristov, A. (2012). Voronezh regional cluster of oil and gas and chemical equipment producers. Presentation. Delovaya Rossiya, 27.04.2012. Moscow: LLC.
- Danilov, L. V., Golubkin, I. V., & Labudin, M. A. (2017). Third annual review “Technoparks of Russia – 2017”. Association of clusters and technoparks. Moscow: AKIT. Retrieved from: www.akitrf.ru
- Decree of the Government of the Chechen Republic, no. 83-r. (2011). On the strategy of social and economic development of the North Caucasian Federal District in the territory of the Chechen Republic until 2025. Retrieved from: minpromchr.ru.
- Hill, S. (2004). Sixty trends in sixty minutes. St. Petersburg: Krylov.
- Idigova, L. M., Betilgiriev, M. A., Taymaskhanov, Kh. E., Mintsaev, M. Sh., & Bataev, D. K.-S. (2016). Justification of strategic references of effective production infrastructure of the southern region. In IRMM-EconJ – International Review of Management and Marketing. (ISSN21464405-Turkey-Scopus 00, 523084).
- Idigova, L. M., Khadzhieva, M. M., Chaplaev, Kh. G., Dudaev, R. R. (2019). Some results of privatization of state unitary enterprises in the Chechen Republic over 2013–2018. Problem of economy and management of oil and gas complex, 2, 16–24.
- Idigova, L. M., Khadzhieva, M. M., Chazhaev, M. I., Dudaev, R. R. (2018) Results of industrial development of the region. Problems of economy and management of oil and gas complex, 3, 15–19.
- Law of the Chechen Republic, no. 42-rz. (2006). On industrial activity and industrial policy in the Chechen Republic. Retrieved from: minpromchr.ru.
- Lindt, M. (2018). Daimler company – resident of the Master KIP industrial park – successful business in Russia. Expert, 43, 22–28. Retrieved from: russiaindustrialpark.ru
- Resolution of the Government of the Russian Federation, no. 1218. (2017). On amendments to the Procedure on subsidies from the federal budget to participants of industrial clusters for the compensation of some costs during the implementation of joint projects on industrial production of the cluster for the purpose of import substitution. Retrieved from: www.minpromtorg.gov.ru.
- Resolution, of the Government of the Russian Federation, no. 779. (2015). On industrial clusters and specialized organizations of industrial clusters as amended on 26 September 2016, on 2 August 2018. Garant Legal System. Retrieved from: www.garant.ru.
Copyright information
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
About this article
Publication Date
28 December 2019
Article Doi
eBook ISBN
978-1-80296-075-4
Publisher
Future Academy
Volume
76
Print ISBN (optional)
-
Edition Number
1st Edition
Pages
1-3763
Subjects
Sociolinguistics, linguistics, semantics, discourse analysis, science, technology, society
Cite this article as:
Idigova*, L., Tagaev, S., Mazhiev, K., Mazhiev, A., Pakhomova, A., & Chaplayev, H. (2019). Priority Tactics Of Production Cooperation With Knowledge-Intensive Industrial Companies. In D. Karim-Sultanovich Bataev, S. Aidievich Gapurov, A. Dogievich Osmaev, V. Khumaidovich Akaev, L. Musaevna Idigova, M. Rukmanovich Ovhadov, A. Ruslanovich Salgiriev, & M. Muslamovna Betilmerzaeva (Eds.), Social and Cultural Transformations in the Context of Modern Globalism, vol 76. European Proceedings of Social and Behavioural Sciences (pp. 1301-1308). Future Academy. https://doi.org/10.15405/epsbs.2019.12.04.175