Participants of Russian industrial clusters will receive subsidies

Pharmaceutical companies participating in an industrial cluster can receive subsidies for up to 50% of their costs incurred for the implementation of joint cluster projects. This was announced by Andrey Shpilenko, Director of the Association of Clusters and Technology Parks.

Russia allows the establishment of two types of clusters, including innovative territorial clusters and industrial clusters. The establishment of the former can be initiated by regional authorities, and the Ministry of Economic Development oversees such clusters.  The establishment of the latter can be initiated by the companies, and  the Ministry of Industry and Trade oversees such clusters.

“The industrial cluster does not need to be created since, as a rule, it already formally exists. It is only necessary to describe it and submit relevant documents to the Ministry of Industry and Trade,” said Andrey Shpilenko.

Industrial clusters are required to reduce the dependence of manufacturers of final products on foreign suppliers of components and increase the share of value added in industrial products. As a result, there is a prerequisite of having at least ten participants in the cluster, where nine companies can manufacture components and one will make the final product.

The subsidies are allocated directly by the Ministry of Industry and Trade. The state compensates for the costs incurred since 2015. Subsidies can be provided to all participants in the cluster. Such participants will receive compensation gradually over the term of contract concluded for five years. The subsidies cover the costs of equipment, software, design documentation, pilot lots, and reconstruction.