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Friday, June 16, 2006

Kudrin: Economic Innovation Doomed in Russia

RosBusinessConsulting reports:

Establishing the innovation economy type in Russia is possible only if the annual inflation rate is kept under 3 percent and loan rates are lower than 5 percent, Russian Finance Minister Alexei Kudrin told a government meeting today. He added that the Finance Ministry was ready to discuss and help to develop measures to provide state support to the innovation business. Kudrin also said that the finance Ministry was working on a draft law for the improvement of Russia's tax system for innovation activities. The Russian Finance Minister criticized the suggestion of Russia's Education Ministry for solving the problems of the country's technological development. He said that his ministry would support many approaches suggested today by Russian Education Minister Dmitry Livanov, but noted that more detailed mechanisms for the innovation breakthrough had to be developed. Also, Kudrin supported the idea of establishing a government committee for carrying out science and technology policy. In that way the government will show its interest in Russia's innovation development, he concluded.

So, since Russia's current inflation rate is 9-10%, that means economic innovation will not be occurring in Russia any time soon.

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