By Raj M. Desai, Itzhak Goldberg
Lately, the Russian govt, desirous about maintaining its monetary functionality, has sought to advertise extra different and broader fiscal development past the ecocnomic natural-resource zone. monetary officers want to see whatever in the direction of a "knowledge-based economy". one of many parts in transparent want of upgrading is the producing quarter. This booklet quantifies and benchmarks the relative strengths of that area, selecting possibilities to extend Russian productiveness and competitiveness.Drawing on unique survey info from Russian agencies of all sizes, the authors formulate proposals that goal to: increase the cutting edge capability of Russian corporations; improve the abilities in their crew; and strengthen a business-friendly weather of reduce administrative bills and larger coverage sure bet. This publication examines the underlying firm-level determinants of data absorption, competitiveness, and productiveness, with an eye fixed to bettering employees' ability degrees and bettering the funding weather, which should still in flip improve the innovation had to sustain in a globalized economic climate. the unique examine and research of Desai, Goldberg, and their colleagues should be of use to a person drawn to the issues of creating production competitiveness, specifically in Russia and the post-Soviet transition economies. it is going to even be of curiosity to corporations planning on doing enterprise with Russia or to take a position in it.
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Extra resources for Can Russia Compete
For a number of years the World Bank also has been collecting data on manufacturing firms in various developing countries through the Productivity and Investment Climate Surveys (PICS), now called the Enterprise Surveys. The survey data can be used to estimate TFP levels in manufacturing firms in Russia and all the comparator countries considered here. The results should be treated with some caution for a variety of reasons, however. Only data on gross sales, not on value added, are available for all the countries of interest.
A reported decline in the share of the shadow economy may have added to measured output growth. Those factors were mostly spent by 2004, and future productivity growth cannot be based on continuation of those trends. Also to be stressed is that Russia is the only country among those considered here where labor shedding has made such a large contribution to productivity growth. Manufacturing output growth in 2000–04 was not exceptional. The low productivity in manufacturing would be less of a concern if it were matched with competitive (low) wages.
Manufacturing Value Added per Worker and Researchers per Million Population Manufacturing value added per worker (US$) $70,000 Germany $60,000 Spain $50,000 South Korea $40,000 $30,000 South Africa $20,000 Poland Brazil $10,000 Russia China India $0 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Researchers per million population Source: World Bank (2002–2006); OECD (2004b). international comparisons tends to understate the scale of R&D activity because it cannot fully capture the inputs devoted to imitating and adopting new technologies (see Keller 2004).