Russia is looking to copy the United States, specifically Silicon Valley in that they are currently working on creating a technology centered region within their country. The goal of Russia's international center for technology is to enable the country to be a stronger competitor in the technology industry by enticing engineers, programmers and venture capital investors to invest their time and effort into the country.
I think that if Russia is successful in implementing their plans and reaching their goals, the growth of transnational corporations will increase even faster because companies will be able to take advantage of lower parts and labor costs in Russia. The lower costs incurred in doing business in Russia may put pressure on Silicon Valley and other technology focused regions around the world to find ways to either lower their production costs and/or improve compensation and incentives for employees and businesses that could possibly choose to move part or all of their operations to Russia.
I never knew Russia was trying to create a technology center. I suppose the speed of enticing foreign direct investment and specialized labor to the country will depend on what level of risk people perceive in Russia. Even though some costs will be cheaper in Russia, there is still some high risk in moving operations to Russia.
ReplyDeleteIn addition, it might be a bit of an uphill battle against Silicone Valley, where a large pool of tech companies and specialized labor allows companies to take advantage of localization economies.
I am not surprised Russia would try to offer an alternative to Silicon Valley. Russia would like nothing better to compete with the United States in this area, should be interesting to see how they do.
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