A P P E N D I X 9 .

R E P O R T O N A D M I N I S T R A T I V E & T A X S U P P O R T O F I N N O V A T I V E S M E

(Report English Resume)

AS it was stipulated by the technical task on the project, this report reflects the results of investigation we had managed in the field of Russian laws as to the matters of scientific organizations and small and medium enterprises. The term Innovation SME which we used as the basic is not determined legally but in fact the very phenomenon is obvious and thus can be defined as something between scientific organization in the form of commercial organization (in terms of Civil Code of RF), and at the same time small enterprise, the legal definition of which is put in the Federal Law # 88-FZ ‘On state support of small enterprises’.

So, we presumed that the administrative & tax support of Innovation SME is based on the same principals that for both scientific organizations and small enterprises and the most effectively it can be used from both sides. Further we present the short list of top points of our investigation plan in order to describe the common structure of the report and its most important conclusions.

The report includes all the matter given in the technical task, but for aims of comfort reading and systematic account statements is based on the following structure:

Introductory notes, where we made the common conclusion about non-effectiveness of state support if to justify on the matters of appropriate law regulation only. We consider the private sector with its wide possibilities to create special commercial and non-commercial support funds is more perspective in that sense than federal budget support and state funds.

Section I. The Analysis and Common Description of Legal Base in the Field of Innovations (on the federal level)

The regulation of state support of Innovation SME as we consider is mainly based on the two Federal Acts - # 127-FZ ‘On the Science and Scientific and Technical Politics in RF’ and # 88-FZ ‘On state support of small enterprises’. All the rest law regulation is minor and less significant, but too important, though fragmentary and unsystematic.

Section II. Analysis and Common Description Legal Base in the Field of Innovations (on the regional level).

The main conclusion we made is that the regional base in of the same trend that of the federal laws, and thus does not add something indeed essential to the former, and even repeat the federal laws. Although there can be traced significant number of regional development programs, which are concerned with the scientific organizations, innovations and small enterprises.

Section III. Tax Legislation in Field of Support Innovation SME

We in detail investigate the appropriate norms of Tax Code and other federal and regional acts as to the matter of every tax preferences possible.

Section IV. The Alternative Forms of State and Private Support of Innovation SME where we investigate matters concerned with venture funds and so-called ‘technoparks’.

Section V. Appendixes.

Appendix I. The List of applicable laws on federal and regional level the investigation was based on. Appendix II. The list and state and non-state organizations supporting innovation activities Appendix III. The list of forms of administrative and budget of innovation activity.

Appendix IV. Jurisdiction of state agencies, responsible for administrative support of innovations.

Appendix V. Definitions if Innovative Activity in Russian Legislation.

Appendix VI. The Criteria of Medium and Small Businesses in Russian Legislation. Appendix VII. Legislation on Innovation Activities in Subjects of Russian Federation Appendix VII. State statistical observation for organizations’ innovation activity