electronics opportunities in moscow oco global
TRANSCRIPT
ElectronicsOpportunities in Moscow
http://moscow.e-regulations.org/OCO Global
Contents
1. Why invest in Moscow 3
2. ICT sector: Overview 6
3. Moscow’s location advantages 14
4. Contact us 19
Why invest in Moscow?
Critical investment drivers Economic overview
Why Moscow? Moscow has the largets concentration of skillful human resources
Over 250,000 people active in knowledge-intensive services – one of the largest concentrations in Europe
Over 150,000 people employed in computer related activities - more than in Budapest, Bucharest and Prague combined
Almost 8,000 students in Computer sciences are graduated each year – highest number in Eastern Europe
Moscow offers the best of Russian R&D heritage
Over 30 researchers per 1,000 employment – higher than in Bangalore and Budapest
Over 50 Universities with IT specialised research groups – twice as high as in Bangalore
USD 1.4 billion expenditure on R&D – more than double than in Bangalore
Take advantage of Moscow’s growing IT & Software industry
Almost 1,000 IT & Software companies are active in Moscow
Moscow is the leading location in Emerging Europe for FDI projects in IT & Software
Join IBM, Google, Cadence, Cisco Systems and other companies that have already invested in Moscow!
Moscow has modern, first class infrastructure
Over 150 international destinations served from two airports
9 international schools
4.4 million Internet users
1.2 million Broadband subscribers
Why Moscow? Economic overview GRP: US$ 1.7 billion GRP growth: 9% Per capita GRP: US$ 15,200 Inflation: 11.9% Population: 10.43 million Employment: 8.48 million Unemployment rate: 1.1% 3 airports serving around 160 international
destinations Broadband subscribers: 1.2 million
Sources: Goskomstat, 2006; Moscow Government, 2006; ONG Guide, 2006; Reksoft, 2007
ICT Sector
Key facts Leading players Research capacities Success cases Business associations
ICT Sector – Kew Facts Market size: US$ 17.3 billion in 2007
Growth rates: 30% annually
Market size forecast:
Electronic components: US$ 5-6 billion by 2011
Chips and microprocessors: US$ 3-4 billion by 2011
Investment*: US$ 8 billion (2008-2015)
Local enterprises: Around 460 companies
Market segments: consumer and industrial electronics (30%);
military electronics (25%); telecom and digital TV (15%);
automotive electronics (15%); smart cards and electronic IDs (9%);
satellite navigation system (6%)
Key investors*: HP, LG, Siemens, Sony, Image Quest, Vurtual Silicon,
Samsung Sources: 3dnews, 2007; Dun & Bradstreet; OCO Monitor* From public and private sources
ICT Sector – Leading players
NT-MDT – Recognized as one of the most dynamic and innovative companies in the country, a winner of multiple business and Research and Development awards www.ntmdt.ru
Tancher – Founded by renowned engineers, winner of the Good Design Award 2007 Chicago Athenaeum www.tancher.com
Ruselectronics - The largest holding in the domestic electronics industry comprising 12 production facilities and 15 research institutes www.ruselectronics.ru
Dolomant - One of the top companies in the country, with award winning products, including several awards from «Electronica» (Munich) www.dolomant.ru
Electronics Sector- Research Capacities* The Moscow State Institute of Electronics and Mathematics – Established in 1962.
Comprises 10 research centers including Motorola center for semiconductors, network and telecom technologies and the Research Institute of Microelectronics and Electronic Measurement Technology http://miem.edu.ru/
Moscow State Institute for Radio Engineering, Electronics and Automation – Established in 1948. It has 16 research laboratories, 4 technology centers and Scientific- Technical Park “Sokolinaya Gora”. Priority research topics include information and telecom systems, quantum electronics, micro-and nanoelectronics http://www.mirea.ru/
The R&D Institute of Precise Engineering (NIITM) – Was founded in 1962. Became a part of Sitronics Holding. Specialized in the research and development of new types of equipment for advanced technological processes in such areas as nanotechnology, micromechanics and extreme electronics http://niitm.ru/english
Moscow State Technical University n.a. N.E. Bauman (MSTU)– Founded in 1830 is world-renowned university, with one of the world’s strongest tradition in engineering education and research and development. It has 350 Doctors of Science and 1,800 PhD staff. The University comprises 7 research complexes focusing on Radioelectronics and Laser Technology, Informatics and Control Systems, Robotics and Complex Automation, etc. http://www.bmstu.ru/english/history.html
Moscow Institute of Electronic Technology (MIET) - Founded in 1965 as a Soviet “Silicon Valley.“ with its 5 research laboratories, 2 research institutes and a technology center the Institutes is the leader in research in Materials for micro-, nano- and optoelectronics; Nanotechnology in electronics; Microelectronic radio systems and devices http://www.miee.ru
* Examples of electronics research organisations in Moscow
Electronics sector - SEZ “Zelenograd” Strong tradition of Innovation and Academic Excellence
Founded in 1978 as the center of the Soviet electronics industry, Zelenograd has spawned a significant number of technological discoveries and breakthroughs
Unparalleled quality of available human resources
Known as the “smartest town in Europe”, Zelenograd has one of the highest numbers of Ph.D and Master’s degrees holders, with nearly half of its population being college graduates
World class IT and high-tech infrastructure
Innovation Business and Data Centers
Technological Transfer Center
Strategic geographic location
37 kilometers (23 mi) from the Center of Moscow
Well connected to Western and Eastern Europe by highways and railways
Electronics sector - SEZ “Zelenograd” High concentration of research institutions and educational
establishments 26 scientific-research institutes
5 higher educational institutions
3 technical colleges
High-tech manufacturing capacity ANGSTREM – a leading R&D and manufacturing facility
NT-MDT Co– specializes in high quality Scanning Probe Microscopes and related accessories
MIKRON– one of the largest manufacturer of chips in Russia, winner of multiple excellence awards
SITRONICS-- leading provider of telecommunication solutions, including software, equipment and system integration, IT solutions and microelectronic solutions
Service packages and incentives Free customs zone
Tax benefits available
Electronics sector – recent success cases Sharp (Japan): In 2007 set up a sales unit in Moscow to enhance sales of its Aquos
liquid crystal display televisions in the fast-growing Russian market. Products for the Russian market will include 46-inch, 57-inch and other large-size models.
Yamaha (Japan): Invested US$ 8.50 million in a newly created sales subsidiary for musical instruments and AV equipment in the Russian market. The project created 20 jobs.
IBM (USA): In 2006 IBM opened a laboratory for information systems and technologies development in Moscow. The IBM lab specializes in mainframe hardware development which is considered to be IBM’s long-term strategic field of business development. As part of the network, Russian engineers will take part in developing software for data storage systems and testing software products for IBM BladeCenter servers.
ND SATCOM (Germany): A specialist in satellite communications equipment opened an office in 2006 with a view to designing and producing equipment in Russia.
Electronics sector – useful links Association of Russian Manufacturers of Electronics
http://arpe.ru/
Federal Agency for Management of Special Economic Zones http://eng.www.rosoez.ru
SEZ “Zelenograd” http://eng.zelenograd.rosoez.ru/inf_oez/presentations/
Russian Chamber of Commerce and Industry http://eng.tpprf.ru/ru/main/general/history/
Association of European Business in Russia (Machine Building and Engineering Committee) http://www.aebrus.ru/
American Chamber of Commerce in Russia (Manufacturing Committee) http://www.amcham.ru/committees/manufacturing
Moscow’s location advantages
Competitive position Economic growth Employment/skills Infrastructure
Location advantages – competitive position
Moscow significantly outperforms its regional competitors in quality – offering superior infrastructure and human resources
Source: www.ocoassess.com
Location advantages – economic growth
The growth of Moscow’s economy in the next decades is predicted to significantly outpace the growth rate of other central cites in Eastern Europe
The Electronics market in Russia has been growing aggressively at 20.5% in the last 2 years– compared to a growth rate in Europe, which averaged 6% in the last several years
Location advantages - employment/skills
Distribution of labour
Trade 24%
Construction 12%
Manufacturing 12%
Transport & Communication
7%
Education 5%
Healthcare 6.%
Government 4%
Financial services 4%
Real estate & other services
18%
Other8%
Labour force of 8.5 million Over 80,000 employed in
technology and knowledge-intensive manufacturing sectors
Over 85,000 people employed in Electronics sector
14 Technical Universities Almost 50,000 students in
Engineering & technology 30 researchers per 1,000
employment Social security paid by employers: 26%
Average working week: 40 hours
Statutory holidays: 10Source: Moscow Government; Goskomstat; Statistics on Russian Education; Watson Wyatt
Location advantages - infrastructure
Connectivity: Moscow is strategically located– easily accessible from both Europe and Asia. Moscow’s 3 international airports serve over 150 international locations – more than any major city in Eastern Europe
ICT Infrastructure: Moscow also offers the best ICT infrastructure in the country, with the largest internet users population in Eastern Europe
