Technopolis Gusev
Encyclopedia
Technopolis Gusev is a project to create a modern electronics industrial park in the Kaliningrad region
Kaliningrad Oblast
Kaliningrad Oblast is a federal subject of Russia situated on the Baltic coast. It has a population of The oblast forms the westernmost part of the Russian Federation, but it has no land connection to the rest of Russia. Since its creation it has been an exclave of the Russian SFSR and then the...

 of Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

.

Project background

In 2007, in Gusev
Gusev
Gusev is a town and the administrative center of Gusevsky District of Kaliningrad Oblast, Russia, located at the confluence of the Pissa and Krasnaya Rivers, near the border with Poland and Lithuania, east of Chernyakhovsk. Population: -History:...

, for the first time in Russia, was established a production of set-top boxes for receiving satellite and terrestrial television broadcasts. Several months later, the General Satellite Corporation
General Satellite
General Satellite is the largest Russian developer and producer of set-top boxes for television. Since 1991 company has been conducting systematic research and development work and producing radio electronic equipment. Company products and technology concepts are used in satellite...

 started building a plant in Gusev to manufacture household electronics products. The agreement between the mayor of Gusev, Nikolay Tsukanov
Nikolay Tsukanov
Nikolay Nikolayevich Tsukanov is a Russian politician, psychologist, businessman, electrical welder and, since September 2010, governor of Kaliningrad Oblast....

, and the president of the General Satellite Corporation, Andrey Tkachenko, was signed in 2008, in order to create a modern industrial park
Science park
A research park, science park, or science and technology park is an area with a collection of buildings dedicated to scientific research on a business footing. There are many approximate synonyms for "science park", including research park, technology park, technopolis and biomedical park...

 in the city. The idea was approved by local authorities and was presented at the International Investment Forum "Sochi
Sochi
Sochi is a city in Krasnodar Krai, Russia, situated just north of Russia's border with the de facto independent republic of Abkhazia, on the Black Sea coast. Greater Sochi sprawls for along the shores of the Black Sea near the Caucasus Mountains...

-2008".

The decision to locate the new production facilities in Gusev, according to Andrey Tkachenko, was made for two reasons.
First, the experience of the first similar plant that had been working in Gusev as part of the special economic zone
Special Economic Zone
A Special Economic Zone is a geographical region that has economic and other laws that are more free-market-oriented than a country's typical or national laws...

 - the official residence of the Corporation - was successful. Second, the administration of the city took a great interest in cooperation for the creation of Technopolis and in a comprehensive solution to the problem of the territory development.

In 2009, two plants, JSC NPO Digital Television Systems (DTS) and Prankor, Ltd., were run - their products have no analogues in Russia. The plants produce set-top boxes for receiving the satellite and terrestrial TV broadcasts, and the production conveyor ensures a complete production cycle: starting with the motherboard and all the way up to the case and the satellite antennas as well. Formerly, most of these devices in the Russian market were imported, usually from China.

Project objectives

  • comprehensive economic development of Gusev, improving its social infrastructure, creating conditions for the development of innovative activity in the city and transformation of Gusev into a Technopolis toward 2013.
  • establishing in Gusev a radio-electronics industry cluster. The Project envisages the construction of 5 high-tech industries, 2 of which are already running.
  • testing an innovative model of small cities development in Russia, which can be applied to revive other towns in the country, according to the Project results.

Investments

  • Total investments in the Project (2008–2013): 5 billion rubles.
  • Until the February 2010, invested: 1,5 billion rubles.

Project milestones

  • 2009:

— Opening the Plant for the household radio-electronics products' manufacture;

— Commissioning the Plant for manufacturing metal and plastic products by stamping.
  • 2010:

— Opening a Factory for the production of corrugated cardboard and packaging;

— Commissioning the House-Building Plant.
  • 2011:

— Erection of the first stage of the cottage settlement in Gusev;

— Commissioning the social and business center of Technopolis.
  • 2012:

— Inaugurating a microelectronics Factory (microprocessors assembly and casing);

— Construction of the second stage of the cottage settlement in Gusev;

— Integrated land improvement and social infrastructure construction;

— Opening a branch of SPSU
Saint Petersburg State University
Saint Petersburg State University is a Russian federal state-owned higher education institution based in Saint Petersburg and one of the oldest and largest universities in Russia....

, organization of educational and research process at the University's Education and Research Complex.
  • 2013:

— Inaugurating a printed circuit board producing Plant;

— Setting on foot a Customs Warehouse.

Development of new industries in Gusev

  • Household radio-electronics manufacturing Plant
  • Television antennas and case manufacturing Plant
  • Corrugated cardboard and packaging producing Factory
  • House-Building Plant
  • Microelectronics Plant.

Creation of Educational and Scientific Research Center

  • Design Bureau
  • University Educational and Scientific Park (UESP)
  • Venture Fund for supporting and implementing research and development
    Research and development
    The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...

     accomplished both within Technopolis and outside of it
  • Business Incubator
    Business incubator
    Business incubators are programs designed to accelerate the successful development of entrepreneurial companies through an array of business support resources and services, developed and orchestrated by incubator management and offered both in the incubator and through its network of contacts...

     – Industrial Park (BII).

Social and economics outcomes for the city and region

  • increase the level and quality of life for the city and district residents;
  • strengthening innovation and business activity in the Kaliningrad region;
  • creating in Gusev a new Kaliningrad region growth pole.

National-scale results

  • formation of a modern radio-electronics industry cluster that can be an engine of innovation development of the branch;
  • testing an innovative model of development of small cities in Russia according to the example set by Gusev;
  • formation of a complex enterprise that can provide for the mobile digitalization of Russian TV;
  • creating an innovative growth pole and attracting Russian and foreign investments into domestic high-tech industry;
  • formation of Russia's image as a technologically advanced country.

Criticism of the Project

The market observers, in general, welcomed the General Satellite initiative and the investment prospects. "Industrial parks development, on one hand, is very expensive, and on the other – it is extremely knowledge-intensive”, - Pavel Zhavoronkov, an analyst at the investment firm Sovlink, said, while making a comment on the General Satellite Corporation plans. - “Based on the payroll size, 1500 to 2400 million rubles will be spent till the year 2011. The average payroll should be 1.95 billion, which will "swallow" almost 40% of the capital raised. The establishment of such an Industrial Park is possible only if stringent standards and practices are observed in the construction and cash flow. From the perspective of the country, it is an invaluable contribution to the development and science."


While implementing such projects, developers are often faced with many difficulties, of which the most serious are legislation "gaps" and official circumlocution6. In this case, the local officials led by Georgi Boos – the Kaliningrad region Governor – proved to be a considerable support for the Project.
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