First of all I want introduce this topic, because it is important to note that main thrust of state scientific and technical policy is support for small innovation business. For example, in the USA there is a law on state financing and centers of support created on the initiative of the National Scientific Fund. Secondly, economic conditions of Kazakhstan are similar to Russia Federations and therefore it is interesting to consider problems of small companies in innovation business in Tomsk.

Tomsk is a geographic center of innovative business. Firstly, there are 41 scientific and research institutes, universities and other higher institutions in Tomsk. Secondly, there are 10 successful organizations which provide support to small high-tech companies. Among them are Foundation for Science and Education Support - Tomsk Regional Incubator of Technologies, Financial and Investment Center, Innovation Support Center and others. Thirdly, in May 1999 State Duma of Tomsk Oblast adopted the law about innovative activity, which provides various privileges to innovative companies, creation of offshore zones, etc. No other regions of Russian Federations have the law of such kind.

There are more than 100 small technological companies in Tomsk City. 70% of them have been working more than 3 years. The majority of these companies have scientific and technical orientation. 73% of companies produce scientific and technological products. The main source of financing for Tomsk small technological companies is the sale of their own products. A little bit more than half of companies has international links. The most wide spread way of cooperation with foreign partners is the sale of products abroad. The small technological companies of Tomsk City have unique personnel and scientific and technological potential: 94% of companies have workers with scientific degrees, 87% - have intellectual property (patents, etc.).

The main problems which face the small technological companies of Tomsk City are the following: 1.More than 1/3 of companies have only one source of financing; 2.Difficulties in development of international links. The main difficulty is the lack of information about foreign partners. 3.Insufficient support of small technological companies by the Administration of Tomsk region and the Administration of Tomsk City. Only 1/3 of small technological companies has received support from government. 4.The difficult political and economic situation.

Some sources are extracted from Russia press.

1.Your recommendations for the Administration of Tomsk City and the structures which provide assistance to technological business.(For example, improvement of consulting and information services on patenting, taxation, etc.)

2.By your opinion , why is the State support small innovation business? Is it necessary or not?

3.One hundred firms involved in high-tech business are in Tomsk. Suppose that part of these firms

adopt new innovation. Why as the number of firms adopting this innovation increases, the probability of its adoption increases by a nonuser? According to graph show the line of probability for more profitable innovation. Explain your opinion.

Probability of

adoption

Proportions of firms

using the innovation

4. What the distinctive positive features of small innovation business do you know?