BRICS Industrial Intelligence

Executive Summary

The Strategy for the Development of the Information Technology Industry in the Russian Federation for 2014-2020 and the Outlook to 2025 was approved by Government Decree No. 2036-r of November 1, 2013. The document was prepared to establish a unified systemic governmental approach to IT industry development, defining goals, key directions, and mechanisms for achieving the stated objectives.

The Strategy was developed under the leadership of the Ministry of Communications and Mass Media (Minkomsvyaz) of Russia jointly with the Ministry of Economic Development, the Ministry of Education and Science, the Ministry of Industry and Trade, and other agencies. The document is based on an analysis of the Russian IT industry as of 2012-2013 and formulates ambitious goals for transforming the IT sector into a full-fledged economic industry creating high-performance jobs and competitive products.

The Strategy records the Russian IT industry's starting position: total market volume of approximately 620 billion rubles (2012), domestic production volume of approximately 270 billion rubles, exports exceeding $4 billion, and over 300,000 specialists. At the same time, the industry met less than 25% of domestic market demand, and Russia produced only about 0.6% of global IT output.

Key Provisions

IT industry definition. The aggregate of companies engaged in packaged software development, IT services provision (custom development, design, implementation, consulting), hardware-software complex development, and online information processing.
Core principles. Improving institutional conditions with minimal direct regulation; maintaining the competitive nature of development; supporting small business as a priority; preserving integration into the global industry; focusing on public-private partnerships.
Three main goals. Developing IT into a full-fledged industry with high-performance jobs; providing the economy with quality IT to boost labor productivity; ensuring information security.
Problem diagnosis. The document identifies key barriers: workforce shortage, insufficient training quality, low popularity of IT professions, historical lag in certain areas, imperfect institutional conditions, weak government demand, and insufficient coordination.
Industry segmentation. The Strategy analyzes system integration and distribution, custom software development, packaged software, internet programming, and hardware-software systems. The greatest potential is identified in packaged software and the internet segment.
Promising technologies. Cloud computing, mobile applications, big data processing, robotics, quantum technologies, information security, machine learning, and human-machine interaction.

Goals and Timelines

Indicator	2012 (baseline)	2020 (target)	2025 (outlook)
High-tech IT jobs	300,000	700,000	Continued growth
Domestic IT production volume	270 bln RUB	620 bln RUB	Further growth
IT product exports	$4 bln	$11 bln	Growth
Industry growth rate vs. GDP	--	At least 3x higher	Sustainable growth
Specialists trained (2014-2018)	--	350,000	--
Social contribution benefit threshold	30 employees	7 employees	Maintained
Broadband Internet penetration	--	Top-10 countries	Development
Largest settlement without fiber optic	--	8,000 residents (by 2018)	--
Households with broadband access	--	80%	--

Intermediate milestones: by 2015, mechanism adjustments after pilot projects; by 2018, IT professions among the 4 most popular; by 2020, mass adoption of cloud services in business.

Implementation Mechanisms

Government-level coordination. Minkomsvyaz, Ministry of Economic Development, Ministry of Education and Science, Ministry of Industry and Trade, and other federal executive bodies ensure implementation through state programs.
State programs. Federal bodies are required to incorporate the Strategy's provisions into state programs and federal target programs; regional authorities are recommended to develop their own strategies.
Fiscal incentives. Reduced social contribution rates (14% instead of 30%) for IT companies with 7+ employees; tax mechanisms for stimulating innovation modeled on international best practices.
Workforce development. Training of at least 350,000 specialists by 2018; at least 125,000 on government-funded places; development of physics and mathematics schools; strengthened English language instruction; attraction of foreign specialists.
Export support. Marketing support through trade representations; intellectual property protection assistance; export transaction financing; reduction of customs and currency barriers.
Infrastructure development. Technology park construction; broadband development; subsidies for telecommunications operators; data center development.
Research support. Creation of centers of excellence at leading universities and research institutes; free transfer of state-funded R&D results to companies; priority areas: big data, machine learning, robotics, quantum technologies, information security.
Venture market stimulation. Over 10 federal and 200 regional development institutions; over 18 billion rubles in venture investments in IT in 2012.
Popularization. Media campaigns, olympiads, competitions; interactive demonstration halls; extracurricular IT activities in schools.

Industry Impact

The 2013 Strategy played a significant role in shaping government IT policy. The document was the first to systematically formulate an approach to developing the IT industry as a separate economic sector rather than merely an auxiliary informatization tool.

Workforce policy. The Strategy initiated a large-scale increase in government-funded IT program slots and the development of the workforce training system, leading to a significant growth in IT specialists in subsequent years.

Tax incentives. Lowering the social contribution benefit threshold to 7 employees stimulated growth in small IT businesses and the formal registration of companies as IT organizations.

Export potential. The Strategy set the course for developing IT product exports, aligning with global trends and facilitating Russian companies' entry into international markets.

Internet segment. The Strategy documented the leading positions of Russian internet companies (Yandex, Mail.ru) in Europe and identified their further development as a strategic priority.

Limitations. A number of target indicators (700,000 jobs by 2020, $11 billion in exports) proved overly optimistic given the 2014-2015 economic crises and geopolitical changes. The Strategy did not fully anticipate the scale of sanctions pressure and the need for import substitution, which required the adoption of additional policy documents.

Overall, the document laid the foundation for subsequent government initiatives: the "Digital Economy" national program, the AI development strategy, and import substitution programs.

Amendment History

November 1, 2013 -- Strategy approved by Government Decree No. 2036-r.
October 18, 2018 -- Government Decree No. 2253-r -- amendments introduced.
In practice, the document lost relevance regarding its 2020 target indicators and was largely superseded by the "Digital Economy of the Russian Federation" national program (2018) and subsequent strategic documents.

IT Industry Development Strategy until 2025