The Prime Minister visited an exhibition of advanced R&D by Russian companies and took part in the plenary session, Technological Independence of Industrial Russia.
The Digitalisation of Industrial Russia conference is Russia’s main business event focused on the digital economy. For many years, this conference has served as the main platform for dialogue on the digital transformation of society and various economic sectors between businesses and the government. Over its nine-year history, CIPR has emerged as the primary point of attraction for the Russian IT industry, fostering networking opportunities and driving innovation. Each year, leading companies showcase their R&D and solutions at CIPR. Within the conference’s framework, government decisions related to the digital economy are accepted, annual progress is assessed, and plans for the upcoming year are outlined.
Mikhail Mishustin visits an exhibition showcasing the latest R&D by Russian companies at the CIPR-2024 conference. With Dmitry Chernyshenko, Denis Manturov, Minister of Digital Development, Communications and Mass Media Maksut Shadayev, Nizhny Novgorod Region Governor Gleb Nikitin, Minister of Industry and Trade Anton Alikhanov, and Rosatom State Corporation Director-General Alexei Likhachyov
Mikhail Mishustin visits an exhibition showcasing the latest R&D by Russian companies at the CIPR-2024 conference
Mikhail Mishustin visits an exhibition showcasing the latest R&D by Russian companies at the CIPR-2024 conference. With Dmitry Grigorenko, Denis Manturov, Minister of Digital Development, Communications and Mass Media Maksut Shadayev, Nizhny Novgorod Region Governor Gleb Nikitin, Minister of Industry and Trade Anton Alikhanov. Comments are provided by Russian Railways CEO Oleg Belozerov
Mikhail Mishustin visits an exhibition showcasing the latest R&D by Russian companies at the CIPR-2024 conference
Mikhail Mishustin visits an exhibition showcasing the latest R&D by Russian companies at the CIPR-2024 conference
Mikhail Mishustin visits an exhibition showcasing the latest R&D by Russian companies at the CIPR-2024 conference
Mikhail Mishustin visits an exhibition showcasing the latest R&D by Russian companies at the CIPR-2024 conference
This year, as part of CIPR, the first public hearings on the Data Economy national project will take place, which will replace the Digital Economy national programme.
The business programme for CIPR-2024 encompasses five thematic tracks, each exploring different aspects of digitalisation: CIPR. Data Economy, CIPR. Industry, CIPR.AI, CIPR. The Reverse Side of Technology, and CIPR. Children. In total, the event will feature over 100 discussions and sessions.
In 2024, the CIPR conference is held as part of Russia’s BRICS chairmanship. The event will be attended by delegations from Armenia, Belarus, Egypt, Cambodia, China, Cuba, India, Iran, Kazakhstan, Kyrgyzstan, Sri Lanka, Turkmenistan, Uganda, and Uzbekistan.
The conference is sponsored by the Russian Ministry of Digital
Development, Communications and Mass Media and by the government of the Nizhny
Novgorod Region.
Excerpts from the transcript:
Mikhail Mishustin: Good afternoon, friends, colleagues.
I want to extend my greetings to all the participants of the conference on the digitalisation of major industries. This conference has always been a platform for discussing achievements, with the participation of representatives from leading companies, government bodies, developers and experts. Naturally, it also focuses on identifying the necessary further steps and fostering joint actions.
Our first meeting in Nizhny Novgorod in this open format took place two years ago, during a very challenging time. Russia was facing increased sanctions pressure, and we were dealing with the repercussions of the pandemic: you remember the significant impact it had. Leading foreign suppliers of IT products had essentially stopped cooperating with us.
As a result of those discussions, we made the decision to establish industrial competence centres and support the industry’s transition to domestic software. Last year, key initiatives from these centres were presented. I now propose that we review their practical implementation and identify the areas we need to focus on to further accelerate the adoption of Russian-made software solutions.
The President has approved new national development goals, one of which is the digital transformation of public administration, the economy, and the social sphere. This transformation can be achieved through the widespread use of big data, artificial intelligence, the Internet of Things, and various other technological solutions.
By the end of the decade, 80 percent of all enterprises should transition to domestic software products, particularly in resource and production management systems.
These tasks are extensive and require coordinated efforts between businesses and the state. The foundational elements required for their implementation are already in place.
Corporate investments in digital technologies across all sectors have grown by over 80 percent over the past four years and have now exceeded 4 trillion roubles.
During this period the amount of funds spent on the development of IT infrastructure has increased by a third, reaching1.5 trillion, and the funding of software introduction has grown by 2.5 times.
This clearly indicates that businesses understand the vital importance of implementing innovative technologies.
This is particularly true for the energy, minerals production, construction, transport and manufacturing sectors, where investments in IT solutions are growing much faster than in the economy as a whole.
The manufacturing industry has also shown good results. Last year, only six percent of companies in this sector reduced their IT budgets, while the rest maintained or significantly increased them. For example, a third of oil, vehicles and equipment producers increased their budgets, as did a quarter of companies manufacturing electronic, optical and metal products, and one-fifth of metallurgy companies. These are all good examples.
Currently, the most in-demand IT solutions are business processes and production management programmes. We have seen a large number of such solutions at the exhibition. Digital design and simulation systems rank second in popularity.
We will consistently support investments in domestic IT solutions. As per the President’s instructions, we need to increase investments in them at a rate of at least double that of the gross domestic product level, I am sure you remember. The use of domestic products is essential for ensuring the smooth functioning of enterprises and protecting the infrastructure.
In line with the President’s instructions, the Government is providing comprehensive support to the IT sector, including favourable profit tax rates, lower insurance rates, and special benefits for employees, among other things.
All of these measures have led to positive changes. Over the past four years, the sales of Russian software products and all solutions have more than doubled, and the sales of ready-made package solutions have increased by 400 percent.
Enterprises in the electric power engineering, oil and gas, general engineering and aircraft manufacturing sectors are actively adopting these solutions. Although pharmaceutical and ship-building companies are currently lagging behind, they are also showing already a favourable trend.
By December, over half of all companies will begin using domestic software to streamline their operations, compared to just one-third two years ago.
Industrial centres of competence have made a serious contribution to the achievement of these results to become an example of efficient cooperation between businesses and the state in implementing the joint task of securing independence from foreign digital products.
Such entities combine the efforts of the developers, producers and customers. Jointly they will implement over 150 initiatives on introducing advanced Russian programmes at our enterprises in the key economic sectors. The state has provided grants to most important companies. In total, financing from all the sources have now exceeded 180 billion roubles. By the way, these are mostly private funds. As I have already said, business people do understand the importance of such investments for the future development of their enterprises. And I want to thank our entrepreneurs for their responsible attitude to business.
Most of the projects are on track to meet deadlines. Forty-one will already be completed this year – we are trying to measure it all. Although some are lagging behind, we have to do everything necessary to rectify the situation. And, of course, to put out competitive and quality software products as soon as possible.
Many enterprises are really interested in using (as part of digital transformation) advanced domestic developments – they are waiting for them – including on the basis of big data and artificial intelligence. They are also ready to switch over to our internet of things and industrial robots technologies.
Nevertheless, there are still some obstacles to this.
Above all, companies have different financial capacities. And this transition may prove rather costly, especially when we are talking about so-called heavy-duty software.
We will launch a new instrument of support for the entities that are going to use Russian solutions – we thought about it all the time – both those already existing on the market and for those that would appear thanks to industrial competence centres.
We will compensate for up to a half of the costs of introducing Russia-made engineering and industrial software and will also help to accelerate the transition to other types of Russian software.
We are considering the idea of granting additional encouragements to the entities that would prefer our Russian developments, and of soft loans for relevant purchases, which would give them additional resources for development.
We will also continue with the transition of critically significant information infrastructure to domestic solutions. The functioning of our payment systems, communications services, transport, energy and many other sectors depend on its stability. It is very important to protect it. We have also talked a lot about this today at the exhibition with the companies represented here. To this end, together with the competence centres, we will introduce a classification of such facilities for each industry and set appropriate transition periods. The government has already submitted a relevant bill to the State Duma.
We will pay special attention to the development of packaged software products and continue to provide state support for the implementation of pilot projects at large customers. We will also approve standards for typical integrated solutions.
We are going to launch new mechanisms of processing joint purchases and, in general, we will go on encouraging demand for such developments.
One of the goals for the future is the education of personnel for transforming economic sectors. We will continue creating so-called digital chairs. They will allow students to receive a second specialty in addition to their main. This specialty will be linked with the introduction of technology in their respective areas. It is proposed launching a uniform platform for all universities, which will allow young people to master and develop skills in a convenient format. We must also increase in the near future the output of engineering graduates for the automation and robotisation of production. We must be more active in involving companies to take part in teaching students IT specialties in universities. This must become a mandatory condition for granting them relevant benefits.
Our priorities also include further development of cloud services infrastructure and, importantly, the creation of new data processing centres.
And one more point. Today, Russia is developing highly competitive advanced solutions. The Government is creating conditions for their entry into foreign markets.
The service of so-called digital attaches continues operating. These are employees of Russia’s trade missions in foreign states. They are supporting our IT companies in their export activities. These digital attaches are helping companies establish communication with partners with due account of the country of stay and understand legal standards especially in the countries with complicated state regulations. These specialists are already operating in 14 countries and will work in 35 states with time.
We must ensure the development of the digital attache institution, taking into account the analysis of the already received results and our ambitious goals of promoting domestic software abroad.
Incidentally, these digital attaches are working here, on this site, during the forum. I met with them. They are young people who went through a very serious competition. Look at geography – they come from friendly states. I would like to invite all our exporters to discuss their projects with them. This is very important.
Colleagues,
Let’s talk about additional steps that are necessary to create and develop domestic software in industry. Our companies badly need it in daily work. It is also essential for reaching technological sovereignty, a goal set by the President.
We will certainly analyse all proposals that will be made during the conference and include the most useful ones into the national project “Data economics and digital transformation of the state.” The Government has already started drafting this project on the President’s instruction.