INTC Russky: What Awaits the Far Eastern Silicon Valley?

Napoleonic Plans

INTC Russky was established on Russky Island in Vladivostok on the initiative of Far Eastern Federal University and approved by Russian government decree in November 2020. The launch of the pilot site became the starting point for forming an entire cluster, which is intended to eventually unite dozens of companies, research laboratories, and educational institutions. By 2030, INTC Russky is expected to register 80 residents from among the best science-intensive companies, which will create nearly 5,000 new high-tech jobs, with 160 innovative scientific and technological projects in development. Plans also include launching major scientific and educational complexes: an IT park, centers for biomedicine, biotechnology, and marine engineering. Parallel to this is the development of the social environment: the project includes construction of an international private school and infrastructure facilities.

Center residents are provided with a whole package of preferences: tax breaks for up to 10 years, reduced insurance contributions, simplified procedures for attracting foreign employees, and access to the research facilities of FEFU. All of this is designed to reduce costs and accelerate the implementation of new technologies, making the site attractive for business and researchers from across the country and beyond.

But what are Russky's chances of becoming the Far Eastern analog of Silicon Valley and a driver for the development of the macro-region, which has received close government attention in recent years—we discussed with experts.

Competition for Talent and Investment

Denis Zhuravlyov, editor-in-chief of the online publication Nauchno-obrazovatelnaya politika, responding to questions from Argument, noted that INTC Russky already has a solid foundation for development. The center is integrated into the second phase of the FEFU campus, which means there's every chance of becoming a sought-after technology valley. According to him, FEFU's potential in training personnel allows for expectations of an influx of researchers and entrepreneurs not only from Russia, but also from Asia-Pacific countries. An important element will be the construction of the synchrotron RIF, which Zhuravlyov believes will become a point of attraction for domestic and foreign scientists.

The expert also points to priority areas for the region: "marine and oceanic research, biology and biotechnology, shipbuilding, fisheries, agricultural development, as well as environmental safety, including the preservation of Red Book animals, such as the Amur tiger."

However, at the plenary session of the Eastern Economic Forum, President Vladimir Putin ordered the expansion of preferential tax treatment to all investors in the Far East and the Arctic. According to Denis Zhuravlyov, this will cut off from INTC those who might have come exclusively for tax breaks. Project participants will instead be startups, small technology companies, as well as state companies and companies with state participation, which, following the president's directive, are obligated to open their laboratories in the Russky technology valley.