SPIC 2.0: Mechanism for development of innovations and introduction of modern technologies
Artem Gasparyan, Junior Associate of Southern directorate
On 2 August 2019, the President of the Russian Federation signed a legislative package concerning significant reforms for the mechanism of special investment contracts. Amendments refer to legal regulation in industrial policy and affect tax and fiscal legislation.
What does it mean for you?
For Russian and foreign investors, SPIC 2.0 will remain the unique legal mechanism covering all key directions of State industrial policy, i.e. import substitution, local content and export of high-technology products. Using this instrument, the investor can obtain a wide range of State support measures on a competitive basis that may not be available outside SPIC.
The use of such measures taking into account changes in legal regulation must enhance the predictability of financing of private projects, improve long-term investment planning as well as helping to accelerate the return of private investments or minimizing various risks of project implementation. In exchange for additional opportunities, the investor will have to share or transfer its own intellectual property and set up serial manufacture of competitive products using this.
This in its turn will require ensuring more scrupulous and thorough legal protection of the results of intellectual activity for the purpose of project implementation under SPIC 2.0.
In addition, the updated procedure for agreeing on the location of innovative production, as well as selection of applications will require the investor to increase the time, organizational and financial costs of negotiations, agreeing on mutually acceptable parameters for the investment project with all levels of public authority and, of course, on the conclusion of the contract itself, which must be considered during the planning stage of the project.