Advantages of Industrial Parks for Investors
29.08.2014
In most Russian regions the phrase “industrial park” has already become common and clear: the development of this format started in the middle of 2000s. Hearing it, prospective investors expect certain advantages, which include short investment terms, possibility of delegating a part of functions in implementation of the project to the managing company, transparency of conditions, minimization of administrative barriers due to support of public authorities, developed park infrastructure. In other words, the industrial park takes some risks off the investor and accelerates implementation of the project. No wonder that creation of such infrastructure is a mandatory condition for maintaining competitiveness of the region.
Thus, taking into account the fact that basic advantages of most industrial parks are theoretically the same, investors can pay attention to additional features of the object:
- advantageous geographic location with respect to sales markets, sources of raw materials, main transport flows;
- availability of highly qualified personnel, with required narrow specializations;
- prices for rent and utilities;
- SEZ customs regulations;
- cluster formation;
- preferential tax rates for taxes intended for local and regional budgets;
- state guarantees.
Also, the managing company can provide additional services:
- services on transportation of personnel and provision of personal transport;
- access to an analytical laboratory;
- organization of catering;
- advertising;
- transport services;
- legal services;
- consulting;
- hiring and training of personnel.
The advantages of creation of an industrial park for the region, in addition to the general aim of increasing attractiveness for investors, are the following:
- economy diversification;
- creation of new jobs and retaining of highly qualified personnel;
- increasing of the tax base and tax revenues.
As of the beginning of 2014, there were about 45 parks in Russia, a significant share of which was connected with car and chemical industries. However, the location in industrial parks can contribute to implementation of the potential of such industries as manufacturing of soft goods, composite materials, etc. Besides, industrial parks can promote development of small and medium-size manufacturing enterprises.