Russian Venture Company (RVC), Russia’s national fund of funds for innovation, has put together a map of digital economy companies. The map contains activity analysis for about 400 Russian SMEs that develop and commercialize products and services to supply Russia’s digital economy.
In its study, RVC covered companies that develop quantum technologies, neural technologies and artificial intelligence, virtual reality technologies, big data, industrial Internet of Things, wireless communications solutions, robotics, sensors, distributed registries, and new manufacturing technologies.
They ended the year 2018 with aggregate revenue of $13+bn, or 0.8% of the national GDP. The number included 16 companies that had proceeds of $150+m each, and 37 companies that were set up in 2018.
60% of companies that develop digital technologies in Russia represent microbusiness where players each have $1.5m annual revenue or less. Small businesses with $1.5-12m annual revenue each account for about 26% of the companies studied.
Medium-sized companies each reporting annual revenue of $12-30m look like digital economy dwarfs compared to microbusinesses and small businesses. They account for only 5% of the total. RVC analysts believe the reason for such a situation is the growth problem medium-sized companies face at a certain stage of development, when looking for liquidity to clinch sizable contracts and retain highly skilled staff appears more important a task than focusing on new technology dimensions.
This story initially appeared in Marchmont Innovation News, Russia’s daily business news website.