Only innovative economic model can ensure sustainable growth – Dvorkovich

Arkady Dvorkovich file photo

(Interfax – MOSCOW, October 14, 2013) Using reserve funds to support major investment projects and small and medium businesses can accelerate economic growth slightly for a few months, but an innovative model of growth needs to be implemented in the long-term, Deputy Prime Minister Arkady Dvorkovich said at a briefing for the upcoming Open Innovations international forum in Moscow.

The prime ministers of Russia, Finland and France are expected to attend the forum, which will be held from October 31 to November 2.

“We don’t see another model of growth other than innovation,” Dvorkovich said.

“There’s no magic wand, there are no magic measures that can immediately accelerate economic growth and make this acceleration sustainable. Of course, it’s always possible to throw all your money into the furnace and get some kind of immediate effect, but this will lead to an even bigger drop and the result will not be achieved,” Dvorkovich said.

“Therefore, we’re proceeding cautiously. We have reserves that we will use, including to implement major innovation projects, as well as to support small and medium enterprises. Combined this might give a certain boost to economic growth for several months, but in the long-term we believe that there simply isn’t another way other than the way of modernization based on the latest achievements of science and technology. This is the only way to achieve sustainable rates of economic growth, and not fearing competition but fully taking part in the competitive struggle, using all of the tools that other countries also use within the context of WTO rules,” Dvorkovich said.

He said Russia should “not fear restructuring old sectors and old enterprises, on the contrary this needs to be done to create new effective jobs.”

“This is the main strategic path, and in the short-term we will work on maximum stimulus of investment both at the level of big companies and at the level of small and medium businesses,” Dvorkovich said.