Globalization, Protectionism and Technological Security: Finding the Right Balance
Global companies adapt to local rules
Today technology vendors, technology leaders, especially the companies working at the cybersecurity market, have to <…> register more than one company and often to localize companies at the markets that traditionally <…> close the market or in a particular way enclose the cybersecurity market. <…> Countries are trying to protect their territories, data, citizens and not only citizens. Such protectionism is mostly justified — Elena Bocherova, Executive Director, Akronis-Infosecurity.
As far as transport is concerned, almost all countries have their own legislation, and they vary greatly. For example, in Russia <…> the car is licensed rather than the driver. And in Israel it is the opposite. <…> It highly depends on what a country is striving for in general. <…> Many of them introduced rules against ride-hailers, some of them banned Uber — Anatoliy Smorgonskiy, General Director, Gett in Russia.
International partnerships are crucial
Both national and global businesses can be successful. Everything depends on the chosen issue and area. <…> Our experience shows that in some cases some partnerships play a key role, and without cooperating closely with Apple, Microsoft, Google <…> we probably would not be able to bring our products to the public — Nikolay Dobrovolskiy, Co-Founder, Vice President, Parallels.
We do diagnostics, and this <…> provides us with a very good understanding of where the main interests lie, as well as the main opportunities for cooperation and partnerships. <…> Fourteen months ago, no one knew about COVID, and 9 months later a vaccine was created. <…> Such achievements rely on the strength of partnerships. They are crucial for all countries — Joshua Phoho Setipa, Managing Director, United Nations Technology Bank for Least Developed Countries.
Regulation lags behind technology
We have created a unique identification system that allows anyone to open a brokerage account in a few seconds. But it relies on the Russian state identification system. <…> If we want further development, we need to build a similar identification system, but an international one. <…> We need a solution on the legislation, regulation level that will allow Russian professional participants, Russian banks to identify international clients. <…> Crypto exchanges somehow solve the problem of identifying customers from different jurisdictions. This means that <…> there are technological solutions. We are talking about the relation between technology and legislation — Roman Goryunov, Chairman, Russian Trading System Stock Exchange .
For some reason, we give up our people very easily. <...> The question should be the following: how to make sure that projects that develop to advanced, mature stages remain in Russia — Maria Lapuk, Co-founder, Blanc.
Small capacity of the Russian IT market
Russian market accounts for around 1% in terms of software <…> maximum. <…> That is why if you start doing something, you need to focus on the global market — Dmitry Shushkin, Chief Executive Officer, ABBYY Russia.
We can see the state efforts aimed at development of the Russian IT market. <…> But <…> 1–2% of revenues (compared to global companies) do not really allow to make a great product — Sergey Solovyev, General Director, Chairman of the Management Board, T1 Group.
The state does not really help companies to go abroad. <…> While testing a hypothesis on the foreign market will cost a Russian company its life, it will be very difficult for us to make global products — Sergey Solovyev, General Director, Chairman of the Management Board, T1 Group.
We [Russian production companies, Ed.] certify our products, pay VAT, pay fees, we do all that. There is a segment in the Russian market in which our Chinese colleagues are not obliged to do a lot of these things. <…> From the point of view of such companies, they just need to create a level playing field with other companies. This can be called protectionism, but we just need a level playing field — Daniil Fedorov, Chief Operating Officer, Ozon.
Many Russian-speaking people built large global companies after leaving Russia. Telecom is one of the industries that is not ‘killed’ by additional regulation. <…> Thanks to this telecom, we now launch various digital products. If there was no cheap and stable Internet access, where would the transformation be? <...> We need to establish stable rules that will not change every two years or every six months — Anatoliy Smorgonskiy, General Director, Gett in Russia.
Russian IT companies should keep the global market in mind from the beginning
When your product is competitive <…> on the international market, it is much easier to localize it, to get corresponding certificates — Elena Bocherova, Executive Director, Akronis-Infosecurity.
It is clear that there is a vast political agenda; in my opinion, building a business on technological imbalances between markets is also a pretty good idea — Maria Lapuk, Co-founder, Blanc.
Russia can offer its technologies on global markets
For Russian companies, especially those that are going abroad after having built a business in Russia, state help could be useful for <...> promoting an alternative proposal. If the US turn everyone onto their software, China turns everyone onto its hardware, then Russia <...> could offer solutions, digital services that we have already created and are producing here. <…> This would be a good alternative to what already exists on the market. It is better to start moving in this direction not in the USA, although it is a huge market, but it is very sensitive to the origin – but in the Middle East, Southeast Asia, Africa <...> and even in Japan — Dmitry Shushkin, Chief Executive Officer, ABBYY Russia.
The Russian state should take an active part in financing Russian vendors who develop products, and admit their right to make mistakes — Sergey Solovyev, General Director, Chairman of the Management Board, T1 Group.