Roman Kurnovskii

ICT Export Support as a Way to Meet Domestic Market Needs

UDC 339.5

Scientific Supervisor: Inna V. Andronova Peoples’ Friendship University of Russia (RUDN University)

Abstract: During the research, an assessment was made of the development of international trade in ICT services, and an analysis was conducted of the dynamics of imports and exports of ICT services in the Russian Federation. Based on the analysis, characteristic features of the development of the domestic ICT sector were identified, and a relationship was established between supporting the export potential of Russian IT companies and the industry's ability to fully meet the needs of the domestic market.

Keywords: ICT sector, export, import, ICT services, information technologies, state support.

Introduction

In modern conditions, information and communication technologies (ICT) serve as one of the key drivers of economic growth and increasing the competitiveness of national economies. For the Russian Federation, the development of the ICT sector takes on special significance in the context of the need to ensure technological sovereignty and import substitution. However, the efficiency of domestic market development correlates directly with the export potential of domestic companies.

Development of International Trade in ICT Services

The global market for ICT services has demonstrated stable growth over the past decade. According to UNCTAD data, the volume of global ICT service exports increased more than 1.5 times between 2014 and 2021. The COVID-19 pandemic provided an additional impetus to the digitalization of all spheres of life, leading to a sharp jump in demand for software and support services.

The Russian Federation also followed global trends. Domestic companies competed successfully on the international market, offering high-quality solutions in cybersecurity, fintech, and custom software development.

Analysis of Foreign Trade in ICT Services in the Russian Federation

Analysis of the dynamics of Russia's ICT service exports and imports shows that until 2022, there was a gradual reduction in the trade balance deficit in this area. Exports demonstrated annual growth, indicating the maturity of the Russian IT sector.

However, the change in the geopolitical situation in 2022 created new challenges. The departure of several large foreign vendors from the Russian market and Restricted access to foreign technologies required a rapid reorientation of the industry toward internal tasks. Under these conditions, it became evident that companies with experience in successful exporting were the best prepared to solve import substitution tasks within the country.

State Support and the Domestic Market

The link between export support and the needs of the domestic market manifests in several aspects:

  1. Quality and Competitiveness: Export activity forces companies to comply with global quality standards. Solutions created for the global market possess high reliability and functionality, which is critically important for the domestic consumer.
  2. Scalability: Exporting allows companies to increase revenue and invest more in R&D, which makes the development of products for the internal market cheaper and faster.
  3. Human Capital: Working on international projects contributes to the growth of the qualifications of Russian specialists, who subsequently apply their experience in domestic projects.

State support measures, such as tax incentives, preferential lending, and grants for software development, are aimed at creating a favorable ecosystem in which export-oriented companies become the mainstay for the digital transformation of the Russian economy.

Conclusion

ICT export support is not only a way to increase foreign exchange earnings but also a strategic tool for meeting internal market needs. The development of export potential stimulates the creation of high-tech products that become the basis for import substitution and the technical independence of the country. To intensify the development of the Russian ICT sector, a continuation of active policies to support domestic developers is required, which will allow for providing the domestic market with the necessary solutions in the shortest possible time, solutions that are not inferior to foreign analogues.

Sources

  1. Dynamics of world export of ICT services by country in 2014–2021, million dollars (source: compiled by the authors based on the UNCTAD statistical database. URL: https://unctadstat.unctad.org/wds/TableViewer/summary.aspx, (accessed: 10.12.2022)).
  2. RusSoft Study: "Export of the Russian Software Development Industry." // russoft.org URL: https://russoft.org/wp-content/uploads/2021/11/survey2021.pdf
  3. Shkvarya L. V., Frolova E. D. Comparative analysis of the development of foreign trade in the digital segment by world regions // Economy of the region. 2022. T. 18, vol. 2. P. 479-493. https://doi.org/10.17059/ekon.reg.2022-2-13.

References

  1. Dinamika mirovogo eksporta IKT uslug po stranam v 2014–2021 g., mln doll. (istochnik: sostavleno avtorami po dannym statisticheskoj bazy YUNKTAD. URL: https://unctadstat.unctad.org/wds/TableViewer/summary.aspx, (data obrashcheniya: 10.12.2022)).
  2. Issledovanie RusSoft: «Eksport rossijskoj industrii razrabotki programmnogo obespecheniya». // russoft.org URL: https://russoft.org/wp-content/uploads/2021/11/survey2021.pdf
  3. SHkvarya L. V., Frolova E. D. Komparativnyj analiz razvitiya vneshnej torgovli v cifrovom segmente po regionam mira // Ekonomika regiona. 2022. T. 18, vyp. 2. S. 479-493. https://doi.org/10.17059/ekon.reg.2022-2-13.
Published Dec 15, 2022 | Updated Dec 15, 2022