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Import Dependence and Import Substitution in Russian Manufacturing: A Business Viewpoint
https://foresight-journal.hse.ru/data/2017/01/19/1114815989/2-Simachev-25-45.pdf

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The most common reason companies opt for imported products, technologies, and services is the total absence of Russian alternatives, at least in the respondents’ opinion. Russian analogues frequently are not as good as or do not meet the consumer companies’ technological requirements. Much less frequently Russian products, technologies, or services cannot compete price-wise, or in terms of delivery and payment. The least important reason according to the respondents was Russian producers’ violating intellectual property rights.An analysis of the reasons why Russian producers opt for imported products, services, and technologies in specific industries (Table 5) reveals that the lack of Russian alternatives is particularly acute in the high-technology sector, namely in pharmaceuticals, computers and electronics, medical equipment and instrument. This issue is least important for the producers of rolling stock.The insufficient quality of Russian products, technologies, and services compared with foreign analogues and their inability to comply with customers’ technological requirements act as powerful incentives to opt for imports for manufacturers of computer equipment and electronics. Also, the low quality of Russian analogues is very important for automobile industry companies, and the inability to meet technological requirements is important for machine tools makers. In addition, the risk of Russian suppliers’ violating intellectual property rights is comparatively important to the automotive companies, while the insufficient level of maintenance and technical support services offered by Russian suppliers of products and technologies affects machine tools producers.

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