The way that local authorities in OECD countries compare and benchmark their performance varies widely. This paper explains some of the reasons behind the variations. The current local government benchmarking schemes in Europe—their governance, coverage and impact—largely depend on the institutional characteristics of the respective administrative and local government systems (in other words, the starting conditions).
Engineering and industrial design services are closely connected to both an economy’s value and level of employment. While the global market for engineering services is growing steadily, the Russian engineering and industrial design market is very fragmented. Russia began a targeted policy for engineering and industrial design in 2013 to support service providers who were struggling with high interest rates on loans and insufficiently qualified staff. This article reports on this initiative and reflects on its impact.
There have been many analyses of innovation in Russia’s state-owned enterprises (SOEs) and most conclude that the way forward requires the SOEs to transform into innovation powerhouses. Hence, in 2011, the Russian government set up an ambitious initiative to push innovation in the largest SOEs, which will run until 2020. This initiative has now begun its second phase. Using major case studies, for example Aeroflot and Russian Railways, this article examines the impact of the initiative. Understanding the Russian experience of transforming SOEs provides important lessons for many other emerging economies.
This paper presents a public procurement transaction cost evaluation using a large-scale survey of procurers and suppliers. The study was conducted in Russia in 2017. The results of the survey confirmed that the lower the contract value, the more expensive the procurement procedure. An empirical analysis of factors impacting public procurement cost evaluation also revealed considerable differences between respondents with and without experience in complex procurement procedures. The paper makes an important contribution to the academic literature by elaborating a new approach to public procurement cost evaluation, as well as providing an empirical evaluation of direct transaction costs of public procurement.
The survey-based approach to the evaluation of public procurement costs described in this paper can be used by other countries and regions. Although the average overall transaction costs for public procurements in the case study country amounted to about 1% of the total value of concluded contracts, this figure was 6.6% to 8.1% for small purchases. This figure exceeds the budget saving from competitive procurement and calls for a need to simplify regulations around smaller procurements. This analysis of the procurement costs on Russian data will allow other developing countries to avoid the mistakes made in Russia, as well providing a way to realistically and affordably measure their procurement transaction costs.