Acta Astronautica 200 (2022) 626–634

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Acta Astronautica
journal homepage: www.elsevier.com/locate/actaastro

Resource support of innovative small and medium-sized enterprises for

space industry development in Russia
Lali V. Chebukhanova *, Andrey M. Zimakov
Peoples’ Friendship University of Russia (RUDN University), 6 Miklukho-Maklaya Street, Moscow, 117198, Russian Federation

A R T I C L E I N F O A B S T R A C T

Keywords: This study deals with the features of using the potential of innovative small and medium-sized enterprises (SME)
Small and medium-sized enterprises for the development of the space industry in Russia. The task of increasing the adaptive properties of the Russian
Support space industry, its ability to internal change and greater openness, is particularly crucial in the context of new
Financing instruments
challenges. This study emphasizes the special importance of private investment for the Russian space industry
development and commercialization of space activities in connection with its enormous economic potential.
Large scientific enterprises prevail in the Russian market, they have complex innovation management system and
are often oriented towards large projects. Due to this reason, the number of innovations in these structures is not
as great as in small and medium-sized enterprises. We analyzed the activities of small and medium-sized
innovative enterprises in Russia and concluded that these enterprises are almost not involved in the space in­
dustry. However, the possibilities of innovative SMEs in the space industry are great, since such enterprises can
create projects in the field of communications, data transmission, digital solutions for data processing, the
creation of on-board systems, technical solutions for the “Moon Village” creation and others. We consider the
barriers that prevent such enterprises from entering the space industry, for example, such as the need for
licensing, the high cost and long-term return of startups, etc. One of the main problems for small and medium-
sized innovative enterprises in the space industry in Russia is the lack of material and resource support for the
creation and implementation of their innovative projects. This study included conducting research of different
possibilities of the resource support tools for innovative SMEs in the space industry, which are divided into three
mechanisms: direct public support, non-government funding, incentive programs for investors and small inno­
vative enterprises. The study of the experiences of various countries in attracting private companies to the space
industry provided a basis for formulating a set of proposals for improving the use of resource support tools for
small and medium-sized innovative enterprises for the development of the space industry in Russia.

• support from the government;

• technological level of the economy;
1. Introduction • availability of qualified labor force.

The space industry has great strategic importance in any country. It
affects not only the strengthening of the defense capability and security
of the state, but also the development of transport, communications,
other sectors of the economy and the social sphere. Many studies
confirm the positive socio-economic effect of investments in the devel­
opment of space [1,2].
Currently, space is becoming attractive not only for scientists, but
also for private business. In many countries, even small ones, there is a
growth in the space industry, an increase in the share of private business.
Among the factors that affect the space industry are:
Firstly, since the government is still the largest customer in the space
industry, its assistance has primary importance.
The government plays a key role in Russian space sector. The situ­
ation in the world is somewhat different — the state is gradually moving
away from space, entrusting it into private hands, but the public sector is
still decisive [3].
It is important to give an opportunity to develop private initiative, as
private, creative ideas in most cases allow to create faster and cheaper
stream of innovations and to provide a leap in the scientific and

Abbreviations: SPA, Scientific and Production Association.

* Corresponding author.
E-mail addresses: chebukhanova-lv@rudn.ru, L.chebukhanova@mail.ru (L.V. Chebukhanova).

https://doi.org/10.1016/j.actaastro.2022.09.033
Received 28 January 2022; Accepted 14 September 2022
Available online 22 September 2022
0094-5765/© 2022 IAA. Published by Elsevier Ltd. All rights reserved.
L.V. Chebukhanova and A.M. Zimakov
Acronyms/abbreviations
SME Small and medium-sized enterprises
R&D Research and Development
ESA European Space Agency, SPA Scientific and Production
Association
technological potential of the whole country.
In addition, in order to capitalize the space industry and finance
innovations, it is important to attract private investors. Public policy can
help to solve the problem of access of private space companies to
financial resources [4], infrastructure facilities and attract private
financing to the industry.
The second important factor in the development of the space in­
dustry is the level of economic development. The space industry requires
advanced technologies, and if it is difficult to access them, it complicates
the work significantly. It is not just about advanced electronics, which
are difficult to find in many countries, including Russia. Modern mate­
rials and processing technologies are required to create competitive
space technology.
The third factor is the availability of qualified labor force, capable of
developing and implementing various innovative solutions to space
industry.
The task of increasing the adaptive properties of the Russian space
industry, its ability to internal change and greater openness, is partic­
ularly crucial in the context of new challenges.
So, the fourth factor associated with the fact that Russian space in­
dustry needs projects with great scientific potential, whose innovative
developments are based on, for example, artificial intelligence, or could
be used in space exploration and the creation of new solutions for Earth
needs.
Nowadays large scientific enterprises are prevailing in the Russian
market, they have a complex innovation management system, and they
are often oriented towards large long-term innovative projects.
However, the space industry needs small suppliers and performers
just like any other business. It is recognized globally that SMEs play an
important role in the development of a sustainable space industry.
Due to the flexibility of small companies, their new solutions can
quickly adapt to market trends and ensure companies competitiveness in
the market.
New and more affordable space technologies reduce the importance
of economies of scale received by large firms, and therefore the potential
contribution of small firms increases.
The possibilities of innovative small and medium-sized enterprises in
the space industry are great. They can create projects in the field of
communications, data transmission, digital solutions for data process­
ing, the creation of on-board systems, technical solutions for the “Moon
Village” creation and others.
Depending on the business orientation, the European Space Agency
(ESA) classifies the space SMEs that are part of the following main ac­
tivities [5]:
− Technical support to R&D and product innovation;
− Space system: advance software technologies;
− System analysis and design;
− Ground station system;
− Structural design and verification methods and tools;
− Automation and robotics components and technologies;
− GNSS system and ground-related technologies.
In Russia, the implementation of policy in the field of space activities,
its legal framework, orders for the development, production and supply
of space technologies and space infrastructure objects are implemented
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Acta Astronautica 200 (2022) 626–634
by the State Corporation Roscosmos. Currently, Roscosmos has no
experience of fully implemented joint projects developed by a private
company, but it is potentially possible.
The areas for joint work with Roskosmos include the following: the
creation of new services, new materials and technologies that can give a
new quality to Russian vehicles and vehicles launch; all kinds of com­
ponents, payload, electronic component base; equipment for space ex­
periments and others. The main Roskosmos requirement for innovative
companies is to meet the requirements for the quality and reliability of
products that are imposed in the space industry.
2. SMEs activities in space industry of Russia
In many countries, there are a predominance of SMEs in the space
industry.
In Canada, 94% of space enterprises are SMEs, and they provide 43%
of the income of the space industry [6].
According to the ESA, about 3 thousand space SMEs are currently
established on the territory of the European Union [5]. The largest
number of space SMEs are located on the territory of countries that
determine the dynamics of the global space market [7], such as the
United Kingdom (16%), Italy (14%), Germany (12%), France (8%),
Spain (5%).
However, innovative small and medium-sized enterprises are prac­
tically not represented in the space industry in Russia.
Out of 5,6 million small and medium-sized enterprises in Russia
operating in 2021, we were able to find 15 successful innovative space
enterprises and other SMEs providing satellite monitoring and other
services operating in the market for several years:
1. Sputnix
2. Lin Industrial
3. Avant - space systems
4. Geoscan
5. Fifth Generation
6. National Space Company
7. Success Rockets
8. Azmerit
9. Сonstruction bureau Laros
10. Tekhprom-AKS
11. JSC Inumit
12. SPA of Space Instrumentation
13. SPA Energomash innovation center
14. Syntez-project
15. Istok
Among the 75 organizations of the Roscosmos Corporation, there is
only one representative of SMEs, which provides energy support [8].
For example, The UK Space Trade Association includes about 70
SMEs [9].
There are many barriers that prevent such enterprises from entering
the space industry in Russia, for example, such as the need for licensing,
the high capital intensity, high technological risks and long-term return
of startups.
Now Roskosmos is a closed state corporation, which itself forms the
state order for the development, production and supply of space tech­
nology and space infrastructure objects. And then it distributes it among
various organizations, which it owns through the United Rocket and
Space Corporation of Russia. Roskosmos accumulates most of the budget
for space industry development (approximately 80% in 2021–2023)
[10].
Therefore, private companies in Russia cannot fully rely on the
government in the formation of orders, grants, and investments.
Roskosmos does not provide access to existing technologies and de­
velopments; therefore, most of the interesting commercial projects are
drowned in routine production preparation.
L.V. Chebukhanova and A.M. Zimakov Acta Astronautica 200 (2022) 626–634

Among the barriers to the development of innovative space SMEs we
can note the imperfection and the lack of regulatory support for private
space activities, which creates increased risks for investors, as well as an
uncertain government policy in relation to such initiatives. Obtaining a
license is a multi-stage bureaucratic procedure, only slightly less
complicated than the creation of the spacecraft themselves.
To create any satellite, private company needs the special govern­
ment license; otherwise, it will not be able to work on commercial or
government orders. The main intermediate document required for
licensing is a certificate of the presence of a quality management system
in the company, corresponding to the provision of RK-11-KT. This is a
key document regulating the space industry, which has a semi-closed
status. Many of the necessary standards have a secret status at all,
they are not publicly available, and can be used only by Roskosmos
organizations or state organizations. Therefore, in order to find out
exactly what requirements the company and its products must meet,
they will have to get a special government license for access to classified
information.
In addition, space innovations are characterized by high capital in­
tensity, high technological risks and long cycles of production and
development of such equipment.
A startup cannot make a technologically worthy product for minimal
money. A company that declares itself by showing a good start, and then
disappears for several years due to the cutting of funding, can hardly be
considered a serious player in the space market.
Therefore, one of the main problems for small and medium-sized
innovative enterprises in the space industry in Russia is the lack of
resource support for the creation and implementation of their innovative
projects [11].
3. Mechanisms of the resource support of the space industry
3.1. Assessment of the Financing Instrument Use
In our study, we reviewed the most used financing instruments for
innovative SMEs in Russia and assessed their use by space SMEs.
Among these instruments there are following:
− grants – gratuitous subsidy from government to enterprises for
various purposes;
− credits - SME loans;
− guarantee support - government guaranteed scheme for loans to
SMEs;
− crowd-financing - collective financing from legal entities and in­
dividuals through Internet investment platforms;
− leasing - lease of property with subsequent purchase;
− factoring - redemption by another organization of payment claims
from suppliers or customers;
− venture funding - investments from companies or special funds in
innovative, high-tech companies;
− business angel financing - investments from individuals in innova­
tive, high-tech companies at the early stages.
2. The price reflecting the cost of finance obtaining, where 1 - high
price, 2 – medium price, 3 – low price. The weight of the criterion is
0,35.
3. Terms reflecting the time of receiving funding, where 1 - over 1 year;
2 - up to 1 year; 3 - less than 3 months. The weight of the criterion is
0,15.
As a result, we received an integral indicator for assessing the use of a
separate financing instrument, the maximum value of which will be
equal to 3. The evaluation results are shown in Table 1 and Fig. 1.
According to the assessment, crowdfunding instruments, as well as
grants, have become the fastest, most accessible, and effective for
innovative SMEs in the Space Industry in Russia, due to different public
grant programs for SMEs, extension of crowdfinancing platforms, and
due to the low cost of obtaining.
Guarantee support and leasing are necessary instruments, less
expensive, but less available due to their low prevalence and complex
procedure for obtaining.
Factoring and credits should become more widespread in the future,
as they are instruments for targeted and fast financing, but nowadays
these instruments are presented only at later stages of enterprise
development, when it has positive cashflow. The credit rates for SMEs
are higher than for large ones and higher than in foreign countries, and
the application procedure is different in different financial institutions
and it requires guarantees.
Venture funding and business angel financing are traditional
financing instruments for innovative enterprises. If abroad most venture
investments are in corporate funds, then in Russia there are public funds
with a smaller capitalization. The number of funds and the volume of
venture and angel funding in Russia are much lower. The reason is in the
lack of measures for stimulating venture financing and mechanisms that
can protect against losses. In Russia, the business angel market is not
transparent, and few business angels are known. The business angel
market is not regulated by law, which means that the rights of both
investors and SMEs are not protected. There are no benefits for business
angels.
Thus, the number of available and cheap instruments for financing
small innovative enterprises in Russia is limited.
3.2. Practice of space SMEs financing abroad
We can divide instruments into three mechanisms: public financing,
incentive programs for investors and innovative SME and private
financing.
If we consider the structure of funding sources for research and
development (R&D) in the direction of “Transport and Space Systems”
[13] we can see the predominance of funding from public funds (this
includes all types of enterprises) - more than 70%, and that the influence
of the government is increasing every year (see Fig. 2).
Government agencies are one of the main customers for private space
activities. Numerous US government agencies and ministries are huge
consumers of space services, in proportion far greater than those in

To assess these instruments, we identified 3 criteria that are of Table 1

particular importance for such enterprises, and each of them was Assessment of the Financing Instrument Use by innovative SMEs in the Space
assigned a weighting coefficient of significance (the sum of the weights Industry in Russia.
is 1 (100%)). The weight of each criterion was assigned based on the Instrument (i) Criterion/Score (k) Total, (I)
findings obtained from the results of the author’s survey of the heads of Accessibility Price Time
Russian small innovative enterprises, which showed the significance of Weight (w) 0,5 0,35 0,15
these criteria for their activities [12]. Each criterion was rated on a Grants Medium (2) Low (3) Medium (2) 2,35
Credit Low (1) High (1) Medium (2) 1,15
3-point scale:
Guarantee support Medium (2) Medium (2) High (1) 1,85
Crowd-financing High (3) Medium (2) Low (3) 2,65
1. Availability, reflecting the organizational and legal mechanism for Leasing Medium (2) Medium (2) High (1) 1,85
obtaining financing for innovative SMEs, where 1 - low availability, Factoring Low (1) High (1) Medium (2) 1,15
2 - medium availability, 3 – high availability. The weight of the Venture funding Low (1) Medium (2) High (1) 1,35
Business angel Low (1) Medium (2) Medium (2) 1,5
criterion is 0,5.

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L.V. Chebukhanova and A.M. Zimakov
Fig. 1. Assessment of the Financing Instrument Use by innovative SMEs in the
Space Industry in Russia.
Fig. 2. R&D expenses on Transport and Space systems in Russia by type, %.
Russia, the EU and elsewhere.
The undoubted leader here are the United States, where NASA and
the American Air Forces are willing to invest in various venture projects
and use private space for their own purposes, for example, to launch
satellites for various purposes into orbit. In addition, NASA provides
Fig. 3. EU support for space SME. European funding schemes include the following.
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Acta Astronautica 200 (2022) 626–634
private companies with its test base and shares some technologies. The
Air Force, in turn, can lease its launch sites for a small fee. This approach
seems to be extremely reasonable, since startups, that develop with the
support of the state, begin to attract large private investments, which, as
a result, leads to savings in public funds.
At the same time, space science in Russia is financed from the budget
60 times less than NASA scientific projects, having received a significant
reduction from 2021 (State program of the Russian Federation “Space
activities of Russia” in 2021–2.4 billion euros (204 billion rubles), in
2022–2024 − about 2.2 billion euros (188 billion rubles)) [10].
Europe is also noticeably lagging behind the United States in this
market segment. But the European Space Agency (ESA) is stepping up its
work to support private space start-ups, the annual funding of the space
program being about 14.8 billion euros [14]. We are interested in their
experience, since about 99% of European enterprises are SMEs [15].
Europe offers a wide range of public financial instruments for small
and medium-sized enterprises for space innovation (see Fig. 3 [16]).
- Horizon 2020 financing programs in the form of grants, loans, eq­
uity, quasi-equity and guarantees;
- programs of the European Fund for Strategic Investments in the form
of loans, equity and guarantees;
- programs of Research Innovation and Digitization Window InvestEU
Fund in the form of loans, equity and guarantees;
- programs of European Structural and Investments Funds (ESI) in the
form of loans, equity and guarantees;
- funding programs of European Space Agency in forms of grants,
loans, equity, quasi-equity and guarantees;
- financing programs of national and regional funds in forms of grants,
loans, equity, quasi-equity and guarantees.
The above-mentioned government programs are aimed at financing
not only space SMEs, but also at stimulating private investors and
innovative infrastructure creation.
In January 2021, The European Investment Fund (EIF), in partner­
ship with the European Commission, announced a 300 million euros
investment in the EU space industry to support innovation.
In addition, EIF and the European Commission announced in­
vestments in 2 venture capital funds focused on space technologies:
Orbital Ventures and Primo Space. They work under the InnovFin Space
L.V. Chebukhanova and A.M. Zimakov
Equity Pilot, the first EU-backed capital pilot, and support early-stage
SMEs. By the end of the 1st quarter, this project is expected to be fully
rolled out at a cost of 100 million euros. The project will support about
50 space companies across Europe.
EU Commissioner Breton announced a new space entrepreneurship
project CASSINI in 2021. It envisions the creation of a 1-billion-euro
European Space Fund for start-ups and innovations, covering the
entire innovation cycle - from business idea to production.
3.3. Practice of space SMEs financing in Russia
3.3.1. Public financing mechanism: institutes for the development
Unlike Europe in Russia, there are the limited number of specialized
financing programs for space SMEs. Public funding for space activities is
carried out through the Institutes for the Development of Innovations
and SMEs and through the state corporation Roscosmos.
Governmental development institutions are one of the main driving
forces of the commercial space ecosystem development. Acting through
them, the Russian government is trying to remove barriers on private
space companies’ path and support Russian space startups.
Governmental development institutions in Russia offer grants, loans,
venture and equity financing, leasing and subsidies to innovative SMEs.
Yet there are practically no specialized space financial programs on the
Russian market, so we will consider potential programs that can be used
by space SMEs.
The Foundation for Assistance to Small Innovative Enterprises in
Science and Technology provides grants on a competitive basis,
depending on the stage of the life cycle and the purpose of obtaining
funding (from 6 to 296 thousand euros (500 thousand to 25 million
rubles)). At the early stages, two types of grants are provided for car­
rying out scientific research and development work for up to 2 years:
“Clever” and “Start” (from 6 to 24 thousand euros (from 500 thousand
rubles to 2 million rubles)). More knowledge-intensive SMEs that have
experience in the development and sale of their own science-intensive
products can receive up to 70% co-financing within the framework of
the “Development” grant for a period of one to two years in the amount
of up to 240 thousand euros (20 million rubles).
The most effective means of support for space SMEs is the Skolkovo
Innovation Center, which implements specialized financial support
programs for innovative SMEs.
Most successful innovative space SMEs in Russia, mentioned above
in our study, were Skolkovo’s participants and received financial sup­
port from it. The main instrument for financing projects at early stages
are grants: micro-grants up to 17,8 thousand euros (1,5 million rubles),
mini grants up to 59,3 thousand euros (5 million rubles) (subject to 50%
of other funding sources).
In addition, SMEs in Skolkovo can obtain venture and equity
financing through Skolkovo Ventures, the main investors of which are
the Russian Venture Company, large state and private corporations and
individuals.
The Russian venture capital company performs the functions of the
Project Office of the National Technology Initiative, within the frame­
work of which SMEs developing breakthrough innovative products can
receive grant and investment support to create a prototype in the
amount of up to 1,96 million euros (165 million rubles) under the
“National Technology Initiative” program.
State Development Corporation “VEB.RF” finances investment and
export projects in the form of loans, guarantees and securities, equity
financing, export support up to 28,4 thousand euros (2,4 million rubles)
for up to 20 years through partner organizations.
VEB RF Corporation within the framework of the National Tech­
nology Initiative in 2015 and 2017 provided investment support to a
small enterprise Dauria Aerospace to create a small space telecommu­
nications platform Auriga and Atom (Dauria Aerospace went bankrupt
in 2020).
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Acta Astronautica 200 (2022) 626–634
3.3.2. Public financing mechanism: credit and guarantee programs
Governmental credit and guarantee programs are implemented
through the Development Institute “Corporation for SMEs”. Within its
framework, the SME Bank and the National Guarantee System were
created.
SME Bank provides investment loans from 12 to 24 thousand euros
(1 million to 2 billion rubles) for a period of up to 10 years, as well as
working loans - up to 5,9 million euros (500 million rubles) for 3 years.
However, the key direction for the bank is lending to fulfill government
contracts. Thus, an innovative SMEs can get a loan if there is a gov­
ernment order for the implementation of a space project. And there are
very few examples in Russia.
Guarantee support is recognized as a priority area of support for
SMEs not only in Russia, but in foreign countries. Even though guarantee
support is provided in Russia by a special development institute - the
SME Corporation and its regional offices, it is almost impossible to
obtain guarantees for small innovative enterprises in the early stages,
since the requirement is an annual increase in revenue of at least 20%
over the past 3 years. The procedure for obtaining a guarantee itself is
difficult due to the large set of documents to be submitted in the
application, a limited number of partner banks, and a lengthy applica­
tion review procedure. Nevertheless, this instrument is one of the most
essential for the development of small business, as it makes it possible
for them to use other financing instruments (loans, leasing, etc.) without
significant losses.
3.3.3. Public financing mechanism: leasing programs
In order to provide SMEs with access to the equipment, which is
necessary for the implementation of their activities, a concessional
leasing program from the SME Corporation through four regional leas­
ing structures is in force. The subject of leasing can be high-tech and
innovative equipment, industrial equipment. A leasing loan can be
provided for up to 7 years at 6–8% per annum.
SMEs at the stage of industrial production, and having their own
sources of financing and guarantees, can receive a loan from the In­
dustrial Development Fund and its regional structures for a period of 5–7
years at a rate of 1–5% in the range of 0,24 to 5,9 million euros (20
million to 500 million rubles).
As we have already noted, all government funding programs are not
specialized for the development of the space industry. There are a lot of
programs, but their application by SMEs is rather difficult for a number
of reasons (administrative, informational). In 2021–2022, a reform of
development institutions will be implemented in Russia, following
which the state corporations listed by us will be merged under the
leadership of VEB RF or completely liquidated. Thus, government
funding programs will be changed.
3.3.4. Private financing mechanism
We can refer to the mechanism of private investment which covers
such instruments as financing by business angels, venture capital,
corporate financing, bank loans, leasing, factoring, the securities mar­
ket, crowdfinancing.
The world is experiencing a boom in private investment in the space
industry. According to BryceTech [17] (see Fig. 4) about $ 7,6 billion
was invested in 124 private startups in 2020, most of which is venture
capital (64%).
Despite the outlined interest in private space from the investors, the
inability to implement the conceived development on time due to the
lack of stable funding is still a serious risk for private enterprises.
Most space startups are in their earliest stages of development, with
no equity capital or other resources. Thus, in Russia, the use of private
instruments for space SMEs is difficult.
3.3.5. Private financing mechanism: credits
Such SMEs cannot use loans from commercial banks, since the
probability of the project payback is small, and accordingly, the
L.V. Chebukhanova and A.M. Zimakov
Fig. 4. Magnitude invested in startup space companies 2020.
probability of approval of such a loan is also small. In Russia, a large
number of commercial banks provide special credit lines for SMEs,
including the top 30 commercial banks in Russia (Sberbank, VTB,
Tinkoff etc.) and small banks. Despite this, the rates for SMEs are higher
(the preferential rate is about 7–9.25%) [18], than for large enterprises,
and much higher than in foreign countries (2–5%) [19], and the appli­
cation procedure is different for different banks. It is necessary to pro­
vide many documents and warranty coverage. In the space industry,
SMEs can use lending only at later stages of development, and there is a
catastrophic shortage of such enterprises in Russia. All this leads to the
fact that lending is not an affordable instrument for such enterprises.
There is no financing of space SMEs in Russia through private ven­
ture funds, business angels, listing on the Moscow Exchange, IPO.
3.3.6. Private financing mechanism: crowdfinancing
Crowdfinancing instruments (crowdfunding, crowdlending, crow­
dinvesting, crowdfactoring, ect.) are the least common instruments in
Russia, despite their widespread development abroad. These in­
struments have advantages over traditional ones due to the speed of
obtaining financing, a simplified procedure for obtaining funds, as well
as due to the involvement of a large number of physical and institutional
investors. Abroad, these instruments are supported and regulated by the
state, they seriously compete with other financing instruments, due to
that they also become more accessible over time.
For innovative SMEs in the early stages, crowdfunding and crow­
dinvesting may become the only acceptable financing instruments due
to the simultaneous involvement of a large number of investors in
project appraisal and obtaining the required financing in a short time.
Earlier in our research, we showed a positive relationship between the
volume of crowdfunding and the costs of enterprises for research and
development [20]. The overwhelming majority of successful space
projects of Russian SMEs were implemented using crowdfunding. Ex­
amples of such startups using Russian platforms are:
- the Mayak space satellite startup, which raised about 28 thousand
euros on the Boomstarter platform (in 2 stages – 1,99 million rubles
and 404 thousand rubles);
- startup “435 nm. Live outside the Earth!“, which raised about 4,8
thousand euros (407 thousand rubles) on the Boomstarter platform
to create a photobioreactor for intensive cultivation of microalgae
and further production of oxygen;
- a satellite project for photographing the Moon, which raised about
20,5 thousand euros (1.75 million rubles) on the Boomstarter
platform.
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At the same time, commercialization problems are acute in such
projects, since they may not get a real effect for the development of
space, even despite the successful fundraising at such sites.
Currently, there are about 50 crowdfunding platforms operating in
Russia. 42 of them are Crowdlending platforms [21], the oldest plat­
forms on the market are Potok, Penenza, Town of Money. Examples of
sites using other types of funding are shown in Table 2.
The spreading of crowdlending and crowdfactoring platforms will
allow to reduce the role of traditional financial institutions by increasing
their competition, it will also increase the availability of credit and
factoring financing, but space SMEs practically do not use such
platforms.
This is due to the fact that loans at such platforms are currently is­
sued for a period of up to 1 year, according to the type of operating loan.
The rate of attracting financing is on average 18% [22]. And even
though there are already more than 40 such sites in Russia, the condi­
tions for attracting debt financing are almost the same everywhere and
are very short-term.
3.3.7. Private financing mechanism: leasing
Leasing is an effective financing instrument for innovative SMEs
since they need to purchase specialized equipment for research and
production, as well as cheaper and more long-term than taking a loan,
also the leasing rate is lower, and the equipment itself acts as a pledge.
Leasing is provided by both state-owned leasing companies and financial
institutions. The use of leasing in the domestic space industry has not yet
become widespread, while abroad the share of spacecraft manufactured
with the involvement of a leasing mechanism reaches 70%. According to
our calculations, based on Expert RA data for 2020 [23], equipment that
could be leased by innovative enterprises makes up no more than 4% of
all contracts annually, despite the fact that the share of SMEs in all
leasing operations is about 40%.
For innovative SMEs, leasing is presented only in state-owned leasing
companies within the framework of special programs for the purchase of
high-tech and innovative equipment, since such equipment is often
unique and illiquid, which means it is unattractive for leasing com­
panies. There are only 4 such state-owned companies, and they cannot
provide the entire required volume of purchases, and the lessee is
required to be sure of the owners of the SMEs.
3.3.8. Private financing mechanism: factoring
Factoring in Russia is not widespread enough among SMEs (the share
of SME transactions is about 9% in 1st Q 2021) [24], and even less
among innovative enterprises. Factors prefer accounts receivable from
large enterprises, which is confirmed by the opinion of rating agencies.
There are no government factoring companies. At the same time, this
instrument is also very important and effective for innovative enter­
prises at the stage of growth and expansion, since the need to refill
working capital for current activities during the payment deferral is an
urgent problem.
3.3.9. Incentive programs for investors and innovative SME and
infrastructure facilities
The incentive programs for investors and small innovative
Table 2
Crowdfunding platforms in Russia.
Platform Types of financing
Lemon Crowdfactoring
Venture Club Crowdinvesting
Investment Compass Crowdfunding, Crowdlending
StartTrack Crowdlending, Crowdinvesting
Planeta.ru Donation-based Crowdfunding
Boomstarter Donation-based Crowdfunding
InvoiceCafé Crowdfactoring
Venture Club Crowdinvesting
L.V. Chebukhanova and A.M. Zimakov
enterprises may include benefits for the payment of taxes, fees, customs
payments; provision of educational services; provision of information
and consulting support; assistance in the project documentation for­
mation; the formation of demand for innovative products; imple­
mentation of state and targeted programs, subprograms; export support,
investment promotion, etc. To provide these services and stimulate the
activities of SMEs in Russia, various innovative infrastructure facilities
operate.
The components of the innovation infrastructure are (see Fig. 5):
organizations that provide assistance in financing innovative SMEs;
innovation clusters, business centers, business incubators and accelera­
tors, technology parks (industrial parks), technopolises, science cities,
information networks and data banks; consulting organizations focused
on innovative SMEs.
3.3.10. Infrastructure facilities: accelerators
The Skolkovo Innovation Center (Moscow) includes various types of
infrastructure facilities such as a technopark, accelerators, business in­
cubators, a venture fund and provides all types of support for innovative
projects and grants.
One of the success factors of space SMEs supported by the Skolkovi is
the building of relationships between corporations and startups due to
the concentration of large industrial partners and promising develop­
ment companies in Skolkovo.
So, based on Skolkovo, various business accelerators are annually
implemented with the aim of introducing technologies from young
companies into large space enterprises.
As part of their participation in the accelerator, startups will receive:
- access to test fields with real or as close as possible to real data;
- piloting projects in industry organizations;
- consulting on transactions and protection of results of intellectual
activity;
- investments for product development.
In 2020, 10 startups were selected for the joint accelerator of the
Energomash Research and Production Association (part of Roscosmos)
and Skolkovo in the areas of new digital technologies, engine building,
civil products. This accelerator was the first Russian experience in the
space industry.
In 2021, a joint Industry Accelerator was opened with the State
Corporation Roscosmos for IT startups to search for new digital tech­
nologies, products and services.
3.3.11. Infrastructure facilities: technology parks and innovation centers
In addition to the Skolkovo infrastructure, Russia has a number of
technology parks and innovation centers for the development of space
technologies.
- Technopark “Russian Space Systems” (Moscow), on the basis of
which one small enterprise “SPA of Space Instrumentation” operates;
Fig. 5. Objects of innovation infrastructure, depending on the stage of pro­
duction and the size of the business.
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Acta Astronautica 200 (2022) 626–634
- Technopark “Precision Radiolaser Systems (Moscow), on the basis of
which one medium-sized enterprise “Quantum-Optical Systems”
operates;
- Technopark “Module” (Moscow);
- Technopark “Scientific Research Institute of Precision Instruments”
(Moscow);
- Technopark in the field of high technologies “Zhigulevskaya Valley”
(Togliatti);
- Technopark “Radiofizika” (Moscow);
- Innovation Center of the Central Aerohydrodynamic Institute (Mos­
cow Region);
- Technopark of Aviation Technologies (Ufa).
- Innovation and educational center of space services Saratov State
Technical University named after Yuri Gagarin.
The Government of the Ryazan Region, together with the Moscow
Aviation Institute, is working to create an innovative scientific and
technological center “Aerospace Innovation Valley”.
In addition to innovation centers and technology parks, various
innovation, educational and scientific and technological centers are
being opened on the territory of universities in order to familiarize
students with science and enhance innovative activity among them. For
example, in 2021, the Center for Commercial Space was created at
Samara University named after Korolev.
3.3.12. New Russian space startups and commercialization issues
In fact, there can be a lot of innovative developments for space
among Russian SMEs precisely due to the wide network of various
innovative infrastructure facilities located in universities, large corpo­
rations, and in big cities. So, currently, about 100–150 startups are based
at the Skolkovo Foundation, offering many individual developments for
the space industry, solutions for an integrated approach to digital
transformation and the creation of a competence center.
As an example of SMEs with such developments, we can note:
- Advanced Propulsion Systems, developing modules with a multi­
channel plasma propulsion system for a small spacecraft;
- Space systems, developing infrastructure for data acquisition and
control of small spacecraft;
- Tensor Lab, developing a space route for safe navigation;
- Orbital Express, which develops the System for the delivery of
spacecraft and payloads to target orbits.
However, there is a problem of the commercialization of such pro­
jects, since the main customer of space technologies in Russia, the
Roscosmos corporation, is not yet interested in them. In the end, this
could lead to the fact that advanced space technologies will be sold to
the overseas market.
Small and medium-sized enterprises are interested in long-term and
inexpensive financial resources. If small companies that have scientific
and technical knowledge, skills and potential will be allowed more ac­
cess to government contracts, they would receive a serious impulse to
development.
As a system of interaction with SMEs, the State Corporation
Roscosmos has created a portal “Single Window” for external innovation
proposals (projects) and requests from individuals and organizations
[25]. SMEs can apply for their innovative projects for the development
of the space industry. If Roscosmos is interested in this idea, they will
offer SMEs areas of cooperation as participation in accelerators, acqui­
sition of an idea, etc.
GenerationS is a corporate accelerator created by a Russian Venture
Company with the aim of building interaction between innovative
startups and corporations; in the future, these corporations can offer
investments in startups.
The challenge for SMEs is that corporations often do not have a clear
request for technology. The situation is further complicated by the fact
L.V. Chebukhanova and A.M. Zimakov
that the process from the beginning of the discussion of the project to its
implementation is very long, and the effect of the implementation is not
immediately visible.
3.3.13. Incentive programs
In addition to various innovative infrastructure facilities for SMEs
there are different incentive programs.
As part of the program of private lending stimulation in Russia, the
Ministry of Economic Development provides special subsidies
(2.5–3.5%) for commercial banks to provide loans at reduced rates.
Loans for investment purposes of up to 12 thousand euros (1 billion
rubles) are provided for SMEs at 8.5% per annum. The term for such
loans is up to 10 years.
Tax incentives are the most common form of stimulating innovation
in foreign countries.
In Russia, we can mark following tax incentives provided for inno­
vative SMEs:
- investment tax credit - deferral of income tax payment up to 5 years
at a rate of up to ¾ of the key rate of the Bank of Russia;
- reduction of income tax due to a decrease in profit by an amount 1.5
times greater than actually incurred expenses for research and
development;
- exemption from income tax of the received funds of targeted
financing of funds for the support of scientific activities (for example,
grants);
- exemption from VAT on imports of equipment, the analogues of
which are not produced in Russia;
- VAT exemption for the implementation of research and development
on a government order;
- VAT exemption on the transfer of rights to the results of intellectual
activity;
- creation of a reserve of expenses for research and development,
which reduces the taxable base for income tax;
- accelerated depreciation of fixed assets used in scientific and tech­
nical activities.
For participants of innovation centers there are exemptions from
income tax, property tax and VAT for up to 10 years, a reduced rate of
insurance premiums - 14%, full reimbursement of customs duties.
Participants in special economic zones (SEZ) and technology parks
apply a reduced income tax rate from 2% (for SEZs) to 14.5%.
Subjects that organize innovative infrastructure receive a reduction
in the tax burden of up to 25% (exempt from land tax, receive benefits on
income and property tax), can receive reimbursement of part of the costs
of organizing such facilities.
Individual investors of the Skolkovo Innovation Center can receive a
refund of 50% of investments and 100% of personal income tax (up to
240 thousand euros 20 million rubles) per year for one project). This
benefit is a clear example of the effectiveness of such incentives for
private investors.
In addition to these incentives instruments for private investors in
the space industry and innovation activities of SMEs, licensing re­
quirements were simplified in 2020 [26]. Some activities that require a
license were excluded from the activities of space enterprises: including
exploratory research, the organization and management of space ac­
tivities, the economics of space activities, the creation of prototypes not
intended for space flights, as well as fundamental research. We assume
that this step will create favorable conditions for the development of
innovative SMEs in the space sector.
4. Conclusions
Today, there are only a few Russian private space companies that are
engaged in the development and production of satellites or small launch
vehicles. These are companies of either start-up level or of very small
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Acta Astronautica 200 (2022) 626–634
capitalization.
Compared to investments in the oil, gas or IT industries, where the
return on investment is quite short, the space industry lags behind and is
not attractive to investors. In the space industry, the R&D cycle is quite
long, since this industry is science-intensive, high-tech, a very thorough
check of the developed prototypes is required before creating a working
model.
The private space business is developing very slowly and with great
difficulty. There is also a shortage of personnel, an extremely modest
domestic demand for their products and services, and a lack of access to
long-term money, without which the implementation of serious space
projects is impossible.
In the Russian space industry, the role of the government as a
customer is high. The main problem with Roskosmos is that it occupies
the position of a manufacturer of space technology and a consumer of
services. Roskosmos forgets its position as a regulator, which should
develop the Russian economy, including in terms of space activities. It
must give everyone the same opportunities.
The number of financing instruments for innovative SMEs in the
space industry in Russia is very limited.
The main driver for the development of innovative SMEs in Russia is
currently the Development Institute, namely the Skolkovo Innovation
Center, and acceleration programs. Acting through development in­
stitutions, the government is trying to remove barriers to private space
companies and support Russian space startups.
The main instrument for financing innovative SMEs in the space
industry is grants and equity financing through state development in­
stitutions. At the same time, there are very few highly specialized grants
for SMEs for space development in Russia compared to other foreign
countries.
The existing state institutions for the development of innovative
SMEs and the presented grant programs have much less of their own
resources and provide less funding than their foreign counterparts. The
Russian state program for the development of space involves a reduction
in the allocated budgetary funds for the development of space in
2021–2023. Thus, it is necessary to look for other sources of capital and
attract private initiative.
Private financing instruments for innovative SMEs are not common
in Russia. While in Europe and the United States, investors are gradually
becoming interested in space, in Russia it is currently very difficult to
attract the attention of capital holders due to the lack of protection of
private investments, difficulties of private startups entry into the
governmental order for space technologies and so on.
We can mention a few recommendations to help space SMEs thrive in
Russia based on the study and analysis of the foreign country experience:
1) To create an open electronic database of public orders in the space
sector and requirements for them, a database of existing financing
instruments and support measures of innovative enterprises in the
space sector on the platform of Roscosmos or the Ministry of In­
dustrial Development of Russia.
2) To create competition for Roscosmos in the space sector by
increasing the number of public and private companies providing
grants or venture capital funding for space projects of SMEs.
3) To develop space clusters that will solve the problem of interaction
between participants in the space industry. Resources for SMEs,
suppliers, and buyers (Russian and foreign), educational organiza­
tions, and specialized companies will be concentrated there.
4) To stimulate the creation of corporate business incubators, acceler­
ators, and investment platforms in the space sector by exempting
them from income tax at least for the first 2 years.
5) To provide special loans and guarantees program for innovative
SMEs, where the loan rate will not be higher than the average
lending rate for SMEs in Europe.
6) To increase the number of regional leasing companies to at least one
in each region of Russia.
L.V. Chebukhanova and A.M. Zimakov
7) It is necessary to create a single electronic platform for projects of
SMEs in the space sector to attract investors, where SMEs can
distribute their ideas.
8) To provide tax incentives for private investors (business angels, in­
vestors on crowdplatforms) and corporate investors in the form of a
tax deduction for income tax or personal income tax in the amount of
the invested amount (or setting a maximum deduction limit).
Declaration of competing interest
The authors declare that they have no known competing financial
interests or personal relationships that could have appeared to influence
the work reported in this paper.
Acknowledgements
This paper has been supported by the RUDN University Strategic
Academic Leadership Program.
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