Now Glowing: Nizhny Novgorod - Russia
Nizhny Novgorod, on the banks of river Volga, is an ancient maritime city famous for trade and culture. In the middle ages, it took on the role of Central Russia’s trading hub. During Stalin’s Soviet-era, it became a premier center for military-industrial complex. It was briefly named as Gorky, in honour of the famous Russian writer Maxim Gorky.
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Nizhny boasts of being home to some of the best intellectuals Russia has produced. It was here that the world’s first ever Radio tower was established. It was in Nizhny that the world’s first Hyperboloid structure was built. Nizhny is famous for its mathematicians, artists and engineers. It is today Russia’s show-case technology destination. Nizhny Novgorod is the fourth largest economic hub of Russia after Moscow, St. Petersburg and Novosibirsk.
Nizhny’s claim to fame is its unique talent pool drawn from Lobachevsky State University of Nizhny Novgorod which was founded during the World War II for developing maritime technologies for Russian defense forces fighting the Nazi invasion. Naturally, the city prides itself on producing some of the best talent in mathematical algorithms, physics and radio engineering.
Core sectors
Owing to a sustained Soviet era program to develop heavy industries, Nizhny is also home to a number of engineering industries. There are a number of auto industries, shipbuilding, diesel engines, aircraft manufacturing and machine tools manufacturing facilities.
The hottest sector, however, is the information technology industry. Intel Corporation was one of the first companies to start working in Nizhny and outside of Moscow. “We’ve found a pot of gold in Nizhny Novgorod,” says an Intel newsletter from its Nizhny center. Among the more prominent companies to have a presence in Nizhny is Symantec through a local
joint venture.
China among other countries is reportedly investing heavily in the city.
Nizhny-India Connect
The India Russian Chamber of Commerce is focused on encouraging Indian companies to invest in Nizhny. IRCC led a delegation to Nizhny Novgorod a couple of years back and came away with exploratory project proposals. Indian companies have traditionally looked at Moscow and St. Petersburg, but there seems to be a renewed interest in Nizhny.
There are a handful of Indian companies supplying components to Nizhny’s energy sector. Nizhny is also seen as a gateway to the European market.
| Nizhny Prof. Wins Pythagoras prize for 2010 In November 2010, Prof. Yarslav Sergeyev won the International Pythagoras prize for that year. Prof. Sergeyev teaches in The Labochevsky University of Nizhny Novgorod. Prof. Sergeyev won the prize for devising new algorithms for calculating infinitesimally large and small numbers. This feat is among the many accolades the university has received. The university is in a sense a binding force for the rise of Nizhny as an important technology hotspot in the world. Through sustained investment in research in pure and applied mathematics and basic sciences, the university has ensured that a high quality of talent pool is available to the industry. |
Factors that favour Nizhny
Talent pool and cost arbitrage are two of the biggest factors that are attracting investment into Nizhny.
Nizhny Novgorod is said to offer excellent value for money, compared to other emerging markets. By its virtue, Nizhny is being pitted against Bengaluru in India and Chengdu in China as a preferred destination.
The low cost of infrastructure, including cheaper real estate and low cost housing is seen as a major benefit. The cost in Nizhny could be half of that in Moscow, which is itself comparable to any other city in the world as an outsourcing destination. However, this low cost could be slightly off-set by the need to train manpower to align with global businesses.
Resources
India Russia Chamber of Commerce
http://www.ircc.in/index.php
Nizhny Novgorod region chamber of commerce and industry
http://www.tpp.nnov.ru/en/
International Community Association of Nizhny Novgorod
http://icann-nn.ru/en/
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