Updating the technological base of production and interest rate policy

The continuing trajectory of the development of the Russian economy does not lead to overcoming Russia’s lag behind the leading countries in terms of labor productivity. Technological inertia is one of the reasons for this lag. In the modern economy, unicorn companies play an important role in updating the technological base of production. There are fast-growing companies in Russia, but they don’t become unicorns. Unprofitable organizations and zombie companies pull off a significant part of the demand and hinder the continuation of the expansion of fast-growing companies. In a number of industries, the risk of investing in new technologies increases due to the low utilization of existing capacities. These circumstances limit the possibilities of boosting investments by lowering real interest rates. Such a measure can increase the availability of loans for firms focused on technological innovation. However, at the same time, it can prolong the existence of zombie firms that restrain the development of innovative enterprises. Time-limited licensing of the creation of new capacities is advisable in industries with strong economies of scale. This will help the formation of leading companies in the technological transformation of the Russian economy. The central bank’s measures to restrict evergreen lending to zombie firms can help transform fast-growing firms into unicorn companies.