The innovation way of development of the economy of Vitebsk Region for provides for maximum utilization of the scientific, technical and production potential for the purpose of development of launching the production of new kinds of products, efficient technologies, equipment and other objects. The selection of the priority directions of the development is determined primarily by the dependence of the leading branches of the economy on the external deliveries of raw materials.

The scientific support of the innovative development of the region will be provided by the scientific potential of the Region with attracting leading scientific organizations of the Republic within the framework of the Regional Scientific and Technical Programme “Development and Launching of Production of New Kinds of Competitive Products, Mastering of Resource-Saving Technologies, Equipment and Measures Ensuring the Increase of Efficiency of Functioning of the Branches of Economy of the Vitebsk Region” for the years 2006-2010. The objective of the Programme consists in promotion of achieving the forecasted indices of the social and economic development of the Region, technological modernization and rise in the innovative activities of organizations of the real economy sector.

The developments included in the RSTP are aimed at ensuring the development of the basic and prospective branches of the economy and, primarily, of the industry, because it constitutes the basis of the real economy sector of the Region. It should be noted here, that the Vitebsk Region is at the third place in the republican division of labour in terms of the volume of industrial production. The developments of the RSTP will be carried out under the patronage of the Regional Executive Committee and appropriate ministries and departments.

The development works for creating and launching the production of the automatic optoelectronic system for detection, blocking and suppression of free-burning arc in the power cabinets of power substation systems and smart level gauges for bottom water in oil product storages are aimed at the improvement of the energy and economic efficiency of the power supply system. The development works will be performed and introduced at Vitebskenergo Republican Unitary Enterprise and other enterprises of the fuel-energy sector.

The launching of production of the scale-removing chemicals and introduction of them into the municipal economy of the region will contribute to reduction of the power consumption and increase of efficiency of the operation of boiler plants.

It is planned to develop the following articles for instrument and machine making, launch their production as well as improve the existing technologies in this branch:

1. panel computers with LCD display (Display Design Office Republican Unitary Enterprise);
2. automatic device for positioning the surface-mounted radio components (Experimental Scientific and Production Design Office of Machine Building Open Joint-Stock Company);
3. improvement of the technique of calibration testing of pointer-type instrument (Republican Vitebsk Electrical Measuring Instrument Plant Unitary Enterprise).

Launching the manufacture of these science-intensive products will make it possible to expand the range of the manufactured articles, improve their competitiveness and increase the export potential of the region.

Taking into account the availability of well-developed network of the repair enterprises in the region, it is planned to create the advanced technologies and equipment for high-quality repair, restoration and strengthening of the parts of machinery, primarily, agricultural one. These development works are based on the use of new diffusion alloyed and multicomponent dispersion materials and new technologies of depositing them.

The development of the light industry will be promoted by the creation and mastering of the technologies for producing new yarns containing short flax fibres. The production of new products will be launched and the new technology will be mastered at Orsha Flax Processing Complex Republican Unitary Production and Trade Enterprise.

It is planned to perform a number of development works for the agricultural sector of the Region. The creation of the preparations for treatment and prophylaxis of the animal diseases, complexonates of microelements for treatment the diseases related to mineral deficiency and prolonged-action pesticides will contribute to solving the veterinary medicine problems and loading the production facilities of Vitebsk Poultry Farm being reconstructed to fuller extent.

The works for improvement of the technology for production of the Provit fodder additive at Novopolotsk Protein and Vitamin Concentrates Plant Republican Unitary Enterprise and development of the new fodder additive Saproprovit on the basis of provit and sapropel will make it possible to increase the production volumes of provit up to 30 and more thousand tons per year.

To improve the efficiency of management of the development of the region and its territorial formations, the measures for strengthening the economic potential of the districts and towns in the Region and improvement of the mechanism for territorial management of their development will be developed and implemented.

The implementation of the developed measures will make it possible to expand the own sources of regional development, attract the internal and external investments and to pass to the new order of distribution of the funds of financial support of the political subdivisions ensuring the most efficient use of the budget funds.

The implementation of the Regional Scientific and Technical Programme will promote the further social and economic development of the region and achievement the most important parameters: increase of the volume of the industrial production, export and mew products; retention and expansion of domestic and external markets for selling the products, reducing the expenses in foreign currency at the cost of reduction of the import of equipment, materials and technologies. The share of the innovative products in the total volume of the products shipped by the end of the year 2010 will be 8.0 per cent and the share of certified products in the total volume of the industrial production will be 16.8 per cent. The degree of wear of the active part of the fixed industrial and production-related assets will be reduced down to 60.0 per cent.

Besides, a number of innovative projects aimed at the creation of new enterprises of the region and modernization of the operating ones including those related to the communal property will be implemented.

In accordance with the Resolution of the Council of Ministers of the Republic of Belarus No. 269 dated February 27, 2003 “On the Improvement of the System of Collection (Procurement) and Use of Some Kinds of Secondary Raw Materials”, Biomechanical Plant for Processing Domestic Secondary Resources Unitary Production Utility Enterprise will implement the investment project for the object “Enterprise for Processing the Solid Domestic Waste in the Town of Novopolotsk”. The project assumes the construction of a garbage processing plant for receiving, sorting and biomechanical processing of 65,000 tons of solid domestic waste per year using the technology and equipment from the LEMANN Company (Germany) with extracting the secondary raw materials and ballast suitable for burring within the polygon. The plant shall reach the design capacity by the year 2008. The financing sources are the Republican Nature Conservation Foundation and local budget.

At the territory of Vitebsk Free Economic Zone, it is planned to implement the investment project “Production of Pectin from the Waste of Sugar Production” providing for construction of the first stage of the enterprise for producing 600 tons of beet pectin per year in various packaging.

At the second stage, it is planned to launch the production of pectin-containing beverages in the volume of at least 2.5 million litres per year as well as production of granulated fodder for agricultural animals and poultry product in the volume of at least 3.5 thousand tons per year from the pectin production waste. The production is planned to be launched in October 2007.

166 new workplaces will be created at the enterprise. According to the calculations, on reaching the design capacity by the enterprise (January 2008), the gross income per worker will be 74,096 US dollars per year.

The total investment costs for the implementation of the project are estimated to the amount of 15.7 million US dollars. It is planned to invest 20 thousand US dollars of the own funds of the enterprise being created and 5.7 million US dollars at the cost of the credits of foreign banks.

In accordance with item 8 of the plan of measures for execution of the orders of the President of the Republic of Belarus given on May 5, 2006 at the meeting with the staff of the Council of Ministers of the Republic of Belarus on the matters of development of enterprises of the milk- and meat-processing branches, Vitebskmyasomolprom Open Joint-Stock Company has developed the Programme of Development of Meat and Milk Branch till the year 2010 providing for utilization of 57 billion roubles and containing a list of innovation measures. The financing sources will be bank credits (38 billion roubles), own funds (8 billion roubles), budget funds (6 billion roubles) and funds of the Innovation Foundation (5 billion roubles).

The achievement of a high engineering level of the production at the cost of introducing the advanced and innovative technologies making it possible to compete successfully with the domestic organizations in the Republic and commodity producers of other countries in the foreign market is one of the main directions of the further development of the processing enterprises in the years 2007-2010.

The most important projects in this direction are:

1. Modernization of the production of canned infant’s food: introduction of the equipment for production of easily-opening lid at Orsha Meat-Preserving Factory Open Joint-Stock Company;
2. Modernization of the line for production of meat dumplings using new Italian technology at Vitebsk Meat Processing and Packing Factory Open Joint-Stock Company;
3. Modernization of the pig and cattle slaughtering line at Glubokoye Meat Processing and Packing Factory Open Joint-Stock Company;
4. Modernization of the boiler house, re-equipment of the same for fuelling with natural gas at Miory Meat Processing and Packing Factory Open Joint-Stock Company;
5. Acquisition and installation of the line for production of processed cheese in slices as well as acquisition and installation of the universal line for production of ice-cream Orshasyrzavod Open Joint-Stock Company;
6. Acquisition and installation of the equipment for production of curds using the closed method at Polotsk Milk Processing Complex Open Joint-Stock Company;
7. Acquisition and installation of the universal line for production of ice-cream and modernization of the drier at Lepel Milk-Preserving Complex Open Joint-Stock Company.

The Vitebsk Regional Executive Committee has developed the business plan for the investment project “Reconstruction of Shop No.1 with the Organization of the Production of Refractory Articles and Materials Based on Dolomite” at Obol Ceramic Plant Unitary Utility Production Enterprise. The planned capacity is 27 thousand tons of refractory articles and 3 thousand tons of dry mixtures for heat-resistant concretes, the volume of investments in the fixed capital will be 33.612 billion roubles. The term of implementation is 2008-2010.

The consistent work for organization of introduction and use of new and high technologies is performed by the Administration of Vitebsk Free Economic Zone. At the enterprises of the Free Economic Zone, the share of the capital process equipment not older than 5 years is at least 90 per cent. Seven residents of Vitebsk Free Economic Zone hold the certificates ISO 9000 and ISO 9001-2000, four residents carry out the work for obtaining the international quality certificates, one resident is included in the Register of High-Technology Facilities and Enterprises. When considering the questions on the registration of the economic entities as residents of Free Economic Zone, the conclusion of the Commission for Improvement of Economy Competitiveness on the estimation of the projects from the standpoint of their science intensity and use of high technologies is applied obligatorily.

In 2007 the residents of Free Economic Zone plan to implement the projects for creating new high-technology facilities including the organization of production of pectin, coiled-tubing equipment, facing bricks, etc.

To intensify the innovative development of the economy of the Vitebsk Region, the following measures are also provided for:

1. Further development of the innovative infrastructure, including the completion of creation of the technological park in the town of Novopolotsk;
2. Support of the Department of the regional innovative development created at Institute of Technical Acoustics State Scientific Institution of the National Academy of Science of Belarus and its activities for commercialization of the scientific developments;
3. Holding the regional competitions of young talented scientists as well as competitions of innovative projects;
4. Creation of electronic databases of the technological requests and innovative proposals of the organizations of Vitebsk Region and development of technology transfer network.

According to the long-term plan of the innovative development of the Vitebsk Region for the years 2007-2010, the total amount of financing of the works for creating new enterprises and new production facilities at the operating enterprises as well as modernization of the operating facilities in the years 2007-2010 will be 13,6162.5 million roubles, including that from the Republican Budget’s funds to the amount of 49,537.6 million roubles, from the local budget – to the amount of 6,362.2 million roubles, bank credits – 59,088.5 million roubles, loans – 9,397.30 million roubles and from other sources – 11,776.9 million roubles.