About PC³

The Core Idea of the Platform

Platform for Core Competencies Co-investment (PC³) – is an open infrastructure solution for organizing and implementing projects through the non-financial co-investment of core competencies.

Achieving the same results involves different costs and different levels of interest for different executors (participants of projects). The level of costs largely depends on staff qualifications, the technologies applied, the type of production (small-, medium-scale, mass production), and the production schedule. Interest is determined by the workload level and development plans: it may decrease if a potential participant is overloaded as well as increase if the project being implemented falls within the scope of their prospective interests.

The methodological framework of the PC³ allows identifying a specific composition of key tasks for each project, the execution of which will ensure its successful implementation, justifying the significance of each task for the overall result, and selecting a combination of executors for whom the cost level will be the lowest and interest will be the highest. The selected executors are invited to participate in the project by entering into an agreement to acquire rights to a share in the joint results, which are paid for by fulfilling reciprocal obligations to solve individual key tasks of the project that correspond to each participant’s field of specialization (core competency).

Only market participants for whom performing tasks within the project constitutes their core competencies (e.g., competencies in specialized development, testing, manufacturing, promotion, legal support, etc.), and for whom internal costs will be minimal and motivation will be maximal, can become executors of key tasks selected by the PC³ based on internal algorithms. Participants in PC³ projects do not invest financial resources, but rather work results performed on the basis of their own core competencies. This is precisely why the platform is named the Platform for Core Competencies Co-investment.

Selecting participants based on the PC³ methodology makes it possible to increase project implementation efficiency for each participant by more than ten times compared to the conventional investment project implementation scheme, while simultaneously retaining their rights to the project results.

Example: "Bicycle" Business Initiative

A developer company (the Initiator) has designed a promising bicycle design (including the development of engineering documentation) and wants to organize a new business line based on this idea. The issue that needs to be resolved is attracting resources for project implementation.

1. The Initiator registers on the PC³ and fills out a participation application as a possessor of the core competency in bicycle design development.
2. PC³ conducts an analysis and concludes that the project using the proposed bicycle design has the potential for effective market implementation. A justification for the evaluation of expected results and the project’s payback period is also carried out.
3. Based on the core competency co-investment model (the MCC approach), the PC³ justifies the required composition and ratio of shares of core competencies (patent and legal support, marketing, component manufacturing, assembly production of the finished product).
4. PC³ confirms to the initiator its readiness to include the initiative in its project portfolio, approves the start of work on the project, and begins selecting participants who possess the core competencies required for the project.
5. PC³ forms the agreed composition of participants, formalizes their interaction on the platform using a digital assets instrument, and provides infrastructure support for the non-financial interaction of participants.
6. PC³ manages the project until it achieves its stated indicators (production and sales of bicycles are established, design documentation is patented) and, upon the transition from the project stage to the operational phase, transitions it to autonomous management.

Below is a diagram of the PC³ ecosystem using the example of the “Bicycle” business initiative.

Implemented Projects

During the student stage of the project at the HSE University, the algorithms of the Platform for Core Competencies Co-investment were approved on four pilot projects:

1. Development of modern rotary steerable systems (RSS) for horizontal/directional drilling (oilfield service and oil & gas equipment).
2. Advanced development of promising energy technologies based on an inter-industry cluster (small-scale nuclear power, hydrogen energy).
3. Development of a management and support system for open-source software repository services.
4. Development and promotion of interactive tools for visual project management and task organization.

At the project execution stage, more detailed information is not provided in accordance with the platform’s policy.

Opportunities for PC³ Participants

State bodies

• Become an initiator of projects that contribute to achieving regulatory goals;
• Provide support for business development without violating the principles of market regulation;
• Support charitable and investment activity in the social sphere;
• Improve the business environment and the social sphere.

Large Businesses and Corporations

• Efficiently utilize existing core competencies to:
  • Fulfill the company’s social role in the development of the national economy and international cooperation;
  • Increase the profit / market value of their business.

• Select the most interesting and effective projects from an active stream of proposals for a balanced workload of existing core competencies, including production capacities, both domestically and abroad.

Small and Medium Enterprises (SMEs), Individual Entrepreneurs

• Implement their own projects without attracting initial investment capital;
• Attract partners with the best core competencies into projects;
• Work in a transparent and equal business environment, effectively implementing corporate social responsibility (CSR) initiatives;
• Gain practical experience and improve their own core competencies;
• Fairly resolve disputes arising in the process of business interaction.

Students and Young Specialists

• Execute projects, complete internships and work placements alongside holders of world-class core competencies;
• Quickly and comfortably adapt to real business conditions;
• Develop interdisciplinary interaction skill.

How Does PC³ Differ from Other Project Organization and Implementation Methods?

Currently, three main forms of project financing are distinguished: equity, debt, and hybrid [Biswas, 2022]. Equity financing is carried out by attracting external investments in exchange for a share in a business asset. Financing can be provided through private investors, investment funds, and corporate investors [CFI, 2022]. In debt financing, bank loans and bond loans are highlighted [CFI, 2022]. Examples of hybrid financing include the issuance of convertible bonds, stock options, stock subscription certificates (warrants), and preferred equity [Byford].

The expansion of information technology capabilities became the foundation for the further development of established forms of project financing. One example of modern tools for attracting investment resources is crowdsourcing [Schenk et al., 2009]. Crowdsourcing is a method of attracting services (or competencies) from an unrestricted group of people via online platforms. In most cases, compensation for crowdsourcing is non-financial, such as recognition or early access to products or services. However, one type of crowdsourcing where compensation can include company equity, revenue share, or profit share is crowdfunding [Hargrave, 2022]. Attracting investments through crowdfunding can take the form of both equity and debt financing. Investors in equity crowdfunding (crowdinvesting) receive equity in the form of shares or other securities [CFI, 2022]. Debt crowdfunding involves raising funds from a large number of individuals in exchange for a promise to return the funds with interest within a specified period through a peer-to-peer (P2P) lending agreement [NextFin, 2017].

In certain cases, reducing the volume of borrowed funds becomes a significant priority when attracting investment. The combination of approaches to solving this class of tasks is called bootstrapping. It includes financing through the personal or credit funds of the owner, minimizing costs and inventories, adhering to the principles of lean manufacturing, and attracting subsidies [Harvey, 2022; Kenton, 2023]. Special attention should be paid to attracting non-financial contributions in the form of performing work volumes required for business development by interested investors, known as “sweat equity” [Kenton, 2022].

The PC³ concept offers further development of promising approaches to project implementation and creates conditions for the direct attraction of core competencies to retain their natural advantages over financial instruments.

More detailed information is presented in the article:

Podchufarov A.Y., Galkina A.N., Vanina S.S., Auster I.A., Podchufarov A.A. OPYT PRIMENENIYA PLATFORMY SOINVESTIROVANIYA KLYUCHEVYKH KOMPETENTSII DLYA POVYSHENIYA EFFEKTIVNOSTI PROGRAMM OTRASLEVOGO RAZVITIYA (NA PRIMERE KLASTERA PERSPEKTIVNYKH ENERGETICHESKIKH TEKHNOLOGIY) [Experience in Applying the Platform for Core Competencies Co‑investment to Improve the Efficiency of Sectoral Development Programmes (Case Study of the Advanced Energy Technologies Cluster)]. In: Seventh International Economic Symposium – 2023. Proceedings of International Scientific Conferences. Saint Petersburg, 2023. P. 763–771. [in Russian].

Methodological Framework of the Platform

The basic algorithms of the PC³ are built on the methodological framework of competitiveness management, the principles of balance in the theory of system interaction, and a set of core competency co-investment models (the MCC approach). The basis of development is the heritage of the domestic scientific school in the field of systems theory, which has ensured the leading positions of the Russian defense-industrial complex, starting from the first stages of the development of automated systems up to the present time, as well as the advanced achievements of foreign science and technology.

These approaches have been reflected in numerous publications and dissertations and have become an integral part of the algorithms for developing growth strategies for enterprises of State Corporations “Rostec”, “Rosatom” and their foreign partners.

Within the framework of the PC³, competency is understood as a combination of tangible, intangible, and human resources that, when combined, form a unit/element of a specialized ability/quality of a subject of economic and social relations to solve theoretical and practical tasks in their field of specialization. Mandatory (basic) competencies required to conduct activities in the chosen field are, in a certain sense, similar to the concept of Critical Success Factors (CSFs). Core competencies have a key impact on the activities of the target organizational object and provide it with a competitive advantage over other market participants (economic relations) [Podchufarov, 2017]. Research notes that the rational utilization of core competencies that correspond to CSFs can provide market participants with a significant competitive advantage, higher productivity, and a better market position [Rodrigues et al., 2011].

The principles of inter-system balance used within the methodological core of the PC³ (external consistency, internal consistency, and consistency of life cycle subsystems) make it possible to create an infrastructure open to integration with an unlimited number of participants differing in their organization. The outlined principles form the basis of the methodological framework (the MCC approach) for competitiveness management, used as the baseline algorithm of the Platform applied to justify the composition and evaluate the core competencies of project participants [Podchufarov, 2018].

The practical implementation of the principles of inter-system balance is reflected in the internal processes of the PC³. The initial event for the early stages of the Platform is the receipt of an external initiative with a proposal for a development direction, for example, a business idea. The received proposal is analyzed from the perspective of economic efficiency and social utility. If the received initiative receives a positive assessment, the composition of core competencies required for the most efficient project implementation is determined. Next, the composition of project participants is justified. The analysis is carried out based on the condition of maximum consistency between the participants’ proposed direction of activity in the project and internal needs aimed at maintaining optimal utilization of existing core competencies.

The diagrams show the dependency used in PC³ algorithms to select participants whose level of competency required for the project corresponds to the lowest costs for their utilization. The indicators required for decision-making are evaluated based on the utilization level of the core competencies planned for use (the core competency leverage) and their consistency with internal projects aimed at maintaining their utilization—i.e., when an additional order will not lead to an increase in average costs per unit of product (the economy of scale effect will be preserved). The presented approach to selecting project participants makes it possible to offer them conditions that are several orders of magnitude ahead in efficiency compared to executing similar projects independently or individual orders for the corresponding volumes of work.

At subsequent stages, during the monitoring period for confirming project efficiency, the Platform provides monitoring of key project indicators and supports the infrastructure of non-financial interaction among participants. Among the tools used by the Platform, one can highlight the issuance and distribution of digital rights among project participants, the development of which is carried out in cooperation with the Central Bank of the Russian Federation, the valuation of the current value of projects and participants’ contributions based on artificial intelligence algorithms, a distributed system of neural network analysis of arbitration precedents, and others.

More detalied information is available in the following articles:

Podchufarov A.Y., Galkina A.N., Vanina S.S., Auster I.A., Podchufarov A.A. OPYT PRIMENENIYA PLATFORMY SOINVESTIROVANIYA KLYUCHEVYKH KOMPETENTSII DLYA POVYSHENIYA EFFEKTIVNOSTI PROGRAMM OTRASLEVOGO RAZVITIYA (NA PRIMERE KLASTERA PERSPEKTIVNYKH ENERGETICHESKIKH TEKHNOLOGIY) [Experience in Applying the Platform for Core Competencies Co‑investment to Improve the Efficiency of Sectoral Development Programmes (Case Study of the Advanced Energy Technologies Cluster)]. In: Seventh International Economic Symposium – 2023. Proceedings of International Scientific Conferences. Saint Petersburg, 2023. P. 763–771. [in Russian].

Podchufarov A.Y., Rybas A.L., Galkina A.N., Vanina S.S., Auster I.A. VLIYANIYE GOSUDARSTVENNOY POLITIKI V SFERE PLATFORMENNYKH RESHENIY NA RAZVITIYE BIZNES-SREDY [The Impact of Government Policy on Platform Solutions on Business Environment Development]. In: Effektivnoye gosudarstvennoye i munitsipal’noye upravleniye kak faktor sotsial’no-ekonomicheskogo razvitiya territoriy: materialy V Vserossiyskoy nauchno-prakticheskoy konferentsii studentov, aspirantov, molodykh uchenykh. Sevastopol: Sevastopol State University, 2024. P. 168–174. [in Russian].

Background and History of Development

The active development of platform and ecosystem solutions determines the prerequisites for the practical implementation of the idea of creating a space of opportunities for a new format of social-economic relations. In this space, anyone can use and develop their competencies together with the best partners, achieve economically efficient and socially significant results based on combined capabilities, eliminate the need to attract initial financial resources, and remain confident in the retention of rights to the results of their labour.

Economic Prerequisites:

• Trends of increasing socio-economic inequality persist in individual countries and the world, causing high barriers in terms of initial investment resources necessary for the direct bearers of core competencies to retain rights to a fair evaluation of their performance results;
• A significant internal potential has accumulated in many countries (Russia, certain developed, and most developing nations) capable of ensuring the active growth of a large number of global projects, the effectiveness of which will depend on the fairness of the market relations in which they develop, excluding dominant pressure from global political power centers (a socio-economic analogy to the Non-Aligned Movement);
• In recent years, the methodological base for forecasting and managing competitiveness has significantly improved, and the applied capabilities of the theory of inter-system interaction have reached a qualitatively new level;
• Modern capabilities in the field of information technology and legal regulation have formed the basis for developing new forms of socio-economic communication.

Political Prerequisites:

• Public support is strengthening for the demand to adjust basic economic principles, shifting the focus from consumption priorities towards increasing the importance of universal human values, social aspects, and the characteristics of national statehood;
• Building a global balanced system based on a consensus of opinions (an “orchestra of nations”) is becoming an urgent alternative to maintaining global stability based on centers of world leadership;
• Achieving Sustainable Development Goals (SDGs) is increasingly viewed as a system of balanced areas of activity rather than its individual elements;
• The composition of experts and public representatives is expanding, identifying the development of an updated strategy for the international relations system—within which the PC³ can be considered one of the pilot applied direction—as an urgent exploratory task.

About PC³ and Methodology in Scientific Publications and Conferences

The PC³ methodology and its practical applications have been presented in a number of Russian and international scientific publications, including the following:

Podchufarov A.Y., Galkina A.N., Vanina S.S., Auster I.A., Podchufarov A.A. OPYT PRIMENENIYA PLATFORMY SOINVESTIROVANIYA KLYUCHEVYKH KOMPETENTSII DLYA POVYSHENIYA EFFEKTIVNOSTI PROGRAMM OTRASLEVOGO RAZVITIYA (NA PRIMERE KLASTERA PERSPEKTIVNYKH ENERGETICHESKIKH TEKHNOLOGIY) [Experience in Applying the Platform for Core Competencies Co‑investment to Improve the Efficiency of Sectoral Development Programmes (Case Study of the Advanced Energy Technologies Cluster)]. In: Seventh International Economic Symposium – 2023. Proceedings of International Scientific Conferences. Saint Petersburg, 2023. P. 763–771. [in Russian].

Podchufarov A.Y., Rybas A.L., Galkina A.N., Vanina S.S., Auster I.A. VLIYANIYE GOSUDARSTVENNOY POLITIKY V SFERE PLATFORMENNYKH RESHENIY NA RAZVITIYE BIZNES-SREDY [The Impact of Government Policy on Platform Solutions on Business Environment Development]. In: Effektivnoye gosudarstvennoye i munitsipal’noye upravleniye kak faktor sotsial’no-ekonomicheskogo razvitiya territoriy: materialy V Vserossiyskoy nauchno-prakticheskoy konferentsii studentov, aspirantov, molodykh uchenykh. Sevastopol: Sevastopol State University, 2024. P. 168–174. [in Russian].

Galkina A.N., Podchufarov A.Y., Vanina S.S., Auster I.A. Otsenka perspektivnykh napravleniy razvitiya atomnoy energetiki na osnove metodiki obosnovaniya prioritetnykh stsenariyev razvitiya global’nykh initsiativ dlya dostizheniya Tseley ustoychivogo razvitiya [Assessment of Promising Areas for Nuclear Energy Development Based on a Methodology for Justifying Priority Scenarios for Global Initiatives to Achieve the Sustainable Development Goals]. Ekonomika i upravleniye: problemy, resheniya. 2023. Vol. 3. No. 11. P. 229–240. [in Russian].

Shalkovsky A.G., Podchufarov A.Y., Galkina A.N., Auster I.A., Vanina S.S. Modeli otsenki i prognozirovaniya tselevykh pokazateley v krizisnykh situatsiyakh v sostave tsifrovykh dvoynikov slozhnykh ob”yektov [Models for Assessing and Forecasting Target Indicators in Crisis Situations within Digital Twins of Complex Objects]. Voprosy oboronnoy tekhniki. Seriya 16: Tekhnicheskiye sredstva protivodeystviya terrorizmu. 2022. No. 9‑10(171‑172). P. 27‑34. [in Russian].

Podchufarov A.Y., Shalkovsky A.G., Galkina A.N., Auster I.A., Popenkov E.E. Konkurentosposobnost’ atomnoy otrasli kak faktor global’noy stabil’nosti, protivodeystviya terrorizmu i operezhayushchego razvitiya rossiyskoy promyshlennosti [Competitiveness of the Nuclear Industry as a Factor of Global Stability, Counter-Terrorism and Advanced Development of Russian Industry]. Voprosy oboronnoy tekhniki. Seriya 16: Tekhnicheskiye sredstva protivodeystviya terrorizmu. 2021. No. 5‑6(155‑156). P. 143‑150. [in Russian].

Podchufarov A., Senkov R.V., Ponomarev V.I. Supply chain efficiency analysis in innovative company based on MCC-3C methodology. In: Inclusive Development of Society Proceedings of the 6th International Conference on Management and Technology in Knowledge, Service, Tourism & Hospitality (SERVE 2018). London: CRC Press, 2020. P. 36‑43.

Podchufarov A.Y. USTOYCHIVOST’ RAZVITIYA I SBALANSIROVANNOST’ FAKTOROV KONKURENTOSPOSOBNOSTI [Sustainability of Development and Balance of Competitiveness Factors]. In: Mezhdunarodnyy ekonomicheskiy simpozium — 2018: Materialy mezhdunarodnykh nauchnykh konferentsiy. Saint Petersburg: Saint Petersburg State University, 2018. P. 250. [in Russian].

Podchufarov A.Y., Senkov R.V. Teoriya i praktika upravleniya konkurentosposobnost’yu na primere vedushchikh rossiyskikh i zarubezhnykh kompaniy [Theory and Practice of Competitiveness Management: Case Studies of Leading Russian and International Companies]. In: Sbornik tezisov Mezhdunarodnogo nauchnogo foruma “Gosudarstvennoye upravleniye”. Saint Petersburg: North‑Western Institute of Management of RANEPA, 2017. P. 67‑72. [in Russian].

Podchufarov A.Y., Senkov R.V., Kostomarov P.S. FAKTORY KONKURENTOSPOSOBNOSTI V USLOVIYAKH PEREKHODA K TSIFROVOY EKONOMIKE [Competitiveness Factors in the Transition to a Digital Economy]. In: Aktual’nyye problemy menedzhmenta: proizvoditel’nost’, effektivnost’, kachestvo: Materialy mezhdunarodnoy nauchno-prakticheskoy konferentsii. Saint Petersburg: Saint Petersburg State University, 2017. P. 79‑83. [in Russian].

Samoylov V.I., Podchufarov A.Y. Metodika otsenki konkurentosposobnosti promyshlennogo kholdinga v usloviyakh kompleksnogo importozameshcheniya [Methodology for Assessing the Competitiveness of an Industrial Holding under Comprehensive Import Substitution]. Izvestiya Tul’skogo gosudarstvennogo universiteta. Tekhnicheskiye nauki. 2016. No. 10. P. 349‑354. [in Russian].

Nozdrachyov A.V., Podchufarov A.Y. Strategicheskoye planirovaniye i upravleniye konkurentosposobnost’yu predpriyatiy OPK, praktika primeneniya v GK “Rostekh” [Strategic Planning and Competitiveness Management in Defence Industry Enterprises: Practice of Application in Rostec State Corporation]. In: Sbornik dokladov Vtoroy konferentsii “Ekonomicheskiy potentsial promyshlennosti na sluzhbe oboronno-promyshlennogo kompleksa”. Moscow: Publishing House “Konnek”, 2016. P. 164‑167. [in Russian].

Podchufarov A.Y., Starozhuk E.A., Akinshin R.N. Faktory povysheniya konkurentosposobnosti produktsii predpriyatiy OPK [Factors for Improving the Competitiveness of Defence Industry Products]. Kompetentnost’. 2014. No. 5/116/2014. P. 6‑13. [in Russian].

Podchufarov A.Y. Bazovyye podkhody k povysheniyu kachestva otraslevogo upravleniya v OPK Rossii [Basic Approaches to Improving the Quality of Sectoral Management in the Russian Defence Industry]. In: Sistemy gosudarstvennogo i korporativnogo upravleniya v OPK. Sbornik nauchnykh statey i materialov. Moscow: HSE University, 2013. P. 8‑13. [in Russian].

Podchufarov A.Y., Samoylov V.I., Shilov M.A., Brundasova S.Y. Faktory ustoychivogo razvitiya i povysheniya konkurentosposobnosti mashinostroitel’noy otrasli [Factors of Sustainable Development and Competitiveness Improvement in the Machine‑Building Industry]. In: Sistemy gosudarstvennogo i korporativnogo upravleniya v OPK. Sbornik nauchnykh statey i materialov. Moscow: HSE University, 2013. P. 33‑37. [in Russian].

PC³ Student Project at the HSE University

The stage of a student project for the PC³ development has become an important link in implementing a system of innovative approaches aimed at improving business conditions and supporting social, charitable, and investment projects. This system has been actively developed in recent years by major Russian and foreign companies in cooperation with government agencies and international cooperation institutions. The evolution and long-term goals of the project predetermined the organization of the student stage, aimed at developing a PC³ prototype, based at one of Russia’s leading and dynamically developing universities—the HSE University, together with IRP Technology, the developer of the core methodology of competitiveness management, in close cooperation with Rostec and Rosatom state corporations.

More than 300 students representing eight leading faculties of the university have already participated in the PC³ student project, which launched in the fall of 2020. They are supported by prominent scientists and practicing specialists from universities, government bodies, commercial, and state organizations.

Training / Certification

The PC³ regularly conducts training on using the platform and implements an immersion course into the methodology for teamwork within the PC³ team in cooperation with HSE University.