Report on the Effectiveness of Non-Financial Co-Investment Presented at the 6th All-Russian Conference “Effective State and Municipal Administration as a Factor in the Socio-Economic Development of Territories”

A report on the effectiveness of the non-financial co-investment approach, using the Platform for Core Competencies Co‑investment (PC³) as an example for implementing investment projects, entitled “Application of Non-Financial Co-Investment Principles to Support Economic Policy and Foster Business Environment Development,” was presented during the Plenary Session of the 6th All-Russian Scientific and Practical Conference of Students, Postgraduates, and Young Researchers “Effective State and Municipal Administration as a Factor in the Socio-Economic Development of Territories” on November 20, 2025.

The report, “Application of Non-Financial Co-Investment Principles to Support Economic Policy and Foster Business Environment Development,” provided a comparative analysis of traditional financial approaches and the non-financial co-investment approach using PC³ as a case study for implementing investment projects. To confirm its effectiveness and value for state and municipal authorities, an analysis was conducted of the share of variable costs in the revenue of high-tech industries. The low share of variable costs in the revenue structure of high-tech industries, coupled with high gross margins, indicates that the primary cost is formed by fixed costs. For a holder of core competencies with established processes, infrastructure, and human capital, participation in a new project often does not entail a significant increase in fixed costs.

For state and municipal authorities, the value of non-financial co-investment implemented through PC³ lies in its comprehensive impact on the business environment and the socio-economic development of territories: in terms of economic policy – diversification of regional economies through support for investment projects without direct budget injections; in terms of business environment development – the formation of new cooperative links between companies, strengthening the domestic market and regional and interregional production and technology chains; and in terms of social policy – fostering the development of human capital and retaining highly qualified specialists in the regions.

The presented report generated significant interest and received positive feedback.

During the conference, organized by Sevastopol State University and the Sevastopol Economic and Humanities Institute (branch) of V.I. Vernadsky Crimean Federal University, research results were presented in areas related to strategy as a tool for public administration of industries and territories in the face of external and internal challenges, the program-project approach in state and municipal administration, the formation of social, economic, environmental, and innovation regional policy, interaction between state authorities of the constituent entities of the Russian Federation and local self-government bodies, and digital state and municipal administration.