Financing of Innovative Projects in the Forest Industry

Abstract

Over the past two decades, the Russian forest industry has faced many challenges. The combination of growing competition from imports, digitalization of the economy, competition from substitute materials, environmental problems and recent economic sanctions have led to a decrease in investment activity in the innovative development of the forest industry. The growing realization of the ecological properties of wood encourages governments and private enterprises to invest resources in research and development of innovative materials and products derived from this material[12]. Similarly, the desire for energy independence and concerns about climate change are driving the development of renewable energy. Woody biomass is a carbon-neutral energy source that can provide heat for district heating or be converted into biofuels by thermochemical or biochemical processes [20]. This article provides some examples of major innovations in the production and application of wood products. The author's definition of "innovations in the timber industry" is presented. The most effective measures of state support of the industry are highlighted. The stimulating aspects of innovation development in the forest sector are defined. This study found that the implementation of programs of transformation and innovation stimulation of the Russian timber industry is possible only with the radical tools used by the state.