On the Development of the Innovation and Investment Market of Moscow Exchange and Provision of Tax Benefits in this Segment

The paper outlines the importance of the securities market for the financing of innovative companies. It summarizes works of foreign and Russian economists, including selected publications on the development of the innovation and investment market of the Moscow Exchange (IIM–MOEX). Both positive and negative implications of the access of innovative companies to public capital markets are identified. The purpose of the research was to investigate the innovation and investment market of the Moscow Exchange and opportunities for individual and institutional investors to obtain tax benefits in this segment. Based on the open data of the Moscow Exchange, the current state of the innovation and investment market has been analyzed. A number of problems have been identified including a limited number of issuers, lack of bonds and investment units, high entry barriers, low liquidity in this segment as well as likely market manipulation and fraud. The prospects for the IIM–MOEX development are outlined. The specifics of the long-term ownership of securities in the innovation sector are analyzed. It is noted that the benefit for long-term ownership of securities of the innovation sector is not popular and faces potential application difficulties. There are few securities eligible for its application (seven shares). The possibility of combining benefits for long-term ownership of the innovation sector securities with individual investment accounts as well as the new corporate bond coupon benefit was substantiated. Arguments are given in favor of the need to consider the benefit for long-term ownership of the innovation sector securities in interrelation with investment tax deductions in general and the benefit for long-term ownership of securities in particular. The areas of further research related to the IIM–MOEX studies and tax benefits for investors in this segment are determined.