Corporation and State Interests in Industry: Nevsky Plant in 1855-1888

Abstract

The formation of the joint-stock company of the “Nevsky Zavod” from the mid-1850s to the end of the 1880s as a large machine-building enterprise is studied. It is shown how an industrial company was able to use human and investment resources in combination with early control of rapidly developing technology (steam locomotive construction) in order to gain and then hold the corresponding share of the Russian market in the 1870s. Based on the analysis of materials and available studies in the field of industrial entrepreneurship, the author asserts that, moving from the industry level to the company level, one can better understand the ability of corporations to create innovative products in a specific historical period. It is proved that such a technique (the transition from one level of analysis to another) allows us to identify the prospect of entrepreneurial activity, which is missed when focusing exclusively on the industry level. At the same time, it explains the reasons why the corporation could not maintain its position in these years, despite the existing technological competitiveness. The company had a variety of relationships in the business environment, but it was most critical with the government and its regulatory bodies. The presented analysis of the influence of departmental decisions on the activities of the “Nevsky Zavod” company is relevant to the discussion about the relationship between private and state interests in domestic industry in the 1860-1880s.

Keywords

• russia
• industry
• nevsky plant
• corporation
• national bank
• ministry of finance
• shareholders control
• private interests
• state interests