Work on innovation and patent-licensing activity at the Magnitogorsk Metallurgical Combine is organized so as to improve the manufacturing process, make the finished products better and more competitive from a commercial standpoint, and earn profits for the combine. The combine has created the economic, legal, and organizational conditions necessary to foster technical innovation and make efficient use of its existing production facilities. A system of incentives has been put into place to encourage innovation and improvements in efficiency and to protect the rights and interests of inventors, efficiency experts, and any employee who acts to facilitate the use of new inventions and other proprietary objects. As a result of the high level of organization of work on invention and improvements to the production process, more than 20 new inventions are created every year at the combine and more than 1500 proposals for improving efficiency are adopted. The total savings from these efforts amount to more than 200,000,000 rubles a year.
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