Innovation and Competence Building systems in Russia

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Innovation and Competence Building systems in
Russia
Brics-workshop, Aalborg, February 1215, 2006
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Peculiar features of post-Soviet era Consumption
crisis of the 80ths Collapse of the high-tech
industry and research periphery of the
military-industrial complex (first half of the
90ths) Painful decline of the GDP (1990-1997 -
40) Shifts towards extracting branches
Dominance of political lobbying Instability -
long investment is risky
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Recent trends related to economic development
Booming domestic consumption goods market Grow
in personal services for expanding middle class
Intensive development of. IT Preconditions for
development of institutional infrastructure for
modernising NIS
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Some barriers hampering NIS development Lack of
long-term and cheap financial resources for
venture projects Inefficient system of RD
organization Weakness of market oriented
institutions of innovation transfer Inconsistent
government innovation policy
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Nations - leaders of the New Economy
Russia

• Innovation
• Companies / universities
• Small firms
• Private capital / ventures
• 80 of RD personnel (55 in 1990)

• RD
• Research Institutes
• Large enterprises
• Government financing

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Institutional structure

• Research institute principal form of RD
  organisation

RD Institutions by Type
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Primary fields for Government ST and innovation
policy

• (a) Promotion of technology transfer
• (b) Favourable environment for ST activities and
  direct support to ST
• (c) Development of PPP
• (d) Favourable innovation climate
• (e) Professional education and training
  (innovation management)
• (f) Ensuring long-term sustainable technological
  development

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Major stages of ST policies and their impact

• Marker romanticism (early 90s) - systemic
  crisis in ST (reduction of funds, personnel, the
  liquidation of ST organizations)
• Market formalism (mid 90s) - deep stagnation.
  Urgent measures to prevent full disintegration of
  ST sector
• Market pragmatism (2000s) - serious risks of
  refusal of long-term programs and projects in
  favor of short and middle-term ones

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Primary fields for Government ST and innovation
policy

• (a) Promotion of technology transfer
• (b) Favourable environment for ST activities and
  direct support to ST
• (c) Development of PPP
• (d) Favourable innovation climate
• (e) Professional education and training
  (innovation management)
• (f) Ensuring long-term sustainable technological
  development

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Identification of national ST priorities  for
innovation and economic growth

• Major instrument priority areas and critical
  technologies
• 1996 - Government Commission on ST Policies
  approves 8 Priority ST Areas and 70 Critical
  Technologies
• 1999 - evaluation by more than 1,000 leading
  Russian experts
• 2002 - Russian President approves 9 Priority ST
  Areas and 52 Critical Technologies
• 2004-2005 - expert evaluation and revision (7
  Priority Areas and 35 Critical Technologies)

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A revised list of ST priorities

• 1.  Information and telecommunications systems
• 2.  Nanosystems industry and materials
• 3.  Living systems
• 4.  Rational use natural resources
• 5.  Power engineering and energy saving
• 6. Transportation technologies
• 7.  Safety and terrorism counteraction

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Recent ST and innovation policy documents

• The foundation of government ST policy of the
  Russian Federation (2002)
• The foundation of state policy of the Russian
  Federation for development of innovation system
  (2005)
• The strategy of the Russian Federation in the
  field of science and innovation (2005)

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Gross domestic expenditure on RD (GERD)
2003 169.9 bln. rubles (43.8 of 1990)
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World RD indicators by regions (per cent)
Researchers
Expenditure on RD
OECD North America US Europe Asia EC Developing
countries Japan Asian NICs China Latin
America India CIS Oceania Russia Central
Eastern Europe Africa South Africa Arab States
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GERD per an RD institution(million 1989 rubles)
Structure of RD expenditure(per cent)
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Urgent actions
Institutional change Elimination of
administrative and legal barriers Increase of
budgetary funding efficiency Involvement of
young talents Promotion of RD commercialisation
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Increase of budgetary funding efficiency

• Structure of financing under limited resources
• Institutional financing ( e.g. leading
  universities) / projects / grants
• Support of new institutional models (research
  universities, research and education centres,
  centres of excellence)
• Priorities
• Long-term project financing
• Transition to larger-scale complex projects
• System of grants

Peer review / evaluation Open calls Non-public
fund rising
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Implications for future research
What are major challenges for BRICS countries in
the long runScenarios Opportunities and
threatsStrategies towards using available ST
and innovation capacities for building competence
How to identify national innovation priorities
and public policies towards their
implementationIdentify priorities for
cooperation between BRICS countries