Innovation and Competence Building systems in Russia

Innovation and Competence Building systems in Russia

Brics-workshop, Aalborg, February 12–15, 2006

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Peculiar features of post-Peculiar features of post-Soviet eraSoviet era

Consumption crisis of the 80thsConsumption crisis of the 80ths

Collapse of the high-tech industry and Collapse of the high-tech industry and research periphery of the military-research periphery of the military-industrial complex (first half of the 90ths)industrial complex (first half of the 90ths)

Painful decline of the GDP (1990-1997 - 40%) Painful decline of the GDP (1990-1997 - 40%)

Shifts towards extracting branches Shifts towards extracting branches

Dominance of political lobbyingDominance of political lobbying

Instability - ‘long’ investment is riskyInstability - ‘long’ investment is risky

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Recent trends related to economic Recent trends related to economic development development

Booming domestic consumption goods Booming domestic consumption goods marketmarket

Grow in personal services for Grow in personal services for expanding middle class expanding middle class

Intensive development of. IT Intensive development of. IT Preconditions for development of Preconditions for development of

institutional infrastructure for institutional infrastructure for modernising NISmodernising NIS

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Some barriers hampering NIS Some barriers hampering NIS developmentdevelopment

Lack of long-term and cheap financial Lack of long-term and cheap financial resources for venture projects resources for venture projects

Inefficient system of R&D organization Inefficient system of R&D organization

Weakness of market oriented Weakness of market oriented institutions of innovation transferinstitutions of innovation transfer

Inconsistent government innovation Inconsistent government innovation policypolicy

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Innovation

Companies / universities

Small firms

Private capital / ventures~ 80% of R&D personnel (55% in 1990)

Innovation

Companies / universities

Small firms

Private capital / ventures~ 80% of R&D personnel (55% in 1990)

R&D

Research Institutes

Large enterprises

Government financing

R&D

Research Institutes

Large enterprises

Government financing

Nations - leaders of the New Economy Nations - leaders of the New Economy RussiaRussia

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Institutional structureInstitutional structure

Research institute – principal form of R&D organisation

RR&D &D InstitutionsInstitutions by Typeby TypeRR&D &D InstitutionsInstitutions by Typeby Type19901990 20032003

TotalTotal 46464646 37973797

Research institutesResearch institutes 17621762 25642564

Design organisationsDesign organisations 937937 228228

Construction project and exploration Construction project and exploration organisationsorganisations 593593 6868

Higher education Higher education institutionsinstitutions

453453 393393

Industrial enterprisesIndustrial enterprises 449449 248248

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Primary fields for Government S&T and innovation policyPrimary fields for Government S&T and innovation policy

(a) Promotion of technology transfer

(b) Favourable environment for S&T activities and direct support to S&T

(c) Development of PPP

(d) Favourable innovation climate

(e) Professional education and training (innovation management)

(f) Ensuring long-term sustainable technological development

(a) Promotion of technology transfer

(b) Favourable environment for S&T activities and direct support to S&T

(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 S&T policies and their impactMajor stages of S&T policies and their impact

“Marker romanticism” (early 90s) - systemic crisis in S&T (reduction of funds, personnel, the liquidation of S&T organizations)

“Market formalism” (mid 90s) - deep stagnation. Urgent measures to prevent full disintegration of S&T sector

“Market pragmatism” (2000s) - serious risks of refusal of long-term programs and projects in favor of short and middle-term ones

“Marker romanticism” (early 90s) - systemic crisis in S&T (reduction of funds, personnel, the liquidation of S&T organizations)

“Market formalism” (mid 90s) - deep stagnation. Urgent measures to prevent full disintegration of S&T 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 S&T and innovation policyPrimary fields for Government S&T and innovation policy

(a) Promotion of technology transfer

(b) Favourable environment for S&T activities and direct support to S&T

(c) Development of PPP

(d) Favourable innovation climate

(e) Professional education and training (innovation management)

(f) Ensuring long-term sustainable technological development

(a) Promotion of technology transfer

(b) Favourable environment for S&T activities and direct support to S&T

(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 S&T priorities  for innovation and economic growth

Identification of national S&T priorities  for innovation and economic growth

Major instrument – priority areas and critical technologies

1996 - Government Commission on S&T Policies approves 8 Priority S&T Areas and 70 Critical Technologies

1999 - evaluation by more than 1,000 leading Russian experts

2002 - Russian President approves 9 Priority S&T Areas and 52 Critical Technologies

2004-2005 - expert evaluation and revision (7 Priority Areas and 35 Critical Technologies)

Major instrument – priority areas and critical technologies

1996 - Government Commission on S&T Policies approves 8 Priority S&T Areas and 70 Critical Technologies

1999 - evaluation by more than 1,000 leading Russian experts

2002 - Russian President approves 9 Priority S&T 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 S&T prioritiesA revised list of S&T prioritiesA revised list of S&T prioritiesA revised list of S&T 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

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 S&T and innovation policy documentsRecent S&T and innovation policy documents

The foundation of government S&T 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)

The foundation of government S&T 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 R&D (GERD)Gross domestic expenditure on R&D (GERD)

Russia Korea Germany

Total, bln. PPP USD 14.7 23.6 54.3Per 1 R&D employee, thous. PPP USD 16.9 136.7 205.1 % of GDP 1.28 2.91 2.50Basic research as % of GERD 15.1 13.7 18.7

20032003: 169.9 : 169.9 blnbln. . rublesrubles (43.8% (43.8% ofof 1990) 1990)

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World R&D indicators by regions

(per cent)

World R&D indicators by regions

(per cent)

OECDNorth AmericaUS

EuropeAsia

EC

Developing countriesJapan

Asian NICsChina

Latin America

India

CISOceaniaRussiaCentral & Eastern EuropeAfrica

South Africa

Arab States

ResearchersResearchersExpenditure on R&DExpenditure on R&D84.7

38.1

36.2

28.8

27.8

25.1

15.6

15.1

4.9

3.9

3.1

2.0

1.5

1.3

1.0

0.7

0.7

0.4

0.4

54.4

20.5

18.9

34.1

34.5

15.9

28.4

11.9

4.6

10.6

6.7

2.8

16.4

1.7

10.8

3.2

2.5

0.8

1.6

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GERD per an R&D institution(million 1989 rubles)GERD per an R&D institution(million 1989 rubles)

1990 20032.3 1.26

Structure of R&D expenditureStructure of R&D expenditure((per centper cent))Structure of R&D expenditureStructure of R&D expenditure((per centper cent))

Enterprises Universities

Russia 6 5

EC-15 65 21

Japan 71 15

US 75 14

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Urgent actionsUrgent actions

Institutional change

Elimination of administrative and legal barriers

Increase of budgetary funding efficiency

Involvement of young talents

Promotion of R&D commercialisation

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Increase of budgetary funding efficiencyIncrease 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 researchImplications for future researchImplications for future researchImplications for future research

What are major challenges for BRICS countries What are major challenges for BRICS countries in the long runin the long run

Scenarios Scenarios

Opportunities and threatsOpportunities and threats

Strategies towards using available S&T and Strategies towards using available S&T and innovation capacities for building competence innovation capacities for building competence

How to identify national innovation priorities How to identify national innovation priorities and public policies towards their and public policies towards their implementationimplementation

Identify priorities for cooperation between Identify priorities for cooperation between BRICS countriesBRICS countries

What are major challenges for BRICS countries What are major challenges for BRICS countries in the long runin the long run

Scenarios Scenarios

Opportunities and threatsOpportunities and threats

Strategies towards using available S&T and Strategies towards using available S&T and innovation capacities for building competence innovation capacities for building competence

How to identify national innovation priorities How to identify national innovation priorities and public policies towards their and public policies towards their implementationimplementation

Identify priorities for cooperation between Identify priorities for cooperation between BRICS countriesBRICS countries