Day3 AlexanderSokolov

Science and Economy in Russia: 

Science and Economy in Russia Innovation in the 21st Century, Newcastle, April 28, 2006 Alexander Sokolov Institute for Statistical Studies and Economics of Knowledge Higher School of Economics, Moscow

Russia: Basic figures: 

Russia: Basic figures Population – 143.4 mln Territory – 17075 sq.km (71-fold UK) 7 federal territories and 88 administrative regions (oblast, kray, republic) 1097 municipalities and 1866 rural districts GDP per capita (PPP) – 9830 USD (2004) Average GDP growth 1998-2004 – 6.3%

Slide5: 

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 instit-utional infrastructure for modernising NIS

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Barriers hampering development of National Innovation System Lack of long-term and cheap financial resources for venture projects Inefficient system of R&D organisation Weakness of market oriented institutions of innovation transfer Inconsistent government innovation policy

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Innovation Companies / universities Small firms Private capital / ventures R&D Research Institutes Large enterprises Government financing Nations - leaders of the New Economy Russia

Institutional structure: 

Institutional structure Research institute – principal form of R&D organisation R&D Institutions by Type

Major stages of S&T policies and their impact: 

Major 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 organisations) “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 programmes and projects in favor of short and middle-term ones

Slide11: 

Gross domestic expenditure on R&D (GERD) 2003: 169.9 bln. rubles (43.8% of 1990)

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World R&D indicators by regions (per cent) 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 Researchers Expenditure on R&D

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GERD per R&D institution (million 1989 rubles) Structure of R&D expenditure (per cent)

S&T Infrastructure – Moscow region: 

S&T Infrastructure – Moscow region

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Innovative Enterprises (% of total)

Innovation activities (innovative industrial enterprises as % of total): 

Innovation activities (innovative industrial enterprises as % of total)

Expenditure on technological innovation by type of innovation activity: 

Expenditure on technological innovation by type of innovation activity

High-tech export from Russia (mln USD): 

High-tech export from Russia (mln USD)

Primary fields for Government S&T and innovation policy: 

Primary 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) Public-Private Partnership (d) Favourable innovation climate (e) Professional education and training (innovation management) (f) Ensuring long-term sustainable technological development

Urgent actions: 

Urgent actions Institutional change Elimination of administrative and legal barriers Increase efficiency of budgetary funding Involvement of young talents Promotion of R&D commercialisation

Recent S&T and innovation policy documents: 

Recent 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)

Increase of budgetary funding efficiency: 

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 raising

High-tech economic zones: 

High-tech economic zones

Foresight as an instrument for S&T and innovation policies: 

Foresight as an instrument for S&T and innovation policies Identification of major challenges Selection of national S&T and innovation priorities Priorities for regions Priorities for industries

National S&T priorities for innovation and economic growth: 

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)

National S&T priorities: 

National 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 and aerospace systems 7.  Safety and terrorism counteraction

Pilot Foresight projects: 

Pilot Foresight projects Regional innovation priorities (Republic of Bashkortostan Industrial innovation priorities (Machinery for Power Engineering) A Field of S&T (Nanotechnology) Long-term plan for basic research Impact of S&T on economic growth National Foresight

Slide30: 

Thank you! Alexander Sokolov +7-495-6217968 sokolov@hse.ru