Innovation and Enterprise
Policy in Russian
Universities
Nikolay R. Toivonen
St. Petersburg State University
AC21, Warwick, 06.07.2006
Comparative analysis
(year 2004)
R&D
(% of DGP)
Competitiveness
index
(place in the
world)
High-tech share
in export (%)
Raw
materials
share in
export (%)
Finland
3,6
1
21
-
USA
2,69
2
32
8
Japan
2,98
11
26
1
UK
1,87
15
31
-
China
1
44
20
4
India
1,23
56
6
11
1
70
8
67
Country
Russia
Source: McKinsey
R&D in the world
HR
R&D ($ billion)
Country
Researchers Engineers
USA
2004
2006
(forecast)
Patents
2004
2006
(forecast)
1 328 413
-
301,50
320,70
167 414 169 100
China
820 685
-
108,93
139,63
43 455
Japan
649 680
-
119,84
126,40
342 808 350 000
France
190 096
-
43,58
45,43
13 270
14 600
Germany
266 237
118 575
51,96
53,64
55 487
57 800
UK
159 859
-
35,64
37,88
12 290
13 000
Russia
487 710
330 614
16,84
-
19 297
21 200
Finland
38 752
18 101
-
-
1 412
1 200
48 000
Source: R&D Magazine, Battelle, World Bank, OECD, Thomson Scientific, Derwent World Patents Index
Global Innovation Index, 2003
HR
USA
4
Innovation
policy
3
Business
strategy
1
Finland
3
2
8
UK
17
7
5
Japan
2
17
4
Germany
12
10
5
Russia
9
69
72
Source: M .Porter, S. Stern Ranking National Innovative Capacity, Global Competitiveness Report 2003
Financing of R&D
(by fields of knowledge)
Field of knowledge
USA
Japan
Germany
Sweden
Russia
Total on natural and
technical science:
93,7%
65,6%
78,4%
76,3%
88,3%
Natural science
41,8%
11,4%
29,2%
21,0%
59,0%
Technical science
15,5%
25,0%
20,3%
21,9%
26,7%
Medicine
29,1%
24,6%
24,7%
27,4%
1,7%
Agricultural science
7,4%
4,6%
4,2%
6,1%
0,9%
Total on humanities
and social studies:
6,3%
34,4%
20,6%
17,6%
11,7%
Social studies
6,3%
-
8,5%
11,5%
6,6%
-
-
12,1%
6,1%
5,1%
Humanities
Source: OECD, Science & Technology Statistics database 2003, Centre for Science Research and Statistics,
Russian Science & Development at a Glance (Moscow, 2001)
Patents and High-Tech
Companies in Russia
year
Patents
Created High-Tech
Used High-Tech
Profits from hightech export, USA $
mln
Payments on hightech import, USA $
mln
2000
2001
2002
2003
11 592
13 779
15 140
17 326
688
637
727
821
70 069
80 012
93 412 107 015
203,5
241,5
211,4
237,4
182,9
395,3
572,4
666,1
Source: Russian Science in figures, 2005
Research/Higher Education
Institutions in Russia (year 2002)
Totally: 3906/1039
590
136
1539
Northern347 Central Western
Privolzhsky
Southern
Far-Eastern
Ural
Siberian
325
146
597
160
260
75
444
115
151
60
R&D Institutions, year 2004
Number of
Organisations
1 230
258 078
Share
of national
R&D (%)
25,3
Business sector
1 851
537 473
69,1
State higher
education sector
Private nonprofit sector
Total
533
43 414
5,4
42
373
0,2
3 656
839 338
100.0
State sector
HR
in R&D
Source: Russian Science in figures, 2005. с.15, 51, 79
Diversification and
Opportunities
.
Central Asian
Region
International organizations and
initiatives in the Northern Europe
BEAR
EU Northern
Dimension
CBSS
7-th Summit of Baltic Development
Forum, 16-18.10.2005
CO-ORGANISER
SUMMIT PARTNER
The Baltic Sea Region as a Role Model –
Achieving Global Excellence in
Competitiveness and Innovation by 2010
STRATEGIC PARTNERS
ScanBalt BioRegion – a Network
of Networks
- 11 countries
Denmark, Estonia, Finland,
Iceland, Latvia, Lithuania,
Sunrise Valley
Norway,
Poland,
Sweden,
СПАСИБОЗ
АВН
И
МА
Н
И
Е
North Germany,
Northwestern Russia.
- 85 million people
- 67 universities
- > 800 biotech companies
Biggest ICT Cluster in Europe
“Technology Corridor” in the
Helsinki Metropolitan Area
Four waves of Outsourcing
Western
Europe
Russia
USA
Japan
China
South Korea
Taiwan
МЕКСИКА
Philippines
India
Malaysia
Brazil
First wave
Second wave
Third wave
Contracted
manufacture
$ 150 billions
Outsourcing
IT-infrastructure
$ 181 billion
Outsourcing of
business processes
$ 112 billion
Forth wave
Outsourcing of
engineering
Source: Жу
рнал«Компания», № 22 (368) 6.06.05
Fourth wave of Outsourcing
.
What Russia has to do to catch the forth
wave of outsourcing?:
* To support knowledge-based enterprises
* To stimulate R&D investments
* To promote its image abroad
* To create a system of venture funding
* To modernize the system of education
Priorities
1. Development of National and Regional Innovation systems
2. Development of Infrastructure
3. Development of Financial Tools
4. Development of Triple Helix Partnership
5. Introduction of Tax Remissions
6. Organization of Training (Innovation managers etc.)
Governing of Research and
Innovation in Russia
FEDERAL ASSEMBLY OF
RUSSIA
1 level
2 level
FEDERATION
COUNCIL
COMMITTEE
ON SCIENCE,
CULTURE,
EDUCATION,
PUBLIC
HEALTH AND
ECOLOGY
PRESIDENT OF
RUSSIAN FEDERATION
STATE
DUMA
COMMIT
TEE ON
EDUCATION
AND
SCIENCE
GOVERNMENT OF
RUSSIAN FEDERATION
MINISTRY OF
EDUCATION AND
SCIENCE
RUSSIAN
ACADEMY OF
SCIENCE
SECTORAL
ACADEMIES
OF SCIENCE
3 level
PUBLIC
ORGANIZATIONS
PUBLIC
ACADEMIES
GOVERNMENTAL
COMMISSION ON
THE SCIENTIFIC
AND INNOVATION
POLICY
RUSPATENT
MINISTRIES
AND
DEPARTMENTS
REGIONAL
AUTHORITIES IN
SCIENTIFIC AND
TECHNICAL SPHERES
REGIONAL
EXECUTIVE
AUTHORITIES
Innovation and High-Tech
Legislation in Russia
Federal Law on State forecasting and programs on social-economic
development in RF (July, 20, 1995, №115-ФЗ)
Patent Law of the RF, September, 23, 1992
Federal Law on privatization of State and municipal property,
December, 21, 2001, №178-ФЗ
Federal Law on Trade secret, July, 29, 2004, №98-ФЗ
Budget codex of the RF
Custom codex of the RF
Innovation and High-Tech
Legislation in Russia
Federal Law on Capital Investments in the RF,
February, 25, 1999, №39-ФЗ
Federal Law on Foreign Investments in the RF, July, 9, 1999, №160-ФЗ
Federal Law on Information, Informatization and Information Security,
February, 20, 1995, №24-ФЗ
Federal Law on Foreign Commerce, December, 8, 2003, №164
Federal Law on Science and Scientific and Technical Policy,
August, 23, 1996, № 127–Ф3
Source: Presentation by G. Shepelev
Innovation Development Support
Legislation in the Russia
Examples of the Federal law drafts to be
approved in the year 2006-2007:
I. Stimulation of the innovation activity in the
Russian Federation;
II. Technology Transfer;
III. Science and innovations support funds;
IV. Tax code changes in innovation activity in the
Russian
Innovation Development
Infrastructure
Апат
ит
ы
St. Petersburg
Арханг
ельск
Пет
роз
аводск
Moscow
НижнийНовг
ород
Воронеж
Яку
тск
Cаранск
Ханты-Мансийск
Казань
Ростов-наДону
Самара
Ек
а
т
е
ринбур
г
Челябинск
Волг
ог
рад
Ст
а
врополь
Томс
к
Омск
Новосибирск
Барнаул
Ке
меров
о
Хабаровск
Vladivostok
Innovation-and-Technology Center
– 61
Technology Parks
– 44
Technology Transfer Office
– 66
Technology Transfer Office (in 2005) – 20
Source: Presentation by S. Mazurenko
Special Economic Zones (SEZ)
SEZ financing:
50% - Federal Government
50% - Regional Government
In the year 2006 ~ 1.5 Billions of USD is
succeeded from the Russian Federation
Budget for SEZ development
Special Economic Zones
SaintPetersburg
Dubna
Zelenograd
Lipetsk
Elabuga
Tomsk
1. Technology Inculcation Zone:
- Moscow, Moskovskaya oblast’,
Saint-Petersburg, Tomsk
2. Industry – Production Zone:
- Lipetskaya oblast’, Tatarstan
Under discussion:
3. Tourist – Recreation Zone
4. Ports
Venture Funding
Ministry of Economic Development and Trade
1
2
3
4
5
6
6 regional state-private
venture funds
($10 - $50 mln each)
venture investment
development funds
Locations:
- Moscow
50%
Private
investors
25%
Regional
budget
25%
Federal
budget
- Moscow County
- Krasnoyarskij Kraj
- Tomskaya oblast’
- Permskaya oblast’
- Tatarstan
In Processing: Venture Funds
Russian Venture Company (RVC)
8-12 venture funds (50-100 mln of rub)
100-200 Russian “start-ups”
Foundation for Assistance to
Small Innovative Enterprises (FASIE)
“Start” Programme – 12 years of activities
Applications
Contracts
Average turnover
Average growth rate
Inculcated patents
Registered patents
Companies with total
turnover:
More than US$ 1mln.
More than US$ 5 mln.
More than US$ 30 mln.
-
more than 10000
more than 3000
US$ 500 000
20% per annum
more than 1000
more than 1000
- about 100
- dozens
-3
Source: www.fasie.ru
Innovation and Entrepreneurship
in Russian Universities
1. Coordination:
 Russia Federation Ministry of Education and Science

Federal Agency on Science and Innovation
2. Russian Law:


Restriction: it is prohibited to invest tangible assets [estate,
non-budgetary funding] of a state higher education institution into
a commercial company
Conclusion: it is allowed to invest “non-tangible asserts” (for
example IP)
Proposal: a university can change the status from being state
higher educational institution to “state nonprofit organization”
Conclusion: in the case a university would lose all state
guarantee if it failed within a commercial project
Innovation and Entrepreneurship
in Russian Universities
1. Innovation:
 Creation of Technology Transfer Offices:


Federal Goal-Oriented Research-and-Technical Program
CRDF program etc.
 Creation of Innovation-and-Technology Center
 Creation of Science Parks
 Creation and Development of Science Cities
 Creation of Joint Innovation and Technology Center
of Russia and Foreign countries
 Development of Regional Innovation System
Innovation and Entrepreneurship
in Russian Universities
2. Entrepreneurship development by any HEI:
Higher Education
Institution (HEI)
IP
Nonprofit
Organization
(Development Fund)
Co-Founders
Know-How
etc.
IP
Joint Venture
(JV)
Investors
Funding
Innovation and Entrepreneurship
in Russian Universities
2. Entrepreneurship development by HEI which has
already JV:
Higher Education
Institution (HEI)
IP
Commercial
company
Co-Founders
Know-How
etc.
IP
Joint Venture
(JV)
Investors
Funding
Innovation development in the
North-West Russia
Innovation infrastructure in St. Petersburg:
А. Institutes of higher education:
a. 432 scientific-research institutes, including

57 state and 38 private institutes (2002)
b. Total people ware more than 94 000, including 45
000 researchers in technical and natural sciences
B. Innovation Technology Centers (ITC):
a. 8 institute ITC
b. 5 non-institute ITC
С. Funds and programs:
a. 6 financial institutes
b. 3 programs
Innovation development in the
North-West Russia
Innovation technology centers (ITC) based on:
 Saint-Petersburg State University
 SPb State Electro-Technical University
 SPb State Polytechnic University
 SPb State Academy of Forestry Engineering
 SPb State University of Information Technology,
Optics, Mechanics
 ITC “Baltic”, Baltic State Technical University
 ITC “High-tech in medicine”, SPb State Pediatric
Medical academy
 ITC “Aerospace”, SPb State Aerospace Industry
Academy
TT and commercialization of research in
the Tomsk Polytechnic University
Ministries,
Departments,
Funds
Long-term
programs
Strategic partners
Contract
payments
Innovation
infrastructure
HR
Shares
ИС
ОП
EDU
Profit
IP
TPU
SBI
ITC
Innovation
infrastructure
Customers
TTO
HR
innoprod
Technology incubator
of the TPU
Shares,
profit
Scie
nce
innoprod
Shares
IP
Shares
Royalty,
profit
M
A
R
K
E
T
Profit
Spin-out companies
innoprod
Licenses
Source: VIII Vsesibirskij Innovation Forum, Tverskoj InnoCenter, 2005
Science Park of the Moscow
State University
1. Year of foundation: 1992
2. Legal position: closed joint-stock company
3. Founders:

Moscow State University

State Committee of Science and technology,
Ministry of Science
4. 2000 – certificate of state and public accreditation
№ 001
5. Total areas: 11 500 m² for offices, manufacture
and laboratories
6. Companies: 38 high-tech companies and services
7. People ware: more than 2500
8. Total turnover per annum: more than USA $50
mln.
Orel State Technical University
1. Enterprise development – started in 1989
2. Mechanisms:
* development of education, research and industrial
centers/clusters
* merger of business companies
3. Support factors:
* significant reduction of budget funding in HE system
* bankruptcy of business companies because of
economic crisis
* full support from both Ministry of Education and Regional
Authorities
* strong university leadership (young and ambitious Rector and
his team)
* absence of opposition from Academic staff because of …
“non-serous” attitude toward initiatives
* strong research – more than 100 patents are registered
annually
Orel State Technical University
University is shareholder of the following
companies (25-100%):
* production of research and laboratory
equipment
* production of medical equipment (X-rays etc.)
* tractors production and metal processing factory
* light industry factory (dress tailoring)
* food production factory
* building company and production of construction
equipment
* processing of precious metals and stones
* expertise and certification
* electronics and ICT
* advertising and Mass-Media etc.
Totally – more than 50 companies
Tractor Industry
20
Conclusions
In Russia, there are lack of:
* legislation in the fields of innovation and enterprise
development as well as IP
* strategic view and models of national and regional innovation
systems
* well-developed infrastructure (management, funding etc.)
* well-developed relations between business
and R&D institutions
* competence and experience “on the grass level”
* special funding to support innovation and enterprise etc.
But:
* There is understanding of Russian Authorities in necessity to
support innovation and enterprise development
* Russia has a significant potential for commercialization
of R&D results
* Russia is big market and advanced geo-strategic partner
* Russia … has money (for example stabilizing fund)
Thank you for attention