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Russia’s Innovation System in Transition

Rio de Janeiro April 25, 2007

BRICS National Innovation Systems:

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The three key aspects

The current Russia’s NIS still keeps features of the Soviet S&T system. Transition is not complete.

Soviet Heritage

The figures show some strengths as well as weaknesses of the Russia’s NIS in the market economy environment.

Facts and Figures

There are some actions being implemented and to be implemented to improve the current situation.

State Policies

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Soviet Heritage: Strengths and weaknesses

High mobilisation capabilities

High social status of scientists

No external effects on the basic research

Direct orientation to the national priorities

Lack of autonomy / initiative

Weak R&D at universities

R&D VS innovation

Lack of the “natural” selection mechanisms

Organisational inflexibility

Centralised control

Planning management

Political targets

Military priorities

Universal specialisation

Excessive unbalanced structure

Key Features Strengths

Weaknesses

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Facts and Figures: Institutional structure remains archaic and does not meet the market requirements

194

63

31

402

244 258

2464

R&D organisations

Design organisations

Construction project and exploration organisations

Experimental plants

Higher education institutions

Industrial enterprises

Other

420

519 25 17

2675

Government Private

Mixed NGOs

Other

Organisations providing scientific research and development- by type - by ownership

Branch academies: 838 (23%)

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Facts and Figures: Low R&D and innovation activity in the manufacturing sector

Innovation activity level in the manufacturing sector, %

8,68,8

99,29,4

9,69,810

10,210,4

10,6

2000 2001 2002 2003 2004 2005

To compare:

Greece 27%

Spain 37%

Italy 40%

Portugal 45%

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Facts and Figures: Low R&D activity in higher education institutions (HEIs)

0,35%

7,63%

31,39%60,63%

Government HEIs

Enterprises Other

R&D expenditures in organisations by source

7,40%

0,00%

59,60%33,00%

Government HEIs

Enterprises Other

Researchers staff distribution by sector

About 40% of HEIs provide R&D in Russia

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Facts and Figures: More R&D, less innovation

0

1

2

3

4

5

6R

us

sia

Gre

ec

e

Sp

ain

Ita

ly

Po

rtu

ga

l

R&D expenditure sharein GDP, %

Technologicalinnovation expenditureshare in production, %

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Facts and Figures: Weak public-private relationships in R&D and innovation

0

10

20

30

40

50

60

70

80

90

0 10 20 30 40 50 60 70 80 90

IN

BG

CY

LTAR

PL

MX PTRU

BR

SK

HUEE

GR TRLV NZ

ITHR

RO

LUJP

KRFI

CH

ISAU NO

CZFR TWES

CAAT

UK MYIEZA

SISG

EU-25

NL

CNDK

BE

SE

IL

OECDUS DE

ID

MTShare of public funds in R&D funding, %

Share of business enterprise sector's funds in R&D funding, %

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Facts and Figures: Weak public-private relationships in R&D and innovation (continued)

R&D expenditures in organisations by ownership

9,52%17,23%

0,07% 0,12%

73,05%

Government Private Mixed NGOs Other

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Legal framework modification

To regulate all aspects of government support to innovation activity

To coordinate all other related laws and regulations

A special frameworking law

Core documents

Specific regulations (tax incentives, budgetary funding etc)

Innovation activity regulation system

Systematic correction of existing laws and regulations related with innovations and innovation activity according to the special frameworking law and the innovation activity regulation system.

Garmonisation of existing related laws and regulations

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Restructuring government S&T

Large share of the government R&D sector is a real problem. Introduction of autonomous institutions can improve the situation.

New organisational forms for public R&D institutions

Low performance of the State science academies is defined by their current structure, legal status and management system. Strong academic community resistance is a real challenge.

State science academies modernisation

State universities (as well as private ones) are still separated from R&D. The education-R&D integration project includes a Law on integration and some other actions.

Education – R&D integration

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Improving government-private relationships

Balancing incentives in VAT, IT and other federal and local taxes.

Tax incentives

• Technopark policy

• Special economic zones

• Science cities

Zones of excellence

More efficient venture system. Special venture support initiatives of the Government

Venture policy

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