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The role of the State in national system of innovation in Russia

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Title: The role of the State in national system of innovation in Russia


1
The role of the Statein national system of
innovation in Russia
Tatiana Kuznetsova Director, Centre for ST,
Innovation and Information Policies, Institute
for Statistical Studies and Economics of
Knowledge, Higher School of Economics E-mail
tkuznetzova_at_hse.ru
Thiruvananthapuram, India, August 19-21 2009
2
Current socio-economic context completing
transition to the market economy and transforming
of the socio-economic and political system
  • Democratisation and liberalisation, lowering the
    level of social confrontation, development of
    civil society elements
  • Implementation of market self-regulation
    instruments and institutions
  • Setup of a new public administration system,
    lowering barriers for business activity
  • Strengthening Russias global position

3
Current economic trends( of the previous year)
2005 2006 2007 2000-2007 2008 (est) March 2009 / March 2008
GDP 106.4 107.4 107.6 107.0 105.6 90.5
Consumer price index 109.9 109.0 112.0 113.6 114.1 101.3
Industrial production index 104.0 104.4 106.0 105.8 102.1 86.3
Capital investment 110.9 113.7 120.0 112.5 109.1 84.6
Real cash earnings 112.4 113.3 110.3 111.6 102.7 99.9
Real average monthly wages 112.6 113.3 115.8 115.0 109.7 94.3
Retail turnover 112.8 113.9 115.0 111.6 113.0 96.0
Turnover of services purchased by the public 106.3 107.6 107.2 105.7 112.8 96.7
Exports 133.1 124.7 116.5 122.1 140.2 -
Imports 128.8 131.3 136.8 124.6 134.9 -
4
Internal restraintson the development of
Russias economy
  • Economic growth, quality of life ensured by
    earnings from exporting oil, gas and raw
    materials
  • Structural misbalances, technological gap with
    leading industrial nations
  • Monopolisation on local markets, low incentives
    to advance productivity and competitiveness
  • Inadequate protection of ownership rights
  • Lack of incentives for a pragmatic coalition
    between business, government and public
  • High regional differentiation
  • Significant inequality in income distribution and
    social infrastructure development

5
Major indicators of the ST complex
2000 2003 2005 2006 2007
GERD at constant 1989 prices (bln roubles) 3.3 4.8 4.6 4.9 5.6
GERD as a of GDP 1.05 1.28 1.07 1.08 1.12
FBA on civil ST at constant 1991 prices (bln roubles) 2.00 3.22 4.16 4.54 5.5
FBA on civil ST as a of GDP 0.23 0.31 0.36 0.36 0.4
RD personnel per 10 000 employment 138 130 122 122 135
Patent applications with the indication of Russia in Russia (thousands) 28.7 30.7 32.3 37.7 39.4
Patents granted (thousands) 17.6 24.7 23.4 23.3 23.0
Technology balance of payments (mln of US dollars) 20.6 -428.7 -564.8 -595.0 -796.0
RD institutions 4099 3797 3566 3622 3957
among them industrial enterprises 323 264 231 255 265
6
Gross domestic expenditure on RD
7
Interim conclusion
  • RD sector in Russia still developing along
    rather conflicting trends
  • growth of funding
  • preservation of strong position
  • in basic RD and
  • in certain priority fields of applied RD
  • -
  • stagnation of the national ST
  • preservation of the Soviet model
  • Russian science is relatively large (vis-à-vis
    its scientific and technological outcomes)
  • centrally directed and
  • government-financed

8
Organisational structure
  • The network of RD-performing institutions and
    its scale have remained nearly intact over the
    recent years
  • Their number 3,957 ( 2007), only 2.5 lower
    than ten years ago
  • Institutional features are also rather
    sustainable
  • RD sector is dominated by research institutes
    (51.5 of all units, 60 of RD personnel) and
    design organisations (12.6, 22.5, respectively)
  • Research and design organisations are legally
    independent of universities and businesses only
    265 industrial enterprises (6.7 of RD units,
    7.1 of RD personnel) and 500 universities
    (12.6 and 5), regularly engaged in RD

9
GERD growth
Positive trends Positive trends Positive trends
GERD increase 1998-2007 more than 20 times at constant prices more than 2 times 1998-2007 more than 20 times at constant prices more than 2 times
Negative trends Negative trends Negative trends
Russia Other economies
GERD ( of GDP) 1.07 (2006) 1.12 (2007) Israel 4.65 Japan 3.39 USA 2.62 China 1.42
GERD (PPP) 17.1 bln. (2006) 25.1 bln. (2007) 17 times lower than in USA 7 in Japan 4 in China 3.3 in Germany 1.5 in Britain
BARD (PPP) 12 bln. (civil RD, 2006) 2-2,5 times lower than in France, Germany, Britain 3,5 than in Japan 14 than in USA
10
Productivity competitiveness loss
Publication in World Scientific Journals Russia 2.42, 11th position in the world (1995 7, 1980 3) China 9.13, 2nd position (1995 1.6, 14 position)
Technology exports Russia 0.63 bln Finland 3.8 bln Austria 6.1 bln USA 85.9 bln
Resident patent applications Russia is lagging behind Japan 12 times, USA 7.8, Korea 3.4 times
Share of the global hi-tech market Russia 0.28 Gong-Kong 5.44 Singapore 4.58 Korea 3.85
Innovative activity of enterprises Russia 9.3 EU from 14.7 (Latvia) to 69.7 (Germany)
Share of innovative products in total sales of industrial products Russia 1.28 Germany 5, Finland 3.9, France 3.1
Share of innovative products in total industrial products Russia 2.9 Germany 25.5, Finland 23.7, France 20.7
11
ST and innovation policies
  • Objectives largely determined by a complex of
    various socio-economic and political factors
  • Government was recently able to channel
    additional resources into this sector.
  • Nation needs to deal with a whole set of
    complex issues simultaneously
  • Dual challenge for ST and innovation policies
    to stimulate both sides of markets for innovation
    demand and supply

12
New cycle of strategic documents and
implementation programmes
  • Strategy for ST and Innovation in the Russian
    Federation until 2015 (2006)
  • Federal Target-Oriented Programme Research and
    Development in Priority Areas for the ST Complex
    Development in Russia for 2007-2012 (2006)
  • Presidents report On the Strategy of Russias
    Development until 2020 (2008)
  • Conception of a Long-Term Development until 2020
    (2008)

13
Key strategic agenda
  • Despite their inevitable adjustment against the
    background of the global financial crisis, the
    outlined in these documents measures will in the
    long run allow to tackle the principal systemic
    problem of the national ST complex the
    combination of low efficiency in using resources
    (for RD) and insufficient demand for innovation
    from businesses.
  • The ultimate anticipated result is growth in
    quality and scale of Russias ST output supplied
    and increased demand for technology and
    innovation from industry.

14
Policy actions intended for ST and innovation
(Conception -2020)
  • Promoting demand for new technology and
    innovation from companies
  • Increasing the quality and scale of output
    offered by national ST
  • Developing human capital in line with challenges
    and requirements of innovative economy
  • Setting up an efficient system for selecting and
    implementing long-term ST priorities

15
Major focus areas of national ST and innovation
policies
  • Priority setting national ST Foresight exercise
    for 2025
  • Support to nanoindustry
  • Restructuring government RD institutions
  • Evaluation of RD units performance
  • Improving legislation for the protection of
    intellectual property rights and technology
    commercialisation
  • Public-private partnership
  • Tax incentives for RD and innovation
  • Innovation infrastructure
  • International ST cooperation
  • Support to university research

16
Restructuring government RD institutions
  • Traditional domination of the state-owned
    budget-funded institutions (as in the USSR)
    remains one of the key features of the Russian
    ST sector
  • Various types of commercial and non-for-profit
    organisations were allowed during the transition
    to the market economy, but there was little
    change with the respect to government RD
    organisations
  • Nearly 43 RD organisations in Russia were set
    up and are fully funded by the government
  • Legislation imposes strict limitations on their
    legal rights that in many cases contradict with
    both academic freedom and economic reality
  • Government RD institutions, while claiming
    significant budgetary allocations, do not provide
    any guarantees for their efficient use, there is
    no link between performance and funding

17
Evaluation of RD units performance
  • Post-Soviet period research evaluation
    exercises have been limited to selection
    procedures for financing of competitive projects
    by government agencies and state science
    foundations RD institutions stayed intact
  • To reverse the trend a government statement On
    the system of performance evaluation for civil
    RD organisations (2008) was adopted.
  • Its main goals to establish procedures and
    criteria for regular performance assessments of
    government RD organisations and optimise their
    network.
  • The regulation combines periodical statistical
    surveys (once in 5 years) with activities of
    evaluation commissions involving major interest
    groups (government agencies, business, academia,
    scientific community, NGOs)

18
Support to university research
  • National Priority Project Education
    competitive institutional grants to HEIs
    implementing innovative education programmes
    (2006-2007).
  • Research universities initiative to support
    best universities as centres of excellence. Two
    HEIs in Moscow were recognised as national
    research universities. In 2009, a follow-up
    programme to select another 10-15 research
    universities in different ST areas started.
  • Federal Programme Science and Education Manpower
    for Innovative Russia (2008) for 2009-2013
    various actions to attract young talents and
    highly-skilled professionals to HEIs and RD
    institutions.
  • Federal law On Changes to the Selected Laws of
    the Russian Federation Concerning the Integration
    of Education and Science(2007) legal basis
    for different models of integrating science with
    university training

19
Russian ST under the impact of global economic
crisissearch for new strategies
  • The need to adjust innovative efforts of the
    government in view of the crisis is obvious and
    is confirmed by the anti-crisis practice of most
    of industrial nations
  • These programmes normally focus on recovering
    macroeconomic parameters as well as on ensuring
    national competitiveness in the post-crisis
    period
  • institutional reforms to overcome departmental
    miscoordination, to increase efficiency of RD
    organisations
  • concentration of resources in the centres of
    excellence
  • additional policy measures to expand
    opportunities for public research organisations
    and HEIs to participate in innovation activities,
    facilitate academic mobility, etc.

20
Thank you!
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