October 2013 Moscow

Russia: Diversifying Approaches in Innovation Policy Mikhail B. Rogachev

Science and Education institutes

Development programs of the leading classical

universities (Moscow State University and St. Petersburg State

University)

Selected universities (9 federal and 29 national research

universities) receiving additional government

support

Establishment of national research centers (example:

Kurchatov Institute)

Skolkovo Innovation Center

Unprecedented tax benefits (no profit tax or VAT), limited

social payments, etc

Favorable administrative

regime

Skolkovo Institute of Science and

Technology (in co-operation with MIT)

Technical Innovation Special Economic

Zones

5 TIZ in Russia: in the Moscow region

(Dubna), Moscow (Zelenograd), St.

Petersburg, Tomsk and the Republic of

Tatarstan (Innopolis)

TIZ are provided with necessary

transport, engineering and

social infrastructure

Various tax incentives,

exemption from certain customs

duties, etc.

Other innovation

infrastructure

More than 60 technology parks

Cluster development

centers

Cluster development centers, technology

transfer centers, centers for the collective use of

scientific equipment, business incubators, etc.

Knowledge Generation Commercialization

NATIONAL INNOVATION INFRASTRUCTURE Development of innovative infrastructure is aimed at fostering high-tech projects and providing for the interaction of research institutions and businesses:

In accordance with Ministry of Economic Development materials

Correcting basic directions:

Accelerating development of the potential of applied science, providing for the effective influence of the global competitive sector of research and development on professional and technological outfitting of economic branches.

Formulating a system of priorities and mechanisms for its realization for scientific breakthroughs in separate priority directions.

Formulating a unified infrastructure for the provision of the research and development sector, allowing it to develop complex projects on a national scale, and creating mechanisms for its regulation and coordinated development.

From FTP “Research and Development 2014-2020”

State science and technology policies

58,8%

7,1%

15,5%

14,7%

3,9%

Block 1

Block 2

Block 3

Block 4

Block 5

Forming a forward-looking science & tech undertaking

International cooperation

Research & development infrastructure

Material and technical resources

Administration of Program realization

Budgeted Financing

of Program Blocks

(share in %)

1.2.

1.3.

1.4.

2.1.

2.2.

ACTION:

“Carrying out research with the aim of creating a S&T undertaking” … by means of a selection of enterprising proposals from representatives of the scientific community.

“Carrying out applied research with the aim of creating a forward-looking S&T undertaking for the development of economic branches”… by means of a selection of enterprising proposals from representatives of the business community, technological platforms, and territorial clusters.

“Carrying out applied research with the aim of solving complex S&T problems” … providing solutions for the most important scientific problems, necessary for innovative economic development.

“Carrying out research in the context of international multilateral and bilateral cooperation” ... by means of a selection of enterprising proposals from representatives of the scientific community, TP, territorial clusters, and representatives of the business community, in accordance with the Programme's priorities.

“Supporting research in the context of cooperating with European Union member states”… by means of a selection of enterprising proposals from members of the scientific community, TP, territorial clusters and representatives of the business community, in accordance with the Programme's priorities.

Actions of Program “Research and Development in 2014-2020” (quotes)

Start up project Establishment Growth period Expansion and restructuring

•Development institutions aimed to support innovative projects at all stages of their business cycle •The “Innovative Elevator” concept helps to pass the project on to the relevant development institution as it grows and makes it easier for businesses to obtain financing

Vnesheconombank (Development bank)

Size

of f

inan

cial

sup

port

, m

ln. U

S do

ll., a

vera

ge

per p

roje

ct

Business project stages

0

0,3

3,5

20

40

RUSNANO Seed fund

Venture funds

RVC

Regional venture funds

FASIE

DEVELOPMENT INSTITUTIONS

SME bank

RUSNANO

RFTD

In accordance with Ministry of Economic Development materials

Seed funds RVC

Selecting R&D directions

Forming GP, estimating expense, selecting

developer, ordering R&D

Research efforts,

experimental development, tender

documentation development, SD, standard design documentation,

certification

Introduction to production, adaptation,

engineering support

Interaction of Development Institutes with Technology Platforms

Technology platforms: Scientific and technical expertise, selecting projects, forming sector “road maps”, rendering

development and designing services

Emphasizing key products/technologies development

Forming GP for development

Selecting developers

Technical control

Private Investments

State Development Institutes

Offering new developments

industry

priority

Government

Science Business

34 technology platforms had been launched recently (including such platforms as : “Future Medicine”, “Bio-industry and bio-resources” (“Biotech 2030”), “Perspective technologies of renewable energy”, “Deep processing of hydrocarbon resources” and others

Technology Platforms

A tool for bringing together various parties - government, business, science & education - to identify innovative

challenges, developing a program of strategic research and identifying ways to implement it

Basic principles of Technology platforms

Combining the efforts of the most significant stakeholders

(government, business, science & education)

Ensuring the development and implementation of long-term

(strategic) priorities across certain sectors of the economy

EVALUATION OF

CHALLENGES

DEVELOPMENT OF RESEARCH PROGRAMS

DEFINITION OF MEANS OF

REALIZATION

THE CONCEPT OF A TECHNOLOGY PLATFORM

In accordance with Ministry of Economic Development materials

BUSINESS SCIENCE STATE

• Access to modern technological achievements • Reduction of own development expenses through use of jointly developed base technologies • Inclusion of interesting themes and projects to the program of general research • Access to information required to broaden planning horizon and depth • Stimulation of the demand for innovative products • Influence on professional training, taking into account necessary technological competencies • Financial support for implementation of innovative projects •Expansion of opportunities for choosing partners

• Participation in the formation of the branch of scientific and technical policy • Involvement of business in partnership with science at the stage of pre-commercial research and development • Advancement of developments, expansion of demand in research and development in business • Specification of inquiries from business and expansion of proposals (research and development, training, engineering, forecasting) • Inclusion of created small innovative enterprises in the business-R&D system • Formation of new cooperative networks in the scientific sector • Formation of the potential to implement difficult projects with plenty of participants

• Information to establish middle and long-term priorities of scientific and technological policy • Opportunity to concentrate resources in priority directions • Increasing efficiency of use of budgetary funds • Improving quality of research and development management • Identifying directions for improvement of regulation, including branch regulation • Complex development of a national system of innovation • Increasing efficiency of large-scale state companies

Interests of the Participants of the Technology Platforms

Russian Foundation for Technological Development (RFTD)

The RFTD supports R&D projects that involve small and medium-sized companies, aiming at the development of high-tech innovative production. Basic terms of support: Financing is provided in the form of interest free loans with consulting services from RFTD Loan amount - the loan amount does not exceed the net assets of the applicant company Loan terms – up to 60 months Applicant for the Competition in 2012 – a resident of the Russian Federation, a participant of technology platforms Applicant for the Competition in 2013 – Russian Academy of Sciences institutions

• Priority Foundation support has been established for projects recommended by TP

• Assistance to the Foundation from the TP in the realization of expert appraisal of projects:

correspondence of the strategic project and roadmap of TP;

agreement of TP in the candidature of project experts;

engaging expert advice of TP or organizational TP participants in the appraisal of

RFTD projects

• Joint appraisal of the extent of demands of TP participants in debt financing for carrying

out R&D in the short, medium, and long-term future • The creation of mechanisms for financing basic R&D (the results of which are in the

interest of several organizational TP participants at once)

Cooperation between the RFTD and Technology Platforms

RFTD and Russian Technology Platforms at the Moscow International Forum “Open Innovations”

In 2012, the RFTD, in cooperation with the organizations that coordinate Russian Technology Platforms prepared and published these informational publications in English and Russian: summary booklet for the 32 Technology Platforms separate booklets for each technology platform (available on www.rftr.ru )

The RFTD is planning to take part in Open Innovations – 2013!

Cooperation with the EU

• A summary booklet for the 32 Russian Technology Platforms prepared in 2012 by the RFTD was published on the European Commission website

• The RFTD is actively involved in the EU-Russia Joint S&T Committee

• ManuFuture – October, 2013

UNIVERSITIES: preparing skilled workers for innovative specialist professions

15 universities became the victors of a competition to win a subsidy for inclusion in world university ratings

Developing the Russian engineering services market - RFTD's role

In July 2013, the RF government confirmed the road map in the industry of engineering and industrial design for the 2014-2018 period. One of the contractors for the project will be the RFTD, as one of the leading institutes in the development of the country. The goal of the road map is the establishment of a domestic engineering services industry along priority lines: mechanical engineering, biotechnologies, composites, and electronics.

A pilot project for the creation and development of centers on the basis of the leading

universities in the country was begun within the limits of realizing the measures of the road map by the Ministry of Education and Science in cooperation with the Ministry of Industry and Trade.

These centers are intended for rendering engineering services to industrial enterprises and

corporations, and also for the organization of task preparation of students and young specialists.

For the development and implementation of the pilot engineering centers' projects, and

for the selection of the best base universities, an Interdepartmental work group was created. It includes RFTD director M. B. Rogachev. Key members of the RFTD are actively consulting with universities on the composition of enterprising proposals; after reviewing the contest, the RFTD will carry out monitoring of the newly created engineering centers.

Thank You for Your Attention!

Additional

Strategy “Innovative Russia 2020” (confirmed by order of the RF government from 08.12.2011 № 2227):

• A technology platform represents an instrument for communication, aimed at

activating efforts in the creation of future commercial technologies, new products (services), attracting additional resources for conducting research and development on the basis of the involvement of all interested parties (of the business, scientific, state and private communities), and also in the enhancement of a normative legal basis in the area of S&T and innovative development.

• Federal organizations of the executive branch and development institutions will render institutional, organizational and consulting support for the formation and development of technology platforms.

Technology Platforms is an element of the developmental strategy of an innovative economy

Orientation Technology Platform Coordinator

Medicine and biotechnology

1. Medicine of the Future 2. The bioindustry and bioresources - BioTech -2030 3. Bioenergy

Siberian SMU, Tomsk city OJSC "RT-Biotechprom"; Moscow State University named after Lomonosov RRC “Kurchatov Institute”

IC - technologies

4. National software platform 5. National supercomputer technology platform

OJSC “Concern Sirius” (SC “Rostechnology”) Program Systems Institute named after A.K. Ailamazyan Russian Academy of Sciences, Moscow State University named after M.V. Lomonosov

Photonics 6. Innovative laser, optical and optoelectronic technologies - photonics 7. Russian LED technological development

Noncommercial partnership “Laser association” OJSC “Rosnano”

Air-cosmic technologies

8. Air mobility and aviation technologies 9. National space technology platform 10. National information satellite system

FGUP “CAGI” FGUP “CNIIMash”, MAI OJSC “Information satellite systems” named after academician M.F. Reshetnyov

Nuclear and radiation

technologies

11. Closed nuclear-fuel cycle with fast neutron reactors 12. Controlled thermonuclear fusion 13. Radiation technologies

SC “Rosatom”; SSC of RF “Troitskiy Institute of Innovative and Thermonuclear Researches” Fund “Skolkovo”

Power

14. Intelligent Energy System of Russia 15. Ecologically safe thermal energetics of high efficiency 16. Future technologies of renewable power 17. Small-scale distributed energy

FSU “Russian Energy Agency” Energy Ministry of Russia OJSC “All-Russian thermotechnical research institute” OJSC “RusGidro” “Electric Energy Balances Forecasting Agency”, “Inter RAO United Power Systems”

List of Technology Platforms(1)

Direction Technology Platform Coordinator

Transport technologies

18. Application of innovative technologies to improve the efficiency of the construction, maintenance and safety of highways and railways 19. High-speed intelligent railway transport

SC “Rosnanotech” OJSC “Russian railways”

Metallurgy technologies

and new materials

20. Advanced polymeric and composite materials and technologies 21. Materials and technologies of metallurgy

FGUP “VIAM”, SC “Rosnanotec” FGUP “VIAM”, OJSC “RT-METALLURGY”, MISiS

Extraction of natural

resources and oil-and-gas processing

22. Technological platform of solid minerals 23. Hydrocarbon Production and Use Technologies 24. Deep conversion of hydrocarbon resources

OJSC “SUEK” Russian State Oil and Gas University named after I.M. Gubkin “VNIIPIneft”

Electronics and engineering technologies

25. Technologies of mechatronics, embedded control systems, radio-frequency identification and robot-building 26. UHF technologies 27. Ocean development 29. Industry of the future 30. Textile and light industry

MFTI, OJSC “Rosnano”, CNII RTK OJSC “Roselectronika” (SC Rostechnology) OJSC “Concern MIS” “Agat”, OJSC “OSK”, OJSC “Concern MPO-HYDRODEVICE” OJSC “Oboronservis” SC “Rosatom” GOU VPO “Kazanskiy STU”

Ecological development

28. Technologies of sustainable ecological development 31. Environmentally friendly vehicles "Green car"

VOO “Russian Geographical Society” FGUP “NAMI”, STU “MADI”

AIC 32. Healthy food Voronezh State University of Engineering Technologies; Michurin State Agrarian University, Astrakhan State University

List of Technology Platforms (2)

Operating Principles of Technology Platforms * focusing on satisfaction of major public requirements, strategic goals to develop business and priority state interests; significant representation of the interests of business and key consumers in technological platform control bodies; focusing on research and development to reach middle - and long-term goals; focusing on conducting research and on the formation of necessary educational programs; presenting alternatives of considered technological decisions and focusing on the study of various technological alternatives; focusing on the expansion of cooperation and searching for the best partners; actively attracting non-public funds from various sources; transparent rules of participation in a technology platform, free access for new participants and zero discrimination regarding certain groups of companies and organizations; clarity and publicity of results achieved by participants of the technological platform. * According to the Strategy “Innovative Russia 2020”

Technology Platforms: EU versus Russia Characteristics ЕU Russia

Principle of formation

Bottom-up Top-down

Goals

Synergy among major stakeholders Connections between fundamental research and practical applications Coordination of interests of EU member states

Creation of new technologies Attraction of additional resources for R&D Improvement of legal regulations in R&D and innovation

Tasks

Development of Strategic Plan and road maps Marketing of ideas in EU

Development of Strategic Program Development of programs to disseminate new technologies Development of educational activities Expert functions for the government

Financing State, private, self-financing Government financing (planned)

Government role

Promotion of platforms concept Limited financial support of operational activities No instruments to push platforms to any activities

Participation in governance of platforms Attraction of platforms as experts in government decisions Monitoring according to set of indicators

PROBLEMS

Low influence of business on choice of

thematic priorities in S&T

Low activity of Ministries

Low activity of 50% of Technology

Platforms

Unclear interests from side of business

Low commercial output of R&D

Weak priority setting procedures in

terms of involvement of all participants

ПРОБЛЕМЫ ЦЕЛИ GOALS

Development of partnerships between

science and business

Networking

Improvement of environment for dissemination of technology

Attraction of non-budgetary sources

Consolidation of resources on S&T

priorities s Better conditions for evaluating

technologies for socio-economic development

Technology Platforms in Russia: Problems to Solve and Goals to Achieve

Technology Platforms: Government Implementation • Focus on universities and R&D institutes as driving forces in platforms • Linking “push for innovations” (applied to big companies) with platforms’ activity • Mechanisms of financing: from self-support to various government instruments • Government push – request to finance technology platforms through various development institutions • Inclusion of thematic R&D areas proposed by platforms in Federal Targeted Programme • Appeal to development institutions to start activities in support of platforms

MINISTRY OF EDUCATION AND SCIENCE OF THE RUSSIAN FEDERATION

Participation of Russian Technology Platforms

Technology platforms that submitted Proposals 29

Formed Proposals 707

- Proposals that correspond to umbrella projects 315

Shurtakov address

The Federal Targeted Programme “Research and Development on Priority Spheres of Developing the Scientific and Technological Complex of Russia for 2007 – 2013” is one of the main instruments supporting civilian R&D activities on a competitive basis.

MINISTRY OF EDUCATION AND SCIENCE OF THE RUSSIAN FEDERATION

Distribution of Technology platforms’ subject drafts in priority areas

Priority area Proposals Corresponding to umbrella projects

Life Sciences 27 24

Nano-systems and Nano-materials 50 32

ICT systems 66 42

Rational Use of Natural Resources 42 33

Energy and Energy Efficiency 67 46

Applicant/project company

Target model of interaction of the project with financial and scientific and technical subsystems Institutions of financial support

Single Information resource

Information base Base of experts

Technology Platforms

1. Preliminary request

Single information resource

3. Application

4. 2. Request for S&T expertise

Financial institutes

2. Selection of financial tool

4. 3. Direction of finance expertise

5. 2. Choice of experts

5. 1. Innovative history

5. 2. Result of S&T expertise 4. 1. Information

request

6. Financing

Model of interaction between development institutions, technology platforms and academic institutions Technology Platform - research and technology expert: - foresight; - technical audit; - inclusion in projects list; - informational support

Large Enterprise - basic consumer of products: -are obliged to buy products; - modernization for the new product

RFTD

Company – project operator: - bears the main risks -leads its own development projects - orders R&D -creates production - produces - attracts investments

Large Enterprise – additional consumer of products: - Potential consumer of products

The company - the licensee: - Potential buyer of license for production

Shareholders: -own investments; -strategic decisions

University, Institute of Russian Academy of Sciences, Institute of industry - leading developer: - receives an order for R&D - performs R&D - all the rights belong to the operator; - trains specialists

VEB and subsidiary banks: -Operator Loan for project material and technical assets; -Baseline consumer Loan for modernization

Venture capitalists: - venture capital investments; - strategic decisions

Commercial banks: -commercial loans; -leasing schemes

Loan for R&D Examination and

inclusion in Technology

Platform Programme

R&D order

R&D results, including

intellectual Property

rights

General Cooperation

Acquisition of stake

Contribution to authorized capital

Loan

Sale of licenses

Product sale

Guaranteed product sales

General Cooperation

Loan

Distribution of RTDF’s financing by technology platforms’ projects for 2012

Медицина будущего

БиоТех-2030

Биоэнергетика

Фотоника

Экологически чистая тепловая энергетика высокой эффективности

Перспективные технологии возобновляемой энергетики

Малая распределенная энергетика

Материалы и технологии металлургии

Технологическая платформа твердых полезных ископаемых

Технологии добычи и использования углеводородов

Глубокая переработка углеводородных ресурсов

Освоение океана

Технологии экологического развития

Medicine of the Future BioTech-2030 Bioenergy Photonics Ecologically Safe Thermal Energetics of High Efficiency Advanced Renewable Power Engineering Technologies Small-scale Distributed Energy Materials and Technologies of Metallurgy Technology Platform of Solid Minerals Hydrocarbon Production and Use Technologies Deep Conversion of Hydrocarbon Resources Ocean development Technologies for Sustainable Ecological Development