UPDATE ON INNOVATION INITIATIVES IN RUSSIA

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1 MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION Oleg Fomichev Deputy Minister Ministry of Economic Development of the Russian Federation UPDATE ON INNOVATION INITIATIVES IN RUSSIA

2 KEY PRIORITY AREAS NATIONAL TECHNOLOGY INITIATIVE NEW INNOVATION CLUSTERS POLICY NATIONAL CHAMPIONS RAISING STATE-OWNED ENTERPRISES INNOVATION PROGRAMS INNOVATION ECOSYSTEM STRATEGIC PLANNING 2

3 CLUSTERS RESULTS Innovation products output trillion rubles 2,5 2 1,5 1 1,54 1,71 1,97 2,17 0, Number of new high-performance jobs k. per year More than 95 K high-performance jobs created 429 billion rubles (~$13,0 billion) Increase in innovation products output within 3 years The output per employee in cluster member companies thousand rubles per year Federal subsidy allocation in Design and implementation of clusters development projects Market entry services, STI cooperation HR training, development, iterships Exhibition activities (in Russia and abroad) Inovation and educational infrustructer development Engineering and socail infrustructure development 1% 9% 5% ,2 32,7 36,1 41, % 3% 72% Total 5,0 bln rubles (> $ 160 mln) 27 clusters involved 3

4 NEW CLUSTERS FOCUS ON LEADING CLUSTERS Idea: The project s aim is to provide leading economic growth by achieving world-class efficiency of business support mechanisms, effective integration into global value chains 1 2 NEW CLUSTER POLICY PRIORITY AREAS Technological leadership development of word-class R&D competence centers Efficient technology commercialization according to international standards CLUSTERS SUPPORT TOOLS Subsidies to the Russian Federation regions and regional programs cofinancing Subsidies for clusters companies Special tax regime Loans guaranteeing 3 4 Export, fast-growing companies and SMEs support Key enterprises modernization and scaling up assistance Subsidies for universities and other educational organizations Capital investment International investment attraction system designing Education system adjustment to clusters needs Clusters management perfection Interest rates subsidizing and concessional loans International economic activities and technological cooperation Cooperation with government-sponsored enterprises Regional venture ecosystems 4

5 Regional authorities Federal center Ministry of Economic Development of the Russian Federation In process PROJECT MANAGEMENT PRINCIPLES Strategic controls (Project Board) Progress in implementing The priority ministerial project Project road map until 2020 Operation management (Project office) Thematic work groups Transparent competitive selection (11 top-clusters) Support agreements Project strategy Plans to 2020 Methodical and organizational support, best practices exchange Regular update and coherency of plans at the federal and regional levels Training, certification, selection of management teams Development monitoring (including comparison with the dynamics of the foreign clusters), updated list of leading clusters Methodical guidance and consulting Best 11 Clusters development strategies Operational management (specialized organizations) Control points lists Clusters road maps until 2020 Regular coordination with federal center Regional working groups Innovation clusters 5

6 NEW CLUSTERS NATIONAL CHAMPIONS SHORTLIST Cluster home region Cluster name Cluster Specialization 1 Kaluga region «Pharmaceuticals, biotechnology and biomedicine» Medicine and pharmaceuticals 2 Krasnoyarsk region Technopolis «Enisey» Nuclear technologies. Aerospace industry 3 Lipetsk region «Valley of machine building» Machine-tool building 4 Moscow region New materials. Medicine and Innovative clusters consortium of the pharmaceuticals. ICT. Machine-tool building. Moscow region Nuclear technologies. Aerospace 5 Novosibirsk Research-and-production cluster «Siberian IT, Biotechnology and Pharmaceuticals, region science polis» Medical Biotechnology 6 Bashkortostan Petrochemical cluster of the Bashkortostan republic republic Oil and gas processing and chemistry 7 Mordovia Instrument engineering. Power efficient Innovative cluster of the Mordovia republic republic lighting. Fiber optics and optoelectronics 8 Tatarstan Kamsk innovative cluster of the Tatarstan Oil and gas processing and chemistry. republic republic Automotive and heavy machinery 9 Samara region Innovative aerospace cluster of the Samara region Aerospace industry 10 Tomsk region «Smart Technologies Tomsk» ICT. Medicine and pharmaceuticals 11 Ulyanovsk Nuclear technologies. Aerospace industry. Innovative cluster of the Ulyanovsk region New materials, renewable energy and region ehealth Investment in development Non-budget investment PROJECT KPI Up to 300 mln rubles min. (~ $5,0 mln) Startups invested Up to 300 startups min. R&D works and projects Up to 100 mln rubles min. (~ $ 1,6 mln) Patents Up to 3 times min. Production efficiency Output per employee Up to 20% min. High-performance jobs Up to 100 k. min. Competitiveness Non-resource operating revenue Up to 2 times min.

7 CHAMPIONS FOCUS ON LEADING SMEs Idea: Providing faster growth of domestic private high-tech export-oriented companies and formation on their basis the Russian-based multinational companies PROJECT STAKEHOLDERS State sponsored development organizations 1 CHAMPIONS RAISING PRIORITY AREAS Growth KPI development for champions, as well as a set of commitments to achieve them Interested federal executive authorities 2 3 Champions targeted assistance Business missions arrangement, educational programs realization, assistance in attracting investment, promoting companies through the system of Russian trade missions Executive regional authorities and local governments Industry business associations 4 5 Forming the champions foreign passports and their implementation monitoring Support forms definition for the project participating companies together with stakeholders Cluster organizations that participates in the champion companies development Financial institutions 7

8 PROJECT MANAGEMENT PRINCIPLES Strategic controls (Project Board) Progress in implementing The priority ministerial project Project strategy Plans to 2020 Methodical and organizational support, best practices exchange Regular strategies update Ministry of Economic Development of the Russian Federation Project road map until 2020 Operation management (Project office) Training, certification, selection of management teams Development monitoring Advice and methodological support in the preparation of draft strategies and business plans of the participating companies Coordination of interaction with development institutions in the implementation of investment projects In process KPI setting Best 30 companies selection (revenue from $10 to 500 mln) Targeted assistance to the companies-participants of the project Best 30 Support agreements Mentor program Educational programs Project KPI $ 1,0 billion revenue Not less than 2 companies $ 0,5 billion revenue 4 times hi-tech export increase Not less than 15 companies Private companies leaders Not less than 10 companies 8

9 STATE-OWNED ENTERPRISES INNOVATION PROGRAMS Total: 57 state-owned enterprises implements innovation programs 19 of them controls Ministry of Economic Development of the Russian Federation Ministry of Economic Development of the Russian Federation 57 State-Owned Enterprises 250 independent experts took part in programs evaluation Results R&D funding increase More than 39% R&D non-budget funding increase More than 29% Programs quality >80% The output per employee increase More than 30% Innovation products export increase More than 16% 9

10 ECOSYSTEM ACTORS INVOLVED Russian Venture Company Strategic initiatives agency Assistance Fund for Small Innovation Enterprises in Science and Technology (Innovation Fund) Fund for the development and commercialization of new technologies (Skolkovo innovation center) Russian nanotechnology corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank)" Russian export center Russian equity fund Russian technology agency Agency of Russian innovation regions Russian fund of fundamental researches Production development fund Industrial parks association 10

11 STRATEGIC PLANNING Science growth Domestic spending on R&D (56% increase) Number of Russian universities among the 200 leading universities (up to 5) Share of funds received from the implementation of R&D work in Russian universities (25% increase) Publications and citations in international scientific journals (60% increase) Innovation growth Number of innovation companies (up to 10,7% increase) Russia's share in the world markets of high technology products and services: nuclear energy, aviation technology, space technology and services, special shipbuilding, etc. (Up to 5-10% increase in 5-7 sectors of the economy) Share of innovative products in the total volume of output (up to 2 times min. increase) 2020 KEY STRATEGIC DOCUMENTS The Russian Federation Innovative Development Strategy for the period until 2020 Strategy for Scientific and Technological Development of the Russian Federation for the period until 2020 and beyond Intellectual property Number of patent applications filed by the Russian applicants for international procedures (more than triple increase) Number of registered applications prepared with the use of budgetary funds, on the grant of a patent filed by the Russian applicants (up to 25% increase) 2016 Strategy of the Russian Federation socio-economic development for the period until

12 MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION Oleg Fomichev Deputy Minister Ministry of Economic Development of the Russian Federation UPDATE ON INNOVATION INITIATIVES IN RUSSIA Thank you for attention! Questions, please 12

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