Skolkovo Innovation Center Chairman of the Skolkovo Foundation Board Andrey Burenin April, 2014
Vision, mission, expected outcome of the Skolkovo Foundation s Activities by 2020 Vision of the Foundation Russia is a technological superpower, a leader in scientific research and education Mission of the Foundation To create an ecosystem conducive to the development of business and research Expected Outcome (in accordance with the state program) An evolving and adapting ecosystem: Over 350 applications for the registration of patents and certificates per year Over RUB 20 billion in revenue earned by project residents annually Over RUB 25 billion currently invested in the projects of Skolkovo residents and those of Skoltech every year 30,000 employees at the innovation center Over 2 million square meters of commissioned residential and office space with 403 thousand square meters having been built using federal funds Total contribution to the country s economy totaling more than RUB 200 billion 1
Structure and key parameters of Skolkovo s innovative ecosystem in 2020 2. Skoltech A new type of research and entrepreneurship university 1,200 masters and post graduate students, 500 instructors, including 200 professors 15 research centers 3. Investments 1. Residents 1,000 startups 40 accredited CUCs RUB 20 bln in annual revenue 350 applications for the registration of patents and certificates 4. R&D Centers Unique concentration of engineers and researchers 50 R&D centers established by key partners RUB 15 bln in annual investments 5. Town High quality financial expertise and pipeline for commercial deals RUB 25 bln in annual investments in resident projects RUB 120 bln co-invested in the construction of the innovation center A Moscow sight, setting the standards for comfort, design, and service Total development area of at least 2 mln m2, including: University 131,000 m2 Technopark: 157,000 m2 Offices and research centers: 643,000 m2 Residential housing 707,000 m2 Social infrastructure: 257,000 m2 Central zone properties: 183,000 m2 2
Development of the Skolkovo ecosystem The development strategy of the Skolkovo Innovation Center defines three key Project development periods spread out over 2010-2020: 2010-2012: establishment of the innovation ecosystem 2013-2015: qualitative improvement of the ecosystem 2016 and after: evolution of the system Establishment A critical mass of key elements of the ecosystem is created Qualitative improvement The quality of the key elements is improved Evolution and tapping of commercialization potential The system begins to evolve on its own, tapping into the commercialization potential of the innovation ecosystem The critical mass of participants, industrial companies and investors needed for the functioning of the ecosystem has been reached, now the focus of attention is shifting to the quality of the projects. 3
Management Structure of the Fund Project Management System Presidential Council for the Modernization of the Economy and Innovative Development of Russia Selecting the management company for the Skolkovo Project; selecting the territory for the Skolkovo complex Board of Trustees Overseeing the implementation of the Skolkovo Project; approving the rules of the project Foundation Council Identifying development priorities, approving the budget and rules of the project; approving major transactions President Representing the Foundation in relations with state authorities and the public; selecting development areas Scientific Advisory Council Relations with the scientific community Urban Council Relations with architecture firms Foundation Board Monitoring operations; approving major transactions Chair of the Foundation Board Managing operations Advisory Bodies Industrial Advisory Board Relations with key partners of the project Venture Council Relations with venture capitalists The classical management structure was augmented by a unique system of advisory bodies for each area of operations to improve relations with: the scientific community, key partners, venture capital investors, and architects 4
Key Financial Indicators Project financing in 2010-2020* Investor s funds Foundation s own funds RUB bln Co-financing of participants grants Investments by corporations in the development of the innovation environment Establishment and development of Skoltech Creating the infrastructure Budget financing and tax revenue Running total tax revenue at all levels Running total treasury financing Cumulative cash flow Foundation s own funds Federal treasury funds Contribution to GDP Additional contribution to GDP Running total investments in the project Running total additional contribution to GDP The growth in the amount of innovative products released by Skolkovo startups suggests that state investments in the project will be recouped as early as 2027 through the additional contribution Skolkovo will have made to the country s GDP *as per the Creation and Development of the Skolkovo innovation center subprogram of the state program of the Russian Federation Economic Development and Innovative Economy of the Finance Ministry of Russia. 5
Skolkovo: available support Skolkovo Foundation: Support offered Tax and customs benefits: Social tax: 14% Income tax: 0% VAT: 0% Property tax: 0% Customs tariffs on imported research equipment: 0% Grant support Free financing Assistance in raising finance and acceleration: Venture capitalists and angel investors Infrastructure and technologies of industrial partners Access to infrastructure and consulting: R&D infrastructure and common use centers Consultations for applicants for Skolkovo participant status, lease of office space International and national events Education and mentoring (OpUS, Skoltech) 6
Skolkovo: assistance with raising investments Venture capital funds: Over 60 venture capital funds accredited in Skolkovo Over RUB 25 bln tentative investor obligations 15 major investments in 2013 totaling over RUB 1.1 bln Early stage investments: The Skolkovo business club of angel investors has over 150 members In 2013 the club held 9 meetings, 4 of them in the different Russian regions In 2013 Skolkovo participants presented over 60 pitch presentations at the club s meetings 7
Skolkovo: non-financial support Russian and international acceleration programs: By the end of 2013 10 participant companies were working in California, over 20 - are in the process of opening international representative offices Partnership between Skolkovo and the Houston Technology Center will allow another 20 startups to promote their products in the US in 2014 Partnership between Skolkovo and Finland s TEKEC will allow startups to promote their products in Europe in 2014. Efforts are underway to establish similar partnerships in Asia presentations, etc. - is a way to raise investments, develop financial literacy, make public 6 courses have been offered (intellectual property, sources of finance for startups, methods of commercialization, pitch presentations and business as a financial system) About 200 people attended For 2014 over 20 courses are scheduled, including in the regions outside Moscow and St. Petersburg. 8
Participants of the project (as of March 31, 2014) Number of participants: 1,045 Number of grants received by participants: 242 KT YAT BMT EET IT Grant financing of participants projects RUB 7,198 bln Total amount of grants allocated RUB 9,231 bln Amount of approved grants 9
Achievements of the participants in the project 10
Assessment of the participant s projects The expert panel of the Skolkovo Foundation is an effective tool for preliminary assessment and selection of projects needed by development institutions 1. Collegiality The expert panel includes over 1,000 experts, 30% of whom are prominent international specialists 2. Competence 3 Nobel Prize winners 74 academicians of the Russian Academies of Sciences and Medical Sciences 222 professors from leading universities 202 PhDs from western universities 79 company founders 82 CEOs 69 consulting firm partners 3. Independence As a result of the tough selection process, only every fifth applicant obtains Skolkovo resident status and about 20% of them end up getting grants The experts are not employed by the Foundation, neither applicants nor Foundation employees processing applications know who they are The time taken by innovation centers to decide whether or not to give grants RESIDENT STATUS The expert community created by the Foundation ensures transparency of the resident selection and financing process (дни) 11
Skolkovo Technopark A key feature of the Skolkovo Technopark that sets it apart from other technoparks is its well developed laboratory and research infrastructure accessible for use by Skolkovo participants Research and laboratory infrastructure 14 accredited CUCs: Metrology (microanalysis, spectroscopy, material research ) Prototyping (mechanical processing, 3D printers, engineering) Biomedical services, clinical trials Lease of office space Lease of offices and laboratories: In mid-2014, the Technopark had 15,000 m2 of office space on offer Technopark s 1 st stage, building 3 to be commissioned in mid-2015, has 92,000 m2 of floor space Consultancy services Applicants for participant status can get consultations on how to get grant financing Functions ± Lease of office space Research and laboratory infrastructure Community of innovators International cooperation Zurich Available at the Technopark Not available Cambridge Technopark Eidhoven Research Triangle Hong Kong ± ± ± ± ± ± ± can be accessed through the mediation of the Technopark 12
IPC: intellectual property protection Successful commercialization of innovative products is only possible if their intellectual property is adequately protected: IPC offers benefits to Skolkovo participants Patent practice IT Practice Legal practice Software patents in Russia and abroad. Development of patenting strategies; Preparation and submission of international applications Due diligence of intellectual property; Consultations and preparation of legal opinions on IP issues. The Skolkovo Intellectual Property Center provides services for: The Federal Service for Intellectual Property gave the Skolkovo IPC the status of a center for support of innovation and technology. Partners of the Skolkovo IPC: Cooperation has been established with: IPC has submitted over 160 patent applications in Russia, EU, Eurasia, and Japan (3% of the total international applications submitted in Russia) 13
Skoltech: innovative research and education system Skolkovo Institute for Science and Technology is creating an innovative research and education system Skolkovo Institute for Science and Technology Development of applied scientific research in cooperation with industry to affect qualitative changes in the structure of the Russian economy Assistance and practical help with commercialization of research Improvement of the international reputation of Russian science Use of global intellectual and technological resources by Russian students, researchers, and businesses 80 students(master s post grad and post-doctoral degrees) 28 Russian and foreign professors and instructors 6 centers for research, education and innovation: Center for Infectious Diseases Research and RNA Therapy Center for Stem Cell Research Center for Electrochemical Energy Center for Composite Materials Research Center for the Modeling, Analysis and Design of Electric Power Systems Integrated Center for Hydrocarbon Extraction Research Partners include top schools from around the world: MSU, SPSU, SPSU of Information Technology, Bauman MSTU, NSU, Tomsk Polytechnic University, Massachusetts University, South California University, Cambridge University, Harvard University, and others. Partnership with the Russian Academy of Sciences: Institute of the Siberian branch of the RAS in Novosibirsk, Tomsk, United Institute of Nuclear Research, Vavilov General Genetics Institute and others. 14
Skolkovo partners: the most important element in the ecosystem Over 30 major Russian and international companies, the key Skolkovo partners, have set up corporate R&D centers in Skolkovo Industrial partners and their R&D centers: Play a key role in the development and testing of new technologies as well as in their integration into new products and solutions Provide mentoring and acceleration support to startups Offer Skoltech students educational programs and internships 15
Key partners: value proposition (to be fully available by 2017) 2014 2015 2016 2017 1. Tax and customs benefits 2. Access to skilled labor pool (Skoltech, startups, people who have come to work in Skolkovo based on the exciting concept alone) 3. Access to the research and laboratory infrastructure of the Technopark and Skoltech 4. Use of Skoltech s facilities for corporate R&D purposes 5. Access to cutting edge technologies developed by the startups (saving on assessment and the selection of projects) 6. Comfortable infrastructure for living and working 7. Unique opportunities to create one s own office and laboratory facilities (proximity to Moscow, opportunity to lease excess floor area out to partners) 8. Ability to use the PR resources and the Skolkovo brand 16
Construction stages Stage 1. Creating the core infrastructure (2013-2015) Stage 2. Developing the infrastructure (2016-2020) Foundation s funds Technopark, main building apartments for startups social infrastructure for startups and PhDs Other funds, including from investors Research and office buildings, including key partners facilities Total of 406,000 square meters Main Skoltech building apartments for professors and PhDs Internal utilities and infrastructure Total of 1,857,000 square meters Apartments, including for partners employees Social infrastructure, including for partners employees Other funds, including from investors Research and office buildings, including key partners facilities Apartments Total for two stages: 2,653,000 square meters Additional utility and transport facilities Total of 390,000 square meters, plus external infrastructure External and internal utility and transport infrastructure social facilities Status and risks: stage 1 properties are being constructed (core infrastructure) Main risk for stage 1 is late commissioning of the utility and transport infrastructure outside the territory of the innovation center 17