BRICS National Innovation Systems:

1. BRICS National Innovation Systems: Russia’s Innovation System in Transition Rio de Janeiro April 25, 2007

2. The three key aspects Soviet Heritage The current Russia’s NIS still keeps features of the Soviet S&T system. Transition is not complete. Facts and Figures The figures show some strengths as well as weaknesses of the Russia’s NIS in the market economy environment. State Policies There are some actions being implemented and to be implemented to improve the current situation.

3. Soviet Heritage:Strengths and weaknesses Key Features Strengths • Centralised control • Planning management • Political targets • Military priorities • Universal specialisation • Excessive unbalanced structure • High mobilisation capabilities • High social status of scientists • No external effects on the basic research • Direct orientation to the national priorities Weaknesses • Lack of autonomy / initiative • Weak R&D at universities • R&D VS innovation • Lack of the “natural” selection mechanisms • Organisational inflexibility

4. Facts and Figures:Institutional structureremains archaic and does not meet the market requirements Organisations providing scientific research and development - by type - by ownership Branch academies: 838 (23%)

5. Facts and Figures:Low R&D and innovation activity in the manufacturing sector Innovation activity level in the manufacturing sector, % • To compare: • Greece 27% • Spain 37% • Italy 40% • Portugal 45%

6. Facts and Figures:Low R&D activity in higher education institutions (HEIs) R&D expenditures in organisations by source Researchers staff distribution by sector About 40% of HEIs provide R&D in Russia

7. Facts and Figures:More R&D, less innovation

8. 90 ID 80 IN 70 BG AR LT PL Share of public funds in R&D funding, % RU 60 SK MT MX PT HR CY IT HU EE 50 TR GR RO LV NZ AU NO IS CZ 40 FR ES SG TW SI AT NL ZA CA US IE DE BR 30 UK MY OECD CN FI EU-25 SE DK KR CH IL 20 BE JP LU 10 0 0 10 20 30 40 50 60 70 80 90 Share of business enterprise sector's funds in R&D funding, % Facts and Figures:Weak public-private relationships in R&D and innovation

9. Facts and Figures:Weak public-private relationships in R&D and innovation(continued) R&D expenditures in organisations by ownership

10. Legal framework modification A special frameworking law • To regulate all aspects of government support to innovation activity • To coordinate all other related laws and regulations Innovation activity regulation system • Core documents • Specific regulations (tax incentives, budgetary funding etc) Garmonisation of existing related laws and regulations 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.

11. Restructuring government S&T New organisational forms for public R&D institutions Large share of the government R&D sector is a real problem. Introduction of autonomous institutions can improve the situation. State science academies modernisation 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. Education – R&D integration 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.

12. Improving government-private relationships Tax incentives Balancing incentives in VAT, IT and other federal and local taxes. Zones of excellence • Technopark policy • Special economic zones • Science cities Venture policy More efficient venture system. Special venture support initiatives of the Government

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