Elena Lenchuk (Institute of Economy, RAS)

1. EU – Russia Programme “Partnership for Modernization” and Its Role in the Technological Upgrade of the Russian Economy Elena Lenchuk (Institute of Economy, RAS) Russian-Finnish Seminar “Industrial Modernization: Is It Possible to Boost Innovation in Russia” Moscow, October 27, 2011

2. Implementation of the 2020 Innovation Strategy of the Russian Federation: Target Indices

3. The main sectors of the Russian economy in terms of competitiveness in the global market Technological breakthrough: opportunities to take a significant share of global market Aircraft construction Nuclear energy Rocket-space systems(launching) Specific market segments of nanoindustry Technological parity (achieving the level of world’s leading economies) - joint efforts and/or technology exchange are possible Metallurgy Transportation Traditional Energy production Chemistry Below the world level: compensation of technology gap, education, search of opportunities for import substitution Civil shipbuilding Pharmaceuticals Machinery construction

5. A drop inthe machinery production (1990-2009)

6. Structure of Machinery and Equipment by Age

7. Import of machines, equipment and vehicles, as well as technologies and technical services

9. Foreign trade of the Russian Federation

10. The basic principles to build thePartnership for Modernization • creation of the diversified competitive economy; • strengthening bilateral trade and economic interaction; • expanding opportunities for investment in key sectors driving growth and innovation; • creating favourable conditions for SMEs; • strengthening cooperation in the sphere of innovation and R&D; • alignment of technical regulations and standards; • ensuring the effective functioning of the judiciary and strengthening the fight against corruption; • promoting people-to-people links and enhancing dialogue with businesses

11. The key initiativespresentedat the 1st EU-Russia Innovation Forum, Lappeenranta, May 25-27, 2010

12. Doing Business(2011 rating,183 countries)

13. Government supporting and stimulating measures in Russia’s cooperation with foreign countries in technology and innovations • To draft and pass the law on the basic principles of the policy aimed at: • attracting foreign direct investment in high-tech and innovation production, • establishing the regulatory and legal framework, including the state institutions responsible for setting up the policy and rules in foreign investment in accordance with the strategic objectives of innovation-based development of the national economy; • to annually update the list of top-priority industries,that require investment, at the federal and regional levels; • to improve the selecting procedures for projects in the field of investment cooperation with due regard to the tasks of innovation-based modernization of the Russian economy;

14. continued • to create a system, promoting foreign investments, with the participation of a broad competitive network of the state institutions, commercial banks and insurance companies in order to reduce political and commercial risks of the foreign capital; • to create consulting agencies engaged in selecting and procuring high priority projects, attracting investors interested in such projects, and promptly ensuring turnkey deals; • to provide the government with expertise and evaluation of all the major investment projects; • to promote harmonization of Russian and international technical norms and regulations (as well as to create a system of mutual acknowledgement of certificates); • to develop a national monitoring system in the field of investment climate in order to set up favourable conditions for foreign direct investments and improve the country’s image abroad.

15. Thank you for attention!