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UK Technology Activities in Russia

UK Technology Activities in Russia. 2 nd International Working Group of the ECNI Brussels 25-26 February 2002. Juan Matthews International Technology Promoter Russia. Format of presentation. UK DTI International Technology Service

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UK Technology Activities in Russia

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  1. UK Technology Activities in Russia 2nd International Working Group of the ECNI Brussels 25-26 February 2002 Juan Matthews International Technology Promoter Russia

  2. Format of presentation • UK DTI International Technology Service • Tacis programme “Innovation Centres and Scientific Cities”

  3. British Technology Support in Russia Department of Trade and Industry Foreign and Commonwealth Office BRITISH TRADE INTERNATIONAL Office of Science and Technology, Innovation and Business Development Directorate International Technology Service British Council Moscow British Embassy Moscow

  4. DTI International Technology Services • International Technology Promoters • Information - Global Watch and Global Watch Online • Overseas Missions programme • International Secondments programme

  5. International Technology Promoters • Programme managed by Pera • Currently 15 ITPs covering • North America (6), China (2), Japan (2), Europe (3), South Korea (1) and Russia (1) • Sector skills in Life Sciences, Energy and Environment, Electronics IT and Telecommunications , and Performance Engineering

  6. ITPs can help by • locating technology or potential partners • making initial visits to potential partners on UK companies’ behalf • provide cultural and language assistance in communicating with partners or on visits • helping find specialised assistance – legal, tax, customs, IP etc • assisting with setting up missions and secondments

  7. and in Russia also • link where appropriate to ISTC, eg for Partner Projects for good value R&D • clear activities with Russian Government • provide advice on security and avoidance of criminal activities • provide assistance to Russian partners to help meet UK business expectations Increasing confidence of working in Russia

  8. My background • Originally a scientist and technical manager in nuclear sector with links to Soviet Union. • Broad background in advanced materials, processes and energy technologies. • Six years experience setting up companies and JVs in Asia, involved in technology transfer, manufacturing, technical services, software and equipment sales. • Two years experience helping Russia R&D organisations commercialise.

  9. Why Russia? • High level of scientific and technological education (>20k new post graduates/year) • Strengths in specific sectors from former state driven priorities • Unique technologies that have not yet been exploited commercially • Low costs and surplus capacity

  10. Russian Science • 4000 institutes with 400,000 researchers, 880,000 total staff • $2B investment in R&D , equivalent to $6B in PPP terms • 40,000 science based SMEs employing 200,000 staff • 20,000 patent applications each year

  11. Main Opportunities • Transfer of specific technologies for exploitation in the UK • Supply of materials and equipment produced in Russia • Low cost high technology manufacture in Russia based on UK and Russian IPR • R&D services, software writing and other activities than need skilled staff

  12. Technology Networking in Russia R&D Institutes Institutes subsidiaries and related companies Institute Technoparks Private Companies City innovation infrastructure City and Regional administrations Consultancy companies National Academies Ministries and advisory centres British Council, RBCC, STI EU delegation British companies in Russia Aid agencies (Tacis, ISTC, UNIDO) BritishEmbassy DTI Trade Partners

  13. Location of Russia’s scientific activities ST PETERSBURG VOLGA S

  14. The Creation of Sustainable business in Russia’s scientific cities Anglo-French consortium Phase 1 October 1999 to October 2001 Phase 2 October 2001 to August 2002 Tacis Project - Innovation Centres and Scientific Cities

  15. Reasons for project • Commercialisation is the only way for science cities to develop • Survival of scientific capability • Institutions need help to manage commercial business and realise the benefits of change • Institutions need help to generate income, improve quality, protect IPR and form strategic partnerships • Institutions need help to attract investment to commercialise R&D results

  16. Locations of Tacis Project Phase 1 • Obninsk, Russia’s first Naukograd- IPPE, Thermal Physics Department- Medical Radiology Research Centre • Troitsk, many research bodies- Institute of Super-hard and New Carbon Materials- Geoelectromagnetic Research Institute • Reutov, home of - NPO MashinoStroyenia • Koltsovo, near Novosibrsk - Vector Virology and Biotechnology Centre Phase 2 • Dubna Russia’s 3rd Naukograd • Tomsk, Akademgorodok, adjacent nuclear city Seversk

  17. Phase 1 results • 15 institutional appraisal workshops and reports • 6 institutions selected and assisted • 16 product plan evaluations and related workshops • 12 products assisted • 3 institutes restructured • 3 joints ventures and 2 legal partnerships • 120 staff trained for cultural change and commercial skills • Methodology and training courses transferred • 4 innovation centres equipped

  18. Sustainable development • Source of IP to drive innovation- in Europe and USA the universities- in Russia R&D institutions • Right culture in R&D institutions to provide innovators • Rights environment and infrastructure to support innovation • Link with universities and educational institutes to provide staff • Development of Russian market

  19. The cultural change process • Institutional appraisal • Leadership from the top • Strategic planning • Change actions • Training workshops • Restructuring to reinforce change

  20. Evolution of R&D Institutions Commercial Activities Transfer Set-up Re-organise Whole To private technology commercial to face organisation sector Spin-offs structure market commercialised MISSION LED MARKET TESTING MARKET ORIENTED MARKET DRIVEN MATURITY Increasing business emphasis on cost control, management of resources, marketing and sales etc

  21. Evolution of R&D Institutions Government actions Develop Diversify Distance Detach Divest MISSION LED MARKET TESTING MARKET ORIENTED MARKET DRIVEN MATURITY AEA Technology 1954 1965 1977 1986 1994 Examples of European Institutes now CERN Switz CEA France Riso Denmark ECN Holland Studsvik, Sweden PSL Switz FZK Germany NPL UK TNO Holland Sinteff Norway SCK Belgium VTT Finland AEA Technology

  22. Model of Commercial Structure of R&D Body Federal bodies Aid and conversion bodies payments for research and restructuring Rent and IP payments Budget and project funding CUSTOMERS Commercial activities M&S IP Management payments for contract R&D Management and central services Research activities Rent payments Spin offs IP payments IP payments IP holding company direct IP payments Product Development IP payments Production and service subsidiaries and JVs Rent payments Institution boundary Business planning advice IP advice Marketing and investment advice Investors Local innovation infrastructure

  23. Technology Generation and Commercialisation Basic research funding Research potential but needs further work IP evaluation no stop Evaluation funding protect Development funding Product Development Market information needs further development Business planning no stop exploit Exploitation funding Select route to market Sell Technology Exploit alone Find exploitation partner

  24. Instruments for technology transfer • License agreements for patents or know-how • Joint development agreements with shared access to IPR (eg use of ISTC Partner Projects) • R&D contracts - research against specific targets IPR owned by customer • Exploitation partnership or JV based on Russian IPR • Distribution agreement • Sales of materials or equipment • Service agreement to supply resources for analysis, field activities, software development, technical support

  25. Options for exploitation of IP

  26. Coherency of business (in Obninsk) Radiation related Nuclear materials control State sector Decommissioning and waste disposal support IPPE Land remediation Epidemiology MRRC Atmospheric and land monitoring Isotopes and radiopharmaceuticals KPCI Environmental related ARAE Environmental protection equipment Typhoon Land remediation Epidemiology Technologia Atmospheric and land monitoring INPE Process industry related Process optimisation - thermohydraulic, corrosion Private sector Pharmaceutical production SIGNAL Materials production Cyclotron Energy related Energy production SMEs Energy system development Energy efficiency optimisation

  27. Conclusions 1. Research and production organisations need to internally reorganise to prepare for more effective commercial activity. 2. The Federally funded research base needs to be preserved as a source of technology for business development. 3. Research and production organisations need to be flexible and imaginative in the types of commercial activities they develop. 4. The town should look for some coherency of business to stimulate co-operation between organisations and attract industry. 5. The establishment of a city brand should be considered based on the common science and technology activities. 6. Innovation activities should also be part of an overall plan supported by an efficient infrastructure.

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