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Expert article 874 Baltic Rim Economies, 21.12.2011 Quarterly Review 5�2011 Some observations on today’s European and Russian innovation process By Marina Bouianov Towards a European Innovation Ecosystem With its noticeable strengthening of efficiency, quality of life, and productive growth of any modern society, innovation in today’s European community is a key element of its economical and social policy. The sustainable development of a European Innovation Ecosystem is now at the top agenda of the Europe 2020 Strategy adopted by the leaders of the EU 27 Member States in 2010. A number of various innovation policy-making and operational tools recently initiated by the European Commission (EC) and deployed to start on aim at radically improving the performance of the innovation system. Among them are the Innovation Union Initiative of 2010 driven by the EC, annual European Innovation Summits, the European Cohesion Policy, the European Research Area and the European Innovation Partnership, the next generation of the Structural Funds post-2013, and the new Horizon 2020 Framework Programme for Research and Innovation (from 2014). All these inventions will focus on the actions to take to build adequate coherence across the European research and innovation system, while maintaining local flexibility to allow developing strategies to be tailored to national and regional contexts. This is predominantly important in times of the fiscal austerity and various social challenges, which now European countries are extremely facing with, e.g. the lack of generation replacement with the low fertility, unemployment and poverty issues, social protest movements, migration, multiculturalism etc. The first edition of the Innovation Convention will be opened in early December one year after the adoption of the Innovation Union flagship initiative, the EU's roadmap to turn Europe into a more innovation-friendly and competitive continent. “Go Russia!” Go Skolkovo! 1 Russia is not an exception in this regard. Russia’s innovation programme was proclaimed by the President of the Russian Federation Dmitry Medvedev in 2009 as the Modernisation Programme. It shall enable long-term and stable economic growth in the country based on high technology, knowledge, human capital and innovation. According to this Programme and by the next initiative of Dm. Medvedev the Foundation of the Development of the Centre of Research and Commercialising of New Technologies Skolkovo was established as a non-profit organisation in 2010. Skolkovo’ financial investments have been steadily growing up from year to year. In 2010, the project funding allocated was 3.991 billion rubles. According to the Ministry of Finance of the Russian Federation, in 2011 this amount will be 15 billion rubles, in 2012 – 22 billion rubles, and in 2013 – 17.1 billion rubles. The goals of the Foundation are to mobilise national resources for advanced applied researches, and to create friendly science environment in five priority directions: energy sector and energy efficiency, space, biomedicine, nuclear science and ICT. The project includes forming the Skolkovo Institute of Science and Technology (SIST), which now actively acts, a number of research and development centres and institutes, business incubators, 1 D. Medvedev’ article Go Russia! (10.09.2009). Source: http://eng.kremlin.ru/news/298, the official site of the President of Russia. 26 and centres of technologies transfer and commercialisation. Additionally, world leading companies are welcome to join Skolkovo with opening their representative offices. Specific legislative and investment conditions and highly developed social infrastructure will be ensured for their winning business. According to the Press service of the Skolkovo Foundation 2 , by mid-November 2011 the Skolkovo Foundation resident list has reached 200 participants. Among outstanding international residents are Nokia Siemens Networks (Finland), Siemens (Germany), TECHNOPARK® Zurich of Switzerland, a number of American leading companies (Microsoft, Boeing, Intel, Cisco, Dow Chemical, IBM), the Swedish Ericsson, Alstom from France, the Netherland’ EADS. Skolkovo is starting at precisely the time when Russia vigorously expands its collaboration with the EU community in science, technology and innovation through mutual beneficial strategic partnership and active involving in the EU funding programmes. Representatives of the Skolkovo Foundation boost up negotiations with key government bodies and innovative companies in Europe and over the world as a part of its aggressive policy in broadening international contacts and attracting foreign investments. Skolkovo hastens to be a magnet for many leading scientists and qualified professionals from abroad to demonstrate the charisma of the Russian innovation idea and the prestige of this unique innovation paradise. Skolkovo: an Oasis in the Desert? Despite all these facts listed above, it seems that against the background of Russia’s economic and social landscape Skolkovo’ infrastructure represents a type of a closed selfsustaining system. As noticed by Viktor Galenko, Member of the Flight Safety Foundation, in his expert assessment of the Skolkovo project, "Most likely, in fact this inno-city will very quickly degenerate into the expanded representation of Western industrial and scientific giants, where young scientists work for Western’ corporations" 3 . “Will it be a scientific ghetto or an oasis under the patronage of Western’ companies, which no one can access in – it is unlikely to be an intellectual centre, whose decisions could be later adopted across the country”, he continues. Here, I completely share Viktor Galenko’ opinion. Nowadays, the concept of innovation is exceptionally complex and heterogeneous. It extends very far beyond the boundaries of the standard definition and operates with such societal processes as generating human capital, enabling knowledge transfer, development of innovation culture and networking private and public sectors. In the broader view, the modern innovation system suggests the inclusion of various political, economic and social aspects of the society to be modernised. The innovation strategy shall directly reflect society’ challenges and fit for purposes to meet them. The most important consideration that the innovation strategy shall be actually driven by bottom-top society demands for innovation. Of course, this requires 2 Source: http://www.i-gorod.com/en/newslist/, the official site of the Skolkovo Foundation. 3 Source: http://finam.info/currency/news2315400001/default.asp, the official site of the Information and Analytical Expert Agency FINAM. � Pan-European Institute � To receive a free copy please register at www.tse.fi/pei �
Expert article 874 Baltic Rim Economies, 21.12.2011 Quarterly Review 5�2011 more crucial government efforts to bring together the right mix of innovation policy and instruments at the global as well as national and regional levels. But this does not mean the creation of a separate state in the state in a special greenhouse climate that specialises on production of benefits unclaimed by the society. My brief figure review of today’ Russian media below clearly proves these concerns. Snapshot of the Russian “Innovation” Landscape � The capital flight from Russia in 2011, according to the forecast of the Central Bank of Russia (CB) is likely to exceed $ 70 billion. According to the Head of the Central Bank Sergei Ignatyev, it is directly related to the heavy investment climate in the country. According to CB, the net outflow in 10 months of 2011 amounted to about $ 64 billion 4 . To compare: in the crisis year 2009, $ 57 billion of hot speculative capital went from Russia. � The influential global civil society organisation Transparency International (TI) considers Russia to be the most corrupt of all the major countries in the world, G20. According to TI, Russia in 2010 managed to rank 154th out of 178 countries 5 . � The annual turnover of corruption in Russia is now estimated at $300 billion, which is comparable in size to Russia’s budget as a whole and represents 25% of the country’s GDP 6 . The Association of Russian Attorneys for Human Rights has recently reported in its Corruption 2010 study that Russian corruption generates an amount equivalent to 50% of GDP 7 . � According to the social survey of the Russian analytical centre, Levada-centre conducted in October 2011 8 , the average monthly income per person in Russia is now 9.4 thousand rubles (about 235 EUR), and per family – 23 thousand rubles (about 575 EUR). 50% Russians believe that they have lost from the recent changes in the country. 52% of respondents consider that the level of theft and corruption in the country has increased (in 2007, the figure was only 16%). According to the next survey of the Levada-centre 9 , a group of brain drain risk is about 30% of respondents. 3-4 million people have already taken some measures. The most active group includes people with high education and incomes, living in large cities. According to sociologists, in the next 12 years, they see no prospects for themselves in Russia. Their interests are now focused mostly on Germany, USA and the UK. 4 Source: http://www.ng.ru/economics/2011-11-21/1_kapital.html, Nezavisimaya Gazeta / The Independent Newspaper, 20.11.2011. 5 Source: http://www.transparency.org.ru/CENTER/cpi_10.asp, the official site of the Transparency International. 6 Source: http://www.indem.ru/en/index.shtml, the INDEM (Information Science for Democracy) Foundation. Study: Diagnostics of Corruption in Russia: 2001-2005. 7 Source: http://rusadvocat.com/, the official site of the Association of Russian Attorneys for Human Rights. 8 Source:http://www.levada.ru/14-11-2011/terpet-ne-vrednorossiyane-ne-zamechayut-uluchsheniya-zhizni-v-strane-bdubin, the official site of the analytical centre Levada-centre. 9 Source:http://www.levada.ru/17-11-2011/ottok-chelovecheskogo- kapitala-bdubin-video, Ibid. 27 Marina Bouianov Lis.Sc. (Tech.) Development Co-ordinator Business Development, CSC – IT Centre for Science Finland DISCLAIMER: The opinions expressed in this article are the author’s alone and do not necessarily represent those of the home organisation. � Pan-European Institute � To receive a free copy please register at www.tse.fi/pei �
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