UNESCO SCIENCE REPORT

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UNESCO SCIENCE REPORT Boosting support for university research has become one of the most important strategic orientations of STI and education policies in the Russian Federation. Leonid Gokhberg and Tatiana Kuznetsova A Soyuz rocket taking off in Kazakhstan and heading for the International Space Station Photo: © Vasily Smirnov / Shutterstock.com 342
13 . Russian Federation Russian Federation Leonid Gokhberg and Tatiana Kuznetsova INTRODUCTION The end of long-term resource-led growth The Russian Federation faces a variety of challenges in securing adequate investment in new knowledge and technologies and deriving socio-economic benefit from them. The UNESCO Science Report 2010 had observed that the global financial crisis of 2008 and the ensuing stagnation were exacerbating domestic weaknesses, such as the limited market competition and persistent barriers to entrepreneurship which were hampering the growth of the Russian economy. Despite some reforms since, these challenges have intensified since mid-2014. The rapid growth of the Russian economy since the turn of the century had been largely fuelled by oil, natural gas and other primary products. Oil and gas alone account for more than two-thirds of exports and 16% of GDP. High oil prices have helped to improve the standard of living and accumulate large financial reserves. The growth rate slowed, however, in the aftermath of the global crisis in 2008, particularly after 2012 (Table 13.1). It has deteriorated further since mid-2014, driven by a vertiginous drop in global oil prices between June and December 2014, combined with the economic, financial and political sanctions imposed on the Russian Federation by the European Union (EU), USA and several other countries in response to events in Ukraine. This has fostered inflation and currency depreciation while curbing consumer spending. Capital outflows have become a major concern: the latest estimates are for outflows US$ 110 billion in 2015. Growth stalled altogether in 2014 and the government predicts that GDP will contract by 2.5% in 2015 before a return to positive growth of 2.8% in 2016. The government has been obliged to cut back on spending and to use accumulated reserves to prop up the economy, in accordance with its anti-crisis plan adopted in January 2015. 1 The difficult economic and geopolitical situation has also prompted the government to implement vital structural and institutional reforms to revitalize and diversify the economy. As early as September 2014, Prime Minister Dmitry Medvedev cautioned against the risk of reacting to the sanctions with measures that would reduce competition or stoke protectionism (Tass, 2014). The growing urgency of innovation-led growth Paradoxically, the rapid economic growth fuelled by the commodities boom between 2000 and 2008 actually weakened the motivation of enterprises to modernize and innovate. In the sphere of science, technology and innovation (STI), this manifested itself in a boom in imports of advanced technologies and a growing technological dependence on developed countries in certain areas, such as in pharmaceuticals and high-tech medical equipment. In the past few years, the government has sought to reverse this trend by encouraging companies, public research institutes and universities to innovate. Some 60 state-owned companies were obliged to implement special programmes to boost innovation. As a result, their investment in R&D doubled between 2010 and 2014, rising from 1.59% to 2.02% of sales, on average. The share of innovative products in the total sales of state-owned companies consequently rose from 15.4% to 27.1%. Exports of innovative products also progressed, particularly in the aircraft industry, shipbuilding and chemicals, according to the Ministry 1. See: http://www.rg.ru/2015/01/28/plan-antikrizis-site.html Chapter 13 Table 13.1: Economic indicators for the Russian Federation, 2008–2013 Percentage change over previous year, unless otherwise stated 2000–2007* 2008 2009 2010 2011 2012 2013 GDP 7.2 5.2 -7.8 4.5 4.3 3.4 1.3 Consumer price index 14.0 13.3 8.8 8.8 6.1 6.6 6.5 Industrial production index 6.2 0.6 -10.7 7.3 5.0 3.4 0.4 Capital investment 14.0 9.5 -13.5 6.3 10.8 6.8 0.8 Exports 21.0 34.6 -36.3 32.1 31.3 2.3 -0.8 Imports 24.2 29.4 -36.3 33.6 29.7 5.4 1.7 Consolidated public sector balance (% of GDP) – 4.8 -6.3 -3.4 1.5 0.4 1.3 Public external debt (% of GDP) – 2.1 2.9 2.6 2.1 2.5 2.7 *annual average growth rate Source: Rosstat (2014); Ministry of Finance (2014) Execution of the federal budget and budget system of the Russian Federation. Moscow. 343
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UNESCO SCIENCE REPORT Towards 2030
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Foreword Irina Bokova, Director-Gen
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