Policy Framework to Stimulate Technological Innovations in Russia

Abstract

The article analyzes government instruments aimed to foster innovation activity in Russia and results of their application. Policy measures that are in the focus of the article include financial instruments, measures to stimulate demand on innovations from side of industry, and infrastructural projects. The conclusion is made that even though there are a variety of government measures to stimulate technological innovations, they are inconsistent and do not form a system of interconnected measures encouraging innovations. KEYWORDS development institutions, government policy, infrastructure, research and development, Russia's technological innovations TRENDS IN THE STATE OF TECHNOLOGICAL INNOVATION IN RUSSIAThe goal of the article is to analyze the major policy measures aimed to foster technological innovations in Russia and to assess their effectiveness. Russia has developed its own ways to support and stimulate innovations as well as copied foreign instruments and practices. Almost all types of instruments used in developed countries are in place in Russia. However, there is no effectively functioning innovation system. The article interprets the factors that hamper technological innovations in Russia.

National Innovation System Dynamics in East Central Europe, the Baltic Countries, and Russia

“…Moreover, whereas most of the countries under closer examination here have been able to improve their performance in terms of NIS capabilities and catching up with the global leaders, as observed also by Fagerberg and Srholec (2008), the same kind of development has not yet realized itself in Russia (also Dezhina, 2011). This development is likely to mature in the future as Russia has just recently started to rebuild its innovation system after the disintegration of the Soviet Union (Liuhto, 2011).…”

The Role of Foreign Direct Investment and State Capture in Shaping Innovation Outcome in Russia

“…In 2009, only 8% of firms conducted innovation, compared to 64% in Germany, 47% in Finland and 39% in Czech Republic (Dezhina 2011). Even lower innovation activity was recorded in Russian small and medium firms, only 3.1% of which conducted innovation in 2009 .…”

“…Such imbalance has been largely due to disorders in the systems of innovation inherited from the Soviet period, when prioritising of R&D efforts towards the industrial/military sector led to the creation of two different sectors of economy that were barely interlinkedthe industrial military and the civil sector (Dezhina 2004(Dezhina , 2011. The concentration of the best scientific equipment, technologies and most qualified personnel in the industrial military sector led to its further technological advancements.…”

“…Even lower innovation activity was recorded in Russian small and medium firms, only 3.1% of which conducted innovation in 2009 . In Germany, this share amounted to 62.6%, in Belgium and Finland 52.2 and 51.4%, respectively (Dezhina 2011).…”

“…The commercialisation of new ideas in research institutions has been held back by the lack of consistent and clear rules on the ownership, management and protection of intellectual property. There is still only limited support and control from the government regarding IPRs, or legislative guarantee of the competitive environment, which leaves companies to take full risks from their innovation activity (Dezhina 2011). Lack of policy in the sphere of Intellectual Property (IP) and innovation activity, low investments in science, the virtual elimination of sectoral science, and the breakdown of ties between science and production are stated as the main reasons why Russia lost its position in the international and domestic markets for high-tech products (Kuchukov 2011).…”