MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION

UPDATE ON INNOVATION INITIATIVESIN RUSSIA

2016 © Ministry of Economic Development of the Russian Federation

Oleg FomichevDeputy Minister Ministry of Economic Development of the Russian Federation

KEY PRIORITY AREAS

NATIONAL TECHNOLOGY INITIATIVE

2016 © Ministry of Economic Development of the Russian Federation 2

NEW INNOVATION CLUSTERS POLICY

NATIONAL CHAMPIONS RAISING

STATE-OWNED ENTERPRISES INNOVATION PROGRAMS

INNOVATION ECOSYSTEM

STRATEGIC PLANNING

RESULTS 2012-2015

32016 © Ministry of Economic Development of the Russian Federation

9%

5%

10%

3%

72%

1%

Design and implementation of clusters developmentprojects

Market entry services, STI cooperation

HR training, development, iterships

Exhibition activities (in Russia and abroad)

Inovation and educational infrustructer development

Engineering and socail infrustructure development

Federal subsidy allocation in 2012-2015

CLUSTERS

Total 5,0 bln rubles (> $ 160 mln)27 clusters involved

More than 95 K high-performance jobs created

429 billion rubles (~$13,0 billion) Increase in innovation products output within 3 years

0

0,5

1

1,5

2

2,5

2013 2014 2015 2016

1,54 1,71 1,97 2,17

trillion rubles

Innovation products output

Number of new high-performance jobs

0

10

20

30

40

50

2013 2014 2015 2016

27,2 32,7 36,1 41,4

k. per year

0

1000

2000

3000

4000

2013 2014 2015 2016

2630 2630 2899 3235

thousand rubles per year

The output per employee in cluster member companies

FOCUS ON LEADING CLUSTERS

Technological leadership – development of word-classR&D competence centers

Efficient technology commercialization according to internationalstandards

Export, fast-growing companies and SMEs support

Key enterprises modernization and scaling up assistance

International investment attraction system designing

Education system adjustment to clusters needs

Clusters management perfection

NEW CLUSTER POLICY PRIORITY AREAS

1

2

3

4

5

6

7

2016 © Ministry of Economic Development of the Russian Federation

CLUSTERS SUPPORT TOOLS

Subsidies to the Russian Federation regions and regional programs co-financing

Subsidies for clusters’ companies

Subsidies for universities and other educational organizations

Interest rates subsidizing and concessional loans

Special tax regime

Loans guaranteeing

Capital investment

Cooperation with government-sponsored enterprises

Regional venture ecosystems

International economic activities and technological cooperation

NEW CLUSTERS

Idea: The project’s aim is to provide leading economic growth by achievingworld-class efficiency of business support mechanisms, effective integrationinto global value chains

4

2016 © Ministry of Economic Development of the Russian Federation5

PROJECT MANAGEMENT PRINCIPLESProgress in implementing

Ministry of Economic Development of the Russian Federation

Innovation clusters

Clusters development strategies

Regional working groups

Transparent competitive selection (11 top-clusters)

Methodical guidance and consulting

Support agreements

Methodical and organizational support, best practices exchange

Regular update and coherency of plans at the federal and regional levels

Training, certification, selection of management teams

Development monitoring (including comparison with the dynamics of the foreign clusters), updated list of leading clusters

Strategic controls(Project Board) Project strategy

The priority ministerial project

Plans to 2020

Project “road map” until 2020

Operation management (Project office)

Operational management (specialized organizations)

Control points lists

Clusters “road maps” until 2020

Thematic work groups

Regular coordination with federal center

In process

Best 11

Fed

eral

cen

ter

Reg

ion

al a

uth

ori

ties

2016 © Ministry of Economic Development of the Russian Federation 6

“NATIONAL CHAMPIONS” SHORTLIST

2016

2020

R&D works and projects

Up to 100 mlnrubles min. (~ $ 1,6 mln)

Investment in developmentNon-budgetinvestment

Up to 300 mlnrubles min. (~ $5,0 mln)

Patents

Up to 3 times min.

Startups invested

Up to 300 startups min.

Production efficiency

Competitiveness

Output per employee

Up to 20% min.

High-performance jobs

Up to 100 k. min.

Non-resource operating revenue

Up to 2 times min.

NEW CLUSTERS

№ Cluster home region Cluster name Cluster Specialization

1 Kaluga region«Pharmaceuticals, biotechnology and

biomedicine»Medicine and pharmaceuticals

2Krasnoyarsk

regionTechnopolis «Enisey» Nuclear technologies. Aerospace industry

3 Lipetsk region «Valley of machine building» Machine-tool building

4 Moscow regionInnovative clusters consortium of the

Moscow region

New materials. Medicine and

pharmaceuticals. ICT. Machine-tool building.

Nuclear technologies. Aerospace

5Novosibirsk

region

Research-and-production cluster «Siberian

science polis»

IT, Biotechnology and Pharmaceuticals,

Medical Biotechnology

6Bashkortostan

republic

Petrochemical cluster of the Bashkortostan

republicOil and gas processing and chemistry

7Mordovia

republicInnovative cluster of the Mordovia republic

Instrument engineering. Power efficient

lighting. Fiber optics and optoelectronics

8Tatarstan

republic

Kamsk innovative cluster of the Tatarstan

republic

Oil and gas processing and chemistry.

Automotive and heavy machinery

9 Samara regionInnovative aerospace cluster of the Samara

regionAerospace industry

10 Tomsk region «Smart Technologies Tomsk» ICT. Medicine and pharmaceuticals

11Ulyanovsk

regionInnovative cluster of the Ulyanovsk region

Nuclear technologies. Aerospace industry.

New materials, renewable energy and

eHealth

PROJECT KPI

FOCUS ON LEADING SMEs

Support forms definition for the project participating companies together withstakeholders

Growth KPI development for champions, as well as a set of commitments to achievethem

Champions targeted assistance

Business missions arrangement, educational programs realization, assistance inattracting investment, promoting companies through the system of Russian trademissions

CHAMPIONS RAISING PRIORITY AREAS

1

2

3

4

5

2016 © Ministry of Economic Development of the Russian Federation

PROJECT STAKEHOLDERS

State sponsored development organizations

Executive regional authorities and localgovernments

Industry business associations

Cluster organizations that participates in thechampion companies development

7

CHAMPIONS

Interested federal executive authorities

• Idea: Providing faster growth of domestic private high-tech export-orientedcompanies and formation on their basis the Russian-based multinationalcompanies

Financial institutions

Forming the champions’ foreign passports and their implementation monitoring

2016 © Ministry of Economic Development of the Russian Federation 8

PROJECT MANAGEMENT PRINCIPLESProgress in implementing

Ministry of Economic Development of the Russian Federation

Private companies – leaders

Best 30 companies selection (revenue from $10 to 500 mln)

Support agreements

Methodical and organizational support, best practices exchange

Regular strategies update

Training, certification, selection of management teams

Development monitoring

Strategic controls(Project Board) Project strategy

The priority ministerial project

Plans to 2020

Project “road map” until 2020

Operation management (Project office)

Best30

In process

Mentor program

Coordination of interaction with developmentinstitutions in the implementation of investmentprojects

Targeted assistance to the companies-participantsof the project

Advice and methodological support in the preparationof draft strategies and business plans of theparticipating companies

KPI setting

Educational programs

$ 1,0 billion revenue

Not less than 2 companies

Project KPI

$ 0,5 billion revenue

4 times hi-tech export increase

Not less than 10 companies

Not less than 15 companies

2016 © Ministry of Economic Development of the Russian Federation9

STATE-OWNED ENTERPRISES INNOVATION PROGRAMS

Ministry of Economic Development of the Russian Federation

State-Owned Enterprises

Total: 57 state-owned enterprises implements innovation programs

19 of them controls Ministry of Economic Development of the Russian Federation

57

R&D funding increase

More than 39%

The output per employee increase

More than 30%

R&D non-budget funding increase

More than 29%

Results 2012-2015

Innovation products export increase

More than 16%

250 independent

experts took part in programs evaluation

Programs quality >80%

ACTORS INVOLVED

2016 © Ministry of Economic Development of the Russian Federation 10

Russian Venture Company Strategic initiatives agency Assistance Fund for Small Innovation Enterprises in Science and Technology (Innovation Fund)

Fund for the development and commercialization of new technologies

(Skolkovo innovation center)

Russian nanotechnology corporation

Bank for Development andForeign Economic Affairs

(Vnesheconombank)"

Production development fund

ECOSYSTEM

Agency of Russian innovation regions

Russian technology agency

Russian equity fund

Industrial parks association Russian fund of

fundamental researches

Russian export center

2016 © Ministry of Economic Development of the Russian Federation 11

STRATEGIC PLANNING

2016

2020Number of innovation companies (up to 10,7% increase)

Innovation growth

Russia's share in the world markets of high technology products and services: nuclear energy, aviation technology, space technology and services, special shipbuilding, etc.(Up to 5-10% increase in 5-7 sectors of the economy)

Share of innovative products in the total volume of output (up to 2 times min. increase)

Science growth Domestic spending on R&D (56% increase)

Publications and citations in international scientific journals (60% increase)

Number of Russian universities among the 200 leading universities (up to 5)

Intellectual propertyNumber of patent applications filed by the Russian applicants for international procedures (more than triple increase)

Number of registered applications prepared with the use of budgetary funds, on the grant of a patent filed by the Russian applicants (up to 25% increase)

Share of funds received from the implementation of R&D work in Russian universities (25% increase)

The Russian Federation Innovative DevelopmentStrategy for the period until 2020

Strategy for Scientific and Technological Developmentof the Russian Federation for the period until 2020 and beyond

Strategy of the Russian Federation socio-economicdevelopment for the period until 2035

KEY STRATEGIC DOCUMENTS

MINISTRY OF ECONOMIC DEVELOPMENT OF THE RUSSIAN FEDERATION

UPDATE ON INNOVATION INITIATIVESIN RUSSIA

Thank you for attention!Questions, please

2016 © Ministry of Economic Development of the Russian Federation 12

Oleg FomichevDeputy Minister Ministry of Economic Development of the Russian Federation