S&T and Innovation S&T and Innovation S&T and - - PowerPoint PPT Presentation

STATE UNIVERSITY STATE UNIVERSITY HIGHER SCHOOL OF ECONOMICS HIGHER SCHOOL OF ECONOMICS WWW.HSE.RU WWW.HSE.RU

S&T and Innovation in the New Economy S&T and Innovation S&T and Innovation in in the New Economy the New Economy

Search for Systemic Solutions Search for Systemic Solutions Search for Systemic Solutions

Leon i d Gokhbe rg Leon i d Leon i d Gokhbe rg Gokhbe rg

2

The Soviet R&D model The Soviet R&D model The Soviet R&D model

• Influenced by:

Influenced by:

• Political and military objectives

Political and military objectives

• Considerations of international prestige

Considerations of international prestige

• Imbalanced

Imbalanced sectoral sectoral structure of the national economy structure of the national economy

• Centrally planned

Centrally planned

• Recource

Recource-

• based vs. goal

based vs. goal-

• oriented growth
• riented growth
• Poor emphasis on economic payoff of R&D

Poor emphasis on economic payoff of R&D

• Lack of efficient adjustment mechanisms

Lack of efficient adjustment mechanisms

• Consequences:

Consequences:

• Strategy of the entire front of R&D and oversized R&D base

Strategy of the entire front of R&D and oversized R&D base

• Disproportions in the disciplinary structure of R&D

Disproportions in the disciplinary structure of R&D

Engineering >70% of R&D totals Engineering >70% of R&D totals

• Lack of resources in perspective R&D fields (life science,

Lack of resources in perspective R&D fields (life science, informatics, etc.) informatics, etc.)

3

General R&D trends in the transition period General R&D trends in the transition period General R&D trends in the transition period

Influenced by: Influenced by:

• Changes in political and social objectives

Changes in political and social objectives

• Formation of market economy grounds

Formation of market economy grounds

• Economic recession, budget deficit, low investment activity

Economic recession, budget deficit, low investment activity

• Disintegration of the USSR

Disintegration of the USSR

• Unstable political situation

Unstable political situation

• Integration into the world economy

Integration into the world economy

Consequences: Consequences:

• Decrease in budget R&D appropriations

Decrease in budget R&D appropriations

• Lack of industry demand for R&D

Lack of industry demand for R&D

• Low compensation and prestige of R&D employment

Low compensation and prestige of R&D employment

• Discontinued intra

Discontinued intra-

• USSR partnerships

USSR partnerships

• Decentralisation

Decentralisation of decision

• f decision-
• making

making

• Development of international S&T co

Development of international S&T co-

• operation
• peration

4

Technology and innovation are key drivers

• f increased growth performance

Technology and innovation Technology and innovation are key drivers are key drivers

• f increased growth performance
• f increased growth performance

(OECD, 2000) ( (OECD OECD, 2000) , 2000)

• Correlation between

Correlation between expenditure expenditure on R&D

• n R&D /

/ innovation innovation and and GDP growth GDP growth 1% 1% 0.05 0.05-

• 0.15%

0.15%

• Increasing R&D intensity and innovation activities

Increasing R&D intensity and innovation activities

• f all economy sectors
• f all economy sectors
• Technology & innovation cycles shortened

Technology & innovation cycles shortened

• Stronger orientation of R&D to market demand

Stronger orientation of R&D to market demand

• Networked economy

Networked economy

• Nonlinear

Nonlinear innovation model innovation model

• Overcoming

Overcoming institutional barriers institutional barriers

• Networks &

Networks & linkages linkages

5

• Innovation

Innovation

• Companies /

Companies / universities universities

• Small firms

Small firms

• Private capital /

Private capital / ventures ventures Nations - leaders

• f the new economy

Nations Nations -

• leaders

leaders

• f the new economy
• f the new economy

Russia Russia Russia

• R&D

R&D

• Research Institutes

Research Institutes

• Large enterprises

Large enterprises

• Government

Government financing financing

6

World R&D indicators by regions (per cent) World R&D indicators by regions World R&D indicators by regions ( (per cent per cent) )

Expen Expenditure diture on

• n R&D

R&D Researchers Researchers

OECD North America US Europe Asia EC Developing countries Japan Asian NICs China Latin America India CIS Oceania Russia Central & Eastern Europe Africa South Africa Arab States

84.7 38.1 36.2 28.8 27.8 25.1 15.6 15.1 4.9 3.9 3.1 2.0 1.5 1.3 1.0 0.7 0.7 0.4 0.4 54.4 20.5 18.9 34.1 34.5 15.9 28.4 11.9 4.6 10.6 6.7 2.8 16.4 1.7 10.8 3.2 2.5 0.8 1.6

7

SCIENCE SCIENCE TECHNOLOGY TECHNOLOGY INNOVATION INNOVATION KNOWLEDGE KNOWLEDGE-

• BASED

BASED OUTPUT OUTPUT

8

WHAT S&T DOES RUSSIA NEED? WHAT S&T WHAT S&T DOES RUSSIA NEED DOES RUSSIA NEED? ?

9

Russia’s prestige in the world Russia

(per cent of respondents)

Russia’ ’s prestige in the world s prestige in the world

(per cent of respondents) (per cent of respondents)

“ “Wha t i s now t he p r ima r y r ea s

• n

Wha t i s now t he p r ima r y r ea s

• n
• f
• th

e r na t i

• n

s

• f
• th

e r na t i

• n

s’ ’r e s p e c t f

• r

Rus s i a? r e s p e c t f

• r

Rus s i a?” ” “ “Wha t doe s a c

• un

t r y p r imar i l y r equ i r e Wha t doe s a c

• un

t r y p r imar i l y r equ i r e t

• b

e r e s p e c t e d by

• the

r na t i

• n

s ? t

• b

e r e s p e c t e d by

• the

r na t i

• n

s ?” ”

Per cent Per cent 21 25 0.4 8 23 4 2 13 2 2 10 20 30 40 16 1 2 6 8 9 13 14 31 10 20 30 40 High life standard High level of science and technology Military power, nuclear weapon Guarantee of human rights Highly developed culture (arts and literature) Rich natural resources Vast territory Developed education system At present Russia is not respected throughout the world Don’t know

10

Rating of the most respected

• ccupations

(per cent of respondents*)

Rating of the most respected Rating of the most respected

• ccupations
• ccupations

( (per cent of respondents per cent of respondents*) *)

In Russ i a t h e mos t r e s p e c t ed

• c

cupa t i

• n

now i s t ha t

• f

In Russ i a t h e mos t r e s p e c t ed

• c

cupa t i

• n

now i s t ha t

• f

. . . . . .

Businessman Politician Physician Skilled worker Journalist Tradesman Artist, actor, writer Teacher Farmer Scientist Soldier Engineer Don't know

1996 1999

Per cent Per cent

* The sum exceeds 100% because respondents could choose several options (up to 3). 13 2 5 6 7 9 12 17 16 13 20 24 46 20 40 60 21 2 4 5 9 9 13 14 15 17 18 21 50 20 40 60

11

Gross domestic expenditure

• n R&D by source of funding

(million roubles, at 1989 prices)

Gross domestic expenditure Gross domestic expenditure

• n R&D by source of funding
• n R&D by source of funding

(million (million roubles roubles, at 1989 prices) , at 1989 prices)

3538. 7 4119. 2 1939. 5 2357. 1163. 1 1385. 1 355. 22. 1 3114. 9 2676. 3 2753. 3 2485. 4 2928. 7 3031. 4 1529. 5 1847. 4 1433. 6 1592. 8 1824. 4 1709. 3 934. 2 928. 3 867. 7 834. 1032. 6 983. 5 525. 5 274. 6 224. 2 153. 6 114. 9 57. 4 423. 2 7. 22. 6 31. 5 33. 9 13. 1 14. 4 12. 9 0. 500. 1000. 1500. 2000. 2500. 3000. 3500. 4000. 4500. 1994 1995 1996 1997 1998 1999 2000 2001

Total Government Business enterprise Abroad Other

12

GERD by source of funding GERD by source of funding GERD by source of funding

Abroad Government Business enterprise

31.6 35.2 33.6 51.1 62.3 57.2 16.9 2.0 8.6 10 20 30 40 50 60 70 80 90 100 1994 1999 2001 Per cent

13

GERD by socio-economic objectives GERD by socio GERD by socio-

• economic objectives

economic objectives

4.3 3.2 35.4 6.2 3.2 1.6 0.7 25.7 4.2 3.1 12.5 1994

2000 1994 1994 2000 2000

2.5 3.9 27.3 3.6 0.7 0.9 1.9 23.7 2.1 3.4 30.1

Agriculture Energy Industry Other economic development Health Environment Social development Defence Civil space Earth and atmosphere General advancement of research

14

Issues for discussion: Issues for discussion Issues for discussion: :

1. 1.

Orientation Orientation: :

• basic research vs. demand of economy

basic research vs. demand of economy

• domestic market vs. export of technology

domestic market vs. export of technology Russia Russia – – $ $ 240 240 million million Austria Austria – – $ $ 2.4 2.4 billion billion US US – – $ $ 38 38 billion billion Export of technology Export of technology Russia Russia – – 0.3% 0.3% Singapore Singapore, , Korea Korea, , Taiwan Taiwan – – 4 4-

• 8%

8% each each % of the world high % of the world high-

• tech

tech export export

15

Identification of real priorities Identification of Identification of real real priorities priorities

Issues for discussion: Issues for discussion:

2 2. . Priorities for support Priorities for support: :

• existing vs

existing vs. . stategic stategic

• sectoral

sectoral vs.

• vs. targeted

targeted

FORESIGHT FORESIGHT

• Integral framework for

Integral framework for S&T S&T and innovation policy and innovation policy

• Domestic strengths

Domestic strengths & & weaknesses weaknesses

vs vs. .

Socio Socio– –economic objectives economic objectives & & global agenda global agenda

• Consensus mechanism for public

Consensus mechanism for public/ /private partnerships private partnerships (UK) (UK)

16

Over 10 years of the crisis Over 10 years of the crisis Over 10 years of the crisis

• Economic recession only

Economic recession only

• r
• r
• Institutional system

Institutional system

• Mentality (public R&D funding

Mentality (public R&D funding

• vs. innovation)
• vs. innovation)
• Intellectual property rights

Intellectual property rights

• Lacking market skills

Lacking market skills

17

Institutional structure Institutional structure Institutional structure

• Research institute

Research institute – – principal form of R&D principal form of R&D organisation

• rganisation

~ 80% o f R&D per s

• nne

l ( 55 % i n 1990) ~ 80% o f R&D per s

• nne

l ( 55 % i n 1990)

R&D institutions by type R R&D &D institutions institutions by type by type

288 288 449 449

Industrial enterprises Industrial enterprises

388 388 453 453

Higher education Higher education institutions institutions

81 81 593 593

Construction project and exploration Construction project and exploration

• rganisations
• rganisations

289 289 937 937

Design organisations Design organisations

2676 2676 1762 1762

Research institutes Research institutes

4037 4037 4646 4646

Total Total 2001 2001 1990 1990

45.6% 45.6% 100% 100%

R&D personnel R&D personnel

37.8% 37.8% 100% 100%

R&D expenditure R&D expenditure

18

GERD per an R&D institution (million 1989 rubles) GERD per an R&D institution GERD per an R&D institution (million 1989 rubles) (million 1989 rubles)

1.02 1.02 2.3 2.3 2001 2001 1990 1990

Structure of R&D expenditure

(per cent)

Structure of R&D expenditure Structure of R&D expenditure

( (per cent per cent) )

40% 40% R&D personnel are without university degrees R&D personnel are without university degrees

14 14 75 75 US US 15 15 71 71 Japan Japan 21 21 65 65 EC EC-

• 15

15 5 5 6 6 Russia Russia Universities Universities Enterprises Enterprises

19

Issues for discussion : Issues for discussion Issues for discussion :

:

3

• 3. Institutional structures:

. Institutional structures:

modernisation modernisation? ? preservation preservation

• r
• r
• efficient public sector

efficient public sector

• integration

integration Academy Academy Universities Universities

Branch R&D institutions Branch R&D institutions

Industry Industry

What ways ? What ways ? What ways ?

20

Centres of excellence Centres Centres of excellence

• f excellence
• A vital solution for scarce

A vital solution for scarce resources resources

• Objectives

Objectives

Targeted support Targeted support Preservation vs. development? Preservation vs. development? Institutions as a whole vs. productive Institutions as a whole vs. productive groups? groups?

• Coverage

Coverage

Coordination with priorities Coordination with priorities Pure basic research Pure basic research Industrial R&D as a subject Industrial R&D as a subject to public funding to public funding

• Criteria

Criteria

Scientific excellence Scientific excellence Economic & social impact? Economic & social impact? Market demand? Market demand?

• Implementation

Implementation

Objective selection Objective selection Regular evaluation Regular evaluation International best practice International best practice experience experience

21

Sources of information for innovation by rate of importance: 2001 Sources of information for innovation Sources of information for innovation by rate of importance by rate of importance: : 2001 2001

1.7 1.6 1.9 1.6 1.3 1.3 1.7 1.3 1.4 1.5 1.8 1.9 2.0

0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 1 2 3 4 5 6 7 8 9 10 11 12 13

Internal sources: External commercial sources: R&D institutions: Generally accessible information:

1 – within an enterprise 2 – within a group

• f enterprises

3 – suppliers of materials, equipment, and components 4 – consumers of products 5 – competitors in the same sector 6 – consulting and information firms 7 – academy 8 – industry 9 – higher education 10 – invention descriptions,

• fficial publications by

Rospatent, etc. 11 – conferences, workshops, symposia 12 – S&T literature 13 – exhibitions, fairs, and

• ther advertising events

22

Technology transfer offices Technology transfer offices Technology transfer offices

• Functions

Functions

• Positioning

Positioning

• Organisational

Organisational & legal forms? & legal forms?

• Public

Public organisations

• rganisations
• Units of ministries / agencies

Units of ministries / agencies

• Units of research institutes / universities

Units of research institutes / universities

• Private firms

Private firms

• Mechanisms of financing and real estate delivery

Mechanisms of financing and real estate delivery

• Intellectual property rights

Intellectual property rights

23

Government financing Government financing Government financing

1.56 1.56 1.74 1.74 Appropriations for civil R&D Appropriations for civil R&D as % of federal budget expenditure as % of federal budget expenditure 2002 2002 2001 2001

Composition (2002) Composition Composition (2002) (2002)

Ministries & agencies (73.6%) e.g. Federal economic programmes (14.3%) Public foundations (8%) Priorities (18%) e.g. Federal Programme for S&T (5.9%)

24

Expenditure on technological innovation in industry by source of funds: 2001 Expenditure on technological Expenditure on technological innovation in industry by source of innovation in industry by source of funds: 2001 funds: 2001

88.1 1.5 5.6 1.9 2.9

Own funds of enterprises Federal and regional budgets Non-budget funds Funds from abroad Others

25

Issues for discussion : Issues for discussion Issues for discussion :

:

• 4. Distribution of
• 4. Distribution of government

government funds for S&T funds for S&T (very limited amount) (very limited amount): :

• institutes

institutes / / priorities priorities / / grants grants

• package financing

package financing of institutes / projects

• f institutes / projects
• long

long-

• term project financing

term project financing

• co

co-

• financing of applied

financing of applied R&D R&D (matching funds) (matching funds)

• government contribution to

government contribution to innovation innovation funding funding

• evaluation of institutes / projects

evaluation of institutes / projects

26

Intellectual property Intellectual property Intellectual property

• 5%

5% of patents and utility models

• f patents and utility models –

– subjects to commercial subjects to commercial transactions transactions (1992 (1992-

• 2001)

2001)

• Role of public

Role of public organisations

• rganisations in technology

in technology commercialisation commercialisation

Public Public organisations

• rganisations:

: licensers licensers 8% 8% licensees licensees 7% 7% licensing licensing contracts contracts

27

Expenditure on technological innovation by type of innovation activity: 2001 Expenditure on technological innovation Expenditure on technological innovation by type of innovation activity: 2001 by type of innovation activity: 2001

17.3 10.4 59.3 8.4 1.4 1.7 0.3 0.9 0.3

R&D Patent rights and patent licenses Non-patent licenses Industrial design Software Training Market research Machinery and equipment Others

28

Issues for discussion: Issues for discussion Issues for discussion:

:

5 5. . Government financing Government financing and and intellectual intellectual property property rights rights

29

But time is running … But time is running But time is running … …