14 March 2011

A brief digression into the recent history of innovation in Russia

Change the record
All the talk about innovation ends with the cutting of budget money
Alexey Melnikov, "Newspaper.Ru»

Ostap Bender himself would be envious of the ingenuity with which the government comes up with new ways to divert money from the population for innovative and modernization purposes. $10 billion taken from the public pocket should help create "high-tech industries" within the framework of the "sovereign investment fund" being started by the authorities. In fact, instead of systematically improving the political and economic climate by stimulating investment growth, the country's supreme authorities are busy discussing the idea of creating a money chest at the expense of the people, from which entrepreneurs will be paid for the risks of doing business in Russia.

This is another example of how actual modernization is being replaced by attempts to adapt a corrupt system to the challenges of the time. At the same time, it is running in a circle without any visible movement of the Russian economy towards a serious technological upgrade.

Meanwhile, the spoon has been scratching at the bottom of the pan for a long time. Exactly the same tasks were set before previous projects of using citizens' money for something "innovative" there. Let's walk through this cemetery of projects created in the zero years and now peacefully resting.

In 2006, the "Russian Venture Company" was established. This institution itself calls itself "the state Fund of Funds and the Institute of Development of the Russian Federation, one of the key instruments of the state in building a national innovation system." 100% owned by the state. The authorized capital is more than $1 billion.

Four years later, according to the Accounts Chamber, 5.5 billion rubles have been invested in venture projects, the other 25 billion rubles are accumulating innovative fat on bank deposits.

But, apparently, the creation of one fund did not seem enough. Russia has a large economy, and the tasks it faces are grandiose. Besides, it was before the crisis, there was a lot of crazy money. In the following year, 2007, another fund is being created — the Russian Corporation of Nanotechnologies. The chairman of the board of this organization, A. B. Chubais, as usual, does not climb into his pocket for a word: Rusnano is a large—scale state project, the ultimate goal of which is to put the country on an innovative path of development and make Russia one of the leaders of the global nanotechnology market. Today, the corporation has some of the best specialists in the country who are able to establish mutually beneficial cooperation between science, business and the state. This is the main condition for success."

Hooray, grandfather of "radical reforms", hooray! Investments of public money in the project — more than $ 4 billion.

A small lyrical digression in front of the grave of public money with the inscription "Rusnano". Part of the funds ("temporarily free") in 2008, instead of innovations, flowed straight to eight commercial banks. Of course, on the recommendation of the Ministry of Finance, which is friendly to the effective use of funds. It was difficult for him to find the use of "temporarily free" money. He gave Rusnano to hold, and they also burn his hands, they transferred them to bankers for a while until the crazy economy produces a sufficient number of nanowires that can be filled with budget money.

But let's go further. In 2009, it was time to compose another fund for the development of innovations, now with geographical reference to a certain place — Skolkovo. At the end of 2010, as cheerfully reported on the official website of the institution, "Russian President Dmitry Medvedev identified the first reference point from which the coordinate system of the Skolkovo Innovation Center will start counting. The planned expenses for three years are approximately $2 billion.

Starting from the "reference point", Russia entered 2011. Here, for two months, before International Women's Day, the process of fund-building for taxpayers' money has subsided. In order to break out on a hungover morning with another stunning news. 10 billion in the pipe of "modernization"! Catch up and overtake the previous fund-making.

Is there an alternative to this madness of intoxication of the official authorities? Necessary for the economy and, therefore, incompatible with the goals and being of corrupt officials and "law enforcement officers"? Of course it exists.

Innovation is the product of two components: a high level of education and a high degree of competition. From the above list of costs, it turns out that there is money in the budget to finance education. So it is necessary not to create new corruption holes, but to liquidate all funds created to date (including Skolkovo), withdraw money to the budget and direct them to educational purposes.

At the same time freeing up the economy and thus allowing those who have ideas from the student bench to effectively create businesses that implement these ideas. And for money — to the private sector, first of all to the stock exchange. And here no intrusive mediation of corrupt officials with their talk about "state interests" is required. They will cope on their own, and that's what entrepreneurs will do.

In addition, since there are $10 billion in the budget for "sovereign funds", then at least part of this amount does not prevent business taxes from being reduced. Stimulating investors' interest in the Russian economy. Not those, of course, specific investors and consultants of both Russian and Western origin from financial institutions who want to cash in on the money of Russian taxpayers by pushing various kinds of "schemes" in "state agencies", but entrepreneurs who risk their own and borrowed funds.

Another key condition for the growth of innovation is the liberation of the economy from various kinds of restrictions, monopolies, exploitation by corrupt "law enforcement officers".

Instead, there is fierce competition that recognizes only the dictates of the consumer and does not pay attention to the titles and positions of the owners of the companies. If there is such competition, there will also be a healthy demand from entrepreneurs for innovations as a competitive tool. Business people themselves will look for these innovations and create enterprises around them.

In the Russian government, everything has become dilapidated and aged. It's worn out and, like a record with a broken track, repeats the same thing. The history of fund—making is a vivid example. It's time to either change the record, or throw out the gramophone.

Portal "Eternal youth" http://vechnayamolodost.ru14.03.2011

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