15 February 2011

Innovative economy in Russia: what to do?

Chubais: Are innovations possible in our country under the condition of corruption, bureaucracy, theft?
Nano Daijdest

In the article "Innovative Economy in Russia: what to do?", published in the journal "Questions of Economics" (1st issue for 2011), Anatoly Chubais formulated five priority tasks that the state must fulfill in order to transfer the economy to an innovative model. The transition to the rails of innovation is a matter of medium—term perspective. The USA, Taiwan, South Korea and Singapore have switched to an innovative economic model in 10-25 years. Anatoly Chubais shared his vision of how to achieve the success of foreign colleagues in Russia.

"There are many points of view in Russian society, often polar. I would like to share my vision of the problem of launching a full–scale innovation process in Russia and ways to solve it," Anatoly Chubais writes. Other countries experienced similar situations and the transition to innovation there would almost always be associated with an internal crisis.

In the article Anatoly Chubais cited the example of Finland, a country that had serious problems in the economy in 1991. The unemployment rate in Finland at that time was 22%, and the fall in GDP exceeded 7%. And at that moment, one of the shareholders of Nokia – at that time a cable manufacturing company – offered to bet on mobile phones. According to his forecasts, by 2010 the number of mobile phone users was expected to reach 30 million units. As a result, in 2010 the number of mobile phone users exceeded 4 billion, and Nokia is now the leader in cell phone sales in the world. Thus, the bet on innovative production has allowed Finland to become a country with a stable economy in 20 years.

Countries such as the USA, Taiwan, Israel, South Korea and Singapore were able to create a sustainable economy in 10-25 years, after the government began to take conscious measures to introduce an innovative model of the economy.

Chubais formulated five priorities for working on an innovative model.

1. Economic legislation. Innovative startups, as a rule, arise at first and are supported with the money of venture investors. Currently, there is only one organizational and legal form for venture investments in Russia - a closed unit investment fund for risky venture investments. "I must say right away that this form is absolutely unsuitable," Chubais writes. Startups need to register at an early stage in the format of traditional LLC and CJSC, and these forms are not suitable for startups. They need a different form, suggesting a "Green Corridor for innovative companies" at customs and a different taxation scheme. Rusnano has developed a draft law on commercial partnership, designed to radically change the situation with startups, greatly simplifying their lives.

2. Regional policy. It is necessary to identify priorities for innovation in the regions. "It is unlikely that in each of the 83 regions of Russia it is possible to simultaneously build an innovative economy," writes Anatoly Chubais. As an example, he cites the United States, where half of the innovation economy is concentrated in two regions — Silicon Valley and Boston.

3. Technological priorities. "Specific products and developments should be identified that can change the underlying technology in an entire industry, or create a new industry." Two of these global technologies are currently being planned in Russia. The first is LEDs, whose energy consumption level is seven times lower (below what, ask Chubais – VM), the second is hybrid cars and electric vehicles, which need special engines, batteries and supercapacitors.

4. Composition of federal executive authorities, tools and mechanisms of the state innovation policy.

5. Transformation of science.

The main question that torments many now is: is it possible in principle to create an innovative economy in Russia under the condition of corruption, bureaucracy, theft? Chubais answers this question in the affirmative, recalling that even when innovation was not a priority in Russia, we developed production and the introduction of advanced technologies, despite the problems posed by the state on the path of an innovative economy.

Portal "Eternal youth" http://vechnayamolodost.ru15.02.2011

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