Russia as an innovative power: Our number sixteen :(
Investing in innovation
Stanislav Kochetkov, FinTimes.ru
A huge amount of information in domestic print media and television news now somehow affects the field of innovation. The leadership of our country expresses its hopes for innovation as the main impetus for the development of the Russian economy, its speedy transition from the state of raw materials, focused on the use of natural resources and the large-scale presence of monopolists in the market. But the interest in innovation is also characteristic of developed countries, since they are important for competitiveness on a global scale.
Back in the first half of the last century, innovations as one of the main driving forces of the economy were mentioned by the famous economist and sociologist Joseph Shumpiter. His ideas about innovation, destroying the old, established system and contributing to the construction of a new, more efficient one, were developed by his followers.
Modern authors agree that companies, in order to achieve and retain superiority in almost any field, must pursue a strategy of abrupt, innovative changes and "creative destruction". The process of creative destruction is most vividly demonstrated by emerging markets with their transitional economic systems. It is interesting that today the so-called Global Innovation Index (GII) has been developed specifically to assess and compare the level of innovation in the country. Its calculation is part of a large-scale study that includes consideration of the commercial results of innovation activities in a number of countries, both with developed and developing markets, and government policies to support and encourage such activities.
The report of the World School of Economics (INSEAD) for the period 2009-2010 covers 132 countries. According to the GII index, Russia, unfortunately, occupies only the sixteenth place among the twenty largest countries.
First of all, the question arises: what practical interest does the innovative activity of companies have for investors? If capital is invested in the scientific development of new technologies or the introduction of marketing solutions at the early stages of project development, then we can talk about the risks characteristic of venture investments and comparable possible profits. Economic cycles, replacing the long-term trend of the market, contribute to the flow of capital into industries that promise greater profits in comparison with others, while simultaneously increasing the liquidity of assets. When global stock indexes are in a sideways movement, interest in high-risk operations increases. Those who do not just follow the established trend have a chance to bypass the indices in pursuit of profit. A lot depends on the ability to predict the future trend and open positions before the boom in a certain area. As you can see, the Russian stock market is close to pre-crisis levels. Investments exclusively in "blue chips" are now likely to give some lag from the indices. We have to look for additional opportunities to extract income on the invested capital. One of them is investment in innovation. In most cases, the securities of new companies enter the secondary market after a private placement among a limited circle of investors. If we are talking about large firms leading innovative developments, then their shares are usually present, if not on the stock exchange, then at least on the over-the-counter market. It can be noted that out of 18 companies in various market sectors doing business in Russia and openly placing their shares in the period from the end of 2009 to the present, only five managed to overtake the growth of the indices. Some even disappointed investors. For example, introducing innovative scientific developments in the field of cellular, gene technologies and medicine, the Human Stem Cell Institute, whose shares immediately after the placement caused a stir, but just a few days later lost the achieved price level. Perhaps the situation will begin to change when the projects announced by the issuers are fully implemented, innovative developments are implemented, and investors will see a serious economic result. But it takes time.
It is important that our state pays attention to supporting cooperation between domestic higher education institutions and companies implementing innovative projects to create high-tech industries. About 19 billion rubles will be allocated for this in the next few years. The state plans to allocate an additional 8 billion rubles to support small innovative enterprises at universities and 12 billion rubles to research activities of educational institutions. In total, there are about 4 thousand enterprises and organizations of various forms of ownership in Russia that conduct research and development. The volume of funds allocated for the development of this area can serve as one of the indicators indicating a good profit potential for investors. The experience of interaction between universities and industry is available in almost all developed countries, closely combining science with practical activity. A developed economy at a certain stage is capable of significant growth, primarily due to the commercialization of accumulated academic knowledge. Large state corporations will take part in the creation of innovative programs.
For the competent placement of capital in the securities of innovative companies, it is not necessary to be the holder of an academic degree. You can always use the services of consultants, specialists, professional managers, innovative and venture funds who will analyze the instruments you are interested in or select the most promising ones in the investment portfolio, but you need to have a general idea of the innovative direction of investment. Some uncertainty may occur in assessing the effect of the introduction of a scientific discovery, expressed in the amount of material benefit.
Innovations, in the classical sense of the term, do not include any innovations, but only those that radically increase the efficiency of the existing system. Among innovations, as a rule, there are several types: technological, marketing, organizational and social.
Which areas of innovative developments are the most attractive and promising for investment?
In the field of human health, the pharmacological direction and regenerative medicine deserve attention, which can revolutionize treatment methods by allowing organs to be grown in the human body instead of those affected by the disease.
There are interesting developments in the field of telecommunications and information technology. The lag behind the leading countries in this area is very noticeable, however, there are interesting developments here. For example, a joint project of Rusnano, AFK Sistema and X5 Retail Group, called the Store of the Future. A fully automated trading system will allow you to do without cashiers.
Promising technologies in the field of energy saving, such as LED lamps, the development of alternative energy sources. The direction will definitely develop, which is facilitated by the adoption of legislative acts related to this issue.
In the automotive industry, research is relevant to replace classic internal combustion engines with hybrids, and then completely switch to alternative energy sources.
From the field of transport, railways deserve attention. High-speed communication has already been established in Europe. China has launched the first train traveling at a speed of 398 km/h, and plans to increase investment in this project 10 times in the next five years. Russia will have to develop railway communication, not limited to the existing "Peregrine Falcon".
These are the largest and most capital-intensive projects, but there are also many medium and small innovative enterprises that need financing and promise high returns.
The Russian economy has a lot to develop, there is an urgent need for innovation, because the growth of the gross national product on such drivers as the export of oil, gas and metals cannot be stable for many years.
The current global economic situation, more than ever before, encourages politicians and major business owners to recognize the need for innovation as the main driving force for the development of national economies. A similar position is taken by most theorists and researchers in the political and economic sphere. An increase in the scale of scientific research and the introduction of innovations into the economy is likely to require significant capital investments, which will be interesting not only for private investors, but also for world-class investment funds. Accordingly, the liquidity of innovative and venture sector instruments will have to increase. Despite the greater risk of investing in developing innovative companies, the return on such investments can be very significant.
Portal "Eternal youth" http://vechnayamolodost.ru27.05.2011