STATE UNIVERSITY STATE UNIVERSITY HIGHER SCHOOL OF ECONOMICS HIGHER SCHOOL OF ECONOMICS WWW.HSE.RU WWW.HSE.RU S&T and Innovation S&T and Innovation S&T and Innovation in the New Economy the New Economy in in the New Economy Search for Systemic Solutions Search for Systemic Solutions Search for Systemic Solutions Leon i d Gokhbe Gokhbe rg Leon i d rg Leon i d Gokhbe rg
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 oriented 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.) 2
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 of decision- -making making • • Development of international S&T co Development of international S&T co- -operation operation • 3
Technology and innovation Technology and innovation Technology and innovation are key drivers are key drivers are key drivers of increased growth performance of increased growth performance of increased growth performance (OECD OECD, 2000) , 2000) ( (OECD, 2000) � Correlation between Correlation between � expenditure on R&D on R&D / / innovation innovation and and GDP growth GDP growth expenditure 1% 0.05- -0.15% 0.15% 1% 0.05 � Increasing R&D intensity and innovation activities Increasing R&D intensity and innovation activities � of all economy sectors of 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 • 4
Nations - - leaders leaders Nations Nations - leaders Russia Russia Russia of the new economy of the new economy of the new economy � R&D R&D � Innovation Innovation � � � Research Institutes Research Institutes � Companies / Companies / � � universities universities � Large enterprises Large enterprises � � Small firms Small firms � � Government Government � financing � Private capital / Private capital / financing � ventures ventures 5
World R&D indicators by regions World R&D indicators by regions World R&D indicators by regions (per cent per cent) ) ( (per cent) Expenditure diture on on R&D R&D Researchers Expen Researchers 84.7 54.4 OECD 38.1 North America 20.5 36.2 US 18.9 28.8 Europe 34.1 Asia 27.8 34.5 25.1 EC 15.9 15.6 28.4 Developing countries Japan 15.1 11.9 Asian NICs 4.9 4.6 3.9 China 10.6 3.1 6.7 Latin America 2.0 2.8 India 1.5 16.4 CIS 1.3 Oceania 1.7 1.0 Russia 10.8 0.7 Central & Eastern Europe 3.2 Africa 0.7 2.5 South Africa 0.8 0.4 Arab States 0.4 1.6 6
SCIENCE SCIENCE TECHNOLOGY TECHNOLOGY KNOWLEDGE- - KNOWLEDGE INNOVATION INNOVATION BASED BASED OUTPUT OUTPUT 7
WHAT S&T WHAT S&T WHAT S&T DOES RUSSIA NEED? ? DOES RUSSIA NEED DOES RUSSIA NEED? 8
Russia’ ’s prestige in the world s prestige in the world Russia Russia’s prestige in the world (per cent of respondents) (per cent of respondents) (per cent of respondents) “Wha “ Wha t t doe doe s s a a c c oun oun t t r r y y p p r r imar imar i i l l y y r r equ equ i i r r e e “Wha “ Wha t t i i s s now now t t he he p p r r ima ima r r y y r r ea ea s s on on t o b e r e s p e c t e d by o the r na t i on s ?” ” o f o th e r na t i on s’ ’r r e s p e c t f o r Rus s i a?” ” t o b e r e s p e c t e d by o the r na t i on s ? o f o th e r na t i on s e s p e c t f o r Rus s i a? 31 2 High life standard High level of science and technology 14 2 13 Military power, nuclear weapon 13 Guarantee of human rights 9 2 Highly developed culture 8 4 (arts and literature) Rich natural resources 6 23 Vast territory 2 8 Developed education system 1 0.4 At present Russia is not respected 25 throughout the world Don’t know 16 21 40 30 20 10 0 0 10 20 30 40 Per cent Per cent 9
Rating of the most respected Rating of the most respected Rating of the most respected occupations occupations occupations (per cent of respondents 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 o c cupa t i on now i s t ha t o f . . . In Russ i a t h e mos t r e s p e c t ed o c cupa t i on now i s t ha t o f . . . 1996 1999 Businessman 46 50 24 Politician 21 20 Physician 18 13 17 Skilled worker 16 15 Journalist 17 Tradesman 14 12 Artist, actor, writer 13 9 Teacher 9 7 9 Farmer Scientist 6 5 Soldier 5 4 2 2 Engineer 13 21 Don't know 60 40 20 0 0 20 40 60 Per cent Per cent * The sum exceeds 100% because respondents could choose several options (up to 3). 10
Gross domestic expenditure Gross domestic expenditure Gross domestic expenditure on R&D by source of funding on R&D by source of funding on R&D by source of funding (million roubles roubles, at 1989 prices) , at 1989 prices) (million (million roubles, at 1989 prices) 4500. 0 Total 4119. 2 4000. 0 3538. 7 3500. 0 3114. 9 3031. 4 2928. 7 3000. 0 2753. 3 2676. 3 2485. 4 2500. 0 Government 2357. 0 1847. 4 2000. 0 1824. 4 1709. 3 1939. 5 1592. 8 1529. 5 1433. 6 Business 1500. 0 1385. 1 enterprise 1032. 6 983. 5 934. 2 1163. 1 928. 3 867. 7 834. 0 1000. 0 525. 5 423. 2 500. 0 274. 6 Abroad 224. 2 153. 6 355. 0 114. 9 57. 4 13. 1 33. 9 12. 9 31. 5 Other 22. 6 7. 0 14. 4 22. 1 0. 0 1994 1995 1996 1997 1998 1999 2000 2001 11
GERD by source of funding GERD by source of funding GERD by source of funding Per cent 100 2.0 8.6 16.9 90 80 70 62.3 57.2 60 Abroad 51.1 50 Government 40 Business enterprise 30 20 33.6 35.2 31.6 10 0 1994 1999 2001 12
GERD by socio- -economic objectives economic objectives GERD by socio GERD by socio-economic objectives 1994 2000 1994 2000 12.5 1994 2000 2.5 4.3 3.9 3.2 3.1 30.1 4.2 27.3 35.4 3.4 3.6 25.7 2.1 1.9 0.9 0.7 0.7 6.2 3.2 1.6 23.7 Agriculture Energy Industry Other economic development Health Environment Social development Defence Civil space Earth and atmosphere General advancement of research 13
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