Winning in Technological Development

6 September 2022

Winning in Technological Development

KEY CONCLUSIONS

Innovations are developing rapidly, Russia has everything it takes for a breakthrough

“Technically speaking we are the market for those technologies that companies from friendly countries have today. On our side we should certainly create conditions so that apart from simply being a buyer of technology, we start implementing these technologies and producing them in the Russian Federation and the Far East in particular,” Anatoliy Bobrakov, Deputy Minister of the Russian Federation for the Development of the Far East and the Arctic.

“Generally, we have been preparing for this type of situation, and the industries are ready to face these challenges. Probably no one expected it to be as big as we see it today, but nevertheless we can say that since the end of 2014 – when the law on industrial policy was passed – we have been gradually moving towards responding to such sanctions restrictions. <...> We had to take certain measures fairly quickly. But we had a basis, we had a foundation, and thanks to that we were able to start providing state support measures rapidly,” Aleksey Uchenov, Deputy Minister of Industry and Trade of the Russian Federation.

“It will all be better – but it will be different. It will require a lot of work. <...> De facto, in order for innovations to emerge on the market there are two reciprocal streams. The first flow is called push, when fundamental science uses a long time and lots of resources to come up with some disruptive product [solutions and technologies that radically change the sphere of its implementation – Ed.], and eventually this disruptive product acquires investment potential. And there is a pull approach, when there is a need to compete in the existing industry all the time and innovation is one of the tools of competition,” Kirill Kaem, Senior Vice-President for Innovations, Skolkovo Foundation.

PROBLEMS

While working with friendly countries, it is necessary to develop Russia’s own technologies

“We are already creating special conditions for cooperation with our partners from friendly countries, so that they can localize technologies that are important to us today. Those technologies will support current production processes in key industries, including those that drive economic development within the Far East,” Anatoliy Bobrakov, Deputy Minister of the Russian Federation for the Development of the Far East and the Arctic.

“Today we see these vacant cells, which simply must be filled. <...> If we talk about priorities, above all we need to fully meet the needs of the fuel and energy complex, oil and gas producers, power engineering, transport engineering, pharmaceuticals, medicine, and, perhaps chemistry,” Aleksey Uchenov, Deputy Minister of Industry and Trade of the Russian Federation.

“We finally now have the opportunity to begin domestic production in different industries. In the name of what? In the name of technological independence. But the danger is that we could fall back on the slippery slope and start buying the same things we do not have, but now from friendly countries,” Igor Semenov, Executive Director, First Ore Mining Company.

“The recipe (at least, that is what we are practicing) is to make trusted products that have other proper attributes of a protected product: reliability, accessibility, and domestic market auditability, both for Russia and for EurAsEC. With the inevitable return to the international market and the international distribution of labour, I am sure this will prove to be our competitive advantage,” Igor Milashevsky, Chief Executive Officer, GLONASS.

Applied science remained underfunded for too long

“Applied science definitely has problems with financing. <...> That is, not only from the state – the state certainly does its part. But business, it seems to me, does not do enough. Because in this case business pays for access to this knowledge – not for tangible results, not for specific implementation – but for access to the opportunity to implement something later on,” Mikhail Gordin, Acting Rector, Bauman Moscow State Technical University.

“The Russian Federation has an excellent base, a lot of talented people, but it was missing what has been discussed here today: funding for science towards the emergence of disruptive product. For quite a long time the support was smeared evenly, and neither section of scientific development has received enough,” Kirill Kaem, Senior Vice-President for Innovations, Skolkovo Foundation.

SOLUTIONS

Growing demand can lead to development of applied technologies

“The prerequisite for the development of technology is the presence of domestic demand, and today we have an explosive growth in many areas of industry. Explosive growth, which overlaps with other mandatory conditions, plus the maximum implementation of state support measures,” Igor Semenov, Executive Director, First Ore Mining Company

“We are aiming to accelerate integration with tech companies from Asia as soon as possible and localize their technologies here. Obviously, we are the market for these technologies,” Anatoliy Bobrakov, Deputy Minister of the Russian Federation for the Development of the Far East and the Arctic.

Technological breakthrough is possible only if science, business and state work together

“A private company – if it operates in a competitive market and there are efficient owners – has clear goals. It needs to achieve its own market share through competition, basically ‘let the strongest win’. Companies invest in technology. Often state companies invest in innovations thanks to their leaders. But many state companies are the backbone of economy. They rarely compete with anyone, they often enjoy monopolist positions, they collect their rent and are not always interested in innovations,” Maxim Basov, General Director, SUEK.

“How do you get ahead in technology? It is only through the joint work of business, science, through the support of both the government and the country. I will say it again: the main issue is the institution of consumption. <...> I believe that the Russian microelectronics industry has all the prerequisites to become more import-independent and take its niche in the global market,” Teimuraz Khikhinashvili, Chairman, Israeli–Russian Business Council; Investor, ALMAZ R&P Corp.

“If we find a way to finance the application, then there will be opportunities for breakthrough technologies, and then there will be opportunities for implementation. When there is knowledge, then start-ups come into play: they know how to turn this knowledge into money,” Mikhail Gordin, Acting Rector, Bauman Moscow State Technical University

For more information, visit the Roscongress Foundation’s Information and Analytical System roscongress.org.

Winning in Technological Development

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