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GLOBELICS ACADEMY 2005 Innovation Strategies of Organisations in the Framework of Uderdeveloped NIS. A Case of Russia ISSEKSU HSE By Stanislav Zaitchenko.

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Presentation on theme: "GLOBELICS ACADEMY 2005 Innovation Strategies of Organisations in the Framework of Uderdeveloped NIS. A Case of Russia ISSEKSU HSE By Stanislav Zaitchenko."— Presentation transcript:

1 GLOBELICS ACADEMY 2005 Innovation Strategies of Organisations in the Framework of Uderdeveloped NIS. A Case of Russia ISSEKSU HSE By Stanislav Zaitchenko LISBON

2 GLOBELICS ACADEMY 2005LISBON Why NIS approach? What are the aspects to work on? What is the Russian NIS? What are the challenges and responses of the Russian NIS institutions? What is the SWOT of their strategies? What are the integrated strategies? What the government can and should do?

3 GLOBELICS ACADEMY 2005LISBON Methodology Legislation documents content-analysis Case-studies Expert interviews Aggregate statistical data review Statistical analysis and modeling using available datasets

4 GLOBELICS ACADEMY 2005LISBON Why NIS approach? The key question of the study: What would be the innovation initiatives of organisations under conditions of unfavorable innovation climate in the country? A number of social institutions are involved in close interdependence in their innovation activity. It is impossible to improve innovation climate by reforms of separate institutions. A systematic multidimensional transition is needed. NIS is a system of interconnected institutions to create, store and transfer the knowledge, skills and artifacts which define new technologies. NIS approach is the most convenient way of complex study and policy-making in this context.

5 GLOBELICS ACADEMY 2005LISBON What are the aspects to work on? The core idea, based on learning, innovation activities, innovation market environment and NIS institutions structure (Lundvall 1992, Nelson 1993). The process approach to innovation and the concept of technology transfer (Metcalfe 1995). The path dependency concept while studying the development of particular innovation systems (Hollingsworth 1997). The developing economies issue. Scope differentiation (national-regional-organisational levels) and its specifics. Three dimensions of analysis: incentives (interests), institutional/structural/functional aspect, networks.

6 GLOBELICS ACADEMY 2005LISBON What is the Russian NIS? Industrial institutions: Innovation-providing enterprises: 4.5 – 11.8%. Innovation-intensive production output: 0.5%. Innovation-intensive services: 2.9%. R&D funding: 0.88% GDP. More than 60% of enterprises use equipment older than 15 years. Enterprises with positive dynamics: 27%. Low competition activity (due to low competitiveness).

7 GLOBELICS ACADEMY 2005LISBON What is the Russian NIS? (Continued) Stand-alone research institutions (SARIs): Average age of equipment: 11 years. Total number of organisations: 2564 (USA – 39, UK – 46, Japan - 96). More than 70% of all Russian scientists. During the 1990-s: the number of employed researshers shrank twice. the number of SARIs grew by 23%.

8 GLOBELICS ACADEMY 2005LISBON What is the Russian NIS? (Continued) Higher education institutions (HEIs): R&D funding: 0.08% GDP. Total number of HEIs: 1046 (63% are state institutions). R&D-providing HEIs: 38% R&D involved stuff: 14%. No budget, no endowments. No R&D status. No mediators between HEIs and the Ministry.

9 GLOBELICS ACADEMY 2005LISBON What is the Russian NIS? (Continued) Government: R&D expenditures: 0.33% GDP. One Ministry responsible for education and science. S&T priorities: common, not specified. S&T goals and means: contradict each other. Three R&D support foundations, underfinanced in average by 20%. No Research assessment system.

10 GLOBELICS ACADEMY 2005LISBON The “challenge matrix” * IncentivesInstitutional aspectNetworking aspect HEIsNo R&D support and demand. No IPR protection. R&D out of institutional functions and legal support. Isolation from the domestic network. SARIsVery limited demand for R&D Oversized SARIs system without market orientation. Tied to the ministries. Isolated from the sci. world. FirmsHigh R&D risks. Low competition. No financial market mechanisms. No SMB R&D support. Poor scientific contacts. StateOrientation towards current operation problems. Legal system shortcomings. Lack of mediators. Using outdated networks from the former USSR * No networking firms represented

11 GLOBELICS ACADEMY 2005LISBON The “responce matrix” (common substrategies) IncentivesInstitutional aspectNetworking aspect HEIsShrinking R&D activities to education practices. Neglecting R&D organisational structures. Occasional contacts. SARIsReplacing shrinking R&D by other activities. “Institutions-on- paper”. Using own intellectual reserves. FirmsKeeping old technologies or imitatuon strategy. Implementing ready- to-use technologies only. Neglecting R&D contacts.

12 GLOBELICS ACADEMY 2005LISBON SWOT for the common strategies HEIs: “Luxury-R&D” strategy S: Additional efforts not neededO: Lucrative “cow-strategy” W: Out of the HEIs eliteT: Loosing education quality SARIs: “R&D-imitation” strategy S: Remaining state supportO: Preserving research stuff W: The support is very poorT: Loosing intellectual potential Firms: “Staying-in-shadow” strategy S: Avoiding R&D risks and costsO: Status-quo breaking opportunities W: Less effective productionT: Loosing market positions

13 GLOBELICS ACADEMY 2005LISBON SWOT for the integrated common strategy “Jungle-law” strategy S: Only the best will surviveO: Status-quo breaking opportunities W: No positive impact to the growth T: Total NIS degeneration in long term

14 GLOBELICS ACADEMY 2005LISBON The “best substrategies matrix” IncentivesInstitutional aspectNetworking aspect HEIsProvide own funding and support mechanisms for R&D and IPR Lobbying own R&D interests, using alternative organisational forms for R&D Establishing own network, systematic search for internal/external links SARIsEntering business as an independent actor Self-restructuring to meet the current demand on R&D Establishing links with foreign institutions FirmsEnjoying “first- comer” opportunities Forming business associations (RVCA, RSBA) Establishing networking information exchange

15 GLOBELICS ACADEMY 2005LISBON SWOT for the “best strategies” HEIs: “We-are-the-elite” strategy S: Independent R&D activitiesO: Gaining the world standards W: No Knowledge transfer to other HEIs T: HEIs more compete and less collaborate for synergy SARIs: “Less-but-better” strategy S: Market-oriented behaviorO: Capturing R&D segments W: Painfull staff reductionT: Threat to be taken over Firms: “Collaboration-for-competition” strategy S: Effective synergetic effortsO: Widening space for innovation W: The more successful a firm becomes the less engaged it is T: REstarting problems for SMEs

16 GLOBELICS ACADEMY 2005LISBON SWOT for the integrated “best strategy” “Civilised-market” strategy S: Introducing flexible market mechanisms is more effective O: Growth impact is getting possible W: Market behavior may produce some negative social effects T: Threats of the market failures

17 GLOBELICS ACADEMY 2005LISBON A set of recommendations To establish more clear S&T policy spell-out: Setting measurable goals and exact priorities Eliminating goals and means mismatches To regulate legal failures: Improving HEIs-subinstitutions status Avoiding double, triple etc taxation of R&D activities Fixing state budget legislation shortcomings To produce institutional incentives mechanisms: Implementing research university status Using R&D assessment and flexible support SMB encouraging programs To start comprehensive networking programs

18 GLOBELICS ACADEMY 2005LISBON So far... Russian HEIs seem to be the most promising structures for innovation activity in comparison with stationary SARIs and risk- avoiding firms. What can be done on this field? 1)“Input-output” model to investigate effective operation mechanisms 2)HEIs ranking system and comprehensive support distribution mechanisms based on it.

19 GLOBELICS ACADEMY 2005LISBON The input-output model for HEIs (universities)

20 GLOBELICS ACADEMY 2005LISBON Thank you for your attention!


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