1. Institute for Science Study, RAS Dr. Nadezhda Gaponenko Moscow, Obrutcheva str. 30A, 117485 foresightr@mail.ru July, 2011, Vancouver, Canada Russian Node Report July 2011 DR. Nadezhda Gaponenko Head of Department, Institute of Science Development Study under the Presidium of the Russian Academy of Sciences Director, Russian Node of the Millennium Project Millennium Project Planning Committee Meeting, July, 2011

2. Activity 2010-2011 State of the Future 2011 Future of Media Sectoral Innovation System: Theoretical foundations Nanotechnology : Global Trends and Regional Strategies Nanotechnology in the Russian Academy of Sciences Climate Change and Food Security for OSCE with European Environmental Agency Millennium Project Planning Committee Meeting, July, 2011

3. NANORUCER Fraunhofer ISI & ISS RAS Methodology Building Knowledge Base – 10 databases of key Russian institutions in SISn (R&D organizations (more than 700), incubators (more than 30), nanocompanies (more than 400), venture funds, TTCs (more than 100), research infrastructure centers (more than 100),ect. – Two survey – R&D organizations & nanocompanies – 200 interviews – VF and BI – Mapping NN Activity SIS Assessment Roadmaps of collaborative Projects – 3 workshops Millennium Project Planning Committee Meeting, July, 2011

4. Advisory Board CNRS, Moscow office ROSNANO Corporation RAS Millennium Project Planning Committee Meeting, July, 2011

5. R&D organizations in NN database Technology for information scanning, verification, filtering, and mapping was developed – Contact information – Location – Technological fields – Type of organization – Founding Year – R&D staffs – Facilities Database opportunities Millennium Project Planning Committee Meeting, July, 2011

6. SIS Assessment Institutional Approach – Institutional capacity – Institutional gaps – Networking capacity and gaps Evolutionary Approach Workshops Conference Millennium Project Planning Committee Meeting, July, 2011

7. Future NSF – special study in NN in Russia, memorandum of understanding Skolkovo Korea – memorandum of understanding Finland

8. Sources of information Data bases of Russian “nano” R&D organizations, nanocompanies, venture funds, incubators, CCFU, TTC Survey of R&D organizations and nanocompanies More than 200 interviews with BI managers and VF&MC managers Statistical data of Russian State Committee for Statistics Departmental statistics of MES of the RF and Corporation RUSNANO Lux research, Cienifica U.S. NSF Nanoforum European Nanotechnology Gateway Dr. Nadezhda Gaponenko Moscow, Obrutcheva str. 30A, 117485 foresightr@mail.ru Institute for Science Study, RAS Millennium Project Planning Committee Meeting, July, 2011

9. Specific Characteristics of SIS in Nanotechnology Emerging, fragmented at the initial stage With potential huge impact on NIS, structural shifts in economy, national competitiveness Marked by the institutional gaps, setting up of new institutions and transformation of traditional ones, emergence of networks, learning regime and consolidation of technologies Knowledge dynamic is an engine of SIS formation Dr. Nadezhda Gaponenko Moscow, Obrutcheva str. 30A, 117485 foresightr@mail.ru Institute for Science Study, RAS Millennium Project Planning Committee Meeting, July, 2011

10. Specific Characteristics of SIS in Nanotechnology Knowledge base – interdisciplinary – cross-sectoral – not coherent science field characterized by enormous thematic breadth Sectoral R&D system – setting up of interdisciplinary nanotechnology centers and centers of excellence around the world – expensive scientific infrastructure – consequences of knowledge commercialization (both positive and negative) are not well explored Dr. Nadezhda Gapnenko Dr. Nadezhda Gaponenko Moscow, Obrutcheva str. 30A, 117485 foresightr@mail.ru Institute for Science Study, RAS Millennium Project Planning Committee Meeting, July, 2011

11. Specific Characteristics of SIS in Nanotechnology Technology – emerging – disruptive – science-based technology Nano-market – emerging & fragmented – fast developing – Key actors are SMEs and spinoffs Networks – interdisciplinary – overlapping Dr. Nadezhda Gapnenko Dr. Nadezhda Gaponenko Moscow, Obrutcheva str. 30A, 117485 foresightr@mail.ru Institute for Science Study, RAS Millennium Project Planning Committee Meeting, July, 2011

12. Building Balanced and Adoptive SIS Common measures implemented around the world – Orientation on institutional gaps – Setting up interdisciplinary research centers – Supporting information infrastructure – Investment in scientific infrastructure – Supporting networks building – Investment in human capacity building (training courses) – Coordination of actions between different departments – building system of governance – Nanotechnology safety for consumers – Standards for SISn – Measures implemented by RF are on line with measures implemented in other programs Dr. Nadezhda Gapnenko Dr. Nadezhda Gaponenko Moscow, Obrutcheva str. 30A, 117485 foresightr@mail.ru Institute for Science Study, RAS Millennium Project Planning Committee Meeting, July, 2011

13. Building Balanced and Adoptive SIS (regions’ specific measures) USA – Orientation on dual technologies and high share of defense sector – Orientation on molecular technologies European Union – Development of Pan-European Nano – area – Building nanotech platforms – Public-private partnership – Supporting spin- offs Dr. Nadezhda Gaponenko Moscow, Obrutcheva str. 30A, 117485 foresightr@mail.ru Institute for Science Study, RAS Millennium Project Planning Committee Meeting, July, 2011

14. Building Balanced and Adoptive SIS (regions’ specific measures) Asia Pacific – Nano- standardization initiatives (China) – High share of defense sector (China) – Development of comprehensive actions for the building balanced SISn – Strong accents on commercialization (Taiwan) Latin America – Millennium centers supported by World Bank (Brazil) – Partnership with Lucent Technology (USA) for commercialization (Argentina) Dr. Nadezhda Gaponenko Moscow, Obrutcheva str. 30A, 117485 foresightr@mail.ru Institute for Science Study, RAS Millennium Project Planning Committee Meeting, July, 2011

15. Measures are based on specific conditions and available capacity BUT at the same time outlined common measures are conditioned by specific nature of nanotechnology and particularities of SISn development at the embryonic stage Millennium Project Planning Committee Meeting, July, 2011

16. Russian SIS in Nanotech: institutional set up President of the RF State Duma Government Council of Federation MES Min. of Helth& Soc. Dev. Min. of Ind. & Trade Min. of ICT Min. of Fin. General Policy making Science, Innovation & Technology Policy Formulation and Financing Regional Authorities Governmental Commission for High Tech & Innov. (2008) Fed. Space Agency. Min. of Ec. Affairs Russian Foundation for Basic Research Russian Foundation for Promotion of SMEs in S&T Venture Funds Invested in Nanotech (14- 200) Private funds Public funds Foundation for Supporting Russian science (4) International funds International S&T center Financial Infrastructure Public R&D organizations Academic research institute (201 329) Universities (279 574) Departmental R&D organizations (165) Private R&D Organizations (60) Scientific infrastructure CCFU (128) EU-241 18- EU Germany -57 Knowledge production Knowledge transfer& commercialization Incubators (33 -300) Center for technology Transfer (102) Interdepartmental S&T Council for the Development Nanotechnology &Nanomaterials (2005) Sectoral product production 417 company Dr. Nadezhda Gapnenko Dr. Nadezhda Gaponenko Moscow, Obrutcheva str. 30A, 117485 foresightr@mail.ru Com. for Modern. and Technol. Develop. of Economy (2009) Council for Science high tech& Innov. under the Speaker (2008) Public Council for Nanotech, Committee for S& high tech. (2008) Coordinating Council for Nanotech Dev., Committee for Ed.& Science (2005) Min. of Def. RUSNANO ROSATOM Corp RAS RAMSRAAS Min. of Energy Funding agencies (72) Venture and investment foundations (79) Special economic zones Technoparks 7 Venture RUSNANO Funds EU-903 Germany - 311 EU- 943 SMEs & 214 major Comp. Total -1157 RUSNANO Nanocenters- 19 RUSNANO 94 companies EU-206 networks Networks NNN About 10 regional Millennium Project Planning Committee Meeting, July, 2011

17. SISn Governance In 2007, President Putin in NN Strategy put forward the task to develop the system of governance for Nanoindustry Specialized Councils were set up in State Duma, Council of Federation Interdepartmental S&T Council for the Development NN (2005) Subcommeettee was set up in TIC of the RF Commission of RAN for Nanotech development Coordinating Expert Council for Nanotech development of RAMS Commission for Modernization and Technol. Develop. of Economy under the President (2009) Governmental Commission for High Tech & Innov. (2008) New structures are a response to multidisciplinary and multisectoral nature of NN To provide dialogue between different stakeholders, to develop the coordinated actions and to improve policy efficiency Millennium Project Planning Committee Meeting, July, 2011

18. SISn Governance Coordinating program – Program of Nanoindustry Development until 2015 (16 ministries) FTP Development of Infrastructure of Nanoindustry Program - Foundation of basic research in NN ( RAS) Program – NN in Medicine (RAMN) Millennium Project Planning Committee Meeting, July, 2011

19. Departmental barriers & interests Corruption SIS Governance Problems Millennium Project Planning Committee Meeting, July, 2011

20. Efficiency of NN Initiatives Millennium Project Planning Committee Meeting, July, 2011

21. Nanotech Investments Global Trends Phenomena of R&D expenditure trends in nano – Nanotech has attracted more funding than any S&T field – budget R&D expenditures on nanotech grows faster than budget appropriations on R&D – Although nano-market is at the initial stage as far as both basic and applied research are concentrated in public sector, corporate R&D expenditures grows faster than the public ones Millennium Project Planning Committee Meeting, July, 2011

22. Nanotech Investment How RF looked before Presidential Initiatives Budjet Investment in NN in 2004 - 2005 About 7% of global budget nanotech investment Millennium Project Planning Committee Meeting, July, 2011

23. Nanotech Investments After Presidential Initiatives - Cientifica About 20% of Global Budget Nanotech Investments (PPP) Millennium Project Planning Committee Meeting, July, 2011

24. Nanotech Investments After Presidential Initiatives - Cientifica Millennium Project Planning Committee Meeting, July, 2011

25. Program of Nanotech Development until 2015 Do not reflect all NN investments – Min. of Defense – Federal Space Agency – Corporation Rosatom (Nuclear Agency) – RAS – RAMS Budget investments in Program of Nanotech Development in 2008 – 7,7% of Global Budget nanotech investments 2008 (PPP) – 11% of Global Budget investments (2.8 times more than budget investments of Germany, 1,2 times more than Japan 2008-2015 For infrastructure development – 11% ( 2008 – 52%) For innovation projects – 56% (2008 – 2%, 2009 – 68%) Human development - 3,2% (2008 - 0,07%) R&D – 20% RAMS investments growth (16 times for 2008-2010) Millennium Project Planning Committee Meeting, July, 2011

26. R&D expenditures Statistics Total R&D expenditures 2009 – $550.000 mil. Total 2009/2008 – 8% (5%) Federal budget 2009/2008 – 15% (12.4%) Regional budget 2009/2008 – decrease 12% (14%) Share regional budget in public funding – 2.6 Federal budget 2009 – MES of the RF - 41.5% – RAS – 34.5 % Millennium Project Planning Committee Meeting, July, 2011

27. Sectoral R&D system Mapping organizations by experience and competences in NN research For majority organizations NN activity is in interval 75-25% of activity Millennium Project Planning Committee Meeting, July, 2011

28. Sectoral R&D System Human Capacity system grows out of the national innovation system and inherits its problems Key problem – R&D staff decrease EU Summit in Barcelona 2002- to increase numbers of researcher by 500 000 (376 000) In 2000-2007 number of researchers increased 250 000 Millennium Project Planning Committee Meeting, July, 2011

29. Sectoral R&D System Human Capacity Average age of researchers – 47,8 years Threat for fast developing S&T domains Brain drain (Perm) Outsourcing global race for talents Millennium Project Planning Committee Meeting, July, 2011

30. Sectoral R&D System Human Capacity On an average 47,5% organizations reported that the NN R&D staffs increased Share of foreign researchers – 0.8% but in private sector – 7.7% (EU- 6.0%) - finding Millennium Project Planning Committee Meeting, July, 2011

31. Sectoral R&D System Human Capacity Average age of researchers in NN minmax on an average SISn n an averageВ 315645,3 Academic sector 375647,2 Universities 315242,9 Organizations of ministries and agencies 415547,5 Private sector 365541,9 Some young centers are emerging - finding Promising weak signal Millennium Project Planning Committee Meeting, July, 2011

32. Sectoral R&D System Human Capacity Students number increase – promising trend Millennium Project Planning Committee Meeting, July, 2011

33. Mapping Knowledge Using Bibliographic Information Overall, nanotechnology- related papers are increasing at rates that exceed those for all publications contained in the Thompson SCI database. In 1991-2000 Russia published 1708 papers, was the 6 Millennium Project Planning Committee Meeting, July, 2011

34. Mapping Knowledge Using Bibliographic Information Cites per paper for 25 cited countries Russia, China and South Korea complete the picture Millennium Project Planning Committee Meeting, July, 2011

35. Mapping Knowledge Using Bibliographic Information 25 top ranked institutions during the 90-s 1UNIV CALIF BERKELEY39316.77 2MIT36614.67 3RICE University15627.75 4IBM CORP28215.27 5NEC CORP LTD14028.69 6HARVARD UNIV15521.15 7TOHOKU UNIV4856.69 8UNIV ILLINOIS28910.7 9 ECOLE POLYTECH FED LAUSANNE 21214.58 10USN30210.08 11GEORGIA INST TECHNOL23611.96 12NORTHWESTERN UNIV20013.01 13AT&T BELL LABS8928.92 14ACAD SINICA (Republic of China)5404.72 15ARGONNE NATL LAB19912.22 16CALTECH15414.49 17UNIV PARIS 112349.5 18UNIV CALIF SANTA BARBARA15014.77 19UNIV TOKYO3246.74 20OSAKA UNIV4224.99 21CNRS3665.72 22 RUSSIAN ACADEMY of SCIENCES 8132.47 23PENN STATE UNIV2338.38 24CORNELL UNIV17211.15 25UNIV PENN8622.24 Millennium Project Planning Committee Meeting, July, 2011

36. Mapping Knowledge Using Bibliographic Information Russia is still the 6 Share of Russia in world NN publications - 5% Millennium Project Planning Committee Meeting, July, 2011

37. Mapping Knowledge Using Bibliographic Information Number of Publications of most Productive Organizations Millennium Project Planning Committee Meeting, July, 2011

38. Mapping Knowledge Using Bibliographic Information Most Productive Organizations RankTop 7 Institutions in NN paper Publication in Russia # in 2000# in 2007# in 1976–2007 1212 Russian Academy of Sciences Ioffe Phys Tech Institute of the RAS 526 67 1072 53 6,773 649 3Moscow Lomonosov State Univ782251,421 4St Petersburg State University2373397 5Ufa State Aviat Tech University1018194 6 Joint Institute of Nuclear Research 530140 7Novosibirsk State University90110 In 2007, if compare to 2000, the number of papers increased 2.2 time, and the number of authors – 2.4 times. After year 2000, the average annual growth rate for paper publications in Russia was 11,8% (in China - 31.43%, in India 33.51%) Share of Russia in global NN publications – 3.8% Millennium Project Planning Committee Meeting, July, 2011

39. Mapping Knowledge Using Bibliographic Information Where most citated papers were published? RankJournal country Subject categories # in 2000 #in 2007 1Physical Review B United States Physics, Condensed Matter 2283 2 Physics of the Solid State Russia Physics, Condensed Matter 2963 3SemiconductorsRussia Physics, Condensed Matter 4243 4 Technical Physics Letters RussiaPhysics, Applied1956 5JETP LettersRussia Physics, Multidisciplinary 2133 6 Applied Physics Letters United States Physics, Applied1428 7 Physics of Metals and Metallography Russia Metallurgy and Metallurgical Engineering 1022 8Inorganic MaterialsRussia Materials Science, Multidisciplinary 1030 9 Journal of Experimental and Theoretical Physics Russia Physics, Multidisciplinary 1132 10 Physics of Low- dimensional Structures United States Physics, Applied; Physics, Condensed Matter 70 In 2008, Russian scholars published 1,4 more papers that in 2007, Russia's share was reduced to 3,25 Russia took the 9 th place in the top-ranked countries Russia passed forward UK and India Nanoscience funding in the 2000's has increased, compared to the 1990s, but the rank of Russia and its share in global NN publications has decreased

40. Mapping NN using patent information The annual rate of increase for all the patent publications is more pronounced between 2000 and 2008 (34.5%); it is higher than that of Science Citation Index’s article publication rate of 20–25% for the same period. Millennium Project Planning Committee Meeting, July, 2011

41. Mapping NN using patent information RankPatent office20002008 (repository) 1USA4053,729 2PRC1055,030 3Japan3281,744 4South Korea741,249 5Canada41255 6 (7) Russian Federation45162 7Germany6270 8Australia76136 9Mexico088 1010UK1468 1France838 1212Brazil0103 1313Ukraine083 1414New Zealand1118 The Rank in the table is based on the total number of nanotechnology related patent applications and on this measure the RF is on the 6th place; It is comparable with the world rank of Russian Federation in publication. Number of patent applications to patent offices outside of RF is very small - do not plan to play globally Motivations for patenting Patent is not strong defense from coping Financial issues Millennium Project Planning Committee Meeting, July, 2011

42. Bottlenecks Key problems – low demand at the home market & lack of funding (only 4% marked it like slight problem) The second echelon problems – lack of personnel & lack of required facility (only 12% marked like slight problem) Millennium Project Planning Committee Meeting, July, 2011

43. Commercialization spin-offs Effective research commercialisation requires: – a sufficient portfolio of research; – a healthy ecosystem; The most common financial needs for universities in research commercialisation are: – pre-seed capital to fund prototype development – funds to support IP protection In US – one spinoff company is generated from a research expenditure of about US$150 million – For best performers - at US$50 million In Australia - one spinoff company is generated from a research expenditure of about A$113 million for the research-intensive universities - for the medium and small research profile universities - A$303 In Russia one spinoff company is generated from research expenditures from about 45 mil. Rub.(about US$1.5 mil.) to 1 mil. Rub. (about US$33 thousands). – funding One can to conclude that Russian R&D organizations look more productive in terms of setting up spinoffs companies? Millennium Project Planning Committee Meeting, July, 2011

44. Commercialization spinoofs Type of organization minmax On an average per one org. Total 1273,2 Academic research institutes 151,9 Universities 1275,1 Organizations of ministries and agencies 111,0 Private R&D organizations 121,3 There is considerable variability in performance Millennium Project Planning Committee Meeting, July, 2011

45. Commercialization problems Lack of funding Administrative barriers to enter market Lack of experience of researchers to commercialize R&D Millennium Project Planning Committee Meeting, July, 2011

46. What could change trends in Commercialization Growing demand at the home market Public support of R&D commercialization Venture investment growth Cooperation with EU institutions Millennium Project Planning Committee Meeting, July, 2011

47. Nanomarket More than 400 companies Three subjects of federation are far ahead – Moscow (217 companies), Moscow region (52 companies) and St. Petersburg (53 companies). Nanoscience distribution across the regions of the Russian Federation plays a special role in nanomarket development at the embryonic stage. Millennium Project Planning Committee Meeting, July, 2011

48. Nanomarket Distribution of nanocompanies by size, in % About 80%- SMEs Millennium Project Planning Committee Meeting, July, 2011

49. Nanomarket Mapping nanocompanies by nanoenabled product production strarting year Millennium Project Planning Committee Meeting, July, 2011

50. Nanomarket Majority produce primary and intermediate product Millennium Project Planning Committee Meeting, July, 2011

51. Nanomarket Although nanotech are science- driven technology but to some degree are pushed by existing industry boarder, they are path dependant – High share of aerospace (52%), energy (52%) & chemical industry (50%) – Low share of ICT – Health care (33%) and pharmaceutics (30%) Millennium Project Planning Committee Meeting, July, 2011

52. Nanomarket Competitors Foreign companies occupied market No regulations Millennium Project Planning Committee Meeting, July, 2011

53. Nanomarket About 30% do not export For 36% - share of export is up to 5% of output For 27% - more than 50% Plans – ambitious; about 60% plan to have share of export more than 50% Millennium Project Planning Committee Meeting, July, 2011

54. Nanomarket Nanocompanies are mainly oriented on EU market (more than 30%) Asia on the second place Millennium Project Planning Committee Meeting, July, 2011

55. Nanomarket 28% of companies had public support during the last 5 years 6% - had venture investments Millennium Project Planning Committee Meeting, July, 2011

56. Nanomarket Growing companies Millennium Project Planning Committee Meeting, July, 2011

57. Nanomarket 91,8% of companies provide R&D 83,7% collaborative R&D projects Millennium Project Planning Committee Meeting, July, 2011

58. Nanomarket 75% of companies introduced new product in 2008-2009 96% of export –oriented companies introduced new product in 2008-2009 75% of companies introduced new technologies 90% of export oriented companies introduced novel technologies Mainly companies use their own innovations Millennium Project Planning Committee Meeting, July, 2011

59. Problems hampering nanoproduct production increase Low market demand High risk and uncertainties Administrative barriers – High credit interests – Lack of qualified personnel Millennium Project Planning Committee Meeting, July, 2011

60. Problems hampering nanoproduct export increase Lack of funding for export activity support Lack of experience Millennium Project Planning Committee Meeting, July, 2011

61. Business incubators Millennium Project Planning Committee Meeting, July, 2011

62. Venture funds and management companies Millennium Project Planning Committee Meeting, July, 2011

63. R&D organizations of different type Millennium Project Planning Committee Meeting, July, 2011

64. Nanocompanies

65. CCFU

66. TTC

67. Conclusions SISn is a growing system with fast institutional changes, emerging system of governance Geopolitically oriented mostly on EU; in R&D – EC policy Key players – MES, RUSNANO and RAS RUSNANO – challenge – Global player from the very beginning – With healthy ambitious – Building common Russian nanoarea – Institutional gaps – Building human capacity Public authorities measures are oriented on the research infrastructure development, “filling” institutional gaps in SIS; they are on line with actions implemented in other countries Millennium Project Planning Committee Meeting, July, 2011

68. Conclusions Russian SISn remains fragmented and misbalanced The main R&D capacity is concentrated in academic sector, some universities and in some R&D organizations of branch science In basic research Russian science is still among the leaders although step by step it yields its positions to new leaders Underdeveloped corporate sector of science; Lack of strong R&D organizations, which perform under the umbrella of corporations; hamper technology development and commercialization Underdeveloped infrastructure for technology transfer and commercialization lack of venture capital & specialized incubators Administrative barriers and lack of experience hamper technology transfer and commercialization Millennium Project Planning Committee Meeting, July, 2011

69. Conclusions Cultural issues impact SISn trajectory – Russian R&D organizations do not have traditions for the commercialization of research results or for the handling of patents and other IPR – shortage of individuals ready to combine science and business carrier – weak entrepreneurial tradition. At the home nanomarket dominate foreign companies Majority of Russian companies are SMEs and spin-offs; administrative barriers, high credit interest and lack of qualified personnel hamper them to develop their business Many Russian companies export nanoenabled product and have healthy ambitious, but lack of experience and lack of public support hamper export capacity growth lack of networks and lack of actions to support networks SISn is path dependent; problems formed in NIS impact SISn trajectory Millennium Project Planning Committee Meeting, July, 2011