1. PUBLIC R&D POLICY IN RUSSIA Restructuring Government S&T Institutions Tatiana Kuznetsova STATE UNIVERSITY – HIGHER SCHOOL OF ECONOMICS Institute for Statistical Studies and Economics of Knowledge STATE UNIVERSITY – HIGHER SCHOOL OF ECONOMICS Institute for Statistical Studies and Economics of Knowledge

2. Specific features of Russian S&T infrastructure, 2004 R&D organizations (3656 units) Types of units 70% - research institutes separated from universities and firms. They contribute with 80% of R&D personnel and expenditures. 11% - universities 7% - companies Ownership 70% - owned and established by federal and regional governments 28% - private or mixed ownership Funding 40% - budgetary- funded institutions 23% - belong to public scientific academies

3. Ownership of R&D organizations (main groups, %) 19941997200020022004 Total ( 100% )39684137409939063656 Government-owned74,072,571,672,173,2 e.g. – federal70,168,967,267,769,0 NGO0,31,11,50,80,7 Private3,87,39,511,711,5 Private + Mixed23,825,225,525,224,3 (without foreign participation) Foreign + Mixed (Russian and foreign shareholders) –1,01,5 1,6

4. Key policy measures to restructure Government S&T sector Introduction of new forms for public R&D institutions Modernization of the state academies Integration of science and education

5. New forms for R&D institutions: rationale The predominance of budgetary-funded organizations It distinguishes Russia from other industrial countries and science from other sectors of the Russian economy Government R&D institutions are budget- oriented and ill-suited for market environment Claiming large amounts of public funds; not providing their efficient use

6. Autonomous Institutions (AIs) Still government-owned and oriented on the State`s functions Not funded through fixed Government budgets. Wider clientelle Greater responsibility for spending resources and obtaining results Will have certain autonomy and independence in attracting (and spending) funds from non- government sources, including credits and investments

7. Strategy of Science and Innovation By 2008 AIs should amount to 12% of all government R&D institutions By 2010 - to 22% At least 200-250 R&D institutions should receive the new status in a rather short period of time

8. AIs’ related problems It is difficult to estimate the real “cost” of scientific organizations, including the intellectual property It is difficult to assess possible risks involved in their splitting, reshaping A visible shift towards protection of government interests Integration into market environment: low interest of market players to contract AIs

9. Other necessary measures to improve the institutional structure of Russian S&T To create conditions for development of independent NGO To expand the opportunities for privatization of R&D organizations and development of private S&T sector

10. What are scientific academies with government status? Academic institutes are government- owned At least 80% of all public funds allocated for basic research go through academies Five scientific academies in Russia - Russian Academy of Sciences (RAS) and sectoral academies (agricultural, medical, educational, architectural) The modernization issues are especially important for RAS: over 450 R&D organizations (more than half of all academic organizations)

11. Legal status of the state academies: combines elements of a government institution, public association, corporation, alliance Academies are government institutions and are established and funded by the State At the same time they act as holdings of different organizations. Creating an institution (e.g. an academy) consisting of many other institutions (research institutes) causes conflicts about property and other issues, and is not allowed by the Russian legislation operate as government authorities. They receive and manage budget resources allocated to research institutes are self-governing organizations. They are allowed to create and close institutes, manage and control them

12. Programme for modernization of the academy sector of science (2006-2008) Adopted in 2005 Streamlining the network of academic organizations Introducing new organizational forms of R&D Increasing salaries and cutting the number of academies' staff

13. Integration of science and education + Russia inherited from the USSR one of the largest and successful R&D and education complexes Soviet practice showed good examples of combination of fundamental education and deep science specialization – As a whole, science in the USSR was separated from higher education. The official universities’ function was training only. Except few leading universities, R&D was considered unnecessary and funded very poorly Before the breakdown of the USSR universities received just 7% of all civilian R&D funding. Almost twenty years later this figure became even smaller – 5,8% in 2005

14. Draft Law on integration of science and education describe forms and areas of integration regulate the legal status and property ownership of different integration units (basic departments, laboratories, etc.) allow R&D organizations to implement some educational programs provide a legal basis for creation of research universities

15. tkuznetzova@hse.ru Thank you