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President Medvedev Stresses the Need for a Transition to an Innovation Based Economy in a Speech to the Federal Assembly


Letter published in the newspaper Rossiskaya Gazeta,
author Viktor Glukhikh,
Member of Federation Council of the Russian Federation Federal Assembly
and President of International Congress of Industrialists and Entrepreneurs


The message of the Russian President delivered at the Federal Assembly was filled with optimism and trust in the creative potential of the Russian nation.

The transformation of the economy from the export of raw material to export of innovation is a task requiring a mobilization of efforts from the whole nation, one comparable, in terms of depth and scope, with the electrification and industrialization of the country in the 20th century. Today however, the task seems much more complicated. The international political and economic systems are now much more globalized. Russia adopted a market-based economy, which calls for pragmatism and defense of private interests, prevailing in many cases over the national objectives.

In view of this, giving a greater role to the state to promote national interests receives more and more support. Indeed, a top-level initiative to overcome the economic crisis and its consequences gives results. However, it looks like the efforts of the public and legislative powers alone would not be enough to shift the national economy to the path of innovation. Efforts from ‘above’ must be complemented by efforts from “below”, both guided by the same approaches and priorities. And these two components require a third one – mutually favorable international cooperation.

In his address to the Federal Assembly, President D.A. Medvedev made a clear statement on the need for international cooperation in the process of building an innovation-based economy in Russia. One cannot disagree with this.

But the initiative from ‘below’ and international cooperation would yield the highest output only when the activity is well-focused and coordinated. The task to coordinate logically belongs to the public bodies of the business establishment and to particular innovation-oriented international organizations, which the Russian Federation is a member of.

The business communities represent the most proactive and concerned segment of the population. This is why they are called ‘entrepreneurs’ – for their enterprises. There is no doubt that the Russian Union of Industrialists and Entrepreneurs (RUIE) plays a leading role to organize and represent this segment of society. But there is a need to extend international collaboration from “below”. This initiative can readily be undertaken by the International Congress of Industrialists and Entrepreneurs (ICIE – www.ic-ie.org) in a close cooperation with the International Science and Technology Center (ISTC – www.istc.ru), headquartered in Moscow.

ICIE and ISTC have signed a cooperation agreement with a specific focus on promoting innovation development of the Russian economy. This agreement is aimed at providing proactive support to a number of crucial systemic actions under the general strategy voiced by President Medvedev in his message to the Federal Assembly on November 12, 2009, namely:

- “… there is a need to establish a permanent mechanism to provide support to talented specialists; to involve the most prominent Russian and foreign scientists, and entrepreneurs, skilled at commercializing results”;
- “… to be engaged in a search for and selection of promising projects throughout the country; to provide financial support to innovation companies, including small innovation businesses…”;
- “… to expose a greater part of projects to an international expert examination and to implement them in partnership with foreign centers and companies.”

Cooperation, in order to meet set objectives associated with the transition to a qualitatively new level of novel technology implementation and transfer, consists in mutual complementarities between organizations.

Collaborative activities make provisions for the development of an original scheme of funding a continuous innovation process; for the development and management of promotional projects.

Apart from direct innovation projects, ISTC has programs to improve skills of project participants in making good project proposals, matchmaking, making presentations, and in promoting research results. They also organize and participate in meetings, conferences, workshops and exhibitions, and science and technology forums in Russia and abroad. More specific types of support are particularly helpful: conducting market research, developing intellectual property exploitation strategies, and providing assistance during the negotiations with foreign partners.

Such a comprehensive approach to support the innovation process will ensure a valid bridging between investment markets and new technologies.

A multilateral and multidisciplinary international organization successfully operating in Russia is a substantial support in implementation of the large-scale project of transition to an innovation model of development.

In conclusion, let me stress that the success of an innovation-based economic development will be defined by the combined efforts of the private sector and the State, therefore entrepreneurs are interested in increased efficiency of governmental and intergovernmental organizations oriented towards the solution of innovation questions. To successfully accomplish the tasks defined by the RF President D.A. Medvedev, it would be reasonable to at least raise the status of the Russian Federation in the ISTC to the level of a Funding Party to the ISTC Agreement. A relevant contribution of the Russian Party would increase considerably ISTC’s potential to introduce the best world practices and to implement specific innovative projects. And ICIE will do the best to ensure a broader involvement of business partners in realizing full-cycle innovation programs.

V.K. Glukhikh
Member of Federation Council
RF Federal Assembly
President of ICIE