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Innovación incipiente en economías emergentes: ¿puede traspasar Rusia sus barreras históricas?
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Innovación incipiente en economías emergentes: ¿puede traspasar Rusia sus barreras históricas?



Innovación incipiente en economías emergentes: ¿puede traspasar Rusia sus barreras históricas?...

Innovación incipiente en economías emergentes: ¿puede traspasar Rusia sus barreras históricas?
Sheila Puffer, Northeastern University, Boston, EE.UU.
Madrid, 16 de enero de 2012.
Ciclo de conferencias 'Actividad empresarial y crecimiento: una perspectiva internacional' En colaboración con el IE Business School



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Innovación incipiente en economías emergentes: ¿puede traspasar Rusia sus barreras históricas? Innovación incipiente en economías emergentes: ¿puede traspasar Rusia sus barreras históricas? Presentation Transcript

  • Innovación incipiente en economías emergentes: ¿puede traspasar Rusia sus barreras históricas? Emerging innovation in an emerging economy: Can Russia break through its historical barriers? Sheila Puffer Madrid, 16 de enero de 2012 FUNDACIÓN RAMÓN ARECES
  • Sheila M. Puffer University Distinguished Professor Cherry Family Senior Fellow of International Business Northeastern University, Boston, USA Seminar at Ramon Areces Foundation & IE Business School, Madrid January 16, 2012 Emerging Innovation in Emerging Economies: Can Russia Break Through its Historical Barriers?
  • Coauthors
  • Russia’s Innovation Initiatives
    • Emerging economies are developing national innovation initiatives
    • Russian government now has a national innovation policy
    • Central government has committed billions of dollars
    • Regional governments have committed additional funds
  • Innovation Policy Objectives
    • Develop a knowledge-based economy
    • Diversify away from dependence on energy & natural resources
  • Institutional Theory Lens
    • Institutional theory has proven particularly useful in evaluating business & management in emerging economies
    • Formal institutional void has plagued most emerging economies
    • Informal institutions have filled that void
    • Institutional weaknesses, both formal & informal, are the fundamental barriers to innovation in most emerging economies, including Russia
  • Resources for Innovation
    • Abundance of scientific & engineering talent
    • World-class strengths in hard sciences (math, physics) but less so in biological sciences
    • Strength in idea generation
  • Barriers to Innovation
    • Institutional weaknesses – formal and informal
    • Inability to move beyond idea generation
  • Four Stages of Innovation
    • Basic research  new or improved technology
    • Product, service, or process development  product design & prototype development
    • Commercialization (bringing products to markets or test markets/beta sites)
    • Entrepreneurship or company-building stage  new companies or new directions for existing companies
  • Models of Innovation
    • Triple helix (Etzkowitz): Role of formal institutions, particularly government, universities, & companies (e.g., Silicon Valley)
    • “ The New Argonauts ” (Saxenian): Role of formal institutions and attracting overseas diaspora back to home countries (e.g., China)
    • National innovation systems (Kao): Systems orientation or eclectic approaches (e.g., Finland developing full-scale innovation system embracing research institutes & supporting institutions)
    • “ Boulevard of Broken Dreams ” (Lerner): Copying another model is seldom effective
  • Russia’s Historical Barriers
    • Resulted in an erratic experience with innovation
    • Good at invention but poor at innovation. Traditional strength in basic sciences, & some product development, but weakness in commercializing scientific breakthroughs
    • Russians were active in inventions: steam engine, light bulb, radio, airplane, laser, & many other devices & machines
  • Historical Example: Steam Engine
    • 1834: Cherepanov demonstrated first locomotive on European continent not imported from England. Yet early Russian railroads imported rolling stock.
  • Historical Example: Light Bulb
    • 1870s: Yablochkov’s light bulbs illuminated London & Paris, but German light bulbs electrified Moscow & St. Petersburg.
  • Historical Example: Airplane
    • 1912: Igor Sikorsky built the first multiengine passenger plane, but had to emigrate to the US to develop his Pan Am clippers, an early aviation success.
  • Historical Example: Computer
    • 1952: Sergei Lebedev developed first electronic computer in continental Europe, but limited to science & military. When computers were commercialized, Russia adopted IBM standards in 1974.
  • Historical Example: Laser
    • 1964: Alexander Prokhorov & Nikolai Basov shared the Nobel prize with American Charles Townes for the invention of the Maser & Laser, but Russia never commercialized products.
  • Applying Institutional Theory Historically
    • Formal institutions were totally inadequate to support most innovation beyond the idea or invention stage
    • Informal institutions, especially an entrepreneurial culture, were absent or inadequate to support later stages of innovation like product development, commercialization, or company building.
  • Russia’s Current Innovation Initiatives
    • Raised as a national priority by President Putin & later President Medvedev
    • Attempting to create an innovation ecosystem through developing a formal institutional infrastructure.
    • Investment in & restructuring includes government agencies, universities, & company involvement.
  • Four Foundations of Current Initiatives
    • Creating an innovation ecosystem through formal institutional infrastructure
    • 1. New development agencies started by federal government
    • 2. Reform of university system led by Ministry of Education & Science
    • 3. Regional development initiatives centered around new economic infrastructures
    • 4. Activities of multinational companies & foreign aid agencies.
  • 1a. New Development Agencies
    • 1994: Fund for the Development of Small Enterprises in Science & Technology (Bortnik Fund)
    • 2007: Rusnano - $10B capitalization to develop a nanotechnology infrastructure & fund training programs
    • Russian Venture Company - $1B for specialized sector-specific investment funds including new seed funds for companies to develop production operations in Russia
    • 2007 - Russian Technology State Corporation – mostly defense
    • 2011 – Russian Direct Investment Fund - $2B capitalized over 5 years by federal government to coinvest with private equity investors (China matched $1B)
  • 1b. The Skolkovo Project
    • “ Skolkovo Project Under the Foundation for Development of the Center of Research & Commercializing of New Technologies”
    • Funded by federal government; C. Barrett, V. Vekselberg, cochairs
    • Visualized as a science city, with a techno park, R&D facilities for major Russian & international tech companies (e.g., Intel, Cisco, Microsoft, & Boeing)
    • Skolkovo Institute of Science & Technology, a graduate research university being developed with MIT
    • Skolkovo Moscow Graduate School of Management in operation for 5 years
  • Skolkovo School of Management
  • 2. Reform of the University System
    • 2008: System of national research universities and federal universities linked to the high-tech sector to become centers of applied scientific knowledge
    • 2011: 29 national universities selected through a competitive process & established by presidential decree
    • Each university to receive $110m of additional funding over 5 years, doubling the overall budget for many
    • 2011: An analog to the US Bayh-Dole act emphasizes importance of universities in commercializing innovation
  • 3. New Physical Infrastructure & Regional Development Policies
    • Special economic zones where resident companies receive benefits (tax & other incentives) to encourage entrepreneurial activities. Four created in 2011.
    • Tech parks intended as new towns of 10-15k residents acting as full-fledged scientific & technological clusters. Linked to a large educational or leading scientific institution with goal of developing new technological products. In 2011 four parks existed, with nine planned.
    • Political support generally necessary to gain such favored designations.
  • 4a. International Companies
    • Intel in Russia for 20 years.Cisco has a similar history. Both committed to support sustainable development of innovation.
    • Microsoft Russia assists new companies using Microsoft software platforms. Offers competitive grants to startups.
    • IBM, Boeing, Alstom, Bouygues, EADS, Nokia, Philips, Siemens, & the Tata Group, etc.
  • 4b. International Agencies
    • The Enterprise Europe Network
    • US Foundation for Economic Advancement & the Rule of Law
    • New Eurasia Foundation
    • American Councils for International Education
    • National Council for East European & Eurasian Research
  • An Institutional Theory Lens
    • North (1990), Scott (2008) both discuss formal institutions & informal institutions, with Scott developing three pillars (regulative, cultural-cognitive, normative); as well as formal institutional voids (Khanna & Palepu, 1997).
    • Recognized as valuable for analyzing emerging economies (Ahlstrom & Bruton, 2006), companies & strategies (Peng & Heath, 1996), entrepreneurship in transition economies (May, Puffer, & McCarthy, 2005), & the development of national innovation policies (Barbosa & Faria, 2011).
  • Barriers to Innovation: Historical
    • Good at invention but poor at innovation.
    • No formal institutional support for innovation beyond idea stage from government, universities, or enterprises.
    • No informal institutional support, lack of an entrepreneurial culture, business viewed as suspect & immoral. Traditions aimed at circumventing formal institutions.
  • Barriers to Innovation: Current
    • Historical hangover from late 1980s until mid-2000s.
    • Attitudes toward entrepreneurship & business begin to change but entrepreneurships & SMEs still comprise only around 10% of Russian economy.
    • Federal government innovation initiatives highly centralized (e.g., Skolkovo), and motivation suspected by citizens.
    • Still no strong culture for entrepreneurship.
    • Instititutional support beginning, particularly formal, but informal support like cultural understanding & acceptance of entrepreneurship still lagging.
  • Breaking Through Barriers
    • Creating the formal innovation ecosystem through institutional infrastructure is a good beginning.
    • Initiatives involve coordinating activities of the federal government, regional governments, university system, & companies.
    • Russian government soliciting involvement of international firms & government agencies, particularly from the US but also from Europe, China, & India.
  • But Questions Remain
    • Most major initiatives are quite recent.
    • Virtually all deal with formal institutional restructuring.
    • Informal institutional barriers remain. Limited culture of entrepreneurship.
    • Rampant corruption, bureaucratic barriers & bribes still affects Russian entrepreneurs and prevents the return of a diaspora who could add substantial value to the later stages of the innovation process.
  • Conclusion (1)
    • Despite substantial progress, it is still too early to determine whether Russia will be successful in developing a sustainable innovation economy.
    • Need to dismantle the institution of rampant corruption
    • Need to support a culture of innovation & entrepreneurship through removing bureaucratic barriers to starting & growing businesses, & providing incentives
  • Conclusion (2)
    • Both formal & informal institutional changes are necessary to achieve Russia’s declared goals for innovation, developing a knowledge-based society, & diversifying away from energy & natural resources.