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Public report 03 04-2013-eng

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    Public report 03 04-2013-eng Public report 03 04-2013-eng Presentation Transcript

    • AdvisorySkolkovo FoundationRussia and Skolkovo’sattractiveness as an R&DdestinationPublic reportMarch 2013
    • The reader of this report understands that the work performed by PricewaterhouseCoopers Russia B.V. (“PwC”) wasperformed in accordance with the instructions of our addressee client, the Skolkovo Foundation (“Skolkovo”), andexclusively for Skolkovo’s sole use and benefit.The reader also acknowledges that this report was prepared at the direction of Skolkovo and may not include allprocedures deemed necessary for the reader’s purposes.The reader additionally agrees that PwC, and its partners and employees neither owe nor accept any duty orresponsibility to it, whether in contract or in tort (including without limitation, negligence and breach of statutory duty),and will not be liable for any loss, damage or expense of any kind whatsoever that may be caused by any use the readerchooses to make of this report, or which may otherwise result from the reader gaining access to this report. Further, thereader agrees that this report is not to be referred to or quoted, in whole or in part, in any prospectus, registrationstatement, offering circular, public filing, loan, other agreement or document without PwC’s prior written consent.iImportant message
    • Table of contentsSection Overview PageIntroduction1 International R&D dynamics and trends 12 Critical success factors in attracting R&D investment and Russia’s performance 83 Overview of R&D incentives globally and availability of support in Russia andSkolkovo124 Skolkovo as an innovation centre in comparison with other development institutions 19Appendices1 Glossary 28iii
    • PwCMarch 2013Public reportGiven its capabilities and investment in R&D infrastructure through Skolkovo, Russia offersfavourable opportunities for international R&D investmentSkolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationMNCs are looking to go international for additional R&D capabilities.Nowadays, leading MNCs driven by the needs of global markets are intensivelylooking for unique R&D capabilities that can generate new technologies, products andknow-how with strong commercial potential in their respective industries.Russia is a potentially attractive R&D destination for MNCs as a countrywith an extensive historical legacy in science and huge market potential.From 2002 to 2011, at least 15 MNCs established R&D centres in Russia. Among themain reasons why MNCs decide to establish R&D centres in Russia are the following:1) Extensive talent pool available in Russia, ensured by:• High level of education• Long standing scientific and engineering culture and tradition, especially inaerospace, nuclear science, engineering and software• Renowned universities and research centres• Strong track record in international educational competitions2) Commercial opportunities driven mainly by attractive domestic market:• B2C market: Russia is one of the largest consumer markets in Europe• B2B market: industrial output with a 5% annual growth rate is among thehighest in the world• B2G market: the Russian government is pursuing an ambitious modernisationprogramme covering such diverse industries as healthcare, energy, aviation,transport and utilitiesHowever, the number of foreign corporate R&D centres in Russia is verysmall in comparison with such countries as China and India, which haveattracted the majority of total outbound R&D centres over the past 10 years, at least224 and 95 centres, respectively.The average number of foreign R&D centres established annually in Russia per totalnumber of researchers in the country is the lowest among the BRIC countries: twotimes lower than in Brazil, six times lower than in China, and 18 times lower than inIndia, meaning that Russia’s R&D environment is relatively less penetrated by MNCs.Meanwhile, the Russian market is also relatively untapped as the average number offoreign R&D centres established annually in Russia per average annual GDP is alsotimes less then in China and India.In particular, this is the result of the low level of integration of Russianscience into the global scientific community and a lack of entrepreneurialculture in Russia, which is due to historical factors. Among other obstaclespreventing MNCs from establishing R&D centres in Russia is the country’s outdatedor underdeveloped R&D infrastructure, especially in the Biomedical andIndustrial Machinery industries, and administrative barriers, which partiallyresult from investors unfamiliarity with Russian legislation and business practices.Currently, the Russian government is focused on improving the country’sR&D environment to increase its attractiveness as an R&D destination.The Russian government is implementing a policy of economic modernisation andsupport for innovation. R&D support measures include:• Tax incentives for R&D: Russia provides a favourable tax regime for R&D activitycompared to other countries, including lower rates for major taxes andaccelerated depreciation of R&D expenditures at the federal level and/or withinSEZs and Skolkovo clusters• Public funding of science, including grants and venture capital through specialdevelopment institutions• Technological platforms aimed at uniting key stakeholders on a specific R&Dtask: industry (large, medium and small companies), public authorities, researchinstitutions, civil society and the academic and financial communities; suchplatforms are supported by Russian Foundation for Technology Developmentproviding preferential loans for R&D expenditures• Organising innovation clusters: the cluster approach to organising R&D allowsfor creating an innovation ecosystem that offers participants, including MNCs,easy access to partners, financial sources, professional services, infrastructurefacilities, etc.Skolkovo has successfully attracted MNCs to its R&D clusters as itaddresses the key issues such corporations face in Russia’s R&Denvironment.Skolkovo represents the Russian government’s most successful initiative for creatingR&D clusters. It has already established partnerships with several MNCs that plan toset up R&D centres at Skolkovo.MNCs see Skolkovo as a particularly attractive R&D location for the following reasons:• Access to a talent pool through the country’s leading universities and researchinstitutes located in the greater Moscow area that specialise in Skolkovo’sforesight industries (IT, Space and Telecom, Biomedical, Energy Efficiency,Nuclear)• Availability of public financial support for start-ups and access to high-technology partners• Cost effectiveness (tax incentives, large-scale construction of infrastructure)• Absence of bureaucracy and red tapeiv
    • PwCMarch 2013International R&D dynamics and trends1Section 1Skolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destination
    • PwCMarch 2013Public reportCorporate R&D spending is highest in the USA and Europe while the BRICcountries demonstrate the strongest growthSection 1 – International R&D dynamics and trends2Skolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationSources: 1) European Commission JRC; 2) PwC analysisCorporate R&D expenditures by Top-2000 companies,EUR bn , 2005-2010BRICAsiaEuropeNorthAmericaOthersRoWRoWOthersComments+4%35.1%35.1%26.6%2.6%% of region460.834.7%0.4%10.3%5.5%4.8%4.5%10.0%21.5%2.9%2.2%1.7%0.4%0.4%0.1%0.6%2005370.140.8%10.4%5.8%5.8%3.5%8.8%18.9%2.8%0.9%0.2%0.1%0.2%0.1%0.6%20101.2%• MNCs from developed countries still take the lead in R&Dspending worldwide; in 2010 they represented 96.8% (EUR 446.1bn) of corporate R&D spending, but their share has been graduallydecreasing since 2005, when it was 98.9%.• However, MNCs from the BRIC countries have demonstratedoutstanding growth in corporate R&D thus increasing steadilytheir share from 0.6% (EUR 2 bn) in 2005 to 2.6% (EUR 12 bn) in2010. This rise in the BRICs’ R&D expenses has been driven bystrong overall economic growth.• Among the BRIC countries, the most rapid growth in 2005-2010was posted by MNCs from China (53%) and India (49%). Chinaholds the leading position among BRIC countries with a share of49% in 2010. In terms of growth, Russian MNCs placed thirdamong their BRIC peers and in the world with a 29% CAGR in2005-2010, while Brazilian MNCs posted an honourable fourthplace showing with 23% of annual growth from 2005 to 2010.• Russian corporations spent on R&D EUR 193 m in 2005, whilethis figure was 3.5 times higher in 2010 at around EUR 679 m.0.6%
    • PwCMarch 2013Public reportMNCs are either seeking to access additional (sometimes cheaper) researchcapacity (talent) or are following manufacturing to adjust developmentlocally. In Russia, access to research skills is currently the main driverInternationalisedmanufacturingInternationalisedR&D1 2InternationalisedresearchInternationaliseddevelopment andmanufacturing1 2• MNCs enter new markets to ensure sustainable growththrough localising their production facilities. Proximity tocustomers allows for reducing the time to market.• At the second stage, MNCs customise and tailor their goods tolocal needs and regulatory requirements; thus, as a rule, theylocalise development centres. Occasionally, they may alsoincorporate a research centre.• This model is typical for a huge market with relatively lowscientific potential, of which China is the best example.Market-driven model Technology-driven modelApproachCommentsExample1883-18911992 20051974• Establishedas twoseparate firmswhich mergedin 1988• Hong Kongbusiness formallyestablished• Firstmanufac-turingoperationsestablished• Opened Chinese R&Dcentre focused onpower systems, robotics& manufacturingtechnologies200719931969• SamsungElectronicsestablished inSeoul, Korea• Moscowresearchcentreestablished• First plant establishedin Kaluga, focused onmanufacturinghousehold appliances(monitors, TVs, etc.)Source: PwC analysisSkolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationSection 1 – International R&D dynamics and trends31 2or• MNCs seek out new ideas and qualified talent to expand their owncompetencies. By localising their research centres, MNCs canbenefit from the host country’s existing track record, legacy andeducational system. They can also potentially expand their researchactivities through development.• At the second stage, after acquiring a good understanding of aspecific market, and if the market is attractive, MNCs may opt tolocalise their manufacturing operations.• This model is typical for countries with strong intellectual resourcesand untapped market potential, or which Russia is the best example.
    • PwCMarch 2013Public reportThe industries most likely to offshore R&D are Telecom, Software,Chemicals, Automobiles, Electronics, Pharma and SemiconductorsSection 1 – International R&D dynamics and trends4Skolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationTop industries for “exporting” R&Dcentres, Number of centres, 2002-201112335618212135364550626365697 68898Ø 38BiotechnologyGas, Water & UtilitiesOil & GasConstruction & MaterialsElectricityAlternative EnergyHealthCare E&SInternetAerospace & DefenceIndustrial MachineryComputer HardwareGeneral IndustrialsComputer ServicesE&E EquipmentSemiconductorsPharmaceuticalsAutomobilesChemicalsSoftwareTelecom12345671 23 46 75TelecomPrimary reasons for “exporting” R&D centres by MNCsSoftwareChemicals AutomobilesPharma SemiconductorsElectronic & ElectricalEquipmentProximity to customersLimited supply of technicaltalent in home countryProximity to productionfacilitiesUnique specialistsNew marketsLegal limitations in homecountryProximity tomanufacturers/customersQuest for talentOpportunity to work withreputable research institutesHigh operating costsLack of qualifiedpersonnel at homeProximity to customersNew markets: proximityto manufacturingfacilitiesSearch for talent andoutstanding technologiesProximity to suppliersNew markets: time tomarketProximity to customersProximity to producersLack of specialised talentProximity to suppliersSources: 1) Glorad database; 2) PwC analysis6.2%4.7%4.4%15.8%16.3%6.2%6.5%2.4%2.9%3.0%1.9%3.6%0.9%2.0%0.14%0.7%1.0%2.1%0.2%2.2%68%nn - Share of industry in total corporate R&D spending (average 2008-10)- SpaceTechnologies- ICT- EnergyEfficiency- Biotech- Mix: includesNuclear TechAverage share of totalR&D spending, 2008-2010Less than 10, not active“exporter”
    • PwCMarch 2013Public reportInbound R&D is highly concentrated – the clear leaders are China, Indiaand the US, with Russia placing only 9-11Section 1 – International R&D dynamics and trends5Skolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destination153799121415151521222433386195224RoWBrazilØ 45UKAustraliaJapanFranceRussiaCanadaIrelandIsraelTaiwanKoreaGermanySingaporeUSAIndiaChinaCriteria for winning modelsTop countries for “importing” R&D centres, Number of centres, 2002-20112.812.601.552.350.854.202.851.953.401.051.753.472.211.81All R&D,% ofGDPGDP,USDtn HuHuge market potential Low costs, including labour Pool of talent Political stability and favourableeconomic environment Good infrastructure Established legislative base, especiallyin IP Financial and non-financial incentives Low administrative barriers Developed educational and sciencesupport system2.2515.20.3111.30.884.470.233.091.391.552.370.184.382.232.250.921.20 2.2350%Sources: 1) Glorad database; 2) Battelle; 3) PwC analysis2011Averagemonthlysalary, USD20094,240n/a4151,200652,2303,703n/a2,6336505,0052,7314,0015,4673,93056512345678910111213141516
    • PwCMarch 2013Public reportSome countries score well across industries due to market size, while others scorewell only for a limited set of industries due to specific strengths (talent, incentives,costs, etc.); Russia is chosen mainly for its scientific talent poolSection 1 – International R&D dynamics and trends6Skolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationJapanHighly qualified personnel, internationally renowned universities, establishedIP legislation, developed infrastructureCountriesChinaIndiaUSASingaporeGermanyKoreaTaiwanIrelandCanadaFranceSource: PwC analysis1 2 3 4 56 7 8 9 10 11 12 13 14Qualified staff, English-language capabilities, IP legislation, cost effectiveness,government support , marketHighly qualified personnel, internationally renowned universities, established IPlegislation, highly developed infrastructureGovernment support, qualified personnel, clustering, infrastructure, hub for East-Asian marketHighly qualified personnel, internationally renowned universities, established IPlegislation, developed infrastructure, advanced technologiesIT infrastructure, qualified personnel, tax incentives, favourable labour costsProximity to production facilities, strong government support, developedinfrastructureEU membership, developed infrastructure, low taxation, the governments activeeconomic policy, English-speaking manpower, strong educational system andproximity and cultural similarity to the UK and the USADeveloped ICT infrastructure, easy access to US and world markets, superiorworkforce, quality of lifeHighly qualified personnel, internationally renowned universities, established IPlegislation, developed infrastructure, convenient geographical location1- Aerospace & Defence2- Telecommunications equipmentHuge market, proximity to manufacturing facilities, cost effectiveness, governmentsupportIsraelHigh R&D spending; highly educated population, especially with technicalbackground; large Jewish diaspora abroad, providing access to Western financingresources; developed telecom infrastructure      Key success factors             9- Industrial Machinery10- Chemicals7- Semiconductors8- Electronic & Electrical Equipment      - Industries with the share of more than 8% of the total number of R&D centres   13- Pharmaceuticals14- Health Care Equipment& ServicesRussiaStrong Soviet legacy in physics, mathematics and aero-space, government support, improving infrastructure    3- Software4- Computer Services5- Computer Hardware6- Internet11- General Industrials12- Automobiles & Parts
    • PwCMarch 2013Public reportOver the past 10 years, Russia has attracted approximately 15 R&D centres– the leading sectors are ICT, Aerospace & Defence and TelecomSection 1 – International R&D dynamics and trends7Skolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationSources: 1) Glorad database; 2) Company sites; 3) PwC analysis1122234Automobiles & PartsChemicalsAerospace & DefenceInternetTelecommunicationsEquipmentComputer HardwareSemiconductorsCommentsRussia’s inbound R&D centres, Number of centres, 2002-2011 Over the past 10 years, Russia has attracted 15 R&Dcentres, both Specialised Contributors and SupportedSpecialisation. The majority of R&D centres are localised to takeadvantage of Russia’s talent pool; but, there are alsocentres dedicated to product customisation and arethus market-driven. Currently, there are approximately 48 R&D units inthe leading sectors, including:1. ICT: 21 centres,2. Aerospace and Defence,Telecommunications: 7 centres,3. Chemicals: 6 centres. Among leading MNCs, Russia has hosted R&Dcentres for EMC, LG, Google, EADS, Boeing, Intel,HP, Siemens, Samsung, DuPont and Corning, amongothers.
    • PwCMarch 2013Critical success factors in attracting R&Dinvestment and Russia’s performance8Section 2Skolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destination
    • PwCMarch 2013Public reportOur Interview Programme has shown that for MNCs the most importantcountry selection factors in the R&D localisation process are personnel,stability, know-how and marketSection 2 – Critical success factors in attracting R&D investment and Russia’s performanceSkolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destination61819202934373840424547505253CostsCooperationInfrastructureLegalAcceptanceProcessesMarket/CustomersKnow-howStabilityPersonnelImageCritical massLocationCultureRegulationsRanking of CSF by importanceSources: 1) PwC Interview Programme; 2) PwC analysisMust-haveImpor-tantComments In our Interview Programme, we conducted interviewswith 24 MNCs from such industries as TelecomEquipment, Aerospace and Defence, Software,Computer Services, Computer Hardware, Internet,Pharmaceuticals, Chemicals, Healthcare Equipmentand Services, Electricity, Alternative Energy, Oil andGas, General Industrials, Electronic and ElectricalEquipment, Industrial Machinery, and Automotive andParts, both with and without R&D centres localised inRussia. Data is presented in an aggregated form: for bothresearch and development type centres. Depending on the specific industries and the R&D valuechain stage (R or D), the importance of specific factorsmay differ. All companies interviewed across all industriesindicated that the most important factors are: talent,technology, market and stability (political, social andeconomic).9
    • PwCMarch 2013Public reportGiven Russia’s world-class scientific base and its statute as one of Europe’slargest markets, the Russian government has focused on improving theR&D environment to spur corporate capital investment in R&DSection 2 – Critical success factors in attracting R&D investment and Russia’s performance10Skolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationNo. 1RUSSIA’S HUGE POTENTIAL COMMENTSWorld-class,creative, brighttalentHuge,untappedmarketopportunitiesRapidly developingnational innovationsystem# of researchers,2010, ‘000• With a large number of researchers per 10,000 ofits economically active population, Russia iscomparable to developed countries and far abovedeveloping ones.• Historically, Russia has been strong in natural andtechnical sciences, thus these disciplines accountfor about 92% of the total number of researchers.• Russia’s B2C, B2B and B2G markets are some of themost attractive in the world.• Russia represents one of the largest consumer marketsin Europe. The country’s industrial output, with 5%annual growth, is among the highest in the world.• The Russian government is carrying out an ambitiousmodernisation programme covering such sectors ashealthcare, energy, aviation, transport and utilities.Sources: 1) IMF; 2) Rosstat; 3) CIA; 4) PwC analysis• The Russian government launched one of its mostambitious and promising projects – the SkolkovoInnovation Centre – aimed at developing aninnovation-driven economy in Russia and covering fiveclusters: Information and Computer Technologies,Space Technologies, and Telecommunication, Nuclear,Energy Efficiency and Biomedical Technologies.• Skolkovo hosts a critical mass of stakeholders andoffers a comprehensive system of incentives: taxbreaks, preferential customs regime, access to fundingand infrastructure, and simplified hiring of foreignlabour.1 3 31 5 54 4 2144156505 01 005000BrazilIndiaRussiaChina1,152USA1,413951,0001,500Per 10,000 ofeconomically activepopulation821 4 33 1 044481501 02 03 04 05 01,4001,2002000GermanyRussia13USAIndia1,191China1,341GDP per capita,2011, ‘000 USDB2C market, 2010, mn ofpopulation
    • PwCMarch 2013Public reportNote: a) Cover several sectors like Electricity, Energy, Alternative Energy, Healthcare Equipment, and Industrial Machinery;b) Also relevant for specialised software in Aerospace and PharmaIn Aerospace, Internet, Nuclear Technology and Software Russia has strongcapabilities both in research and development due to the Soviet legacy inphysics, mathematics, and space technologiesSources: 1) PwC Interview Programme; 2) PwC analysisCapabilities of Russia- High - Medium - Low11Skolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationSection 2 – Critical success factors in attracting R&D investment and Russia’s performance• Longstanding scientific tradition in life sciences• Developed infrastructure for clinical tests of specific groups of illnesses• Lower labour cost in the sectors versus competitors• Attractive market size and potential• Longstanding scientific tradition in physics and mathematics• Strong partnership of research centres with civil/military companies in A&D• Lower labour cost in the sectors versus competitorsR DAerospace and DefenceTelecommunicationsR D Key advantages of RussiaSoftwareb)Computer ServicesComputer HardwareInternetSemiconductorsElectronic and EectricalEquipment (E&EE)Industrial MachineryChemicalsAutomobiles and PartsPharmaceuticalsHealthcare Equipment andServicesICB sector• Longstanding scientific tradition in mathematics proven by strongachievements of students at international contests• Creative educational process at leading universities that foster the abilityto solve non-standard tasks and issues• Employee potential in software and Internet recognised by leading IT andInternet companies• Strong Russian market growth for Internet-related industries and in-demand IT goods and services, e.g. growing broadband connectivity• SME and start-up development in IT sector• Lower labour cost in the sectors versus competitors• Longstanding scientific tradition in physics and material engineering• Market potential in these sectors due to unsatisfied demand for modernequipment, services and goods from B2C, B2B and B2G segments• Longstanding scientific and engineering culture in physics, mathematics,and material engineering• Globally renowned universities and research centres• Developed infrastructure for working with nuclear technologiesIndustrial MachineryElectricityNuclear Technologiesa)Skolkovocluster- Very high
    • PwCMarch 2013Overview of R&D incentives globally andavailability of support in Russia andSkolkovo12Section 3Skolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destination
    • PwCMarch 2013Public reportGlobally, governments support R&D start-ups and projects through specialmechanisms providing services and infrastructure, and public financing andtax incentives. While Russia does provide tax incentives and public financingfor R&D, it has not actively developed business incubators and TTOs Governments support R&D activity at different stages of R&Dprojects, mainly through:• tax incentives for private, innovation-driven companies;• providing special R&D supporting mechanisms, such astechnology transfer offices, business incubators and businessaccelerators;• providing non-revocable (grants) and revocable financingfor R&D projects (mainly through special funding anddevelopment institutions, such as public foundations, stateventure funds, development banks, etc.). Such support can be provided individually or as part of apackage based on R&D and R&D/industrial clusters, specialeconomic zones (SEZ), technoparks, technological platforms,etc. Public project financing usually requires co-financing fromprivate sources (excluding fundamental research), i.e. owncapital, venture and private capital funds, and banks. Currently, the Russian government provides mainly publicfinancing and tax incentives for R&D projects, but lags inproviding supporting mechanisms for commercialising R&Dresults. Existing innovation technoparks (Sarov, Idea) and innovationcentres (Dubna, Zelenograd) mainly provide infrastructurefacilities but very limited outsourcing and individual consultingservices to their residents. Skolkovo can be used as a platform for providing supportingmechanisms in accordance with global best practice.Section 3 – Overview of R&D incentives globally and availability of support in Russia and Skolkovo13Skolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationCommentsMaturityIncubation(pre-seed / seed)Acceleration(growth)Stage ofdevelopment Concept TechnicalvalidationMarketvalidationImplementationscaling-upInternationalexpansionIPO orM&ASalesEvolution of acompanyTransfer technology office (TTO)1-2 years(3-5 years forbiotech start-ups)Up to 1 yearBusinessincubator1 2345Supportingmechanisms Business acceleratorDuration Up to 2 years6PublicfinancingR&D taxincentivesGrants Grants, venturecapitalVenture capital,preferential loansPreferentialloansTax deductions,preferential tax ratesInvestment grants, taxdeductions, tax exemptionsSource: PwC analysisProvided bygovernmentin RussiaTo bedevelopedin RussiaMap of government support by stages of R&D project
    • PwCMarch 2013Public reportRussia offers a favourable tax regime for R&D, including reduced tax rates,accelerated depreciation of R&D expenditures and tax credits, at thefederal level as well as within SEZs and the Skolkovo clustersSection 3 – Overview of R&D incentives globally and availability of support in Russia and SkolkovoSkolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationTransition economies Mature marketsRussia China India Singapore Israel Ireland USAReduced profits tax rate 15% 17% 5%a) 10-25% 12.5%Profits tax holidays b) c)Increased tax rebate for R&D expenditures 150% 150% 150%Tax credit for R&D and investment in high-techAccelerated depreciationInclusion of some of R&D capex into revenueexpendituresd)Property tax reductionExemption from customs dues e)      Note: a) Minimal rate for a time period up to 10 years; b) Based on individual agreements; c) For designated companies; d) Only hardware for ITcompanies; e) Dues are not collectedSources: 1) Incentives for innovation 2010, PwC; 2) Russian Federation Tax Code; 3) PwC analysis                Transition economies tend toprovide higher tax rebate for R&DexpendituresMature markets offer tax credits more oftenTax polices are generally based onindividual countries’ conditions; however,similar economies may have similar policies      Available inSkolkovoand/or SEZAvailable inSkolkovoand/or SEZ14
    • PwCMarch 2013Public reportRussia has all major types of development institutions providing publicfunding for R&D at different project stagesNational development institutions in top countries/regions for inbound R&D(with overall budget)Administratorof governmentprogrammeChinaMinistry ofScience andTechnologyN/AIndia USA EU RussiaNationalventurecapitalproviderDevelopmentbanksClusters/SpecialeconomiczonesCouncil ofScientific andIndustrialResearchUSD 150mUS SmallBusinessAdministrationUSD 172mThe FederalMinistry ofEconomics andTechnology,GermanyN/ASkolkovoFoundationUSD 200mN/AUS SmallBusinessAdministrationUSD 8.2bnThe EuropeanInvestmentFundUSD 1.8 bn peryearNot used forinnovationdevelopmentNot used forinnovationdevelopmentNot used forinnovationdevelopmentTheEuropeanInvestmentBankEUR 1.4bnper yearMSP-Bank(affiliated withVEB)EUR 1.25bn peryearShenzhenSEZUsually used formanufacturingand foreign tradeSkolkovo,SEZ DubnaNot used forinnovationdevelopmentIsraelChiefScientist’sOffice~USD250mYozmaN/A--N/ARussianVentureCompanyUSD 851mN/A N/ASources: 1) Development institution websites, 2) Erawatch, 3) PwC analysisSkolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationSection 3 – Overview of R&D incentives globally and availability of support in Russia and Skolkovo15Comments The Russian government isimplementing a comprehensiveinnovation promotion programmeand developing variousmechanisms for the financialsupport for R&D, while most ofother R&D-active countries focuson specific types of developmentinstitutions. In particular, the Russiangovernment provides publicfunding for R&D through specialgovernment grant programmes, aventure capital fund of funds, adevelopment bank (preferentialcredits) and SEZs (preferential taxregime).
    • PwCMarch 2013Public reportAlthough public funding in Russia is sufficient, access to venture capitaland loans for R&D is limitedSection 3 – Overview of R&D incentives globally and availability of support in Russia and Skolkovo16Skolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationLoans andcredits forR&DGrantsVenturecapital Access to grant funds on terms that arealigned with other countries’ policies Grant programmes cover all stages of theR&D cycle Grant programme requirements are inline with other countries’ practices andrelatively easy to meet R&D loans and credit instruments arefocused only on commercialisation stage Budgets of R&D soft loan providers arelimited with voluntary contributions fromRussian companies State bank-provided funding forpreferential R&D credits requires apatent, thus significantly limiting therange of potential borrowersFinancingsources criticalfor SMEsAvailableamountEase ofaccess123High HighHigh LowMedium LowSkolkovo/Russia benchmark versus othercountriesComments on Russia Large number of investment funds withcapital to invest. RVC provides private seed capital andrisk sharing mechanisms for privatefunds. Access to venture financing for SMEs andstart-ups is limited as a result of the lackof innovation support structures andmentoring systems (business angels,professional intermediaries)Skolkovo,RussiaSBIR,USAOCS,IsraelRussia USA IsraelRussia Europe1. Total funds (USD bn)2. Max. sum of grant (USDmn)3. Time required forfunding decision (days)1. National VC Fundsavailable (USD bn)2. VC availability a)1. Development banksbudgets (USD bn)3. Ease of access to loansa)(for Europe – Germany)87 90 7010 1 0.8(Average)0.2 2.5 0.3(2010)1 8.2 0.13. Quality of proposals(based on interviews)2,3 4.0 4.5Low High High2,4 3.o1.6 1.82. Number of R&D creditsprovided by banks(indicative)Low HighNote: a) Country indicator, Global Competitive Report rating, where 1 is the lowest, 7 is the highestSource: 1) The Global Competitiveness Report 2011-2012, 2) Development institution websites; 3) PwC Interview Programme; 4) PwC analysis
    • PwCMarch 2013Public reportInitiatives introduced by the Russian government are improving Russia’sattractiveness for R&DSection 3 – Overview of R&D incentives globally and availability of support in Russia and SkolkovoSkolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationInnovation commercialisationand growth managementprogrammeInitiatives Description StatusInnovation projects supportprogrammePresidential programme“Innovations and Risks inBusiness”Allows managers to gain advanced knowledge and learnnecessary traits in the area of commercialising innovativeprojects and managing innovative companies for the purpose ofachieving competitiveness and providing substantial businessgrowthThe programme is aimed at stimulating innovative activitybetween students, researchers and scientists in the area ofinformation security and related industriesThe main objective of the programme is to educate a new categoryof specialists who will manage the development of a new productas well as its introduction to the marketTACIS projectInnovation and technologicalproject contest ‘TechnovationCup”The main goal of the "Support of Export-Orientated InnovativeSMEs“ project initiated by the Russian agency and realised on itsbase is to support and co-operate in the process of developinginnovation-driven and export-oriented SMEs with the ultimategoal of expanding trade relations between EU countries and theRussian Federation, as well as developing a “common economicspace.”The main objective of the Cup is to help project teams to markettheir product or technology in the real sector of the economy andto turn their ideas into businessesSources: 1) Programs’ websites, 2) PwC analysisEducation - MoscowState UniversityWas running2006-2008,now closedResearch Grant -Kaspersky LabType of program-Executive agentRunning since2008Education –Commission ofExecutive EducationRunning since2009Developing SMEs -Moscow Physicsand TechnologyInstituteRunningDeveloping SMEs -Enterprise EuropeNetwork Running17
    • PwCMarch 2013Public reportRussia is establishing technology platforms, primarily following the EU’sexampleSection 3 – Overview of R&D incentives globally and availability of support in Russia and Skolkovo18Skolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationEnergy ICTBio-basedeconomyProduction &processesTransportBiofuels ARTEMISg) FABREk) ConstructionPlatformAeronauticsSmartGrids ENIACh) FoodEuropeanSteelRailTPWindc) Integral SatcomInitiativeGlobal animalhealthSustainablemin resourcesRoadPhotovoltaics Net!Works NanoMedicine Manufuture WaterborneZEPd) Networked &Elect MediaPlantsFuture textiles& clothingSpaceSNEPTe) NESSIi) Forest-basedWater supply &sanitationRHCf) EUROP SusChemEPoSSj) EuMatPhotonics21IndustrialsafetyΣ 36Medicine andbio-technologiesMedicine offutureBioTech2030BioenergyICTNuclear andradiationtechnologiesElectronicsand machineryTransportProgrammingplatformNuclear fuelcycleMechatronics,roboticsAuto and railroadsSuper-computerThermonuclearfusionUHF tecb) High speed railtransportPhotonikaRadio-technologiesOceanexplorationPolymercompositesLED techa)Power system Ecology tech Metallurgy techAviationmobilityThermal powerHigh techsystemsSolid mineralsSpace PlatformRenewablesTextile andlight industrySatelliteplatformΣ 30PhotonicsAerospacePowerSmalldistributionMetallurgy andnew materialsMining and oil& gasprocessingMining techEcologydevelopmentDeepprocessing• Technology platforms are centralised, industry-led initiatives aimed at strengthening research andsetting strategic research agendas• Technological platforms include as stakeholders: industry (large, medium and small companies),public authorities, research institutions, civil society and the academic and financial communitiesSources: 1) EU Cordis; 2) Russian Federation Ministry of Economic Development; 3) PwC analysisNote: a) Light-emitting diod; b) Ultra high frequency; c) Technology Platform; d) Zero Emission Fossil Fuel Power Plants; i) Sustainable Nuclear Energy Technology Platform; f)Renewable Heating & Cooling; g) Advanced Research & Technology for Embedded Intelligence & Systems; h) The European Nanoelectronics Initiative Advisory Council; i)Networked European Software and Services Initiative; j) European Technology Platform on Smart Systems Integration; k) Farm Animal Breeding and Reproduction
    • PwCMarch 2013Skolkovo as an innovation centre incomparison with other developmentinstitutions19Section 4Skolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destination
    • PwCMarch 2013Public reportR&D clusters like Skolkovo provide a platform for efficient and effective R&Dset up and facilitation of innovationClusters increaseproductivity andefficiencyClusters stimulate andenable innovationClusters facilitatecommercialisation andnew businessformationCompetitivenessHow R&D clusters impact on a company’s competitiveness Efficient access to specialised inputs, services, employees, information, institutions, trainingprogrammes, and other “public goods”(local outsourcing) Ease of coordination and transactions across firms Rapid diffusion of best practices Ongoing, performance comparisons and incentives to improve against local rivals Proximity of rivals encourages strategic differentiation Greater likelihood of perceiving innovation opportunities (e.g., unmet needs, sophisticatedcustomers, combinations of services or technologies) Presence of multiple suppliers and institutions to assist in knowledge creation Ease of experimentation given locally available resources Opportunities for new companies and new lines of an established business are more apparent Spin-offs and start-ups are encouraged by the presence of other companies , commercialrelationships, and concentrated demand Commercialising new products and starting new companies is easier because of available skills,suppliers, etc.Sources: 1) Clusters, Innovation, and Competitiveness: New Findings and Implications for Policy, M. E. Porter, Institute for Strategy and CompetitivenessHarvard Business School, 2008; 2) PwC analysisSkolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationSection 4 – Skolkovo as an innovation centre in comparison with other development institutions20
    • PwCMarch 2013Public reportThis is why the majority of top R&D investors prefer to localise R&Dcentres in clusters across industriesDistribution of new outbound R&D centres established worldwide by topMNCs in 2002-2011 by type of localisation, Number of R&D centresTop clusters by number of new foreignR&D centres established in 2002-2011Individual R&DcentresOtherEnergy andNuclear6478%22%Industrialmachinery3557%43%Automobilesand parts6967%33%Chemicals7663%R&D centresin clusters37%BiomedicalTechnologies8479%21%AerospaceandTelecom11963%37%ICT32087%13%• Essentially, clusters can be considered asgeographical concentrations of differentplayers which simultaneously compete andcooperate within the same industry sector• If they are efficiently organised, the clustersare able to generate superior returns byfocusing innovation to create region-specificcompetitive advantageICTAerospaceTelecomBiomedicalTechnologiesEnergyEfficiencyShanghai,ChinaBeijing,ChinaBangalore,IndiaSingaporeDetroit, USA(automotive)Cluster Key foreign investorsRuhrgebiet,GermanyBangalore,IndiaShanghai,ChinaBiopolis, SingaporeBeijing,ChinaSourcse: 1) Glorad database; 2) PwC analysisSkolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationSection 4 – Skolkovo as an innovation centre in comparison with other development institutions21
    • PwCMarch 2013Public reportIn Russia, there are three main destinations for MNCs’ R&D centres;Skolkovo is the only one that has strong federal government support andcommitmentVoronezh Centre OfMicroelectronics andNanotechnology(2006)No foreign residentsSt. Petersburg SEZ (Strelna)(2005). No foreign residentsIrkutskBaikal NanotechnologyCluster (2009)No foreign residentsTomsk SEZ (2005)Kazan“Idea” Technopark(2004)No foreign residentsSarov Technopark(2005)Foreign rResidents:• Intel• CD-Adapco• Nokia – Siemens NetworksDubna SEZ(2005)No foreign residentsZelenograd SEZ/Technopark(2005/1997)Foreign residents:• BeneqR&D clusters in Russia CommentsBiomedical TechnologiesInformation andComputer TechnologiesEnergy EfficiencyTechnologiesNuclear TechnologiesSpace Technologies andTelecommunicationSpecialisationSource: 1) Skolkovo; 2) PwC analysis Most existing technopark initiatives andspecial economic zones (SEZ) mainly focus ondomestic investors and have not yetdemonstrated the ability to successfully attractforeign corporate R&D centres Moscow and St Petersburg have specialisedzones with an adjusted tax regime for residents Only selected foreign investors have opted tolocalise their R&D centres in technoparks suchas Sarov Technopark and Zelenograd SEZ In the greater St Petersburg area, MNCs havelocalised their R&D in the SEZ (Strelna),driven mainly by non-tax factors (proximity topool of scientists, city and R&D infrastructure) Skolkovo has managed to attract MNCs byproviding a comprehensive value propositionSkolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationSection 4 – Skolkovo as an innovation centre in comparison with other development institutionsOther St. Petersburg areaForeign Residents: • Corning• Giesecke & Devrient• LG Electronics• Siemens• Synopsys• Google• EMC• Hewlett-Packard• Sun• Intel• Alcatel-Lucent• MotorolaForeign partners:22• Cisco• IBM• Microsoft• EMC• Alstom• Nokia• J&J• Siemens• EADS• GE• NSN• Ericsson• Intel• SAP• Honeywell• Sсhneider
    • PwCMarch 2013Public reportSkolkovo is an ambitious project supported by the federal government withthe aim of creating five industry innovation clusters in RussiaSkolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationSection 4 – Skolkovo as an innovation centre in comparison with other development institutions23Source: SkolkovoSkolkovo Innovation Centre structureClustersTechnoparkUniversityCity Skolkovo has created five clusters (IT, Nuclear, Energy Efficiency, Space and Telecommunications,Biotechnology), which specialise in developing Russian R&D projects within selected industries. The Skolkovo Foundation, which provides grants for R&D commercialisation activities, is the mainvehicle for project support. The Skolkovo Technopark is a specialised platform which provides assistance to innovation-drivencompanies. The main services the Technopark provides for start-ups are: accounting, HR, business training andproviding offices and R&D equipment. Skoltech University is intended to be a specialised educational institution which will help developSkolkovo’s main areas and provide partner companies with well-qualified specialists. According to planes the University starts work in 2014. Now students have been attracted for learning inpartner institutes, Open University provides special training programmes for students. In 2018 15 centers of science, innovation and education are planned to launch. Skolkovo is aiming to become a city-laboratory, where innovations developed onsite will be introducedand approved. The total building space within the Skolkovo municipality will exceed 2.4m square metres.
    • PwCMarch 2013Public reportSkolkovo will help Russia overcome major obstacles in the R&D environmentby providing an innovative ecosystem necessary for acceleratingcommercialisation through easy access to network partners and financeKey issues in Russia’s R&Dinvestment climateCluster mechanisms forovercoming challenges faced• Build strong financial infrastructure and assistwith venture capital and seed financing• Attraction of anchor R&D investors and SMEs• Build R&D supply infrastructure• Technology Transfer Organisations• Business Incubators, Accelerators• Role model entrepreneurs teaching platform• Entrepreneurship mentoring programme• Social infrastructure and financial aid for mobileworkforce• Visa support/special employment terms• Cluster international visibility and internationalcollaborationGap between fundamental & appliedresearch and development / gapbetween S&E and businessLow demand for technologicalinnovation in the economyPoor entrepreneurial environment /intolerance of failure byentrepreneurs and start-upsDifficulties with risk-tolerantfinancing for SMEsLow awareness of the country’sattractiveness as a destination forcorporate R&D centresLow level of workforce mobilityClusters as an R&D ecosystem platformFormationConceptionMaturity GrowthLack Lack of qualified managersspecialised in technologicalimplementationsTechnologyTransferCommercialisationClusters &NetworksIncubators/ TTOs/Training centresStrong clusterorganisationRegulatoryEnvironmentUniversities &ResearchinstitutionsPublic and Privateirrevocable fundingTechnologiesVenture capitalCritical massof researchersemployedIndustry and researchCollaboration/PartnershipsNational and internationalresearch competitionsNationalreputationStructured clusterorganisationInternationalvisibilityShared platformsand infrastructuresVCs are wellestablished• Attracting top MNCs and R&D investors withstrong management practices to the cluster• Networking initiatives by cluster organisationKnowledgeCreationSource: 1) PwC Interview Programme; 2) PwC analysisSkolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationSection 4 – Skolkovo as an innovation centre in comparison with other development institutions24
    • PwCMarch 2013Public reportStakeholdersaiming to beorganised inclustersEmergingClustersDevelopingClustersMatureclustersWorld classclustersMost internationally known clusters are developed and have an industrialspecialisation. Skolkovo is at the embryonic stage of development, but isexpected to become an emerging cluster by the end of 2014Degree ofclusterdevelopmentClusterperformanceBubble size is proportional to the number of clusters present on the worldwide market, indicativea)ResourcesTechnologyGénopole, France (●)Medicon Valley, Denmark and Sweden (● / ●)Oslo Teknopol, Norway (●)Hokkaido, Japan (●)St. Hyacinthe, Canada (●)Biocat, Spain (●)Bioval, Spain (● /●/ ●)Rio, Brazil (●)Zhangjian, China (● )Skolkovo plan (end of 2014)Biotech Umea, Sweden (●)Biovalley, France, Germany and Switzerland (●)IAR, France (● / ●)Hamburg, Germany (●)Food Valley, The Netherlands (●)UAFC, Austria (●)Ghent, Belgium (●)Munich, Germany (● / ●)Technion, Israel (● / ●)• Biomed• Agrofood• Energy• Maritime• ICT• Aerospace• Nuclear EnergySkolkovo, Russia (● /●/ ●/ ●/ ●)Nancy, France (●)Note: a) On this slide clusters are mostly represented at the highest level of maturity: This is due to the fact that these clusters have been widely studied and used asmodels by PwCSource: PwC analysisSan Diego, USA (● / ● / ●)Cambridge, UK (●)Toulouse, France (●)Hyderabad, India (● / ●)Skolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationSection 4 – Skolkovo as an innovation centre in comparison with other development institutions25
    • PwCMarch 2013Public reportSkolkovo plans to attract a critical mass of companies and employees in itsfive clusters, which would move them to the emerging stage of development(cont’d)Skolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationSection 4 – Skolkovo as an innovation centre in comparison with other development institutionsSkolkovo plan (end of 2014)Skolkovo “As is” (March 2013)Cluster driving forces Emerging stage criteria• Jobs have been created• Some visibility (reputation)• Some funding sources havebeen mobilised• Cluster organisation has been setup• First strategic planCulturalSupportingFinancialScientificIndustrialMarket• Entrepreneurs are present• Critical mass of entrepreneurialactivity is developing• Lack of entrepreneurs • Entrepreneurs present• Critical mass of entrepreneurialactivity is developing• Cluster organisation has been set up• Services for supporting the technologycommercialisation process are providedthrough appropriate mechanisms• Cluster organisation is in theprocess of formation• Strategic plan is developing• Skolkovo grant programme hasbeen launched• Number of investment funds areaccredited by Skolkovo• 50% co-financing of Skolkovoparticipants• Venture capital has been mobilised• Research assets/labs have beeninventoried• Lack of awareness on theimportance of disclosure ofinnovation• Three shared service centres havebeen launched• First residents work in Technopark• A number of renowned universitiesand research organisations close toSkolkovo• Two core facility centres and 4 additionalshared service centres are to be launched• Techopark is being developed• Launching 5 centers of science,innovations and education within SkTech• Cluster strategy is in the linewith market needs• Adoption and transfer of newtechnology ensured• Cluster strategy is developing• Cluster strategy is in the line withmarket needs• 1000 participants• 50 R&D centers• Some visibility (reputation)Sources: 1) Skolkovo KPIs to end 2014; 2) Skolkovo management; 3) PwC Interview Programme; 4) PwC analysis26
    • PwCMarch 2013Public reportSkolkovo’s current partners confirm that it is an attractive destination forR&D localisationSkolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationSection 4 – Skolkovo as an innovation centre in comparison with other development institutions27“I don’t see too much bureaucracyand decisions are made quickly.That is very important.”Lack ofbureaucracy andred-tapeThe rightplace for acluster“We hope to find good conditions for R&Dactivity at Skolkovo, good price being one ofthem. We needed to find a place for R&Dand Skolkovo was a natural choice for us.”Attractiveconditions andcosts23Proactive andsupportiveactions4“We have not experienced any challenges yet. And at this momentwe don’t foresee any future challenges, thanks to great supportfrom the Skolkovo clusters and Key Partners Department.”Positive feedback from Skolkovo’s partners1“The possibilities offered by Skolkovo interms of infrastructure, proximity tohigh-technology partners and financialadvantages make Skolkovo an easychoice for the location of our centre.”“Skolkovo is close to Moscow and St.Petersburg, where most of the country’stalent pool is concentrated.””“Our presence at Skolkovo will givemore visibility to our R&D in Russia.”“Everything wentsmoothly.”“Skolkovo is closeto our markets.”“When we were choosing a location foran R&D centre we were looking atdifferent options including Moscow,Kiev and other cities. Access to talentand other resources was an importantfactor for choosing Skolkovo.”“We were attracted by the idea of theSkolkovo innovation ecosystem withaccess to talent. We also wanted toassociate our brand with Skolkovo.”Optimalpositioningopportunities5“From a government relationspoint of view, it is a good ideato establish an R&D centre inSkolkovo.”+Sources: 1) PwC Interview Programme; 2) PwC analysis
    • PwCMarch 2013Glossary28Appendix 1Skolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destination
    • PwCMarch 2013Public reportGlossaryA&D Aerospace and DefenceASEAN Association of Southeast Asian Nationsbn billionBRIC Brazil, Russia, India, ChinaBMI Business Monitor InternationalBB broadbandB2B Business-to-BusinessB2C Business-to-CustomerB2G Business-to-GovernmentCAGR Compounded Annual Growth RateCAPEX Capital ExpendituresCSFs Critical Success FactorsCIS Commonwealth of Independent StatesCT Corporate TechnologyD DevelopmentE&EE Electronic & Electrical EquipmentEIF European Investment FundEU European UnionEUR EuroFDI Foreign Direct InvestmentFPSES&TRussian Foundation for Promotionof Small Enterprise in Science and TechnologyFTSE Financial Times Stock Exchange share indexGERD Gross Domestic Expenditure on R&DGDP Gross Domestic ProductGE General ElectricHW HardwareHQ HeadquartersHR Human ResourcesHSE Higher School of EconomicsICB Industry Classification BenchmarkICT Information and Computer TechnologiesILO International Labour OrganisationIMF International Monetary FundIP Intellectual PropertyIPR Intellectual Property RightsIT Information TechnologyJRC Joint Research CentreJV Joint VentureKPIs Key Performance IndicatorskW kilowattMEPhI National Research Nuclear University MEPhIm millionMNC Multinational CorporationMISISNational University of Science andTechnology MISISMSU Moscow State UniversityM&A Mergers & AcquisitionsNPD Network of Product DevelopmentN/A not availableN.a. not appropriateOECDOrganisation for Economic Co-operation andDevelopmentPwC PricewaterhouseCoopersPhystech Moscow Institute of Physics and TechnologyR&D Research and DevelopmentR²R-square, goodness-of-fit measure inregression analysisR ResearchRFBR Russian Foundation for Basic ResearchRFTDRussian Foundation for TechnologyDevelopmentRSFF Risk-Sharing Finance FacilityRoW Rest of the WorldROI Return on InvestmentSkolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationAppendix 1 – Glossary29
    • PwCMarch 2013Public reportGlossary (cont’d)RVC Russian Venture CompanyS&E Science and EngineeringS&T Science and TechnologySBIR Small Business Innovation ResearchSBIRI Small Business Innovation Research InitiativeSEZ Special Economic ZonesSME Small and Medium-sized EnterprisesSTTR Small Business Technology Transfersq.m square metreTACISTechnical Assistance for the Commonwealth of IndependentStatestn trillionUNESCOUnited Nations Educational, Scientific and CulturalOrganisationTIP Technology Innovation ProgrammeTTO Technology Transfer OfficeUK United KingdomUS / USA United States of AmericaUS NSF United States National Science FoundationUSD United States DollarVAT Value Added TaxVC Venture CapitalWB World BankWEF World Economic Forum94 FL 94 Federal Law24/7 24 hours a day, 7 days a weekSkolkovo Foundation • Russia and Skolkovo’s attractiveness as an R&D destinationAppendix 1 – Glossary30
    • © 2012 PricewaterhouseCoopers Russia B.V. All rights reserved.In this document "PwC" refers to PricewaterhouseCoopers Russia B.V., which is a member firm of PricewaterhouseCoopersInternational Limited, each member firm of which is a separate legal entity.www.pwc.ru