Yaroslavl Roadmap 10-15-20
Partner, Russia Innovation Collaborative
September 14, 2010
Preparation of Yaroslavl Roadmap
• Sponsor New York Academy of Sciences (www.nyas.org)
• Prepared for Global Policy Forum in Yaroslavl.
• Methodology of Yaroslavl Roadmap
Goal of Yaroslavl Roadmap
• Structure of Report
• Government is critical actor in creating innovation
• Different countries had different paths, but all
require strong science, entrepreneurs and
integration in world markets.
• Constructing an innovation economy is a process
requiring long-term commitment. It is not achieving
a one-time goal.
• Government policies are national, but development
of innovation is local.
Difference between Modernization
• Modernization is the utilization of best available
technology and techniques of management.
• Innovation is a new way of doing things or a
• Modernization is a very broad process spanning the
economy, government and society.
• Innovation is usually initiated by individuals or small
groups, not be large institutions – government or
Tech transfer and commercialization
Public and Seed
Funding, grants and
Innovation Ecosystems are the foundations that
support all knowledge-based activity:
Russian Tech Strengths
• Strong intellectual resources in basic science
• Sector strengths in space, atomic energy and
• Little or no spillover into domestic market
from technology in areas of sector strength
through spinoffs or startup businesses.
• Some of the institutional pieces of an
innovation ecosystem have been constructed,
i.e. Government funds like Rusnano and RVC;
tech parks, incubators and SEZs; university
commercialization offices; Skolkovo
• All recent and still developing. Not yet a
system, but separate institutions and with
Key Indicator of “Gaps”
• Investors commonly state that there are no
projects in which they can invest in Russia.
• This really means that there are few projects
that exist in the form and scale to allow for
• Points to a gap in the innovation system
commonly referred to as the “valley of death.”
Valley of Death
• Time it takes to move from a good idea to a
product that is proven and that has a
demonstrated market demand, usually
expressed in a coherent business plan.
• Requires proof of concept, refinement,
adjustment, testing, etc.
• However long a period of time this takes,
entrepreneurs need support and money to
live through the valley of death.
Support for Entrepreneurship
• Initial funding – family, friends and fools.
• Secondary funding – angel investors and
• Professional support – knowledgeable
lawyers, accountants, marketing specialists.
• Entrepreneurial community – serial
entrepreneurs and mentors.
• All are lacking or in short supply in Russia!
Culture of Entrepreneurship
• Innovation ecosystem is a set of relationships
between entrepreneurs and institutions, not a
place, not a set of laws and not a set of
• Critical to its proper functioning is that there is
a culture of entrepreneurship that is valued in
society – acceptance of risk and failure, trust
between entrepreneurs and institutions,
success stories of reward for hard work.
• Must be long-term government commitment that is accepted
• Must continue to support basic science and education.
• Must both integrate into international markets and boost
demand for innovation in domestic market.
• Accept regional differences and look for sectors and regions
where Russia has competitive advantage to become leader,
not rapid follower.
• Government (Federal, Regional and Local) at initial stage must
compensate for existing gaps in innovation system.
• The culture of entrepreneurship needs support and
• Repeat that purpose of Yaroslavl Roadmap is not to lecture,
but to promote real discussion through showing comparisons
and concrete proposals.
• The fate of Russian efforts to diversify the economy and to
become an innovation economy is in the hands of Russians,
particularly your generation.
• As such, I look forward to your questions, comments and
Daniel Satinsky, Partner
Russia Innovation Collaborative