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INTERNATIONAL
                           BEST PRACTICES IN
                              INNOVATION
                             MANAGEMENT

                            PRESENTATION AT SKOLKOVO
                                BUSINESS SCHOOL
                                 NOVEMBER 2011




STEVEN GEIGER, COO, SKOLKOVO FOUNDATION
SOME BACKGROUND ON SKOLKOVO


Skolkovo is a strategic development initiative to:


                      • Diversify and grow Russia’s economy
                        through innovation and entrepreneurship
                      • Develop human capital through world-
                        class research and education

                      • Fully-integrate Russian technology
                        into the global economy

                      • Create globally-competitive
                        knowledge-based companies


                                                             2
SKOLKOVO’S RECIPE FOR INNOVATION

            Open, transparent, and fair: essential to
            attract world-class talent, institutions and
            businesses


            International standards


            Maximum private sector participation



            Self-sustaining over time



            Physical and virtual layers

                                                           3
WHAT’S THE PROBLEM IN RUSSIA?

                                          Normal Technology Life Cycle
Technology maturity / market acceptance




                                                                                  Private   Large Corporates
                                                                                  Equity

                                                                                   IPOs     Commoditization of
                                                                                               Technology
                                           Entrepreneurs
                                                             Early


                                                                           Late
                                                                     Mid




                                           Basic Applied
                                          ResearchResearch
                                                                     VC
                                                                                  Time
                                                                                                                 4
WHAT’S THE PROBLEM IN RUSSIA?

                                          Current Russian Situation
                                            The “Gap”:
                                            • Research not linked to market
Technology maturity / market acceptance




                                            • Little early-stage financing or services
                                            • Result: weak commercialization


                                                                                      Private   Large Corporates
                                                                                      Equity

                                                                                       IPOs     Commoditization of
                                                                                                   Technology

                                            Entrepreneurs
                                                                 Early


                                                                               Late
                                                                         Mid




                                           Basic Applied
                                          ResearchResearch
                                                                         VC
                                                                                      Time                           5
WHAT’S THE SOLUTION?

                         Close this gap with tools for innovation and commercialization
Technology maturity / market acceptance




                                                       Skolkovo “Ecosystem”

                                                          Skolkovo Institute
                                                                                         Large Corporates
                                                          Innovation Center
                                                            • 5 clusters
                                                                                         Commoditization of
                                                            • Technopark
                                                                                            Technology
                                                            • Key partners
                                           Entrepreneurs
                                                                     VC
                                                           Virtual Skolkovo
                                                             Early
                                                                     Mid

                                                                           Late




                                           Basic    Applied
                                          Research ResearchCity Infrastructure

                                                                                  Time
                                                                                                              6
LET’S SEE HOW THESE DRIVE INNOVATION




                         1. THE INSTITUTE




                                            7
SKOLKOVO INSTITUTE OF SCIENCE & TECHNOLOGY



                                    World’s first graduate
                                    university to fully-
                                    integrate research,
                                    education, innovation
                                    and entrepreneurship


• Core of Skolkovo ecosystem            Strategic partner:
• Source of high-caliber talent
• 1200 graduate students and 300
  faculty/post-docs by 2018
• 5 programs, 15 research centers
  (each with 3-4 labs)
                                                             8
UNIQUE PLATFORM FOR GLOBAL COLLABORATION

                  Research Centers   SIST
                                     MIT

       Energy
       Program
                                              Russian &
      IT                                    international
      Program                                institutions
      Biomed
      Program
      Space
      Program
      Nuclear
      Program




                                                   9
SO HOW DOES THIS DRIVE INNOVATION IN RUSSIA?



1. World-class R&D

2. Open platform = fresh ideas

3. Program-based = cross-disciplinary innovation

4. CEI ensures innovation is in the organization’s DNA

5. Contract research: new for Russia, change corporate
   mentality


                                                         10
2. THE INNOVATION
     CENTER




                    11
INNOVATION CENTER




                   5
              technology
                clusters




 Technopark                Key partners




                                          12
5 TECHNOLOGY CLUSTERS


                    Energy: efficiency, saving, new energy technology



                          IT: software, engineering, devices



                               Biomed: biotech, drugs, devices


                                     Space: telecoms, navigation,
 Reflecting 5
                                     imaging, life systems
modernization
priorities of the
    Russian                                 Nuclear: medicine, energy,
 government                                 materials
                                                                         13
HOW DO CLUSTERS DRIVE INNOVATION?



1. Find innovative startups

2. Pair with international experts

3. Challenge strategy

4. Provide VC interface

5. Conduct international roadshows, force companies
   to measure themselves against the best



                                                      14
TECHNOPARK

                      Skolkovo
                      Institute

                                                Other
Clusters                                     universities
                     Startups &
                      Spin-offs

                                              Skolkovo
                        Market   Corporate
           Incubation                          funds
                      assistance services


                       Funding                External
                                               VCs
                    Infrastructure
 Technopark
                                                         15
HOW DOES TECHNOPARK DRIVE INNOVATION?



1. “Nurtures” startups & spinoffs

2. Collaborative environment

3. Services (IP management, international access)

4. Interface with VCs and SIST

5. Turnover management = create sense of urgency



                                                    16
KEY PARTNERS

International companies   Russian companies




                                        17
HOW DO KEY PARTNERS DRIVE INNOVATION?


1. Create and operate R&D centers in Skolkovo

2. Bring best international practices in R&D and
   commercialization

3. Co-invest in promising Skolkovo start-ups

4. Provide early commercialization opportunities for
   Skolkovo startups

5. Fund research at SIST


                                                       18
SOME PERSONAL EXPERIENCE DRIVING OTHER
    WORLD-CLASS INNOVATION

Challenge:
Turn a tiny country (400,000 citizens) with few scientific or
technological resources into a world leader in innovative
“green” technologies

Results achieved: (2006-2010)
 • Dominant investor in “green” technology ($15 billion)
 • World’s first zero-carbon city under construction
 • Awarded UN Headquarters for Renewable Energy
 • World’s largest offshore wind farm (London Array)
 • World’s largest CSP plant (Shams 1)
 • World’s first 24-hour solar power plant (Gemasolar)
                                                                19
SOME PERSONAL EXPERIENCE DRIVING OTHER
      WORLD-CLASS INNOVATION

Case study of Masdar PV: innovative thin-film photovoltaics
Masdar PV




     August 2008            December 2008              August 2009

• Required simultaneously innovating the technology and the
  production process
• Speed was critical: 12 months from groundbreak to first production
• Intensely international: American supplier, European management,
  Middle East financing, German R&D, global market
                                                                     20
LESSONS LEARNED



• Innovation is intensive global collaboration

• Incremental innovation vs. step-change: which are you,
  does your industry accommodate, is your time-to-
  market realistic?

• Excessive attempts to limit risk inherently limit chances
  of success

• There is no alternative to innovation, learn to live with it



                                                             21
THANK YOU




      For more information, please contact:

                  Steven Geiger
                      COO
            sgeiger@corp-i-gorod.com


               Or visit our website:

                www.i-gorod.com


                                              22

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Steven Geiger - Skolkovo - International Best Practices in Innovation Management

  • 1. INTERNATIONAL BEST PRACTICES IN INNOVATION MANAGEMENT PRESENTATION AT SKOLKOVO BUSINESS SCHOOL NOVEMBER 2011 STEVEN GEIGER, COO, SKOLKOVO FOUNDATION
  • 2. SOME BACKGROUND ON SKOLKOVO Skolkovo is a strategic development initiative to: • Diversify and grow Russia’s economy through innovation and entrepreneurship • Develop human capital through world- class research and education • Fully-integrate Russian technology into the global economy • Create globally-competitive knowledge-based companies 2
  • 3. SKOLKOVO’S RECIPE FOR INNOVATION Open, transparent, and fair: essential to attract world-class talent, institutions and businesses International standards Maximum private sector participation Self-sustaining over time Physical and virtual layers 3
  • 4. WHAT’S THE PROBLEM IN RUSSIA? Normal Technology Life Cycle Technology maturity / market acceptance Private Large Corporates Equity IPOs Commoditization of Technology Entrepreneurs Early Late Mid Basic Applied ResearchResearch VC Time 4
  • 5. WHAT’S THE PROBLEM IN RUSSIA? Current Russian Situation The “Gap”: • Research not linked to market Technology maturity / market acceptance • Little early-stage financing or services • Result: weak commercialization Private Large Corporates Equity IPOs Commoditization of Technology Entrepreneurs Early Late Mid Basic Applied ResearchResearch VC Time 5
  • 6. WHAT’S THE SOLUTION? Close this gap with tools for innovation and commercialization Technology maturity / market acceptance Skolkovo “Ecosystem” Skolkovo Institute Large Corporates Innovation Center • 5 clusters Commoditization of • Technopark Technology • Key partners Entrepreneurs VC Virtual Skolkovo Early Mid Late Basic Applied Research ResearchCity Infrastructure Time 6
  • 7. LET’S SEE HOW THESE DRIVE INNOVATION 1. THE INSTITUTE 7
  • 8. SKOLKOVO INSTITUTE OF SCIENCE & TECHNOLOGY World’s first graduate university to fully- integrate research, education, innovation and entrepreneurship • Core of Skolkovo ecosystem Strategic partner: • Source of high-caliber talent • 1200 graduate students and 300 faculty/post-docs by 2018 • 5 programs, 15 research centers (each with 3-4 labs) 8
  • 9. UNIQUE PLATFORM FOR GLOBAL COLLABORATION Research Centers SIST MIT Energy Program Russian & IT international Program institutions Biomed Program Space Program Nuclear Program 9
  • 10. SO HOW DOES THIS DRIVE INNOVATION IN RUSSIA? 1. World-class R&D 2. Open platform = fresh ideas 3. Program-based = cross-disciplinary innovation 4. CEI ensures innovation is in the organization’s DNA 5. Contract research: new for Russia, change corporate mentality 10
  • 11. 2. THE INNOVATION CENTER 11
  • 12. INNOVATION CENTER 5 technology clusters Technopark Key partners 12
  • 13. 5 TECHNOLOGY CLUSTERS Energy: efficiency, saving, new energy technology IT: software, engineering, devices Biomed: biotech, drugs, devices Space: telecoms, navigation, Reflecting 5 imaging, life systems modernization priorities of the Russian Nuclear: medicine, energy, government materials 13
  • 14. HOW DO CLUSTERS DRIVE INNOVATION? 1. Find innovative startups 2. Pair with international experts 3. Challenge strategy 4. Provide VC interface 5. Conduct international roadshows, force companies to measure themselves against the best 14
  • 15. TECHNOPARK Skolkovo Institute Other Clusters universities Startups & Spin-offs Skolkovo Market Corporate Incubation funds assistance services Funding External VCs Infrastructure Technopark 15
  • 16. HOW DOES TECHNOPARK DRIVE INNOVATION? 1. “Nurtures” startups & spinoffs 2. Collaborative environment 3. Services (IP management, international access) 4. Interface with VCs and SIST 5. Turnover management = create sense of urgency 16
  • 17. KEY PARTNERS International companies Russian companies 17
  • 18. HOW DO KEY PARTNERS DRIVE INNOVATION? 1. Create and operate R&D centers in Skolkovo 2. Bring best international practices in R&D and commercialization 3. Co-invest in promising Skolkovo start-ups 4. Provide early commercialization opportunities for Skolkovo startups 5. Fund research at SIST 18
  • 19. SOME PERSONAL EXPERIENCE DRIVING OTHER WORLD-CLASS INNOVATION Challenge: Turn a tiny country (400,000 citizens) with few scientific or technological resources into a world leader in innovative “green” technologies Results achieved: (2006-2010) • Dominant investor in “green” technology ($15 billion) • World’s first zero-carbon city under construction • Awarded UN Headquarters for Renewable Energy • World’s largest offshore wind farm (London Array) • World’s largest CSP plant (Shams 1) • World’s first 24-hour solar power plant (Gemasolar) 19
  • 20. SOME PERSONAL EXPERIENCE DRIVING OTHER WORLD-CLASS INNOVATION Case study of Masdar PV: innovative thin-film photovoltaics Masdar PV August 2008 December 2008 August 2009 • Required simultaneously innovating the technology and the production process • Speed was critical: 12 months from groundbreak to first production • Intensely international: American supplier, European management, Middle East financing, German R&D, global market 20
  • 21. LESSONS LEARNED • Innovation is intensive global collaboration • Incremental innovation vs. step-change: which are you, does your industry accommodate, is your time-to- market realistic? • Excessive attempts to limit risk inherently limit chances of success • There is no alternative to innovation, learn to live with it 21
  • 22. THANK YOU For more information, please contact: Steven Geiger COO sgeiger@corp-i-gorod.com Or visit our website: www.i-gorod.com 22