GLOBELICS ACADEMY 2005
LISBON
06.01. 2005
Innovation Strategies of
Organisations in the Framework of
Uderdeveloped NIS.
A Case of Russia
ISSEK
SU HSE
By Stanislav Zaitchenko
GLOBELICS ACADEMY 2005
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Why NIS approach?
What are the aspects to work on?
What is the Russian NIS?
What are the challenges and responses of the Russian NIS
institutions?
What is the SWOT of their strategies?
What are the integrated strategies?
What the government can and should do?
06.01. 2005
GLOBELICS ACADEMY 2005
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Methodology
Legislation documents content-analysis
Case-studies
Expert interviews
Aggregate statistical data review
Statistical analysis and modeling using available datasets
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Why NIS approach?
The key question of the study:
What would be the innovation initiatives of organisations under
conditions of unfavorable innovation climate in the country?
A number of social institutions are involved in close interdependence
in their innovation activity.
It is impossible to improve innovation climate by reforms of separate
institutions. A systematic multidimensional transition is needed.
NIS is a system of interconnected institutions to create, store and
transfer the knowledge, skills and artifacts which define new
technologies. NIS approach is the most convenient way of complex
study and policy-making in this context.
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What are the aspects to work on?
The core idea, based on learning, innovation activities, innovation
market environment and NIS institutions structure (Lundvall 1992,
Nelson 1993).
The process approach to innovation and the concept of technology
transfer (Metcalfe 1995).
The path dependency concept while studying the development of
particular innovation systems (Hollingsworth 1997). The developing
economies issue.
Scope differentiation (national-regional-organisational levels) and its
specifics.
Three dimensions of analysis: incentives (interests),
institutional/structural/functional aspect, networks.
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What is the Russian NIS?
Industrial institutions:
Innovation-providing enterprises: 4.5 – 11.8%.
Innovation-intensive production output: 0.5%.
Innovation-intensive services: 2.9%.
R&D funding: 0.88% GDP.
More than 60% of enterprises use equipment older than 15 years.
Enterprises with positive dynamics: 27%.
Low competition activity (due to low competitiveness).
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What is the Russian NIS? (Continued)
Stand-alone research institutions (SARIs):
Average age of equipment: 11 years.
Total number of organisations: 2564 (USA – 39, UK – 46, Japan - 96).
More than 70% of all Russian scientists.
During the 1990-s:
the number of employed researshers shrank twice.
the number of SARIs grew by 23%.
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What is the Russian NIS? (Continued)
Higher education institutions (HEIs):
R&D funding: 0.08% GDP.
Total number of HEIs: 1046 (63% are state institutions).
R&D-providing HEIs: 38%
R&D involved stuff: 14%.
No budget, no endowments.
No R&D status.
No mediators between HEIs and the Ministry.
06.01. 2005
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What is the Russian NIS? (Continued)
Government:
R&D expenditures: 0.33% GDP.
One Ministry responsible for education and science.
S&T priorities: common, not specified.
S&T goals and means: contradict each other.
Three R&D support foundations, underfinanced in average by 20%.
No Research assessment system.
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The “challenge matrix” *
Incentives
HEIs
Institutional aspect
Networking aspect
No R&D support and R&D out of
demand. No IPR
institutional functions
protection.
and legal support.
Isolation from the
domestic network.
SARIs
Very limited demand
for R&D
Tied to the
ministries. Isolated
from the sci. world.
Firms
High R&D risks. Low No financial market
competition.
mechanisms. No
SMB R&D support.
Poor scientific
contacts.
State
Orientation towards
current operation
problems.
Using outdated
networks from the
former USSR
Oversized SARIs
system without
market orientation.
Legal system
shortcomings. Lack
of mediators.
* No networking firms represented
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The “responce matrix” (common substrategies)
Incentives
Institutional aspect
Networking aspect
HEIs
Shrinking R&D
activities to
education practices.
Neglecting R&D
organisational
structures.
Occasional contacts.
SARIs
Replacing shrinking
R&D by other
activities.
“Institutions-onpaper”.
Using own
intellectual reserves.
Firms
Keeping old
technologies or
imitatuon strategy.
Implementing readyto-use technologies
only.
Neglecting R&D
contacts.
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SWOT for the common strategies
HEIs: “Luxury-R&D” strategy
S: Additional efforts not needed
O: Lucrative “cow-strategy”
W: Out of the HEIs elite
T: Loosing education quality
SARIs: “R&D-imitation” strategy
S: Remaining state support
O: Preserving research stuff
W: The support is very poor
T: Loosing intellectual potential
Firms: “Staying-in-shadow” strategy
S: Avoiding R&D risks and costs
O: Status-quo breaking
opportunities
W: Less effective production
T: Loosing market positions
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SWOT for the integrated common strategy
“Jungle-law” strategy
S: Only the best will survive
O: Status-quo breaking
opportunities
W: No positive impact to the
growth
T: Total NIS degeneration in long
term
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The “best substrategies matrix”
Incentives
HEIs
Provide own funding
and support
mechanisms for
R&D and IPR
Institutional aspect
Networking aspect
Lobbying own R&D
interests, using
alternative
organisational forms
for R&D
Establishing own
network, systematic
search for
internal/external
links
SARIs
Entering business as Self-restructuring to
an independent
meet the current
actor
demand on R&D
Establishing links
with foreign
institutions
Firms
Enjoying “firstForming business
comer” opportunities associations (RVCA,
RSBA)
Establishing
networking
information
exchange
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SWOT for the “best strategies”
HEIs: “We-are-the-elite” strategy
S: Independent R&D activities
O: Gaining the world standards
W: No Knowledge transfer to
other HEIs
T: HEIs more compete and less
collaborate for synergy
SARIs: “Less-but-better” strategy
S: Market-oriented behavior
O: Capturing R&D segments
W: Painfull staff reduction
T: Threat to be taken over
Firms: “Collaboration-for-competition” strategy
S: Effective synergetic efforts
O: Widening space for innovation
W: The more successful a firm
becomes the less engaged it is
T: REstarting problems for SMEs
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SWOT for the integrated “best strategy”
“Civilised-market” strategy
S: Introducing flexible market
mechanisms is more effective
O: Growth impact is getting
possible
W: Market behavior may produce T: Threats of the market failures
some negative social effects
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A set of recommendations
To establish more clear S&T policy spell-out:
Setting measurable goals and exact priorities
Eliminating goals and means mismatches
To regulate legal failures:
Improving HEIs-subinstitutions status
Avoiding double, triple etc taxation of R&D activities
Fixing state budget legislation shortcomings
To produce institutional incentives mechanisms:
Implementing research university status
Using R&D assessment and flexible support
SMB encouraging programs
To start comprehensive networking programs
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So far...
Russian HEIs seem to be the most promising structures for
innovation activity in comparison with stationary SARIs and riskavoiding firms. What can be done on this field?
1) “Input-output” model to investigate effective operation
mechanisms
2) HEIs ranking system and comprehensive support distribution
mechanisms based on it.
GLOBELICS ACADEMY 2005
The input-output model for HEIs (universities)
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Thank you
for your
attention!