Clusters are geograpbic concentrations of interconnected companies and institutions in a particular field. Clusters encompass an array of linked industries and other entities important to competition. They include, for example, suppliers of speeialized inputs sucb as components, macbinery, and services, and providers of specialized infrastructure. Clusters also often extend downstream to channels and customers and laterally to manufacturers of complementary products and to companies in industries related by skills, technologies, or common inputs. Finally, many clusters include governmental and other institutions - such as universities, standards-setting agencies, think tanks, vocational training providers, and trade associations - that provide specialized training, education, and information.
This is a brief research on Skolkovo Innovation Center - the technology cluster in Russia.
6. The Cluster Principle
‘Eco-system for innovative companies’
Primary objective: coordinating all activity in a certain
direction
Interconnectivity between the university, large companies,
new initiatives/startups support
10. Residents at SIC
20-30% acceptance rate
Benefits: Resident Status & Grant
→ Skolkovo Foundation, Rusnano, Rostelecom, Russian
Venture Company, ITFY
→ Research institutes SOU and SIT
12. Why Russia?
100 billionaires
8th largest economy in the world
Largest internet/mobile market in Europe
Capital investments from both Domestic/international firms
abroad
Dedicated human capital
14. Economic & Political Impact
•
•
Promote technology transfer from around the world
Stimulate innovation and entrepreneurship in Russia
The Skolkovo Foundation hopes that, ultimately, the new center will help
modernize Russia’s economy, transforming it from an economy based
on natural resources (oil and gas) to one based on innovation and
scientific development.
15. Economic & Political Impact
Skolkovo was set up as an innovation playground with its own laws, customs
and immigration rules and other regulations
•
•
achieve quick wins in terms of establishing new technology companies and
developing a number of new technologies in Skolkovo itself
develop and test a business environment that could later be expanded out
to the rest of the country
17. The Institute
The Massachusetts Institute of Technology has
entered into a three year agreement to develop
the new graduate university
Plans to enroll 1,800 graduate students
Sent an initial class of 21 students for a year of
study abroad
18. The Institute
•
Legislation requiring state enterprises to set aside a percentage of their
revenue for The Skolkovo Institute of Science and Technology (SKTech),
depending on the profitability of its industrial sector
Plan → energy sector - 5%
Realization → only JCJ Russian Railways contributed 1%
19. Investments
Skolkovo is making selected investments in foreign technology companies
⇒ Palo Alto– based firm Jelastic which has created a cloud platform for Java
applications
⇒ received US$1 million in funding from Skolkovo and would establish a
secondary office there to develop security features enabling governments and
corporations to use the platform
20. Economic Impact
•
•
•
•
running nearly 1,000 startups
has created 12,000 highly skilled jobs
o each job equals ‘10’ ordinary jobs
o contribution to Putin’s program to create 25 million Russian jobs by 2020
25% of Russian patents came from Skolkovo
first eight months of 2013, more than $43.1 million was invested in Skolkovo
startups
Viktor Vekselberg
President of the Skolkovo Foundation
24. Irregularities
• “Out of control and extravagant” spendings of
•
government funds - $3.9 billion
17 grants for a sum of $113 million distributed
without any expert review
o Members of grant commision, including foundation
president, found benefiting from lax grants issuing
25. West vs East Influence
• Skolkovo is Western-oriented innovation center
o Partnership with MIT
o Active recruitment of staff, students, and companies from
Europe and North America
• But…
o Should Skolkovo be turning to the East to maximize
Russian trade and economic cooperation with Asia
instead?
26. Long or Short Term Solution?
• “Potemkin village” or Catalyst For Change?
• Weak laws, heavy taxation, fickle government
•
support
Tax break and “Startup Visa” a joke
o Too short-lived (lasting only 5 - 7 years)
o Russian law would intervene again after
27. Made In Russia?
• Most Startups are NOT incorporated in Russia
o Registered in other countries with more business and
investor friendly corporate law structure
• Cyprus
o Proximity
o Superior intellectual property protection
o Long-term adhesion to those laws
28. To Be Considered A Success...
• Create and strengthen a functioning “system of
innovation”
o Public and private sector interact, exchange knowledge,
and learn from technologies
• Encourage the creation of start-ups
o Act as specialised suppliers for other firms nationally and
globally
29. Cont.
• Innovation city MUST avoid predators in the
Russian state
o Come clean from corrupt officials who make large
individual gains at the expense of public money
30. Challenges Faced
• Birth of successful global tech companies
• Make $$$ < Spend $$$
• Turn ideas into profitable solution
• Trust from decision makers
o Russian politicians, in general, are distrustful of
innovations they don’t understand
