MOSCOW 2008
Transcription
MOSCOW 2008
MOSCOW 2008 IPR_digest_eng.indb 1 1/14/09 8:50:43 PM IPR_digest_eng.indb 2 1/14/09 8:50:47 PM COMMITTEE FOR EDUCATION AND SCIENCE OF THE FEDERATION COUNCIL COMMITTEE FOR SCIENCE AND SCIENCE-INTENSIVE TECHNOLOGIES OF THE STATE DUMA A D I G E S T EXPERT COUNCIL FOR INITIATIVES IN SCIENTIFIC AND TECHNICAL POLICY OF THE COMMITTEE FOR SCIENCE AND SCIENCEINTENSIVE TECHNOLOGIES OF THE STATE DUMA AND THE COMMITTEE FOR EDUCATION AND SCIENCE OF THE FEDERATION COUNCIL CENTER OF STRATEGIC PARTNERSHIP MOSCOW 2008 IPR_digest_eng.indb 3 1/14/09 8:50:47 PM This publication has been supported by: OAO M AY C OM PA N Y Z AO M E T T E M T E C H NO L O G I E S E KOM I R G R O U P NEW ECONOMY: INNOVATION INSIGHT INTO RUSSIA This informational and analytic publication deals with topical problems concerning the transition of the Russian economy to the innovational path of development and the forming of a unified national innovational system. Members of the legislative bodies, heads of ministries and agencies, leaders of administrations of Russian regions, renowned scientists, and businesspeople wrote their articles for this book, reflecting the entire large-scale innovational landscape of the national economy, identifying problems of the implementation of the scientific and technical policy, and describing the current status and prospects of legal, organizational and human-resource support of innovation activity. The book offers valuable experience of practical activity aimed at economic modernization of the nation. It will become a useful data source for a wide circle of managers and specialists that participate in the forming of Russia’s innovation economy. The digest of the publication includes translations of its selected articles providing insight into key issues concerning the innovational development of the Russian economy covered in the publication. The digest includes a special section formed as a catalog representing examples of successful application of innovations by Russian companies, mostly small and medium ones. ISBN 978-5-91595-009-1 © Center of Strategic Partnership, 2008 IPR_digest_eng.indb 4 1/14/09 8:50:50 PM EDITORIAL COUNCIL Sergey Aldoshin VICE-PRESIDENT OF THE RUSSIAN ACADEMY OF SCIENCES Khuseyn Chechenov CHAIR OF THE COMMITTEE FOR EDUCATION AND SCIENCE OF THE FEDERATION COUNCIL, CO-CHAIR OF THE EDITORIAL COUNCIL Valery Chereshnev CHAIR OF THE COMMITTEE FOR SCIENCE AND SCIENCE-INTENSIVE TECHNOLOGIES OF THE STATE DUMA, CO-CHAIR OF THE EDITORIAL COUNCIL Andrey Dementyev DEPUTY MINISTER OF INDUSTRY AND TRADE OF THE RUSSIAN FEDERATION Alexander Gintsburg VICE PRESIDENT OF THE RUSSIAN ACADEMY OF MEDICAL SCIENCES Marat Kambalov DEPUTY HEAD OF THE FEDERAL AGENCY FOR SCIENCE AND INNOVATIONS Sergey Kolesnikov DEPUTY CHAIR OF THE COMMITTEE FOR HEALTHCARE OF THE STATE DUMA Aleksey Korobov CEO, OAO RUSSIAN VENTURE COMPANY Yury Maslyukov CHAIR OF THE COMMITTEE FOR INDUSTRY OF THE STATE DUMA Vladimir Matyukhin HEAD OF THE FEDERAL AGENCY FOR INFORMATION TECHNOLOGIES Nikolay Moiseyev DIRECTOR OF THE DEPARTMENT OF DEFENSE INDUSTRY AND HIGH TECHNOLOGIES OF THE GOVERNMENT OF THE RUSSIAN FEDERATION Nikolay Nikandrov PRESIDENT OF THE RUSSIAN ACADEMY OF EDUCATION Andrey Petrushin DEPUTY HEAD OF THE FEDERAL AGENCY FOR SPECIAL ECONOMIC ZONE MANAGEMENT Irina Ponomareva EXECUTIVE DIRECTOR OF NEW ECONOMY: INNOVATION INSIGHT INTO RUSSIA, EXECUTIVE SECRETARY OF THE EDITORIAL COUNCIL Yury Sentyurin SECRETARY OF STATE – DEPUTY MINISTER OF EDUCATION AND SCIENCE OF THE RUSSIAN FEDERATION Vladislav Zinchenko DEPUTY GOVERNOR OF THE TOMSK REGION FOR SCIENTIFIC, TECHNICAL AND INNOVATIONAL POLICY AND EDUCATION IPR_digest_eng.indb 5 1/14/09 8:50:50 PM A DV I S O R Y C O U N C I L Vasily Arzhantsev HEAD OF STAFF OF THE COMMITTEE FOR EDUCATION AND SCIENCE OF THE FEDERATION COUNCIL Ivan Bliznets RECTOR OF THE RUSSIAN STATE INSTITUTE OF INTELLECTUAL PROPERTY Anatoly Dmitriyevsky DIRECTOR OF THE INSTITUTE OF OIL AND GAS PROBLEMS OF THE RUSSIAN ACADEMY OF SCIENCES Tatyana Dobrynina GENERAL DIRECTOR OF THE PARLIAMENTARY CENTER FOR SCIENCE-INTENSIVE TECHNOLOGIES AND INTELLECTUAL PROPERTY OF THE STATE DUMA OF THE FEDERAL ASSEMBLY OF THE RUSSIAN FEDERATION Grigory Elkin HEAD OF THE FEDERAL AGENCY ON TECHNICAL REGULATION AND METROLOGY Andrey Fonotov DIRECTOR OF THE RUSSIAN FOUNDATION FOR TECHNOLOGICAL DEVELOPMENT Evgeny Kablov CHAIR OF THE BOARD AND PRESIDENT OF THE ASSOCIATION OF STATE RESEARCH CENTERS Mikhail Kirpichnikov DEAN OF THE BIOLOGY DEPARTMENT OF THE LOMONOSOV MOSCOW STATE UNIVERSITY Mikhail Kuznetsov DIRECTOR OF THE UNION FOR DEVELOPMENT OF SCIENCE CITIES OF RUSSIA Viktor Lazarev ADVISOR TO THE SPEAKER OF THE FEDERATION COUNCIL OF THE FEDERAL ASSEMBLY OF THE RUSSIAN FEDERATION Vyacheslav Panov HEAD OF STAFF OF THE COMMITTEE FOR SCIENCE AND SCIENCE-INTENSIVE TECHNOLOGIES OF THE STATE DUMA Ekaterina Popova ASSISTANT CHIEF OF THE PRESIDENTIAL ADMINISTRATION OF THE RUSSIAN FEDERATION Gennadiy Shmal CHAIR OF THE UNION OF OIL AND GAS PRODUCERS OF RUSSIA Olga Uskova PRESIDENT OF THE NATIONAL ASSOCIATION FOR DEVELOPMENT OF INNOVATION TECHNOLOGIES (NAIRIT) IPR_digest_eng.indb 6 1/14/09 8:50:50 PM DIRECTORATE OF THE PUBLICATION Vladimir Pankov PRESIDENT, CENTER OF STRATEGIC PARTNERSHIP Viktor Kuznetsov CEO, CENTER OF STRATEGIC PARTNERSHIP Irina Ponomareva EXECUTIVE DIRECTOR OF THE PUBLICATION EDITORIAL BOARD Vyacheslav Fetisov ASSISTANT DEPUTY OF THE STATE DUMA OF THE FEDERAL ASSEMBLY OF THE RUSSIAN FEDERATION Vladimir Goncharenko DEPUTY HEAD OF STAFF OF THE COMMITTEE FOR SCIENCE AND SCIENCE-INTENSIVE TECHNOLOGIES OF THE STATE DUMA Lyudmila Kleyeva HEAD OF THE SECTOR FOR MONITORING THE STATE OF THE SCIENCE AND TECHNOLOGY OF THE INSTITUTE OF SCIENCE DEVELOPMENT PROBLEMS OF THE RUSSIAN ACADEMY OF SCIENCES Levan Mindeli DIRECTOR OF THE INSTITUTE OF SCIENCE DEVELOPMENT PROBLEMS OF THE RUSSIAN ACADEMY OF SCIENCES Dmitry Pankov EDITOR-IN-CHIEF IPR_digest_eng.indb 7 1/14/09 8:50:50 PM EDITORS Dmitry Pankov EDITOR-IN-CHIEF Mariya Malinkina PREPRESS MANAGER Yury Butov PROJECT DESIGNER Svetlana Botova EDITOR Dinara Zigangirova MANAGING DIRECTOR OF TRANSLATION Dmitry Borok TRANSLATION EDITOR Valeri Sivokon ASSISTANT TRANSLATION EDITOR IPR_digest_eng.indb 8 1/14/09 8:50:50 PM IPR_digest_eng.indb 9 1/14/09 8:50:50 PM IPR_digest_eng.indb 10 1/14/09 8:50:54 PM Dmitry Medvedev PR E SI DE N T OF T H E RUS SI A N F E DE R AT ION Our key priority is production and (later) export of knowledge, new technologies, and advanced culture. Which means winning the leading positions in science, education, and arts. We have to be at the cutting edge of innovations in principal fields of economy and social life. It is a goal worth spending money for, where neither the government nor the business should be tight-fisted, even in the period of certain financial difficulties. FROM A MESSAGE TO THE FEDERAL ASSEMBLY OF THE RUSSIAN FEDERATION, MOSCOW, NOVEMBER 5, 2008 Vladimir Putin C H A I R OF T H E G OV E R N M E N T OF T H E RUS SI A N F E DE R AT ION It is already in the coming years that we should improve the performance of the principal, backbone industries of the Russian economy (transport, fuel and energy, banking, agriculture, and others) considerably. Progress must be made in the building of the national innovation system and competition development; more reliable guarantees of property rights protection should be formed. The emerging economic growth factors, above all those related to the human potential development, are be used fully. FROM A SPEECH AT THE MEETING OF THE GOVERNMENT OF THE RUSSIAN FEDERATION, MOSCOW, OCTOBER 1, 2008 IPR_digest_eng.indb 11 1/14/09 8:50:54 PM IPR_digest_eng.indb 12 1/14/09 8:50:58 PM Topical Problems of Russia’s Innovational Development Sergey Mironov Speaker of the Federation Council of the Federal Assembly of the Russian Federation Perhaps it is today that the question of Russia’s role in the modern world, of the paths its development will take is important like it has never been before. The ongoing world crisis is calling for a quick and clear answer to this question. The roots and causes of the crisis are lying beyond the scope of the Russian economy but, as Russia is closely connected to other world economic centers and has numerous international economic ties, the crisis inevitably affected us. However, we have everything necessary to protect the country from the negative impact of the international market trends, as our financial systems and economy as a whole have the necessary safety margin built up in the previous years. Russia’s position in the international division of labor must correspond to its scientific, industrial and human resource potentials. To achieve this, innovation processes must be activated and the economy competitiveness enhanced considerably. The present developments bring the problem of competitiveness of goods, services, industries and the national economy as a whole to the forefront. Russia’s coming out of the current crisis is largely due to the financial resources accrued by the state from the exports of natural resources. Today these funds are helping to maintain the stability of the financial system. In order to overcome the crisis as soon as possible, Russia needs an efficient and comprehensive modernization policy that will enable maintaining and developing things that are needed not just for momentary survival but for longterm sound development of the country and its society. It is clear as noonday that in order to improve the efficiency of the national economy drastically, a transition to innovational socially-oriented development is needed. The innovational path of development lies in radical rebuilding of the economy, transition from an inertial model N E W E C O N O M Y : IPR_digest_eng.indb 13 I N N O V A T I O N of development to the innovational model, and development of energy saving and other advanced technologies. So far Russia’s “innovational machinery” is still under assembly and has to be paid for by oil and other natural resources. We need self-sustained development, when successful projects supported by the state grow through to commercial production and give profit. It is important to choose our priorities precisely and concentrate our efforts and resources in areas where we can achieve breakthroughs to world technological leadership quickest and most probably. To give the necessary impetus to the innovational economy development, it is necessary to identify its principal growth points. One of them is the development of scientific industry. A developed research sector is a must for success on high-tech markets nowadays. However, scientific achievements are but a start of the innovation process. It is important to transform research results into a commercial product demanded on the market, a process impossible without developing a comprehensive innovation introduction system. Apart from the research component, such a system must include flexible production facilities (where it is possible to arrange batch production in no time) and the system of market promotion of new products and services. In fact I mean an all-embracing scientific innovational industry to be formed. The gap in information and energy-saving technologies, biotechnologies and genetic engineering, and environmental safety technologies must be eliminated as soon as possible. The initial stage of transition from raw material based economy to knowledge economy needs considerable state support. It is the state that has to be the largest owner of high-tech production facilities and the main user of science-intensive technologies in the near future. I N S I G H T I N T O R U S S I A 13 1/14/09 8:50:58 PM All these are large-scale fundamental objectives. Russia’s intellectual leadership and competitiveness will depend on how these objectives are achieved. The state is to identify the direction and give the starting impetus. Public/private partnership is also of great importance in the implementation of the objectives, as is cooperation of the public and private sectors of the national economy in implementation of projects requiring large capital investment. In order to stimulate high-tech production development, the state has already formed different mechanisms (in particular, the Russian Venture Company has been established, special economic zones and technology parks are created, etc.). National corporations are getting into gear. But that is not enough. Regrettably, so far we have no efficient financial incentives for enterprises using new technologies and no necessary tax preferences for investors; mechanisms of venture financing are working poorly; the problem of protecting intellectual property has not been solved properly. The regional and corporate foundations existing to date only agree to finance projects that are already giving results (and therefore are not truly research projects any more). But venture financing has to do with experiments and research, starting from their earliest stages. The innovation environment must be improved in all aspects. Competent budgetary investment in the innovational infrastructure is needed. Special attention must be paid to Russian regions that bear huge innovational potential today. It is important to provide state support to regional programs that open new innovation “highways” for the entire nation. More active innovation activity requires, on the one hand, state control and coordination of all innovation agents, and, on the other hand, independent efforts aimed at integration of everyone interested in innovations, investment attraction, creation of conditions conducive to the innovation process and introduction of scientific and technological achievements into the Russian economy. Innovations must become a concern not only of the Russian elite, but also of the entire Russian society that does not want to remain at the margin of world development. It was never more appropriate to remember about solidarity and cooperation – between the state and the business, between the science and the manufacturing sector, between large corporations and small enterprise. 14 IPR_digest_eng.indb 14 Innovational economy is impossible without small enterprise. It is small companies that produce most innovations. We should form institutes of state support of innovations generated and put into practice by small businesses. I mean support in every aspect – from easier loan-issuing to tax exemptions. Development of small innovation companies opens new opportunities for large enterprises as well. Cooperation with them makes it possible to reduce expenditures and risks when testing new technologies. It is a tremendous field for successful cooperation and investment. Thus, experts believe that the most promising fields of cooperation between the big business and medium/small companies are technologies of advanced mineral resource processing, pharmaceuticals, new materials, software, and food and beverages. An important factor hindering innovations is the lack of qualified staff. Transition to the innovational path of development requires investment into the human capital. The existing education model calls for improvement. The education system should prepare young people to live in the innovation society, a society where science and technologies form the system of communications, where the environment means the entire planet Earth, where culture and intellectual values safeguard people’s vitality. At the same time, all the newest technologies and innovations are a result of fundamental and applied research and colossal efforts of scientists born in our scientific schools, ever a token of our successful future. It was these schools that enabled Russia to break through in such strategic fields as aerospace construction, nuclear technologies, and laser equipment. The first and foremost task is to develop a sequence of steps aimed at preservation of scientific schools and graduation of people with qualifications that are in demand. A system of monitoring and forecasting of the demand for professional staff on the labor market should be formed at the federal and regional level; the official state demand for graduation of people in different specialties should be planned based on the data provided by such a system. Sure enough, only joint efforts of the state and the business can improve the situation in this area. The Russian educational system, supported by the state and the business, is to train leaders of the new formation who will think and act innovatively. It is now that we are in desperate need of bringing up a genuinely innovational elite of Russia. N E W E C O N O M Y : 1/14/09 8:50:59 PM In order to form an up-to-date innovation policy, the development of a clear strategy and its aim at the forming of an advanced technological scheme are not the only important things; equally essential is the ability to use the entire store of direct and indirect instruments of state regulation of the innovation activity. The transition to the knowledge economy necessitates forming fundamentally new institutes that would support the proper transition process and the further functioning of the economy, of the national innovation system. Its components are knowledge generation, transfer, and implementation in high-tech products. That is why clear rules and legal mechanisms regulating the process are necessary. Our country has certain legal acts concerning innovations, but they do not form an integral system as yet. For us, legislators, the primary task is to establish a full-fledged legal base providing for stimulating the development of advanced technologies, commercializing research results, and creating a full-fledged innovation system. The economy is very sensitive to new laws to be adopted in the near future. The stages of elaboration of such laws are even more significant. Along with reflecting the current situation, they are to lay the foundation for the future. Innovational development needs innovational legislation. The Federation Council was the first entity to start monitoring the Russian legislation since 2004. Based on the experience we already have, we believe the strategy of the socio-economic development must stem from legislation and law enforcement monitoring as the basic instrument of forming and development of innovational legislation. Integrating innovations into industrial applications is impossible without an active scientific and techni- I N N O V A T I O N IPR_digest_eng.indb 15 I N S I G H T I N T O cal policy of the state aimed at making Russia a technologically independent nation. An important tool for solving this task is to form a single chain of innovational development enabling strategic management of the innovation system. At present many problems arise because of the lack of clear coordination of federal and regional governmental bodies. The strategic lines of implementation of the state programs of the national innovational renaissance are often isolated from the real innovational opportunities of the regions, industries, and research teams. Large barriers for innovations arise sometimes due to the gaps and drawbacks of the legal regulation system, the government’s and business’s different viewpoints on the priorities of the innovational development, and insufficient concentration of resources on priority lines. I would like to point out in conclusion that the clear political will of the state and the financial resources for a technological spurt are combined in Russia now, for the first time in many decades. It is important to channel these financial resources for the development of the innovational economy, rather than for extensive development of a raw material based economy. To overcome the crisis, we should not copy all the actions of the Western nations; it is reasonable to use the accumulated funds to develop the national state-ofthe-art innovational production. I am positive that, even given the existing problems and difficulties, Russia will manage to capitalize on the existing opportunities and form a truly innovational socially-oriented economy. R U S S I A 15 1/14/09 8:50:59 PM Innovations and the Industrial Policy Boris Gryzlov Speaker of the State Duma of the Federal Assembly of the Russian Federation A key goal of Russia’s long-term strategy is to build an innovational economy. Today it is useless to discuss the difficulty of the task. Is must simply be solved. What do we need for it? Macroeconomic stability. Specially created funds, above all, the Reserve Fund, are intended to maintain it in the current unstable situation on world markets. Another prerequisite for stability is a well-developed real economic sector. The industrial development of the country is a top-priority task for state corporations created for development of different industries. In order to transfer the economy to the innovational path of development it is necessary to reduce the tax burden on enterprises involved in R&D and introduction of modern, cost-efficient and environmentally friendly technologies. A number of steps are required for the capitalization of intangible assets, so that scientists and enterprises could earn their money on innovations rather than just get satisfaction from a job well done. Finally, investments in fundamental science and education are needed. But there is a set of special measures which can be implemented only in the framework of an industrial policy oriented at the strategic perspective. I mean support of specific high-tech projects rather than just certain industries. Implementation of such projects will provide jobs for thousands of companies developing and manufacturing science-intensive products. The influence of such programs on the economic development can be perfectly expressed in figures. Thus, experts estimate one filled job vacancy in microelectronics to form 15 vacancies in other industries. In other words, implementation of such projects (even with governmental participation) gives multiple growth of the economy compared to the investment amount. Therefore, if we look from the viewpoint of the industrial policy, the government’s key task 16 IPR_digest_eng.indb 16 in developing the innovation sector is to identify such promising projects, and then: – To aid in development of mass high-tech products; – To introduce such products in industrial manufacturing (which often requires considerable efforts because of the need to buy modern equipment or complete plants); – To aid in their sales through creating special financial mechanisms and institutes (for example, leasing companies), ensuring that Russian customers buy Russian-produced equipment, and organizing their access on foreign markets. In selecting such projects it is important to take into account the commercial component, that is, the readiness of private businesses to invest their money here. Such investment is the best guarantee of product competitiveness, and in this way a guarantee of success of the entire program. The government cannot be the only investor in the science-intensive sector. But at the same time we cannot leave out the fact that most such programs have a strategic component and are aimed, in particular, at supply of equipment to the military sector. An illustration in point is the already mentioned microelectronics. As recently as several years ago there was a universal opinion that Russia was lagging behind the competing nations practically forever. However joint efforts of the government and businesses made it possible to reduce the gap, several times in certain fields. And today the manufacturers – Russian, not foreign ones! – already bring up the need to produce 90-nanometer-technologybased electronic equipment to the government. Efficient production is large-scale production. The military sector needs domestically produced microelectronic components, but not so many. This means the necessity to work at the civil market and be guided by its opportunities and effective demand. In particular, N E W E C O N O M Y : 1/14/09 8:50:59 PM the case in point is production of integrated circuits for equipping the passport and visa services, bank cards, and a lot of other applications. Businesses are already investing in this sector. Within the Federal Targeted Program for Development of Electronic Component Base and Radioelectronics, 2008 – 2015 RUR 77 billion of non-budgetary funds is expected to be invested. This means that a real private/public partnership has formed. Of course, the Russian microelectronics is only starting its revival, and much is to be done in the field. A wide range of projects must be implemented in the framework of the industrial policy, from mass production of digital TV extensions and transceivers to powerful supercomputers. A field where innovations are absolutely crucial for the industry and the entire nation is aircraft construction, especially construction of civil aircraft. The industry can be put to its legs in the only way – by organizing manufacturing of new and competitive, i.e. cost-efficient equipment. This task was never solved even during the Soviet epoch. Thus, high fuel consumption of airplanes produced then is now one of the main causes of high airfares: companies using old Soviet aircraft spend twice as much for fuel as competing airlines. First of all such competitive aircraft has to be created. That is the goal of the projects supported by the state, above all, the Sukhoy Superjet family of regional aircraft and the promising long-distance aircraft MS-21 to replace Tu-154 eventually. And until mass production of those aircraft starts, the existing equipment is improved. Special attention is paid to aircraft engines. Superjet will be equipped with the new engine SaM-146 developed together with our French partners, while for already existing and manufactured aircraft (such as Tu-204, Il-96, etc.) the PS-90 engine is upgraded, enabling competitiveness of such aircraft in the mid-term. State programs of aircraft construction support (including all aspects, from supporting new projects to leasing) feature large scale. For the coming three years alone (2009 to 2011) some RUR 130 billion is to be channeled for these purposes. But their implementation will enable launching an immense industry, a colossal segment of high-tech economy. High-tech projects also play a key role in the development of another industry, shipbuilding. I N N O V A T I O N IPR_digest_eng.indb 17 I N S I G H T I N T O Unique competitive edges Russia has in this sector are offshore mineral resources and technologies for work in the Arctic. That is why the largest project in this field can be development and building of sea platforms for oil and gas extraction in the Arctic, ice-class tankers and LNG carriers, atomic icebreakers, etc. To date it is the most high-tech segment of civil shipbuilding. Work in this field has already started. It is significant that most leading enterprises of the sector are involved in it. For example, a unique terminal worth RUR 24 billion has been built in Kaliningrad. Oil and gas extraction platforms are built in Severodvinsk. The St. Petersburg Admiralty Shipyard builds ice-class tankers of 70,000 tons deadweight. The implementation of this program has therefore already become an important development source for the sector. At the same time the governmental efforts are consistently focused mainly on the issues related to innovational development. Suffice it to say that of nearly RUR 91 billion to be allocated from the federal budget within Federal Targeted Program for Development of Civil Sea Vessels, 2009–2016, over RUR 67 billion, or about threequarters, will be channeled for R&D work. Development of next-generation Russian vessels also means creating modern machinery in other segments. In particular, the fishing fleet can be renovated, along with the inland water transportation fleet – despite its tremendous potential, it is used very little. A traditional field for application of scientific research results is space exploration and use. Here the governmental efforts are aimed, above all, at implementing projects enabling Russia to win a good position on the market of high-tech services. The GLONASS program is a striking example. During this year already the number of its satellites is to reach 22; in 2012 it will provide full global coverage. The breakthrough in this field helps Russia solve a number of important economic tasks. On the one hand, the national navigation system and electronic maps (also developed with the government participating) will make it possible to provide a long-demanded service to a broad circle of customers. For example, owners of different equipment will be able to monitor its location and make its use more efficient. And equipping fishing vessels with navigation devices will be a serious step in anti-poaching. R U S S I A 17 1/14/09 8:51:00 PM On the other hand, together with the steps taken for electronic industry development, the deployment of the GLONASS satellite group creates prerequisites for organizing domestic production of appropriate ground-based equipment. It is a large and very interesting market. Apart from financial aspects, certain legislative problems have to be solved in this field. I mean the Draft Law On Navigation Activity in the Russian Federation. Its key tasks include an obligation to use only Russiaproduced navigation equipment for devices used in the state-controlled systems. Thus, the implementation of the GLONASS program will give serious impetus to the technological development of a gigantic segment of the economy and enhance its overall performance. Navigation is not the only space service that can be provided by Russia. Communications, earth re- IPR_digest_eng.indb 18 mote sensing, meteorology – all those are fields where our country (businesses as well as the government) can largely strengthen its positions, earn considerable money, and solve other tasks. For example, space monitoring of forest usage proved able not only to pay for itself, but also to create an environment for civilized work in the sector and, as a consequence, for wood processing development. Other examples might be cited where the government initiated large-scale breakthrough high-tech projects, forming impetus to development of entire economy segments depending on application of science-intensive solutions. But even the facts already mentioned are enough to convince anyone that the industrial policy is an important, efficient and sometimes simply indispensable tool for solving problems of innovational development, even if not the only one. 1/14/09 8:51:00 PM A IPR_digest_eng.indb 19 D I G E S T 1/14/09 8:51:00 PM Forming an Innovation System: Reality and Prospects Khuseyn Chechenov Chair of the Committee for Education and Science of the Federation Council, D. Sc. In Engineering The message of the President of Russia Dmitry Medvedev to the Federal Assembly names production and (later) export of knowledge and new technologies as a key priority of the national economic development. President has set such objectives as accelerated transition of the country to the innovational path of development and dynamic actions with a view to laying the foundations of national competitiveness in the fields where future advantages and benefits can be obtained, where quick introduction of most advanced technologies is possible, where new and efficient enterprises can be created. The economic development should be based on the “five I’s” concept: institutions, investments, infrastructure, innovations, and intellect. The forming and development of the national innovational system is an essential prerequisite of the implementation of the innovational scenario of Russia’s development. The efficiency level of the national innovational system will be largely determined by its structure, clarity of objectives set in the governmental policy and coordination when reaching these objectives, and balanced development of knowledge generation, knowledge transfer, and science-intensive production subsystems. However the notion “national innovational system” has not been legislatively formalized as yet; neither is it defined in the Basics of the Policy of the Russian Federation on the Promotion of Science and Technology for the Period of Time up to 2010 and for Further Perspective (approved by the Decree of the President of the Russian Federation of March 30, 2002 No. Pr-576), which name NIS creation one of top priority national tasks. I believe that comments on this notion in the federal legislation regulating science and innovation policy and its formalization in the legislative acts are an urgent step to be completed. According to the Model Law on Innovation Activity adopted by the Parliamentary Assembly of CIS countries, an innovation system means a system of organizational, 20 IPR_digest_eng.indb 20 legal, socio-economic, and institutional relationships defining, in accordance with the Constitution and the legislation, the terms of budget, tax, customs, anti-monopoly and technical regulation of innovation activity, as well as its self-regulation through voluntary assumption of quality standards and certification standards. As a special institutional environment, an innovation system is comprised of the governmental innovation policy, innovation agents and innovation institutional base, innovation infrastructure, processes, and resources. World experience shows that the principal tasks of a national innovational system are: – reproduction of knowledge (inter alia, reckoning on the potential market demand) through fundamental and exploratory research in research institutes of academies of sciences, as well as in national universities; – applied research and technology development in state research centers of Russia and branch research organizations; – commercializing research and development results and introducing them into production; – industrial manufacturing of competitive innovation products; – development of the innovational system infrastructure. Such a system does not emerge out of thin air; at the first stages of its development the state plays the vital role in its forming. A number of key fields can be highlighted in the present governmental innovation policy: – creating a favorable economic and legal environment for innovation activity, in particular, forming a legislation that enables dynamic and balanced development of all the innovation system elements and commercialization of intellectual activity results; N E W E C O N O M Y : 1/14/09 8:51:03 PM – improving the legislation regulating innovations; developing and implementing measures of tax, customs, tariff and technical policies intended to stimulate R&D commercialization and innovation business development; – supporting the scientific and technological development of the country through forming an infrastructure of the national innovational system and aiding to development, introduction, production, and sales of high-tech Russian products. We would now like to consider the current condition, problems, and prospects of the legislation supporting these fields. SUPPORTING ADVANCED TECHNOLOGY PROJECTS AND HIGH-TECH INDUSTRIAL SECTORS The current phase of the national development features large-scale strategic tasks which, for the first time in many years, are supported not only by political will, but also by specific well-calculated resources and active support of the professional community and citizens. Recently the state has taken a number of unprecedented steps with a view to stimulating innovation processes in the Russian economy financially. We saw rapid growth of state and private investments, beginning and development of large-scale long-term state programs in very different economic sectors, from aircraft and space to nanotechnology-based molecular engineering. In order to solve the tasks associated with the transition to the innovational economy, the country has a system of development institutions, large state corporations established under appropriate legislative acts. Within the recent years the following development institutions have been created: Investment Fund, Russian Venture Company, state corporations Russian Development Bank (Vneshekonombank) and Fund for Aid to Housing and Communal Reform, consolidated corporations in aircraft construction and shipbuilding, science-intensive technology corporations Rosatom (nuclear technologies), Rostechnologies (high-tech industrial products), and RUSNANO (nanotechnologies). The objective of establishing state corporations has been formulated in the Presidential Messages and Federal Laws (in fact, they represent a part of legislation created anew): the subject at issue is acceleration of innovation development speed, commercialization of promising re- I N N O V A T I O N IPR_digest_eng.indb 21 I N S I G H T I N T O sults, and resource saving. In fact, state corporations are to master and use new tools of the governmental policy and new mechanisms for solving problems of financing strategic and high-tech industries and penetrating the world market with products that meet the most up-to-date quality standards. It is from them that we expect principal results in the innovation process, an economic success in the non-raw-material sector, and private investments attracted into Russian designs. The state Russian Corporation of Nanotechnologies (RUSNANO) is a nice example. RUSNANO is the largest project for the several recent years in terms of the amount of state funding (RUR 130 billion) and of its supposed influence on the economy. The state assigned huge financial and material resources, its own corporate assets, and many other resources to state corporations. Now the corporations, acting on behalf of the state but making their decisions independently, will choose themselves which projects to develop and how. I must emphasize that they are actually free in the choice of priorities and unrestrained by many limitations laid upon projects financed from the state budget. The range of activity of such corporations is only limited by federal laws, and rather flexibly. After a certain period of time the government will have to control the new companies and holdings, asking their heads how efficient their work in the new status is, what bottlenecks there are, and where the desired economic achievements are. I believe there is only one thing that can hinder the implementation of large-scale projects by state corporations – the bureaucratic environment formed in the country, the inertia of red-tape style of management, and worst traditions of corruption. I hope that the political will of the government and the corporate citizenship of the entire business and research community will make it possible to avoid the adverse scenario. FORMING THE MARKET OF INTELLECTUAL PROPERTY AND INVOLVING RIGHTS FOR RESEARCH RESULTS IN THE ECONOMIC TURNOVER One key prerequisite needed for the innovation activity to acquire a practical dimension and to create stimuli both for inventors and scientists and for active participation of private businesses is forming a competitive market of innovations, a single information and trade space R U S S I A 21 1/14/09 8:51:03 PM uniting all the participants of the innovation process. Such a market must be based on the legislation regulating relationships in the field of vesting the rights for intellectual property, owning them, and disposing of them. No doubt one of the most important achievements of the national legislation in this field is Part 4 of the Civil Code of the Russian Federation (Federal Law of December 18, 2006 No. 230-FZ) that entered into effect on January 1, 2008. Part 4 of the Civil Code strengthens the protection of rights for intellectual products, increases the efficiency of liability measures for their violations, harmonizes the Russian legislation with the international obligations of the Russian Federation, and optimizes the balance of interests of the author, investor, and user of an intellectual product. The underlying concept of Part 4 of the Civil Code of the Russian Federation is complete codification of the existing civil legislation on intellectual property. This concept is based upon the estimation of intellectual property participation in civil circulation, which is quite comparable with the participation of tangible products in terms of importance and value. At the same time, in order to realize Part 4 completely, three more federal laws and 16 decrees of the government must be worked out and adopted. While the Federal Laws On Technology Transfer and On Patent Agents are already under debate in the State Duma, the decrees in question are stuck in the lengthy interdepartmental coordination processes. Draft decrees of the government which are the most important for the state research sector are On the Terms and Conditions of Federal State Entities Disposing of Rights for Research Results Obtained at the Expense of the Federal Budget and On Using Funds Received through Sale of Research Results Obtained at the Expense of the Federal Budget. Patenting and licensing activity in state research organizations (research institutes and higher educational institutions) is paralyzed until these regulatory acts enter into effect. As up to 80% of R&D is financed from the budget and conducted in the state research sector, the principal problem is to vest the rights for research results obtained in this sector. Historically (by the Decree of the Government No. 982 of 1999) the state was vested with such rights. The overall fiscal orientation of the legislation broke the balance of interests of the knowledge generation process participants – authors and their assistants, reducing the intensiveness of the inventors’ work sharply. 22 IPR_digest_eng.indb 22 At present, starting from the Patent Law in its 2003 version and the Decree of the Government No. 685 of 2005, a graduated standard of vesting rights in the author was introduced. Section 77 of Part 4 of the Civil Code of the Russian Federation further formalized this principle. However practice shows that just vesting intellectual property rights in the author does not yet provide an opportunity to use the funds received from licensing in state-owned organizations, as the Ministry of Finance of the Russian Federation considers patents as a special kind of state property assigned to scientific organizations. The current legislation is therefore incomplete and, because of this, it does not help to commercialize R&D conducted by the Russian state research sector. Russia has always had many novel ideas and promising designs. However lack of incentives takes away their competitive edge even on the domestic market. One example: some 10,000 patents in nanotechnologies have been registered worldwide; only a few of them are Russian. According to the information from Rospatent (the Russian Federal Service for Intellectual Property, Patents and Trademarks), Russian researchers have only submitted between two and three hundred applications. How can we conquer the market with such results? Improving the situation is a must for the innovational economy formation. The issue can only be solved by simultaneous amendments to the Federal Law On Science and National Scientific and Technical Policy and to the Budget Code of the Russian Federation, as well as to the appropriate by-laws. Federal state-owned entities should be able to use their rights independently, receive proceedings from such usage, and channel them for three principal objectives: – legal protection of the results (a must for commercialization); – remuneration for inventors, that is, encouragement of people who actually create the results; – financing research and development. It is very important to finalize and adopt the Draft Federal Law On Technology Transfer that regulates the procedure, terms, and conditions of disposing of rights for technologies owned partially or in full by the Russian Federation or a region of the Russian Federation. Not only competitions for transfer of rights for technologies should be envisaged in the Law, but also competitions for the right to sign trilateral contracts for joint research and development intended for adjusting such technologies for N E W E C O N O M Y : 1/14/09 8:51:03 PM practical usage, along with the responsibility for the research results obtained at the expense of the federal budget. The Federal Law On Technology Transfer will signify the end of the state-regulated vesting of intellectual property rights, owning them, and disposing of them in Russia, streamline the relationships concerning intellectual activity results, give impetus to more active technology transfer into the economy, and, in the final account, enable the development of the national innovation system. Regulation of foreign trade (in particular, regulating transfer of research results abroad) is also a cause. In order to develop the intellectual property market in Russia, the Committee for Education and Science of the Federation Council is debating the Draft Federal Law On Intellectual Activity Results and their Protection, which specifies general provisions of Part 4 of the Civil Code of the Russian Federation. The Law is to: – ensure real direct introduction of intellectual activity results in the economic turnover; – provide information support of research; – stimulate development and usage of the small enterprise potential in research and innovations; – form a favorable climate for attracting private investment into research and innovations and develop joint financing of innovation projects at the expense of budget funds and private investors’ funds; – stimulate development of the system of state and non-budget funds for support of research and innovations, including venture foundations. The list of individual tasks can be continued; in fact the matter is to create prerequisites and mechanisms for involvement of rights for research results into the economic turnover. We need not prove that the task is both very complex and quite pressing; suffice it to say that less than 2% of the effective Russian patents are actually used by business entities to date. REGULATION OF ISSUES CONCERNING ESTABLISHMENT OF INFRASTRUCTURE FOR RESEARCH RESULT COMMERCIALIZATION At present the principal provisions of the state innovation policy are defined in by-laws and not in laws. Such by-laws include, in particular, the Basic Guidelines of the Policy of the Russian Federation Concerning the Development of the Innovation System through 2010 (adopted in 2005) and the Basic Guidelines of the State I N N O V A T I O N IPR_digest_eng.indb 23 I N S I G H T I N T O Investment Policy of the Russian Federation in Science and Technology (2002). The innovational infrastructure is formed under governmental programs using general civil legislation, which poorly accounts for the specific features of the innovation market and supports it insufficiently. Despite the accumulated positive experience, the general infrastructure of the intellectual property market in Russia is developed poorly; there is no wide-range activity for technology commercialization. A typical example is the Decree of the Government No. 156 of 2006, where the new procedure for lease of federal realty is envisaged. Intended by their authors to make the use of state property more efficient, this document regrettably does not account for the specifics of lease relationships with small enterprises renting space in innovational business incubators, innovation and technology centers (ITCs), and other innovational infrastructure sites. The auction scheme of renting office spaces practically cancels the principle of incubation “growing” of small innovation enterprises, which, in particular, involves sparing rent payments. Problems can arise when implementing federal and regional programs for stimulating establishment of new small innovation enterprises, such as the START program. One of the principal issues hampering research result commercialization is the absence of legal provisions entitling state research institutes and higher educational institutions to found small innovation businesses (called start-ups in the world practice). In Russia state research institutes and higher educational institutions are principal generators of new ideas and knowledge, which means that they must be granted the right to found new innovation science-intensive companies in the first place. Such a process will become one of the principal instruments of wide introduction of new technologies and designs created in such organizations into the real sector of the economy. On the one hand, federal institutions have the right to found new enterprises, even with intellectual property as their contribution to the charter capital, in accordance with Article 66 of the Civil Code of the Russian Federation. On the other hand, since 2004, when the Federal Law On the Federal Budget was adopted, a practice was applied when funds obtained from entrepreneurship and other commercial activities could not be channeled by federal institutions for creating other organizations. There appear to be reasons to adopt a provision (within an amendment to the current law or in a new law) R U S S I A 23 1/14/09 8:51:03 PM according to which “federal institutions are entitled to channel funds obtained from entrepreneurship and other commercial activities for creating innovation science-intensive enterprises under the approved cost-benefit calculation.” The legal base of the Russian Federation, as regards the research result commercialization, is generally inconsistent, incomplete, and considerably lagging behind the needs of the modern society development phase. In order to make the Russian economy competitive, lawmaking in this field should be intensified and based on the combination of incentives and responsibilities for meeting deadlines and fullness of introduction of research results, with reliance upon the direct creators of the innovation system and businesses taking active part in innovations. STIMULATING THE BUSINESS TO PARTICIPATE IN THE INNOVATIONAL ACTIVITY One of the principal problems in the implementation of the state innovation policy is the insufficiency of legal and economic mechanisms stimulating business structures to invest in innovation and R&D. Large Russian businesses are not too willing to invest in R&D. According to the data provided by the Expert RA rating agency, the top 100 companies in the Russian economy invest meager amounts in R&D, generally not exceeding RUR 10 million. That is, they are far from actively pursuing the innovation path. Even Gazprom, the company with the world second capitalization, spends only $60 million for R&D, according to rating agencies’ data, while Chevron, with much less capitalization, invests about $1 billion. No wonder that Gazprom buys its technologies for Arctic offshore drilling and oil extraction from Norway, a nation that has built its innovation system for the last 15 years, making use of its favorable situation with raw materials. If such a situation lasts for more than a year or two, it will become a serious factor hindering our penetration into high-tech product and service markets, reducing the effect of large state investments to zero. These examples show that, along with provisions stimulating innovation activity, the legislation should contain “compulsion” provisions, including additional taxation of companies using the extensive way of development. But, as world experience shows, technical regulation and control should remain the principal “lever of compulsion” in the market environment. Technical 24 IPR_digest_eng.indb 24 regulation and control form technological corridors for modernization of housing and communal sector, energy sector, and other economic sectors, with innovation technologies involved. The majority of experts and practical specialists are unison in their opinion that the legislation aimed at involving the business into innovations and forming its efficient partnership with the state is insufficiently developed as yet. The same can be said about mechanisms supporting the participation of the business community in the development of the state scientific and technical policy. The international experience of building innovation systems in the countries with the most successful economies – Japan, China, Korea, Finland, – shows that all the organizations involved in high technologies should participate in the forming of the national innovation policy: governmental bodies of all levels, business structures, academies of sciences, and educational and research centers, – all those who form the knowledge economy. The principal task they face is to create a competitive national innovational model meeting world highest standards. Meanwhile Russian corporations are vitally interested in creating domestic innovations, relying on clear and transparent rules of the game, instead of just borrowing or perfecting foreign technologies. Of course they count for state support, and not so much for co-financing as for a system guaranteeing their investments. For investments in the innovation sector are naturally more risky and less profitable in the mid-term as, say, investments in the raw material sector. I believe that the present situation urges the state to create tangible preferences for private innovation capital. It may be in the form of risk insurance, smaller customs and tax burdens, just help in overcoming red-tape, even moral support, after all, – there are many options. DEVELOPMENT OF THE INNOVATIONAL INFRASTRUCTURE IN THE REGIONS OF RUSSIA This, too, is a very important task which cannot be solved without appropriate legal support. It includes, above all, creation and organizational support of special economic zones, technology parks, science cities, multiple-access centers, business incubators, etc. A special economic zone is in essence a gigantic business incubator, a catalyst for developing the business infrastructure, and, in particular, science and innovation infrastructure. The current legislation provides for cus- N E W E C O N O M Y : 1/14/09 8:51:03 PM toms preferences, corporate property tax exemptions, and land tax exemptions for companies registered in the special economic zones for five years from the moment of registration. The basic rate of the unified social tax can also be reduced for resident companies. However important special economic zones are for stimulating investment activity, their number will inevitably be small. It is therefore advisable to ensure efficient support for technology parks and science cities, which are mostly based outside of the special economic zones. Such structures are actively created in the regions of Russia – as a rule, around universities or inside them. Business ideas generated by professors and students alike are a nutrient medium for growth of new enterprises, which are further to be financed from venture foundations and attract direct investments of large high-tech companies in regional projects. We all know that state support, including legal support, of technology parks and other innovation structures is insufficient. Lots of obstacles and problems arise when small innovational enterprises (start-ups) are created. WHAT ARE WE THE LEGISLATORS TO DO AT THE FIRST PLACE? The government of the Russian Federation, the scientific and expert community, and the business community have a common goal. How can we move the support of science and innovations from slogans and isolated large-scale projects specifically initiated by the President to an integral system working in all the economic sectors and in all the regions of Russia? In my opinion, the first step should be legislative formalization of the very notion of innovation activity. Ironic as it is, no definition of innovation activity can be found in the law or in the basic governmental documents. And such a definition must exist – otherwise the system of state support will not work, and the market forces will only exert negative influence, given our high risks. So we must introduce the definition of innovation activity, and I N N O V A T I O N IPR_digest_eng.indb 25 I N S I G H T I N T O do it comprehensively: in the legislation on science, in the Tax Code, and in other legislative acts. The necessity of adopting a special law on innovations has been widely discussed earlier; I believe that developing such a law will become a burning issue in the near future. Furthermore, the existing provisions of the Tax Code must be revised as they are clearly insufficient for adequate stimulation of the innovation activity. The process of revision has long been underway, stemming from many legislative initiatives. There is only the first result as yet – a small one, but well begun is half done! In 2007 the federal law was adopted that somewhat expanded the circle of tax exemptions in the field of innovation activities of scientific and other organizations. The value-added tax, corporate profit tax and simplified taxation system were relaxed. At the same time, the issue of the corporate property tax, land tax, and profit tax remained open; in the last two years they put a severe strain on the activity of educational and scientific institutions, including their innovation branches. Before long the Laws On Technology Transfer and On Patent Agents will be adopted, with the existing comments taken into account. Further development of the legislation is planned to be based on the Law On Intellectual Activity Results and their Protection, the considerably revised Law On Science, and the backbone Law On Innovation Activity. The foreign experience shows that, despite the general patterns, building a national innovation system in each country has its own specific features caused by local traditions and socio-economic environment. In any case this process is rather delicate and requires detailed, “manual” adjustment, united efforts, and consolidation of all the process participants – the government, the business, and the scientific and technical community. Despite the difficulties that the forming of the national innovation system in Russia faces, I am sure that the process is irreversible. There are positive signs, and we are only at the beginning. R U S S I A 25 1/14/09 8:51:03 PM Problems of Legal Support of the State Scientific, Technical, and Innovation Policy Valery Chereshnev Chair of the Committee for Science and Science-Intensive Technologies of the State Duma, Member of RAS, Member of RAMS Today transition to the innovational path of development has become a vital task for Russia. It is the strategic viewpoint of the state. The national leaders asked the scientific community to participate actively in the forming of Russia’s economic strategy and its national innovation priorities and in the forecasts of consequences from the implementation of the planned large-scale national programs and projects. Despite all the problems of the Russian science associated with the 1990s, in a number of aspects its potential is enough to support technical transition to the knowledge economy: the potential of state academies of sciences mostly survived, state research centers are involved in active research, more and more attention is paid to research projects in higher educational institutions. The potentials of the basic manufacturing, transport, and agricultural sub-sectors have also been preserved to a certain extent. It is in these sectors that the nation has competitive edges; at the same time it is here that principal obstacles to growth have accumulated. To date a list of high-tech economic sectors has been formed where Russia has serious competitive edges or is going to have them in the mid-term perspective. These include aviation and spacecraft construction, shipbuilding, electronics, nuclear energy, IT, and communications. An innovation system is being formed in the framework of the implementation of the Basic Guidelines of the Policy of the Russian Federation Concerning the Development of the Innovation System through 2010 and the Strategy of the Russian Federation Concerning the Development of the Science and Innovations through 2015. The Basic Guidelines specify the goal, objectives, and lines of the state policy, mechanisms and principal steps of its implementation. The national innovation system (NIS) is comprised of all the agents and objects of innovational activity interacting during creation and implementation of innovational products. 26 IPR_digest_eng.indb 26 NIS efficiency depends largely on the management system, development of its elements and their coordination while solving tasks set by the governmental innovational policy, and interestedness of the agents in the innovation process. Forming and functioning of the NIS and transition to knowledge-based economy must be fully supported by appropriate legal provisions which set forth legal relationships between individual innovation companies, as well as between such companies and governmental bodies. However, the practice of law enforcement shows that there are unsolved legal issues, including very important ones, even now, and convinces that further development and improvement of innovational legal framework is necessary. The range of issues that require adequate legal support is rather large. We shall only mention some of them. Successful enforcement of the law and observance of regulatory documents depend, above all, on whether the used definitions are legislatively formalized. Today even such widely used concepts as scientific activity, development, and research and development, cause disagreement in their interpretation. The elimination of state accreditation of scientific organizations, formerly stipulated by the law, broke the system of competitive allocation of budget funds and made the notion of a “scientific organization” rather vague. Despite direct suggestions of the supreme leaders of the country the legislators have not as yet provided explanations for such terms as “innovational activity,” “innovations,” “innovational products,” “innovation system,” “national innovation policy.” Regulatory acts and documents issued by supreme leaders of the country often mention the “priority role of science.” However, this concept has almost no real value, which is clearly enough outspoken by the amount of budget funding of science, constantly growing taxation of scientific organizations, etc. N E W E C O N O M Y : 1/14/09 8:51:03 PM The case in point is not only a “common language” in the Russian legislation, but also the influence of the existing situation on Russia entering the common international technological and innovational community. There arises a natural suggestion to create a common, legally formalized glossary of basic terms used by the national legislation. Starting from the second half of 1990s, many regions of Russia have adopted local laws regulating scientific, technological, and innovational activity. As for the federal law on innovational activity, the reasons for its adoption are still being discussed. Three possible scenarios are considered: – Drafting the Federal Law On Innovational Activity; – Amending the Federal Law On Science and National Scientific and Technical Policy as regards legal support of innovational activity development; – Amending certain federal laws in order to establish conditions for attracting investment into innovations, increase businesses’ innovational activity and develop the innovation process in the Russian Federation. It is up to experts to choose the scenario, but I would like to emphasize the following. Each variant has its strengths and weaknesses. Thus, amending the Federal Law On Science and National Scientific and Technical Policy as regards legal support of innovational activity development may change the subject of regulation of this law. On the other hand, simply amending certain federal laws will not help create an integral system of legal support of innovational activity development. The Committee for Science and Science-Intensive Technologies of the State Duma questioned the governmental authorities of the regions of Russia and found that an overwhelming majority of regions consider it the best choice to adopt the Federal Law On Innovational Activity. The Law is to set common procedures and regulations for NIS establishment and define the goals and objectives of the state innovation policy, extent of authority granted to the governmental bodies of the Russian Federation, governmental bodies of the regions of the Russian Federation, and local authorities, and rights and responsibilities of each innovation company. Certain regions have already taken this way and achieved positive results which we speak about and popularize but do not use properly in the federal-level legislation. In 2008 the Legislative Assembly of the Tomsk Region adopted the Law On Innovation Activity in I N N O V A T I O N IPR_digest_eng.indb 27 I N S I G H T I N T O the Tomsk Region. The Law sets forth the goal, objectives and principal guidelines of the Region’s official policy, mechanisms for state regulation and implementation of innovation activity, and forms of state support of innovation companies. The enforcement of the Law is supported by the necessary by-laws. The Regional Law was based on the practice of legal enforcement of its own laws on science, a regional law on innovation activity adopted earlier, and the local practice of creating areas of innovational development. The Tomsk Region is an active builder of an innovation-type regional economy. Other positive examples of creating a legal framework for the regional innovation policy and building an innovation-type regional economy upon such a framework can be given. The situation, as regards legal support of innovational activity, reminds of the process of drafting and adopting the Federal Law On Science and National Scientific and Technical Policy. In the first half of the 1990s the Law On Science was adopted by the Republic of Bashkortostan; afterwards similar laws were adopted in other regions, and it was only in 1996, after long discussions, that the Federal Law On Science and National Scientific and Technical Policy was adopted. There were as many of those who objected to the law adoption as the opponents of the Federal Law On Innovational Activity are now. It cannot be ignored that even today the regions are ahead of the center as regards legal support of innovational activity. This is caused by quite a number of factors: regional governmental bodies are more limited in time than the federal authorities; they have to solve social and economic issues every day and cannot afford long uncertainty. But forming of the national-scale innovation system requires not only legal support of innovational activity in individual regions, but, above all, coordinated efforts of all the branches of power and common permanent “rules of the game.” It would be bad if the lack of common “rules of the game” killed the Tomsk experiment, with its facilitators and inspirers leaving the field. It is quite clear that the experiment only became possible because the executive and legislative powers of the Region are headed by leaders who understand well the necessity and the essence of innovational development, assessing the specific features and potentials of the Region correctly. They did not think that science and education were something redundant; they have been cooperating actively with the Siberian Branch of the Russian Academy of Sciences, maintaining R U S S I A 27 1/14/09 8:51:04 PM and supporting the developing scientific, technical, and educational potentials of the region, and know its value well. Unfortunately we know many experiments of national importance, which were a success in single regions but dropped to nothing with the time passing. Innovation activity is impossible without scientific research and development. This, in turn, sets a task of prime importance before the science: to generate new knowledge and develop new products and technologies based on it. Legal relationships between the participants of the scientific and technical activity are regulated by the Federal Law On Science and National Scientific and Technical Policy. Today there are people who claim that the Law is unfounded. The following reasons are cited: “the Law is obsolete and does not reflect the changes that have came to pass in the country,” “foreign experience with university-based research should be taken as a model,” and a number of others. Without going into argument, I agree that new tasks set before the science necessitate certain amendments to the Law. But they must not change the subject of regulation of this Law, and, which is more, must be based on the existing Russian practice of law enforcement. We have rich experience of “starting from point zero” and “clearing the ground.” The science has more than once proved its value for solving the most burning socio-economic and defense issues. Such state priorities as space exploration, nuclear industry, and upto-date defense, could not be achieved without science. Due to the general lack of development of the non-public sector of science the principal load of developing Russian innovations aimed at improving quality and competitiveness of products will be borne by the state sector. At present a special group is working on the proposals concerning legal support of the state sector of science. This group was created by the Expert Council of the Committee for Science and Science-Intensive Technologies of the State Duma and the Committee for Education and Science of the Federation Council. The need to solve this issue was emphasized by President of the Russian Federation Vladimir Putin during his visit to Lavochkin Research and Production Association on December 3, 2007. So far the Russian legislation lacks such a concept as the “state sector of science” (along with the “state sector of economy”). At the same time, there is documentary evidence that the state sector of science includes the academic, applied and university segments. These are comprised of, respectively, state academies of sciences, 28 IPR_digest_eng.indb 28 industrial scientific organizations headed by research institutes of state research centers, and research departments of higher educational institutions. In order for NIS to function effectively, it is vital to provide for activity of all these structures in the federal legislation. To achieve this, the federal legislation must be considerably developed and improved. We would like now to provide a more detailed account of the problems of legal support of each segment of the state sector of science. The polemics on the legal status of the organizations representing the academic segment (the Russian Academy of Sciences and branch academies) has started long ago. The argument concerns their structure, property ownership rights, and a number of other issues. The amendments to the Federal Law On Science and National Scientific and Technical Policy did not help. The amendments introduced the concept of “state academies of sciences as non-commercial organizations” but the Civil Code of the Russian Federation and the Federal Law On Non-Commercial Organizations were not amended appropriately, and the reasons of the discussing parties did not lose grounds. The important thing is not only common understanding of certain terms, but also elimination of ambiguity in the legal form of the academies. The academies must be assigned a publicly and legislatively recognized form of incorporation which ensures that they perform their public and national functions: to generate new knowledge of the principal laws of structure, functioning and development of the human, society, and nature, as well as to enhance public intellect. Short-term interests and narrow ambitions must not be followed. An undefined legal form hinders efficient generation of new knowledge and transfer of technologies into production, even if the leading role of state academies in the forming of knowledge-based economy is recognized. As a result: – A gap forms between the process of new knowledge generation and its preparation to the commercialization of the research results. – The transfer problem is not solved. – Being responsible for fundamental research, academies cannot transform the research results into applied innovations or transfer them for commercialization. State research centers of the Russian Federation play a special role in the development of the in- N E W E C O N O M Y : 1/14/09 8:51:04 PM novation process. They generally perform a full scale of jobs, from “oriented” fundamental and exploratory research to creation and development of industrial technologies. The status of a state research center is assigned to a scientific organization which has unique experimental equipment, highly qualified specialists and research fellows, and is recognized internationally for its scientific or technological activity. Russia has some 60 state research centers today, forming a backbone of the industrial science. However essential issues have not been settled until now: legal fixing of the concept of a state research center, purposes of granting this status to organizations, and defining the role and place state research centers have within the state sector of science. Economic and organizational measures of state research center support also have to be cleared. The university sector includes research departments of higher educational institutions. The possibility to grant the status of a scientific organization to higher educational institutions is still discussed. Departments of higher educational institutions which are not registered as legal entities are in a double bind. In accordance with the Federal Law On Higher and Postgraduate Professional Education every higher educational institution must be involved in research; this fact still does not entitle it to the status of a scientific organization. The integration of science, education and industry is not supported in full at the legislative level. The Federal Law On Amending Certain Laws of the Russian Federation Concerning Integration of Education and Science adopted in 2007 eliminated quite a number of legal obstacles to the creation of integration structures. But one of the central issues, that of participation of industry in the integration process, was not solved. The industry is the end-user of the results of scientific, technological and educational activity. The industry alone can assess the results of structures that integrate science and education, fundamental departments, and research/education facilities. Owing to the exclusion of the industry from integration processes and lack of well-defined legal relationships among its three equal participants, involvement of the business into the educational and research processes was left beyond the legal terrain. Legal support of activities of specialized organizations, that is, federal centers of science and technology parks, still leaves much to be desired. The principal purpose of creating federal centers of science and high technologies is to establish conditions for I N N O V A T I O N IPR_digest_eng.indb 29 I N S I G H T I N T O enhancing competitiveness of the Russian economy in the 21st century through science-intensive products and high technologies. Technology parks host enterprises involved in high-tech activities (nano- and biotechnologies, IT, etc.), research organizations, educational institutions feeding the research and HR potential of such enterprises, and small and medium service companies or technologically related companies. The legal support of creation of technology parks and federal centers of science and high technologies had been discussed for several years, but real results have not appeared as yet. The need to develop and support small enterprise is much voiced today. Nevertheless, creation and activity of small and medium innovational companies present a number of problems. First difficulties appear already during the establishment of a company, from office rent payments through taxation to the use of research results obtained by research institutes, higher educational institutions, and state academies of sciences. The status of research institutes financed from the state budget does not entitle them to create small innovational companies or attract non-budgetary funds to innovation activity and commercialization of results. The last decade saw growth of direct and indirect support of science on the part of different foundations in EU, US, and Canada. Similar processes have been developing in Russia as well. A number of public and, recently, private foundations support R&D activities performed by relatively small research teams and scienceintensive firms. However legal relationships concerning creation and activities of public and private foundations for support of science and technology, as well as relationships arising when financing science, technology and innovation from such funds, remain an issue; their specific structure also has to be defined. The government has been working in this direction for more than ten years. Moreover, a Concept of Draft Federal Law On Amending the Federal Law On Science and National Scientific and Technical Policy, Federal Law On Non-Commercial Organizations, and Federal Law On Autonomous Institutions As Regards Specification of Legal Status of Foundations for Support of Science and Technology has been prepared in order to solve the majority of existing issues (at least, its authors believe so). However if we examine the proposed solutions carefully, we see that there is still a long way to come – a hard way of overcoming ambiguous and sometimes mutually ex- R U S S I A 29 1/14/09 8:51:04 PM clusive interpretations of the role that foundations for support of science are to play in the building of an innovation economy. Besides, the law on science support funds coming into effect will require more precise wording of certain provisions of the tax law and budget law and amending the Civil Code of the Russian Federation. Practically, the legislators have not yet come to a decision if there will be a law completely regulating the foundation activity or it will be possible just to amend certain laws of the Russian Federation, adding provisions on the foundations for support of science and technology. To date the funding of scientific activity from the federal budget is continually growing. At the same time, domestic expenditures on research and development grow slower than the GDP does. Funding of scientific activity in the state sector from the federal budget is fragmentary and lacks a common coordination system. In 2005 the structure of federal budget expenditures changed, with the line for Fundamental Research and Contribution to Scientific and Technological Advance deleted. Scientific research is therefore financed under several different budget lines now. Fundamental research is financed under the line for Nationwide Issues, while applied research is funded under the National Economy line. As a result, a situation arose when the connection between fundamental and applied research was broken already at the stage of financial planning. It should be added that the Ministry of Education and Science of the Russian Federation, together with the Russian Academy of Sciences, only prepares its offers concerning the budgetary financing of fundamental research. The so-called program portion of science financing (financing planned in the federal targeted programs for several years ahead) is formed by the Ministry of Economic Development of Russia, and the remaining portion (projects that are not covered by federal targeted programs but require funding due to their importance for the national development) by the Ministry of Finance of Russia; this once again breaks the principle of a single process chain. The situation is understood and discussed, but no real actions are taken. In accordance with the changes in the Federal Law On Science and National Scientific and Technical Policy, fundamental research in state academies of sciences is to be financed under the Program of Fundamental Research. The Law stipulates a subsidy-based mechanism of such financing. The discussion at the meeting of the Expert 30 IPR_digest_eng.indb 30 Council for Initiatives in Scientific and Technical Policy of the Committee for Science and Science-Intensive Technologies of the State Duma and in the Committee for Education and Science of the Federation Council showed that the specific financing mechanism has not yet been developed. Moreover, experts said that introduction of a subsidy-based mechanism will cause growth of the numbers of financial managers in research institutes and increase of paperwork and red tape at the expense of the research itself. Expert opinions can be regarded differently, but one thing is clear: before submitting draft laws for adoption by legislative bodies mechanisms of enforcement of new legal standards must be developed, especially so for crucial issues. After long discussions changes began to appear in the national legislation aimed at stimulating innovation activity. This includes not only funding innovation programs and projects in priority development areas from the budget, but also indirect measures of support. The supreme leaders of the country have suggested expanding state support of innovation companies through privileged taxation several times, but there is no improvement as yet. After long discussions the Federal Law On Amending Certain Laws of the Russian Federation Concerning the Formation of Favorable Tax Environment for Financing Innovation Activity came into effect. The adopted amendments provide a number of privileges concerning exercising the rights for the results of intellectual activity, but this is obviously not enough. Issues related to the granting of additional preferences for value-added tax, corporate profit tax, corporate property tax, and land tax for companies, at least at the initial stage of introduction of their developments to the innovation market, remain unresolved. The importance of tax stimulation of small and medium innovation businesses must be emphasized once more. The problem is not only to develop and adopt the necessary legislative acts; another issue is to coordinate those acts with appropriate amendments to the Tax and Budget Codes. The jealous attitude of financial agencies to the firmness of the financial law is quite natural, but now we have completely new trends in the national economy, a systematic reform and transition to a knowledge economy, something without which Russia will never be able to become an equal partner for developed nations. For more than 10 years of application of the Patent Law, Laws On Legal Protection of Topographies of Integrated Circuits, On Legal Protection of Computer Software and Databases, On Trademarks, Service N E W E C O N O M Y : 1/14/09 8:51:04 PM Marks and Places of Origin of Goods, On Copyright and Neighboring Rights, and On Selection Achievements some drawbacks of certain legal provisions have been found. The legislators chose to improve intellectual property protection laws by way of codification. As a result, Part 4 of the Civil Code of the Russian Federation was adopted. At present the State Duma is already debating Draft Federal Laws On Patent Agents and On Technology Transfer. The Federal Law On Patent Agents provides for legal relationships arising when a citizen of the Russian Federation obtains the status of a patent agent, that is, a person who is legally entitled to handle cases on the protection of intellectual property, interacting with natural persons, legal entities, and the federal executive body in charge of intellectual property issues. The Federal Law On Technology Transfer regulates relationships in the field of exercising rights for integrated technologies (that is, technologies together with all the related utility models, prototypes, software, etc.), belonging in full or partially to the Russian Federation and/or regions of the Russian Federation, for their practical application (introduction). Both drafts are being debated in the State Duma; each of them has received dozens of serious remarks and suggestions. The draft laws are to solve most crucial issues: the conservation and development of the institute of patent agents and the procedure for technology transfer to users. The problem of accounting intellectual property has been posed multiple times. Intellectual property created by scientific organizations is rarely used by the research institutes themselves for manufacturing products. It is therefore doubtable if they can formally account their intellectual property at all. Moreover, existing valuation methods, when applied in scientific organizations, cannot provide an objective estimate of intellectual property value without creating an unjustified tax burden pressing heavily on state scientific organizations. The problem of human resource deficit in the science and innovation activity is very serious. The innovation activity lacks not only managers and research fellows, but also engineers and qualified operators. Such a situation was formed by several factors, but the underlying cause is, in our opinion, the absence of a well-thought state policy. I N N O V A T I O N IPR_digest_eng.indb 31 I N S I G H T I N T O Internal and external migration, collapse of scientific schools and increase of the average age of scientists were much helped by declaring that the science is superfluous, its permanent underfinancing, unwillingness of young people to choose a scientific career, obsolescence of instruments and equipment, blunders during the privatization of scientific organizations, and many other reasons. The federal targeted program for human resource provision to the innovational Russia can give positive results if implemented but it cannot resolve issues accumulated for almost 20 years without adopting a special law on the status of a scientific researcher and social protection of such employees. It should be remembered that even during the most difficult years the government found the opportunity to provide housing for scientists at the expense of the budget and increase their retirement pensions, which was stipulated by law. Today researchers who contributed greatly to the development of the national economy, technology and defense often fall into the most vulnerable categories of population when retiring. Each of the more or less important problems mentioned above has its own roots; most of them arose due to the difficulties of the political and economic transition period. Choosing the innovational path of development today, we have to create a system of strategic planning, strategic management and long-term forecasting. It will enable the economy to rise to the higher level of competitiveness based on basic innovations, which is especially important in the light of the fact that the developed nations are proceeding to the sixth technological type (self-programming production automation). A mechanism of legal regulation of these issues should be proposed, that is, a federal law should be adopted that would regulate long-term forecasting and strategic planning of the entire national economy, as well as some of its branches, such as science and education. Today’s Russia has all the prerequisites for making a giant breakthrough through creating the NIS and knowledge economy. The development and improvement of the legislation on innovation, science, and technologies should therefore be a major factor in such a breakthrough. R U S S I A 31 1/14/09 8:51:04 PM Andrey Klepach Deputy Minister of Economic Development of the Russian Federation, PhD in Economics Concept of the Long-Term Socio-Economic Development of the Russian Federation through 2020 and the Development of the National Innovation System One objective of the Concept of the Long-Term Socio-Economic Development of the Russian Federation through 2020 is to transfer the national economy from a raw material oriented development to innovational socially oriented development. The Russian economy is to be given a competitive edge through emphasizing its strengths in science/education/high-tech and forming a globally competitive national innovation system – a system of institutes, mechanisms and supporting infrastructure of innovation activity in all fields of the economy and the public life. The efficient national innovation system is based on: – Growing demand for innovations from most economy sectors: so far innovation activity is concentrated in a narrow range of sectors, and technical renovation of production facilities centers mainly on imported technologies rather than on domestic designs; – Increased efficiency of the knowledge generation sector (fundamental and applied science): at present the backlog accrued in the Soviet years continues dwindling, the average age of the scientific research staff is increasing, research levels are dropping, the Russian research is poorly integrated into international research and the world innovation market, neither does it correlate too well with the existing market demand; – Overcoming the fragmentariness of the established innovational infrastructure: many innovation infrastructure elements have been already established but they do not as yet support the innovation process along the whole chain from knowledge generation through commercialization to putting innovations in operation. The Concept sets forth the following goal of the creation of the national system of innovation support and 32 IPR_digest_eng.indb 32 technologic development: large-scale technical renovation of production facilities based on up-to-date technological designs; forming a competitive national sector of research and development driving the economy to the innovational development path; forming innovational behavior patterns of people and businesses; support of creation and spreading of innovations in all economic sectors. All that will enable Russia’s international scientific and technologic leadership in the fields that have to do with its competitive strengths and national security. Targets of the national innovation system development: – The percentage of businesses making technological innovations will grow to 15% in 2010 and to 40-50% in 2020 (13% in 2007); – Russia’s share on world markets of high-tech products and services will reach at least 5–10 % in 5–7 or more sectors by 2020 (including nuclear power, aircraft, spacecraft and services, special shipbuilding, and certain niches on the software market); – Exports of Russian high-tech products will grow to 2% of the total world exports of high-tech products by 2020 (0.3% in 2007); – Gross value-added will reach 17% to 20% in the gross domestic product by 2020 (10–11% in 2007); – The percentage of innovation products within general industrial output will grow to 6–7% in 2010 and to 25–35% in 2020 (5.5% in 2007); – Domestic expenditures on research and development will grow to 2.5%–3.0% of the gross domestic product in 2020 (1.1% in 2007), with more than a half financed by private businesses. It is necessary to establish conditions for the forming of an innovational business model characterized by continual growth of investments into innovations, renovation of products and technologies, and winning new N E W E C O N O M Y : 1/14/09 8:51:04 PM markets. The government will focus on the forming of a future development potential through adding innovational character to the education system, upgrading the research sector, compensation for the “market gaps,” selective support of priority areas of technological development, and creation of an incentive system for businesses aimed at enhancing investment activity. Both the business and the government develop process initiatives (process flow charts) that define the procedure and ways of interaction in promising areas of technology research and development, jointly assessing the established institutes for innovational development stimulation and innovational infrastructure elements. In order to achieve the targets shown above, the Concept of the Long-Term Socio-Economic Development suggests a number of steps in the following key areas covering demand for and supply of innovations, as well as their institutional infrastructure. Support of innovational businesses and enhancing demand for innovations in the economy: – To develop the competitive environment and, above all, the environment for technological competition and innovational competition; – To stimulate investment in technology upgrade, research and development, commercialization of research results, capitalization of intellectual property through budgetary, tax and other incentives; – To establish prerequisites for effective market valuation of the accrued and newly created intellectual property and for the usage of such property to increase company capitalization, simplify intangible assets turnover, and involve intellectual property created with the help of budgetary funds into the economic activity; – To support small and medium innovation business start and development, in particular, through: – Reducing bureaucratic obstacles for innovation business start and development; – Forming prerequisites for delegating part of governmental research and development contracts to small and medium innovation businesses; – To create favorable conditions for developing new high-tech economic sectors, including developing by improving regulation of the markets in question and by optimizing the existing innovation support instruments to match the specific features of promising economic sectors; I N N O V A T I O N IPR_digest_eng.indb 33 I N S I G H T I N T O – To form additional incentives to develop innovations in the state sector of the economy and in natural monopolies through: – Strengthening the innovational component of the governmental procurement system; – Making natural monopolies and large governmental companies develop and accept innovational development programs, form and implement process roadmaps, start using advanced-level technologies, and improve their energy saving processes. Development of fundamental science, raising the efficiency of the research and development sector: – To make the Russian research and development sector more competitive and governmental expenditures for its support and development more efficient, in particular, through: – Identifying and specifying priority research fields based on long-term science and technology development forecasts; – Bringing into service an institution for independent assessment of state-sector scientific organizations, following world practices; – Gradual increasing of the share of competitive research funding; expanding the role of state scientific and technical foundations in financing fundamental research; by 2010 more than half of budgetary funds intended for financing fundamental research is to be allocated on a competitive basis; – Introducing new instruments for financing the state sector of research, including fundamental research; rapid development of R&D funding instruments that provide reasonable risk sharing between the state, the science and the business; increase of private co-financing; – Competitive support of mid-term comprehensive development programs of leading scientific and educational organizations; – Forming and realizing a set of steps for development of the non-state science sector; – Developing the necessary material resource supply of science, including a multiple-access center network; – To create 5 to 7 national research centers (“national laboratories”) and support formation of 20 to 30 national higher educational institutions in order to achieve scientific and technological breakthroughs R U S S I A 33 1/14/09 8:51:04 PM in one or more priority fields of national science, technology and engineering or to implement national-scale strategic programs or projects. To improve the system of state scientific centers in order to make Russian innovations more efficient and competitive; this includes support of upgrade of material resources for experiments and research; – To support development of proprietary research, including providing access to unique research equipment within the government-supported innovational infrastructure (in particular, multipleaccess centers), and propagation of best practices in organizing corporate innovation systems; – To encourage engineering and project activity development, in particular, by supporting projects for creation of engineering centers, design centers, and certification centers; to help businesses arrange their engineering audits; – To revise the HR policy in the Russian R&D sector, including: – Creating mechanisms for attracting fresh graduates into research and innovation activities: career planning; introduction of individual grant systems; encouraging young researchers; state subsidizing of residential mortgaging for fresh graduates in research, engineering, project activity, and other new high-technology activities; grants, loans, and venture financing of implementation of their developments; – Reforming the wages system in research and education; making the wages dependent on the result and quality of the researchers’ work; introducing new forms of funding fundamental science (project financing, grants, etc.); – Enhancing management quality in science organizations in order to implement innovational projects and ensure efficient communication with the business; – To contribute to wider and earlier usage of the results of domestic R&D work by Russian businesses, in particular, by developing instruments for transfer of R&D results between the civil and military sectors. Development of the innovational infrastructure: – To boost the efficiency of the established innovational infrastructure (inter alia, special economic zones, technology transfer centers, business incubators, technology parks, etc.) drastically; 34 IPR_digest_eng.indb 34 – To develop the financial innovational infrastructure, form an integral innovation support system based on the established development institutions (Bank of Development, Russian Venture Company, regional venture companies, Russian Corporation of Nanotechnologies (RUSNANO), etc.). Direct investment foundations are to be created with the government participating in order to increase high-tech company capitalization, develop venture financing, create public or private-and-public foundations for financing particular stages of the innovational business. The innovational financial infrastructure is to support the businesses both at the initial stage of their life and at the moment of their maturing and transition to a new league; – To develop technical regulation, as a crucial instrument stimulating innovational development, rapidly through: – Revising obsolete regulations and standards, which have become barriers for the expansion of companies’ innovation activity; – Consistent and long-term predictable toughening of requirements to the efficiency of natural resource usage by the companies, safety of products and services for the environment and for people’s health, reduction of energy consumption and resource consumption; defining an appropriate system of incentives and penalties; – Harmonizing the Russian standards with international standards, above all, in the fields where exports of innovation products can grow; – Approving technical regulations, standards, and rules contributing to the expansion of best practices, quicker establishment of high-tech joint ventures, and outsourcing development; – Simplifying and accelerating certification procedures, including international certification. – To develop incentives for innovation-related interaction of research and educational institutions, on the one hand, and businesses, on the other hand, including: – Forming technological platforms as grounds for business/science interaction where promising areas of technological development will be identified and supported; – Developing grant-based co-funding of companies’ R&D expenditures; N E W E C O N O M Y : 1/14/09 8:51:05 PM – Co-financing of network innovation projects and financial support of long-term innovation partnerships in technological areas which are important for economic development; – To support (in financial, administrative and infrastructural aspects) the forming of high-tech clusters and promote products of such clusters on the domestic and world markets. Effective integration into the global innovation system: – To support Russian companies’ entering into business alliances where new technologies and products able to compete on the world market are created and appropriate technologies and competences are transferred to Russian participants, both in high-tech industries and in other sectors; – To eliminate the obstacles for Russian companies’ access to up-to-date foreign technologies; – To aid (including creation of appropriate foundations with governmental participation) the growth and capitalization increase of national high-tech companies and stimulate their consolidation in order to establish global high-tech players; – To ensure Russia’s participation in global technological projects, international programs and research networks and the nation’s integration into the world scientific and technological community; to develop and implement several largescale projects (national technological initiatives) in the development of certain technologies based on a long-term technological forecast; – To integrate the Russian R&D sector into the global innovation system, develop international cooperation, and provide access to the research faculties of the leading foreign scientific centers for Russian scientists; – To adopt and implement the program for support of high-tech products/services/technologies export; to form instruments for supporting establishment and capitalization of national high-tech brands, compensate for expenditures for international patenting and protect intellectual property rights abroad, both through efforts of Russian embassies and trade representative offices and in the framework of intergovernmental commissions for trade and economic cooperation; I N N O V A T I O N IPR_digest_eng.indb 35 I N S I G H T I N T O – To support acquisitions of foreign assets – technology donors, personnel training centers, engineering and design companies; – To develop and support programs of academic exchange and internship of Russian students and professors abroad and foreign ones in Russia, and aid attracting world-level scientists for teaching in Russia; – To involve Russian-born emigrant scientists into development of national science and technologies, in particular, by hiring them for participation in Russian scientific projects and teaching. Implementation of a system of technological and R&D initiatives (projects) that can secure Russia’s breakthrough positions in the scientific and technological competition on world markets. Priority areas of applied and fundamental science and technologies must be identified and reviewed regularly, based on long-term technologic development forecasts, including technology foresight. Such priorities are to be coordinated with the realization of competitive edges of the Russian economy and national security requirements. It will enable forming the technology profile of the Russian economy determining its competitive advantages over the leader countries (US, China, and Europe). The priorities will be implemented by preferential support of fundamental and applied research in the relevant areas and within two types of strategic innovational projects.1 The first group of such projects is oriented at rapid development of scientific and technical potential enabling Russia’s global competitiveness in most important technological areas. Until 2020 IT and communications, nanotechnologies, new materials and biological systems will be leaders in terms of their influence on both the economic competitiveness and national security, with the principal effect achieved at the turn of the cited technologies, in interdisciplinary areas. The second group of innovational projects is aimed at technological re-equipment of priority economic areas and development of individual breakthrough technologies. Top-priority fields of technological development reflected in the list of critical technologies and supported by existing and future federal targeted programs are: 1. Research fields in strategic innovation projects are based on the list of critical technologies approved by the President of the Russian Federation. R U S S I A 35 1/14/09 8:51:05 PM – Hydrogen economy and production of new motor fuels; – Next-generation nuclear reactors and fuel elements and enhanced-safety nuclear power stations; – New competitive power units (turbines, generators, etc.) and efficient long-distance DC transmission systems; – Special-purpose equipment capable of working in the Arctic and in extreme conditions; – Breakthrough projects in aviation aimed at creation of next-generation aircraft and power-saving engines (including next-generation gas turbine engines), and next-generation spacecraft; – New metal-processing technologies; – Optoelectronics, micromechanics, and new architectures of computers; – Software development and engineering services. 36 IPR_digest_eng.indb 36 Forming a new innovation culture in the public and raising the status of an innovator: – Propagation of best practices of innovations, including governance and public welfare innovations; – More active propaganda of the role innovations play for the development of the economy and the society, including: – Forming a system for popularizing science, innovations, and innovation activity, including social advertising, involving public opinion leaders, success stories, contests held among companies, scientists, research teams, etc.; – Special training courses on innovations in universities in order to make innovation activity more popular for as wide a circle of specialties as possible, including specialties which do not traditionally belong to the high-tech sphere. N E W E C O N O M Y : 1/14/09 8:51:05 PM State Policy in Scientific, Technical, and Innovation Activity of the Industry Stanislav Naumov Secretary of State – Deputy Minister of Industry and Trade of the Russian Federation, PhD Developing an innovational economy and drastic improvement of its efficiency are set forth as basic principles in the strategic documents on the national development, in particular, in the Concept of the LongTerm Socio-Economic Development of the Russian Federation through 2020. It is obvious that the national industry cannot reach the required competitiveness level without the state participating in the solution of key innovation-related problems. Today we know well that a consistent governmental industrial innovation policy is necessary for national competitiveness and security in order to coordinate actions and make industry development stable and dynamic. Globalization makes the world market a chief entity that defines competitiveness criteria, and major players on the world market are nations that have advanced technologies, which are the very factor that determines the competitiveness of particular products and the entire national economy. It is therefore in the interests of the state to promote creating management instruments and regulation mechanisms that bring technological upgrade of the national industry, innovation development, and new companies (public as well as private) able to stand tough competition with the leading international manufacturers. First of all, it is necessary to identify the subject matter. An essentially new technology is one that has no domestic or foreign analogs, has been created for the first time, and has essentially new features meeting or exceeding current requirements. The new technology is to be based on major pioneering or highly efficient inventions. In a similar way, a technology new for Russia is a technology that has no domestic analogs. Innovation activity means activity associated with transformation of ideas and new or improved processes. Innovation activity suggests quite a number of scientific, I N N O V A T I O N IPR_digest_eng.indb 37 I N S I G H T I N T O technological, organizational, financial, and commercial steps which together lead to innovations. A crucial task of the state in the field of forming an innovation economy model is to set forth technical priorities based on duly approved strategic and policy documents in the field of scientific, technical, and technological development. Corporate strategies and local initiatives that match the general development priorities should be taken into account. Administrative barriers should be reduced, along with political and economic risks for the business. The problems hindering innovational development include the following. First, it is low response of economy sectors to innovations due to the fact that their technology and human resource potentials do not meet modern requirements. Second, it is low amount of spare resources for innovation development in companies. Besides, there are limitations for the access of Russian companies to up-to-date foreign technologies. Implementing the private/public partnership mechanisms in order to develop the country innovationally, it is necessary, along with the proposed direct support of key fields, to form mechanisms for activation of responsible business participation in innovation processes, including stimulation of attracting private money for R&D, technical re-equipment and technological modernization of industry. At present the Ministry of Industry and Trade of the Russian Federation is funding a number of research projects. R&D enables launching the innovation process in question, giving impetus to production facility development and upgrade. The Research Program of the Ministry includes scientific work and R&D under federal and industry-related target programs and on orders of Ministry departments or entities reporting thereto (if that is the case, such work is performed on a self-financing basis). R U S S I A 37 1/14/09 8:51:05 PM Each work of the Program is oriented at solving specific topical issues and is completed in such a way as to be able to apply its results directly. Its topicality is guaranteed, on the one hand, during the task-setting and, on the other hand, by the nature of the achieved results and the possibility to use them in practical activity of the Ministry and in the field it regulates. One of the important fields in the development of the national innovation economic system and technologies is development of the intellectual property market, including legal registration and transfer of rights for new developments, technologies, and individual inventions. It is therefore necessary to develop a fundamentally new system of forming the list of breakthrough technologies based on expert assessments of leading research schools. An efficient way to implement this system would be an expert council of leading scientists in different fields (both Russian and foreign ones). Methods that stimulate innovational development through technical regulation are: – Modernization of the technical regulation system as regards technical regulations stimulating strategic development of innovational technical and technological levels and quality of products and related manufacturing processes, in order to make them competitive at the domestic and foreign markets; – Adoption of technical regulations that contribute to expanding establishment of high-tech joint ventures, in order to boost up import of innovation technologies, their further study and introduction as a basic platform for developing Russian innovation products; – Simplification and speeding-up of certification procedures, including international quality certification (in particular, in order to simplify exports); – Harmonization of Russian standards with international standards. In order to maintain and develop the humanresource and innovation potentials, the government, businesses and educational institutions must exert joint efforts to support the following fields: – Forming a system that will supply highly qualified specialists and workers of all professional qualification levels to the industry, including a continual professional training system with the current and future business needs taken into account; 38 IPR_digest_eng.indb 38 – Forming a system of additional technical and technological professional training of employees under state support; – State support of young employees; – Establishment of special scholarships of the Government of the Russian Federation for students of Russian higher professional educational institutions majoring in highly demanded specialties; – Social guarantees for people having constant access to state secrets and officers for protection of state secrets; – Development of the nation’s intellectual potential; – Improvement of the monitoring and forecasting system of labor market. Forecasts of workforce demand should be formed primarily by federal and regional executive bodies acting in close interaction with the business community with their investment programs, their vision of promising areas, and their estimation of the required personnel qualification taken into account; – Improvement of the system of professional standards and similar educational standards; – More intensive professional orientation of schoolleavers and students, with an emphasis on the regional level. In order to make specialist and management labor offer meet the demand better, the Ministry of Industry and Trade put forward an internal targeted program for Retraining Managers and Preparing Specialists for Integrated Structures in High-Tech Sectors of Industry, 2009–2011, to be developed. The Program includes, in particular, creation and launch of a system that will monitor the current situation on the labor market for high-tech industries, development of industrial professional and educational standards together with representatives of the business and higher educational institutions, organization of business/university interaction, development of the secondary professional technical system, and development of the system of in-service training. The implementation of the Program will enable creating an inter-industry system of manager and specialist retraining. We believe another crucial component of innovational development is the formation of a modern technology basis determining the level of response to innovations. To this end, it is reasonable to focus part of innovation projects on the development and manufacturing of new N E W E C O N O M Y : 1/14/09 8:51:05 PM materials and components, machine-engineering and processing machinery, that is, the activities which can become a basis for producing a wide range of high-tech products. The solution of the import replacement problem is also closely related to this component. The high share of imported materials, components, and equipment used in production, especially in production of weapons, military equipment and special equipment, endangers the technological and economic security of Russia and reduces the multiplicative effect of innovation. For technological areas that lag behind the international analogs very much a system of economic and political steps is necessary in order to simplify access of Russian organizations to modern technologies of leading foreign countries (remove restrictions). A leading role in the scenario of the innovational economic development is assigned to the defense industrial sector (DIS). Its accelerated development is one of top priority lines of socio-economic development of the Government of the Russian Federation. The state should regulate innovations in the DIS by economic and legal forms of control, combining incentives for commercialization with liability for observing requirements and rules. Besides, the state should establish the necessary legal environment stimulating development of the innovational infrastructure matching particular features of DIS functioning. Innovational developments are time-consuming, but even now such successes may be pointed out as active use of innovations in the SaM-146 engine for the new regional-class aircraft SuperJet-100 and, on the whole, in the work of fifth-generation engine families and fifthgeneration military aircraft. In manufacture of chemicals, petrochemicals, pharmaceuticals, and medicines innovation projects for development, introduction and manufacturing of products should be supported, with the following things accounted for, inter alia: different forms of R&D financing, including use of funds allocated for small enterprise support, grants, and venture financing; long-term loans and interest subsidizing; purchase of modern technologies and manufacturing assets based on private/public partnership, in particular, against debts of foreign companies. Such steps can be implemented, particularly, in the following forms: – Creation of national research centers (NRCs). We believe a leading NRC for biological systems (pharmaceuticals, biotechnologies, medical equipment, I N N O V A T I O N IPR_digest_eng.indb 39 I N S I G H T I N T O and medical products) should be formed in order to enhance efficient development of new highquality medicines, both pharmaceutical and biotechnological ones; – A system stimulating creation and development of innovational centers within structures of the leading industrial enterprises of the Russian Federation. Simultaneously a system stimulating creation of corporate research centers must be developed; – Development and introduction of mechanisms for establishing small innovation-related companies. In order to develop the innovation system, it is necessary to envisage special mechanisms of their budget financing; – Creation of technology transfer centers in the leading national universities; – Creation of centers for promotion of Russian products on foreign markets and transfer of technologies to Russia based on Russian trade missions, establishing prerequisites for head-hunting, including monitoring and forming databases on highly qualified employees working abroad; – Creation of state-controlled venture funds of innovational development of medicine, pharmaceuticals, and biotechnology; – Preparation of an import replacement program for most important products included into federal targeted programs; – Implementation of innovation projects in applied research based on private/public partnership. To commercialize the research results it is necessary, first of all, to develop intellectual property valuation techniques in chemicals and medical products. The innovation law also needs improvement. In order to develop the innovation system, it is advisable to introduce tax incentives, including exemption of corporate profit tax for revenues received by companies from investment of at least RUR 20 billion, channeled for creation of innovation product manufacturing, until the full planned capacity is reached (but not exceeding three years). Principal efforts of the scientific potential must be aimed to develop and implement breakthrough innovation projects. In order to transfer forestry and light industry to the innovational path of development, their most competitive sub-activities are to be developed, with production fa- R U S S I A 39 1/14/09 8:51:05 PM cilities renovated and up-to-date technologies introduced. This will enable growth of high-value-added output. A number of top priority investment projects have been included into the top-priority list in the forestry sector. These projects have to do with creation or upgrade of forestry and wood processing infrastructure, with the total investment amount at least RUR 300 million. Each of these projects has serious innovational potential facilitating a breakthrough in a certain field; jointly they form favorable conditions for the leap of wood processing to the new level of development. The efficiency of the industrial innovation policy lies therefore in a comprehensive approach aiming to establish a favorable innovation climate and infrastructure. Financial and engineering infrastructure created under 40 IPR_digest_eng.indb 40 the supported large-scale projects and programs makes it possible to start the innovation “motor,” above all, in a number of priority sectors (the defense sector and others) characterized by substantial state involvement. It is evident that favorable economic conditions must be created in order to activate R&D. But additional tools should also be involved when forming the innovational face of the national industrial policy. Apart from direct state support, these can include creation of technology transfer centers and sector-based national research centers based on private/public partnership. The crucial thing in this field is to enable continual replenishment of human resources capable of both developing advanced innovations and introducing them into industrial production. N E W E C O N O M Y : 1/14/09 8:51:05 PM Forming the System of Legal Support of Innovational Development of the Russian Economy Yury Sentyurin Secretary of State – Deputy Minister of Education and Science of the Russian Federation, PhD in Political Science During the recent years the Government of the Russian Federation has been working actively over the development of the national innovation system (NIS) and its infrastructure. The institutional base of the NIS has been considerably expanded: a number of new laws and Decrees of the Government of the Russian Federation have been adopted, along with other regulations which are to stimulate the innovation activity of market participants. The principal documents regulating the activity of the Government of the Russian Federation in innovation management are: – Basics of the Policy of the Russian Federation on the Promotion of Science and Technology for the Period of Time up to 2010 and for Further Perspective approved by the Decree of the President of the Russian Federation of March 30, 2002 No. Pr-576 (hereafter, the Basics of the Policy); – Basic Guidelines of the Policy of the Russian Federation Concerning the Development of the Innovation System through 2010, approved by the Chair of the Government of the Russian Federation on August 5, 2005 No. 2473p-P7 (hereafter, the Basic Guidelines). These documents introduce certain concepts and definitions. We are now going to identify the principal ones. Innovational activity means work and/or services aimed at: – Creation and organization of manufacturing of products (goods/work/services) which are fundamentally new or have new consumer properties; – Creation and usage of new, or modernization of existing techniques (technologies) of their production, distribution and usage; – Using structural, financial, economic, humanresource, informational and other innovations (novelties) when producing or selling products I N N O V A T I O N IPR_digest_eng.indb 41 I N S I G H T I N T O (goods/work/services), with costs saved or prerequisites for cost-saving formed. Innovation products are the results of innovational activity (goods/work/services) intended for sale. The innovational system infrastructure embraces all innovation agents that create or sell innovation products. The innovational system infrastructure includes technology transfer centers, innovation and technology centers, innovational special economic zones, technology parks, business incubators, centers training personnel for innovational activity, venture funds, etc. The content of innovation agents’ innovational activity includes: – Analysis and forecast of fields of scientific, technologic and innovational development of the economy, with real market environment taken into consideration; – Development of the infrastructure of an innovation system; – Involving intellectual activity results in the economic processes; – Technological re-equipment of enterprises for manufacturing innovational products; – Examination of new development projects, consulting, informational, legal and other services concerning promotion of innovational products on the market. I must point out that neither the cited concepts nor the innovational activity proper are as yet formalized by the federal law. At the same time, the Federal Law On Science and National Scientific and Technical Policy has been amended. In accordance with the new version of the Law, the Russian Academy of Sciences and branch academies are granted the status of state academies of sciences – non-commercial organizations. The statutes of R U S S I A 41 1/14/09 8:51:05 PM the academies are to be approved by the Government of the Russian Federation. The statute of the Russian Academy of Sciences has been approved by the Decree of the Government of the Russian Federation. The new version of the statute expanded RAS rights considerably, entitling it to identify principal fields of fundamental research in natural, technical, social sciences and humanities on its own and deal with its rights for intellectual property and other results of research activity. The Government has approved the Program of Fundamental Scientific Research of State Academies of Sciences for 2008-2012, with planned financing of over RUR 250 billion of the next five years. The Russian Academy of Sciences may take its own decisions on the number of its staff and remuneration system. Today the Ministry of Education and Science of the Russian Federation is developing the Concept of Draft Federal Law On Amending the Federal Law On Science and National Scientific and Technical Policy, Federal Law On Non-Commercial Organizations, and Federal Law On Autonomous Institutions As Regards Specification of Legal Status of Foundations for Support of Science and Technology and the draft specification for the development of the Draft Law in question (hereafter, the draft law on foundations). The goal of the draft law on foundations is to regulate the relationships concerning the creation and activities of public and private foundations for support of scientific and/or technological activity (hereafter, the foundations) and the relationships arising during the financing of scientific, technological, and innovation activity (hereafter, innovation activity) from such foundations, to define the legal status of such foundations and their taxation status, and to establish distinctive features of their structure. The principal idea of the draft law on foundations is to formalize the distinctive features of the organization and activity of foundations for support of scientific and/or technological activity and eliminate gaps in legal regulations hindering efficient performance of such funds. The goal of the draft law on foundations is to: – Improve the conditions and opportunities for the creation and activities of public and private foundations for support of scientific, technological, and innovation activity; – Perfect the legal mechanism of the organization and activity of foundations for support of scien- 42 IPR_digest_eng.indb 42 tific and/or technological activity, including more precise specification of prerequisites and procedures of the foundations’ receiving and granting money, and establish their distinctive features and special requirements to their activities; – Help arising and development of small and medium businesses in scientific, technological and innovation fields; – Develop and perfect the infrastructure of scientific, technological, and innovation activities and form a competitive R&D sector. 2007 saw the concept of the national research centers (NRCs) and their principal fields of activity established. NRCs are to get scientific, material and human resources matching or surpassing the world level across applicable parameters; they are necessary for active scientific and technological support of one or more priority fields and/or strategic programs/projects of national importance. NRCs are going to concentrate material and human resources at the federal level and coordinate scientific, technological and innovation development in relevant problems and priority fields within the authority granted to them by the Government of the Russian Federation. They are to implement the full innovational cycle of technology development, from research to prototypes and pilot series. In 2008 the Concept of Draft Federal Law On Amending Certain Legislative Acts of the Russian Federation in View of the Established Status of a National Research Center was developed. The Federal Law No. 308-FZ On Amending Certain Legislative Acts of the Russian Federation Concerning Integration of Education and Science was adopted on December 1, 2007. The latter legally formalizes the science/education integration forms existing long enough in order to provide for their further development within the approved legal mechanisms. The adopted amendments to the laws on science and education enable implementation of a considerable part of the academic research potential and involvement of young people in research through stronger integration of science and education. Greater economic independence of state academies of sciences combined with simultaneous growth of responsibility for results of their activity are to enhance the research efficiency. N E W E C O N O M Y : 1/14/09 8:51:05 PM The Federal Law of July 19, 2007 No. 195-FZ stipulates the following amendments to the Tax Code of the Russian Federation: – The rate of taxpayers’ expenditures for research and/or development accounted as tax base deduction (in the form of allocations for the forming of the Russian Foundation for Technological Development and other industry and inter-industry R&D financing foundations) was increased from 0.5% to 1.5%; – Target financing from research support foundations shall not be counted as profit for tax purposes; – An accelerated depreciation rate was introduced for scientific and educational organizations; – Patenting, research, and/or development costs were included into the list of costs that can be deducted by taxpayers using the simplified taxation system when calculating the unified tax. The cited Federal Law entered into effect on January 1, 2008, except Article 2. Within reforming the system of charging and payment of indirect taxes tax preferences are granted to companies that purchase equipment or upgrade and/or adapt it for their own use, for R&D purposes, for optimizing production, and/or for creating a new production line, as well as to companies that import technologies and science-intensive goods and equipment to Russia. Such an exemption is to stimulate: – Upgrade of R&D and technological equipment by businesses, scientific and educational companies; – Construction of new production lines; – Creating new products and enhancing the technological re-equipment of the entire nation. The recent four years saw active introduction of program-based financing of research with private funding involved. Such approaches were tested within the Federal Targeted Scientific and Technical Program for Research and Development in Priority Fields of Science and Technology, 2002-2006 and developed in the new Federal Targeted Program for Research and Development in Priority Fields of Science and Technology Sector of Russia, 2007-2012, implemented on a basis of public/private partnership. Non-budgetary co-financing of innovational projects accounts for 25% to 70%. In order to develop the presidential initiative Strategy of Nanoindustry Development, the Federal Targeted I N N O V A T I O N IPR_digest_eng.indb 43 I N S I G H T I N T O Program for Development of Nanoindustry Infrastructure in the Russian Federation, 2008–2010 was adopted. This Program envisages technical re-equipment of leading scientific organizations and educational institutions solving outstanding metrology and standardization issues and retraining personnel for work in the nanoindustry. To date Russia’s innovational infrastructure counts more than 200 objects organized with different forms of state support. They include over 120 active technology parks and innovation technology centers hosting more than 1,200 small enterprises with a total number of employees exceeding 20,000 and the combined yearly output topping RUR 30 billion worth. In 2006 the Government approved the State Program for Creation of Technology Parks in the High-Tech Sphere in the Russian Federation. 86 technology transfer centers were created, helping more than 2,000 organizations – universities, RAS institutes, industrial research institutes; 10 national information analysis centers for monitoring international and Russian scientific and technology potential were established, getting over 40,000 queries for two years. Another effective state innovation support mechanism was proposed and implemented – special economic zones (SEZs), regulated by the Federal Law of July 22, 2005 No. 116-FZ On Special Economic Zones in the Russian Federation. There are 57 residents registered in the four existing innovational special economic zones at the moment. Development institutes have been formed for supporting innovations, including the Russian Venture Company established by the Decree of the Government of the Russian Federation. The Company disposes of RUR 15 billion of investment resources. State corporations have a special role in the innovation development. The Russian Corporation of Nanotechnologies (RUSNANO) was established by the Federal Law of July 19, 2007 No. 139-FZ. The purpose of creating RUSNANO was to support innovations in the nanoindustry (above all, promising innovational projects) financially and organizationally. RUSNANO is to play the key role in the implementation of the state socio-economic and, particularly, innovational policy, working in interaction with federal executive bodies, state academies of sciences, leading trade, industry, and investment companies and holdings, and individual enterprises and public business associations. R U S S I A 43 1/14/09 8:51:05 PM We can thus state that, despite considerably less innovation experience as compared with the leading industrial nations, Russia has created a system of legal support of innovational economic development, along with the innovation system proper, which is capable of commercializing research results and ensure new high-technology product manufacture growth. However it must be emphasized that Russia still lags behind the OECD average in terms of most basic parameters of the national innovation system. At the same time, there are certain hindrances to the development of the Russian innovation system. Strategic priorities of Russia’s innovational development, along with the appropriate legislative base, are formed at the federal level; comprehensive state programs for high-tech activity development are worked out, and mechanisms of their implementation are instigated. The federal center also forms the regional component of the state program for innovation policy, deciding upon the most efficient placement of advanced production facilities, creation of special economic zones and technology parks in the high-tech sphere, etc. 44 IPR_digest_eng.indb 44 But certain decisions on the creation of innovational infrastructure elements sometimes fail to consider the innovational potential of different regions, strategic plans and regional development schemes, and strategies of the leading companies and industries. NIS development must spring, inter alia, from the system of strategic documents on regional development. Many regions are actively forming and perfecting their innovation policy, adopting laws that facilitate scientific, technological and innovational activity, identifying priorities and developing appropriate regional programs, enhancing interregional and international cooperation, and developing innovational infrastructure. The federal center must support regional initiatives. But, apart from such support, the regions can expect the federal center to pursue a consistent policy taking the specialization of different regions into account. Such a policy could preclude dissipation of financial resources and high-tech facilities duplicating one another, ensure fruitful interregional integration but maintain the competition, a necessary component of an efficient economy. N E W E C O N O M Y : 1/14/09 8:51:05 PM Legal Problems of Development of Innovation Relations of Russia Today Andrey Lisitsyn-Svetlanov Director of the Institute of State and Law of RAS, Corresponding Member of RAS Each country has its own remarkably unique situation as far as innovations are concerned. But, although no two countries are identical twins in this respect, there is one trait that is fairly universal: all nations regard technical progress as a desirable thing. The entire world yearns for development of the innovation sector, but the level of such development varies widely even in countries with a strong industry and traditional market economy. There is a paradox: the obvious desire does not match the reality. Looking at the experience of many industrially developed countries, we observe a fairly varied picture of steps and efforts undertaken by each country with a view to boosting innovation. And it is the government that initiates such efforts in most cases. In our opinion, the modern conception of innovation development has been best represented by United Kingdom and Japan, which advanced the idea of creating a society of knowledge. While we appreciate the methodological value of the abovementioned conceptions and the legal experience of certain other countries, we do not think that Russia should base its laws governing development of the innovation sector on borrowing ready-made legal constructs of other nations. Therefore, it is necessary to give a realistic evaluation to those legal reforms that have already been accomplished, and then proceed to choosing organizational and legal tools of innovation development. In Russia, the problem of innovation-based economy development is a very multifaceted one. The civil law reform undertaken in 1990s culminated in the passing of the Civil Code and a package of laws on intellectual property. Objectively speaking, a sufficient legal framework was established for appropriate legal regulation of innovation processes. But the adoption of Part IV of the Civil Code is, in the final analysis (even if we take in account all the new provisions), an act of codification I N N O V A T I O N IPR_digest_eng.indb 45 I N S I G H T I N T O which benefits mostly law enforcement activities rather than the corresponding economic relations. However, neither the 1990s, nor the following eight years witnessed any active development in the innovation sector, and the gap between the level of Russian science capable of developing quite competitive solutions, on one hand, and the industry, on the other hand, continues to exist. Moreover, the industry remains indifferent even to foreign solutions, even though today it can use them much more freely than during the Soviet period. So, although one would think that using innovations is absolutely required for our commercial enterprises to remain viable in the competitive environment, they are not actually used for that purpose. We tend to think that this is an indicator of immaturity of the market. Under the existing conditions (both domestic and international), developing and harmonizing the market without assistance of the state will either take too long or won’t be possible at all, and that is not acceptable in today’s world. The state must play an active part both in advancing innovation processes and in development of the market as a whole. Therefore, correctly determining the state’s role in advancing innovation processes becomes a primal problem. In solving this problem, it is very important to avoid the temptation of assigning certain functions of an economic agent to the state. A risk of this happening actually exists, because a legal base for assuming such functions by the state is found in Chapter 77 of Part IV of the Civil Code, and is further strengthened by a number of drafts of subordinate laws. The main task of the Russian state today is to create a legal mechanism that will be capable of starting intensive development of innovation processes that are lethargic at the moment. A lot of time and a lot of highly trained personnel have been lost. R U S S I A 45 1/14/09 8:51:05 PM The intellectual property laws are just one link in the chain – a necessary one, a very important one, but not capable of boosting innovation processes all by itself. Vital points should be found along the entire chain, starting with the status and financing of the fundamental science, which is the generator of ideas, through industrial implementation of innovations and creation of high-tech manufacturing enterprises with highly skilled staff, and ending with product sales in the domestic or international markets. If the entire chain – from a conception of an idea to sales of the products that were produced by implementing that idea – does not function, then no amount of great intellectual property laws and no amount of scientific centers generating wonderful ideas will be of any help. Factors related to international cooperation should be taken in account as well. A proper balance should be maintained in that area. On one hand, scientific thought, technology, and production in the modern world can’t exclusively belong to a single nation. International experience and foreign technologies must be used in scientific and technological work as well as in industrial development. On the other hand, Russian science needs a protectionist approach, since its development in the recent years has been underfunded. If the state pursues the policy of providing state support to innovation, including financing venture projects, it should give preference to Russian R&D companies. And this is exactly the goal toward which the new state corporations created in accordance with federal laws, including the Russian Corporation of Nanotechnologies, should work. In addition to the overall approach to creating a legal framework for innovation-based development, one should keep in mind certain specific elements which are a sine qua non of legal relationships in the innovation area. And the first and foremost of those elements is the legal subject participating in such relationships. The situation that came to exist as a result of privatization, when the manufacturing sector and R&D institutions operate independently of each other, has lead to a disastrous rupture between science and production. Our main problem today is that manufacturing enterprises are not interested in acquiring high-tech solutions that could help improving facilities and material assets. The Russian business is not even trying to use solutions created by the applied science sector, let alone the fundamental science, which thinks decades ahead, because development of new technologies involves implementing 46 IPR_digest_eng.indb 46 ideas which won’t bring any immediate profits to the Russian business, so the business, which has other ways of making reasonably high profits, is not willing to incur additional expenses. That is the situation that actually exists; it can be analyzed, but cannot be changed in the immediate future. So, since the fault lies with the business itself, the subsequent parts of the mechanism won’t work either. Therefore, another player should be promptly introduced into the business arena, a player that can replace the Russian businessperson interested in short-term gains. Who can become such a player? The state. And if we look at the problem in the light of developing such a business form as partnerships between the state and the private business, it is the state that should initiate the process. Unfortunately, considerable differences exist today between interests of the state and those of the business. And what we need now is to stop fumbling around blindly in search of a way to make the state cooperate with the private business; instead, we need to determine clearly who will be placing orders tomorrow for the products that Russian science is potentially capable of producing, and who will be the consumer of such products. The Russian state is interested in development of an innovation-based economy not only because the state is a regulating power in our society, but also because it is a major consumer of high-tech products. This is a result of a number of factors. The state has a huge territory spread across different climatic zones with a poor infrastructure and a catastrophic demographic situation. All that territory needs improvements and protection, which becomes especially obvious when we look at the problem in the light of international relations. Besides, according to the Constitution, Russia is a social state. And to be truly social, it needs certain products – not knowledge as such, but medicines, infrastructure, weapons, etc. Therefore, the state can be seen as a huge source of orders for high-tech products, and, at the same time, a huge consumer of such products. The history of our country shows that in the absence of orders placed by the state, inventor’s certificates could just as well be used instead of wallpaper, while those technologies that were used in the defense industry were quite competitive. Why? Because if the customer demands that the products should have very high quality, and the law makes sure that the products are to be delivered in strict accordance with the contract, then new technologies will be competitive, and the quality of the products will be comparable to or better than that of similar foreign products. In the situ- N E W E C O N O M Y : 1/14/09 8:51:06 PM ation that exists today, it is mandatory that the laws on governmental contracts should be improved, especially in regard to the so-called state acceptance inspection and, consequently, the liability for non-execution or poor execution of governmental contracts. While the practice of governmental contracts does exist today, the state buys only those products that are offered by manufacturers. But if the state started demanding high-quality products, the contractor would be faced with a dilemma: to lose the order or to hire developers that can offer new technologies and/or new materials. The same problem exists in such areas as manufacture of medical equipment, environmental safety, capital construction, energy saving, etc. Governmental contracts must place science and business in a competitive environment. If the government orders high-tech and high-quality products, a company that is not capable of producing modern medicines can go bankrupt. To reiterate, governmental contracts should not keep financing outdated technologies that exist in Russia or abroad; instead, they must contain such requirements that are impossible to meet without resorting to science. Development of the innovation sector suffers from the same problems as the entire economy. Certain social maladies can destroy any kind of economy, be it an innovation-based economy or a raw-material-based one. The greatest of those maladies is the corruption that is rampant in our country. The problem is general in its nature and must be solved regardless of the priorities of the innovation sector development. The other problem is a specialized one. We are talking about the fact that the innovation development–industrial implementation–products sales sequence does not work. Such measures as fighting corruption and control of tender competitions are needed, but they are general-purpose activities where the results can be achieved by jailing people, preaching to them, mixing the above, or by doing other things. And legal tools that are required in order to start intensive development of the innovation sector must be quite specific, and in creating such legal tools, one must take in account the existing organizational structure of science, the situation in industry, and the way the state functions in present-day Russia. The state now has a new priority task which we will call the innovative function of the state. This function may not be useful in the indefinitely long run, but right now it is needed, because the innovative processes must be given a push forward. Improvements in such areas as contractual relations and con- I N N O V A T I O N IPR_digest_eng.indb 47 I N S I G H T I N T O tractual law become today an indispensable requirement for implementing high-tech solutions. The state must start acting as a customer placing orders for a very wide range of high-tech products, while contracts should serve as an encouraging factor for R&D organizations and as a legal base for development of market relations. The laws regulating state contracts must be modified to make sure that all governmental contracts are for high-tech products that meet the present-day requirements. Amendments should be also made to Part 2 of the Civil Code which regulates different kind of obligations, including obligations on product delivery, labor contracts, and R&D contracts. While the section on product delivery and labor contracts contains provisions for state contracts, there are no clauses about state contracts in the section dealing with R&D work, so this section should be expanded to include a chapter on state contracts. Such an omission in the Civil Code is explained by the fact that at the time of adoption of the Code the package of legal acts governing patent right and copyright had not been codified yet. It was planned that the chapter on governmental contracts for R&D work would be added later, after passing laws on intellectual property. Now, Part 4 of the Civil Code has been enacted, but instead of the expected amendment to Part 2 of the Code, we have Chapter 77 in Part 4, which states, in essence, that the fact of state financing means that the state (the Federation or its constituent part) owns the exceptional rights for any results received. Of course, that regulation ensures the state’s rights for the results of intellectual work, but it has nothing to do with the concept of intensive development of innovation activities. If the law says that the state owns exclusive rights for all products whose production was state-financed, will the business people want to interact with R&D institutions which develop technologies, and will they want to buy production rights for the respective products from the state at auctions? We doubt it. But if the technologies in question have to do with national security, it becomes a totally different thing. The duties of the state in regard to the country’s defense and national security have such a great scope and importance that certain technologies must be strictly classified and used in accordance with special security procedures. As a part of discharging those duties, the state could purchase exclusive rights for certain R&D solutions. Another aspect of those duties is connected with the new innovative function of the state. We are talking about R U S S I A 47 1/14/09 8:51:06 PM cases when the state itself undertakes necessary actions with a view to protecting results of intellectual work if a certain R&D institution cannot provide adequate protection and, in future, utilization of such results. Both of the above situations have one thing in common: the state performs its inherent public functions rather than act as a sort of investor. For the state to be able to use such an approach, the existing laws must be modified. We must go back to the situation that existed in the first place: the state and a developer enter into a contract under which the state receives the exclusive rights for the results of R&D work. And it is the contract rather than the fact of state financing that should be a legal basis for the transfer to the state of the exclusive rights for any results received by the developers. However, the aspects of law that we have discussed do not represent all legal problems that require a solution. The regulations governing economic activities of scientific and R&D organizations involved in innovations should also be reviewed. In present-day Russia, scientific and R&D institutions for the most part belong to and are controlled by the state; this may be a very good thing, but if they cannot participate freely in business activities, they won’t be effective either. R&D organizations should be able to control and use the profits they make, especially in the situation when government financing is insufficient (even though it is being increased). Today, a government-financed R&D institution cannot easily accumulate sufficient funds to hire and keep the personnel it needs. And human resources in this case are more important than buying more equipment – we need to buy heads. It is important to understand that the innovation development process was originally a process of fostering scientific thought by the state. This is especially evident in Russia which boasts its Academy of Sciences, whose competence has been proven by centuries of experience. A special (and critical) attention should be paid to the emerging tendency to make innovation-related contracts subject to foreign laws and foreign jurisdictions. When a Russian company buys a foreign (for example, Dutch) technology and signs a contract, there is no need to stipulate that the contract shall be governed by Dutch law. If a claim related to such a contract is brought before in a court of arbitration in Moscow or Novosibirsk, then the Russian court, following the existing Russian regulations on conflict of laws, will apply the Dutch law, because the matters of technology transfer are governed 48 IPR_digest_eng.indb 48 by the law of the licensor’s (i.e. technology supplier’s) country, unless the parties agreed otherwise. But when we are talking about development of innovation processes in Russia, it is implied that we mean financing Russian innovations which will be exported to other countries, including the Netherlands, and in this case, it simply doesn’t make sense to explicitly make an investment contract (or a Russian technology export contract) subject to foreign laws. That is obvious, because any contract for licensing a technology by a Russian licensor to a Dutch licensee will, from the viewpoint of Dutch law, be governed by Russian law. Besides, it is inherently wrong to subject any disputes arising in connection with contracts for Russian technologies transfer (as well as those that arise in connection with technology development contracts) to foreign laws. One should realize the implications of subjecting such disputes to foreign jurisdictions. The Russian Federation has already had the doubtful pleasure of being involved in several disputes that arose in connection with claims on Russian property which were a result of certain lawsuits lost by the Russian state or Russian organizations. There are no grounds for prejudice against the Russian laws governing these matters. We have a regulation on license agreements, and the Russian Civil Code is one of the most advanced laws that exist today. The judicial system is not faultless, but the matter of choosing jurisdiction that shall be governing an international business contract has nothing to do with the quality of courts. It is a totally unrelated question. And as to choosing a jurisdiction, we should remember that there is a rule stipulating that certain categories of disputes (including disputes regarding validity of patents issued in the Russian Federation) are subject to the exclusive jurisdiction of arbitration courts of the Russian Federation. Those disputes that are not subject to the exclusive jurisdiction of Russian state courts can be brought before the International Commercial Arbitration Court at the RF Chamber of Commerce and Industry, which boasts a history of 75 years and a reputation of a well-known international dispute settlement center. People who say that Russia has no civil law capable of governing international contracts are simply not acquainted with the Russian law – and that is true of most foreigners. Russia, too, has its share of such ignorant people. In Russia, just as in many other countries, parties to a contract can make it subject to a national law of their choice. However, if the purpose of such a legislation choice is to avoid the binding provisions of one’s own N E W E C O N O M Y : 1/14/09 8:51:06 PM national law, the jurisdiction clause of such a contract can be ruled null and void by a court, which hardly benefits rights and interests of the parties involved. In many countries, such a practice is known as “law circumvention in the international private law.” Now let us take a look at a situation of an opposite nature, where the matters of legislation and jurisdiction choice are provided for in national laws of states interested in development of their innovation sectors. Back in 1970s and early 1980s, an attempt was made to develop a Code of Conduct on the Transfer of Technology under the aegis of the United Nations. But India, Brazil, Mexico, and many other developing countries were adamant that even those contracts that transfer technologies to them must be subject to their own national laws and their state courts only. As a result, the international code was never accepted, although an agreement was reached with regard to the rest of its provisions. It would be interesting to note that the position taken by India, Brazil, and Mexico in the matter of choice of legislation and jurisdiction did not have any adverse impact on development of their I N N O V A T I O N IPR_digest_eng.indb 49 I N S I G H T I N T O innovation sector and economy as a whole. Investment appeal of those countries deserves a special attention. At a certain stage of development of a state, its functions change, and it has to bear certain expenses to adequately fulfill its new functions. One day, the state undertook to pay for secondary education and, later, for higher education of its citizens, for their health care, etc. The Russian state, which has a great military potential and a huge territory over each it intends to exercise effective sovereignty, must have adequate cutting-edge solutions. Now we have achieved the stage when our state has that it should not base its functioning on any privileges, including privileged access to knowledge, and that knowledge – in various areas – that is conducive to economical development should be broadly disseminated. Now the state must realize that it has a new function – the innovative function we mentioned above – which includes economical and social aspects, and that development of the innovation sector is not a way to obtain immediate profits for the treasury, but an investment that is essential for stable development of the state. R U S S I A 49 1/14/09 8:51:06 PM The Role of the Russian Academy of Sciences in the Innovation System of the Russian Federation Ekaterina Popova Assistant Chief of the Presidential Administration of the Russian Federation, PhD in Economics The Imperial St. Petersburg Academy of Sciences, the predecessor of the modern Russian Academy of Sciences, was founded by the order of Peter I in 1724. Its mission was to develop natural sciences and “engineering arts.” With the time passing, the Academy changed its names several times: since 1747 it was the Imperial Academy of Sciences and Arts, since 1803 the Imperial Academy of Sciences, since 1836 the Imperial St. Petersburg Academy of Sciences, since 1917 the Russian Academy of Sciences, since 1925 the Academy of Sciences of the USSR, and since 1991 till present the Russian Academy of Sciences. At first the Academy consisted of members who were appointed there, the leading scientists and university professors, practicing research in their spare time. At this stage of initial accumulation of knowledge the research was mainly performed by small groups of professors and their students. As the science was developing and the knowledge growing, both in depth and in quantity, it was becoming more and more difficult to combine professional research with teaching after the expanding curricula. Moreover, in order to solve serious scientific problems, it became necessary to create experimental production facilities, which was impossible for universities. Therefore private and later public research institutes started appearing in Russia at the verge of the 19th and 20th centuries. Such institutes were headed by leading scientists, often academicians. But this did not mean breaking the ties with universities, as part of researchers continued teaching there. In 1920s Soviet institutes involved in fundamental research were united in an elite research entity, the Academy of Sciences of the USSR (AS USSR), with its mission to generate new knowledge in natural and social sciences and humanities. It is important that at the first stage of its development, apart from generating new knowledge, AS USSR was also responsible for developing 50 IPR_digest_eng.indb 50 new technologies, thus playing a gigantic role in the industrialization and the increase of the national economic and defense potential. After WWII AS USSR focused on generating fundamental knowledge more and more, while developing new technologies was left to applied research institutes. Fundamental research in AS USSR and applied research in specialized organizations were coordinated by the State Committee for Science and Technology. Due to interaction of these organizations results of fundamental research were applied in economy, defense industry and healthcare as efficiently as possible. Large-scale projects successfully implemented by the Soviet government included prospecting for mineral resources of 1/6 of the planet’s dry land, the GOELRO plan and its brilliant implementation resulting in electrification and industrialization of the country, development of modern weapons, development of fleet and aviation, creation of nuclear and thermonuclear weapons and missiles, breakthrough into space and space development – all the achievements of the Soviet scientific and technical thought were closely related with the Academy activities. Most of these technologies were born in its institutes and later developed with their active involvement. Thus, it is a historical fact that scientific and technological advance of the USSR and its defense potential was closely associated with the creative activity of its academic institutes developing fundamentally new equipment, technologies and materials. All that was first realized in the “lab” version, but it was this version that was put into practice after certain adjustments. The activity of the Academy institutes has thus direct connection to the implementation of the decrees of the Soviet government on large-scale projects. An indirect recognition of AS USSR efficiency as an elite research entity by the international scientific community was creation of similar organizations in European N E W E C O N O M Y : 1/14/09 8:51:06 PM countries around the beginning of WWII or right after its end: the National Center of Scientific Research (CNRS, 1939) in France and Max Planck Society (MPS, 1948) in Germany. Like in Russia, European fundamental science had been born in the universities and then separated from them in research institutes, which later united in scientific organizations. Such structures appeared and developed in West European countries after the war largely owing to the US financial support in the framework of the Marshall Plan. Main organizational principles of their creation, like for AS USSR, included focus on generation of new fundamental knowledge and technologies, state financing, and practical self-management (which did not rule out reporting to the national government). The Russian Academy of Sciences (RAS), the successor of AS USSR in Russia, has been the main source of new fundamental knowledge in natural and social sciences and humanities in Russia since its foundation in 1991. 418 institutes in 9 RAS departments are involved in fundamental research. The total number of Nobel Prize winners from AS USSR and RAS has the same order of magnitude as the number of laureates in developed European countries. The attempt to substitute AS USSR with alternative organizations, which could not compete with AS USSR in terms of scientific potential and international authority, was a heavy blow to the national science in early 90s, when the USSR was collapsing. A wide propaganda campaign aimed at dilution of the very concept of the Russian/Soviet Academy of Sciences was also launched about this time. One of its results was dozens of state and non-state public organizations receiving the name of academies. Sharp reduction of RAS funding from the state (down to a minimum only allowing it to provide a salary barely sufficient for hand-to-mouth subsistence to its employees and pay for utility services partially) was another serious blow. Budget funding of RAS became much lower than that of similar West European organizations. Dwindled budget funding was accompanied by a drop of financing by state and foreign foundations. Another negative effect was due to the false statement that fundamental science was practically unsupported by the state in liberal economies, functioning on a commercial basis. This statement contradicts the real situation: all industrially developed countries finance their fundamental science in full, though non-budgetary sources are involved for innovation project implementation, too. I N N O V A T I O N IPR_digest_eng.indb 51 I N S I G H T I N T O Today’s principal task is to modernize RAS in order to enable its development in the market economy. We should define the place and role of the Russian Academy of Sciences in the Russian innovation system and in the process of technological and innovational renovation, which is a goal declared by all the fundamental speeches of the President of the Russian Federation and relevant documents of the Government of the Russian Federation. To answer this question it would be valuable, first, to analyze principal figures characterizing RAS activities, reflecting the condition of its fixed assets and human resource potential, second, identify principal problems which hinder the crucial role of RAS in the national innovation system, and then suggest possible solutions, including proposals concerning change of RAS functions and its organizational structure. PRINCIPAL FIGURES CHARACTERIZING RAS ACTIVITIES The average age of a researcher is over 48, a fact that poses a serious threat of broken succession of generations and lost unique scientific knowledge. For example, annual inflow of young scientists to RAS institutes is some 4% of the total number of research fellows. Machinery and equipment older than 11 years already account for 49.8% of the RAS fixed assets; the share of equipment newer than 2 years is only 22%. The lion’s share of scientific and medical equipment in institutes of the Russian Academy of Medical Sciences has been used for 10 to 15 years or more; such obsolescence makes high-quality research impossible. For the last decade the domestic expenditures on research and development in the academic sector doubled (with average annual growth of 7.2%) and the staff numbers dropped by 15% (with research numbers decreasing by 19% and operator numbers by 14.2%). The level of non-budgetary funding of the academic sector of science is 26.0% in RAS,1 50.0% in the Russian Academy of Agricultural Sciences, and 22.5% in the Russian Academy of Medical Sciences. (Report of the Ministry of Education and Science of Russia On Enhancing the Efficiency of the State Sector of Science examined at the meeting of the Government of the Russian Federation on May 26, 2005). According to expert estimates, the academic sector accounts for some 11% of the total number of the submitted patent applications in Russia. 1. The 2004 figure is estimated by RAS at 42.1%. R U S S I A 51 1/14/09 8:51:06 PM TABLE 1 THE CURRENT ROLE AND PLACE OF THE ACADEMIC SECTOR WITHIN THE RUSSIAN SCIENCE FIGURE 2003 Share of the academic sector in the total domestic expenditures on research and development, % 13.5 Non-budgetary funds per one ruble of consolidated budget expenditures for research and development in the academic sector, rubles 0.25 Percentage of academic personnel involved in research and development within the total number of people involved in research and development, % 17.3 Percentage of academic personnel involved in research and development within the total number of people involved in research and development in state organizations, % 22.3 Percentage of postgraduate students in the academic sector within the total number of postgraduate students, % 8.1 Share of the academic sector within state scientific organizations, % 30.8 Share of budget expenditures for support of the academic sector within the total budget funds allocated for civil science, % 34.2 Share of budget expenditures for support of the academic sector within the total budget funds allocated under the line “Fundamental Research and Assistance to Scientific and Technological Advance,” % 39.8 Source: Report of the Ministry of Education and Science of Russia On Enhancing the Efficiency of the State Sector of Science (examined at the meeting of the Government of the Russian Federation on May 26, 2005) Thus, the following principal problems can be identified based on the cited statistics: – Ageing of the personnel. – Considerable wear of fixed assets. – Low work efficiency, despite the growing state financing. – Low involvement in technology commercialization. We believe that the majority of the negative factors that cause the today’s difficulties stem from the fact that the functions of the academic sector are not defined completely. All the relevant documents of the Government of the Russian Federation name “fundamental research” as principal function of RAS. Two other principal functions are educational activity and “expert examination” of higher-level state projects (Program for Modernization of the Structure, Functions, and Financing Mechanisms of the Russian Academy of Sciences approved by the Inter-Industry Commission for Scientific and Innovational Policy on October 11, 2005). 52 IPR_digest_eng.indb 52 We would like to point out that the term “fundamental research” is usually understood in the narrow sense, as solution of the issues concerning the development of the science in itself, rather than development of basic technologies or new equipment. If we assume such logic, one can readily see that there are no limits to RAS cutting: you may cut it by a quarter, or by half, what’s the difference if the organization lives to satisfy its corporate interests and not the nation’s interests? “Advanced development of basic technologies and fundamentally new equipment” specified in the principal functions would cut the ground from under such claims. As we have mentioned earlier, the mandatory functions of AS USSR at the initial stage of its development also included new technology development, having played an important role in the industrialization and the increase of the national economic and defense potential. At present, due to the difficult situation of applied science and the necessity to strengthen N E W E C O N O M Y : 1/14/09 8:51:06 PM RAS links with the industrial production sector in the market economy, it may be advisable to restore this function of the Academy. Yet another negative consequence of the narrowed function of RAS is that, according to the idea laid in the foundation of the reform, the limited budget of the Academy has to be channeled mainly for this very function, that is, for fundamental research alone. All other funds for the academic institutes, including those coming from the federal budget, are declared “non-budgetary”; in order to use these funds, academic personnel has to leave the institute officially. True, when these targeted funds end up, they can try and return to the staff of the institute – if there are a vacancy and an appropriate research topic. Well, when another grant or contract is received, they will have to leave again, etc. What is to be done with the equipment, working places and production facilities? – Nobody knows, though, seeing the real picture, we can easily guess that the entire situation is only an abstract idea: nobody is going to leave, which means that all applied research will become shady business. Who will come off a loser? The nation (with uncollected potential taxes) and the RAS institutes (without funds needed for their overhead costs). We would like to emphasize that even in developed countries, where scientists’ salaries are sufficient for being well off (starting from several thousand dollars per month), such a problem of leaving the institute does not arise at all. Having won a grant or a contract, the scientists can buy the necessary equipment and materials or hire laboratory assistants or engineers for the term of the contract; the only thing they cannot do is allocate additional salary for themselves. It is evident that such a way of RAS reforming will inevitably lead to breaking ties of many RAS institutes with science-intensive production. One of the crucial tasks is therefore to specify RAS functions more precisely. Providing RAS institutes with modern equipment also needs immediate attention if the state is going to use the leading institutes of the technical and technological profiles for the implementation of its plans of innovational development of Russia. The problem is to be solved right now, rather than after the RAS reform plan is completed. Of course it may be difficult to solve the problem fully for all RAS institutes. One of the possible variants, which might be discussed with RAS representatives, is to create about ten national laboratories based on large RAS I N N O V A T I O N IPR_digest_eng.indb 53 I N S I G H T I N T O physical, technical, chemical and nuclear research institutes (perhaps with simultaneous consolidation and reorganization) right now, with the installation of the necessary equipment financed provided that these laboratories will transform into global multiple-access centers. A good example in this respect may be seen in the major national laboratories of the US where tremendous volumes of fundamental research, development of state-ofthe-art technologies and equipment and their transfer to the belt of innovation enterprises are combined efficiently. Many directors of academic institutes believe that the problem of equipment renovation is the most important and difficult to solve. Important because the necessary equipment and qualified personnel enable the institutes to earn their money themselves, without begging the state. Difficult to solve, as there are virtually no funds in the budget allocated for equipment purchase. Thus, while the book value of equipment in the St. Petersburg Ioffe Physical and Technical Institute is RUR 1.5 billion (with depreciation accounted for), the internal academic program of resource support allocates some RUR 18 million to the Institute for new equipment, with 23% of the institute’s equipment over 20 years old. (Interview of the Institute Director A.G. Zabrodsky to the Open Economy Center, December 13, 2005) Just to draw a comparison: in China two-year-old equipment is already considered obsolete. A considerable part of researchers in most Chinese academic institutes are constantly on travel abroad, mainly due to the deficit of the necessary experimental and production equipment. Human resources and salaries are yet another important problem of RAS. It is evident that a lopsided RAS reform aimed only at raising researchers’ salaries to the prejudice of other aspects (we have shown the importance of the expenditures for new equipment) cannot bring positive results. According to the calculations by the directorates of academic institutes, the basic rate of scientists’ salaries can reach RUR 20,000 per month in some laboratories in 2008 (the amount remaining to the declared RUR 30,000 will have to be earned additionally by active participation in grant projects). However, the average monthly salary in Moscow is around RUR 15,000 even now, and it is clear that in 2008 it can easily surpass scientists’ salaries. It should be noted that, in order to become a good physicist, a teenager must make serious efforts; for example, to learn in the renowned Moscow Institute of Physics and Technology (MIPT), a high school student has to pass R U S S I A 53 1/14/09 8:51:06 PM the contest to enter the Physical and Mathematical School of MIPT, study there for the three years, study at a basic department of MIPT in one of several associated universities, pass the contest to enter the postgraduate study department, and work for 5 to 7 years under the direction of a more advanced colleague, spending a total of some 20 years, and the best years, of their life. At the same time their peers can earn more and easier. Let us assume that despite the aforesaid young people want to make a scientific career. What about vacancies? The 20% staff reduction planned for the RAS reform is already underway. The principle realized is “equal parts for all institutes” regardless of whether there are vacancies in their staff list and what results an institute shows. Because of this, all vacancies are going to disappear from academic institutes in the nearest future, with people fired who actually do the job. As a result, the staff list reduced by 20% within three years will be occupied by researchers who are not too young: on the one hand, they will hardly be fascinated by the prospect of leaving for the so-called “innovational” (non-budget-financed) part of their Institute, and, on the other hand, who is going to retire voluntarily and do with a miserable pension instead of receiving a nice salary, even if aged? Thus, if all the expenditures of the Academy of Sciences except the salaries are “frozen,” not a single objective of the reform is going to be achieved: a scientist’s work will not win any more prestige, the number of people entering engineering and technology research institutes will not increase; moreover, we will lose the possibility to employ them for three years; that is, our institutes will even grow several years “older.” Their experimental and technological equipment and material resources, a basis for world-class laboratory engineering and technical developments with further transfer to the innovation industry, will die out completely. The infrastructure will go to rack and ruin; no one will maintain it, as maintenance personnel salaries are only planned to reach RUR 12,000 per month in 2008, with the average monthly salary at some RUR 15,000 in Moscow and some RUR 10,000 in St. Petersburg. There is a threat that institutes with developed fleets of experimental equipment and large personnel will have to be closed, while scientists will turn into outworkers connected to the scientific community only through their home computers. This can evidently ruin even theoretic schools, which are relatively insensitive to availability of expensive material resources. 54 IPR_digest_eng.indb 54 What is there left to do, then? It is obvious that basic salaries of scientists and related maintenance and service personnel have to be brought at least up to the average salary (across Russia). But if the state is going to use the leading institutes of the technical and technological profiles for the implementation of its plans of innovational development of Russia, development and renovation of their equipment and material resources must be financed right now, rather than in some vague future, after the RAS reform plan is completed. Increasing researchers’ salaries to the prejudice of other aspects plus staff reduction cannot alone solve the burning task of making RAS personnel “younger.” Two vital components are missing: jobs attractive for young people and vacancies available to be filled by fresh graduates. A possible solution of the former has already been mentioned above: it comes to reasonable financing of renovation and development of instruments, equipment, and infrastructure, for example, in the framework of national laboratories to be established based on a number of large RAS institutes. The latter problem can be solved in the following way: to make researchers’ pensions, miserable to date, attractive and stimulating voluntary retirement of aged scientists. As a step forwards, in order to lessen the extra burden of the Pension Fund, the academic community could agree to postpone the official retirement age for scientists for 5 years. An important issue requiring a solution is to create a system for assessing performance of individual researchers, laboratories, and RAS institutes. In this respect it would be quite practical to analyze the experience of the joint Order of the Ministry of Education and Science of Russia, Ministry of Social and Healthcare Development of Russia, and RAS of November 3, 2006 No. 273/765/68 (hereafter, the Order). The Order was discussed at the enlarged meeting of the Bureau of the Board of Directors of RAS Institutes on July 3, 2007. We believe the results of this discussion are worth close attention, above all, the attention of the Government of the Russian Federation, as the Order under consideration touches an area of great importance and sensitivity: stimulating researchers’ work, and errors or inefficient solutions can bring serious negative consequences for entire RAS functioning. At its meeting on July 3 the Board of Directors of RAS Institutes pointed out that: – All RAS institutes have developed Regulations On the Procedure and Conditions for Incentive Bonuses to Research Staff; N E W E C O N O M Y : 1/14/09 8:51:06 PM – Bonuses according to scientific activity efficiency indicators (SAEI) were introduced almost in all institutes since July 1, 2007. However the experience accrued generated a number of important general remarks: a necessity to change many wordings in the Order text, and a need to introduce additional parameters for many sections covering the specifics of work of a given institute. The mandatory nature of the Order makes it less flexible and less able to take all the specifics of different universities’ activities into account. The procedure and conditions of incentive bonus application must be recommendations rather then commands; formal performance criteria must be considered along with other as important factors. Rigid proportions of different parts of the Incentive Bonus Fund do not ensure balanced and fair remuneration of scientists and engineers, young research fellows, and managers of scientific departments. Institute Senates and directorates must have the right to define the proportions of different parts of the Incentive Bonus Fund themselves. The proposed order of assigning incentive bonuses for each next year based on the results of the work for the preceding two years takes away the opportunity to stimulate researchers who are commissioned with an additional or very important job. The topic supervisor, too, must be able to change the budgetary bonus if needed. The procedure of bonus setting must be made more flexible. The Senate of an institute must have an opportunity to allocate a certain proportion of the Incentive Bonus Fund for support of new research. The incentive bonus assigning based partially on SAEI contravenes the goal of making young researchers come into scientific institutions and remain there. Often young people having some two years of research experience (sometimes more, depending on the institute specifics) have few publications; they need time to develop the methodology and obtain results; they cannot deliver an invited report, are not authors of learning courses, have not got patents, etc. The multipliers proposed in the Order adjust young researchers’ SAEI but not too much. The Senate must have a right to allocate a certain part of the Incentive Bonus Fund for supporting young researchers. The principle of giving bonuses based only on arithmetic calculation of a number of formal parameters causes incorrect assumptions on the significance of the achieved results, makes no difference between theorists and experi- I N N O V A T I O N IPR_digest_eng.indb 55 I N S I G H T I N T O mentalists nor between humanities and natural sciences, and equalizes assessment of contribution of leading researchers (authors of the problem formulation, the idea of the experiment and its interpretation) and those researchers whose work was necessary but auxiliary. Furthermore, such an approach stimulates writing low-quality papers and reports. Those who are involved in complex experimental projects are at a disadvantage, for the completion and interpretation often require a larger research team, take more time, involve considerable methodological difficulties, require construction of special equipment, etc. Expositions and expeditions are missed out at all, as is work as facilitators of conferences and symposia and work in journals. Classified projects important for national defense are completely left out of account. Basic points to be received for performance under individual criteria are based on nothing and provide tremendous advantage to researchers who work individually and scientists who spend a lot of time working abroad. The internal balance of the points used for SAEI calculation in accordance with the Order is biased in favor of participation in conferences. The number of points assessing participation in Russian or international conferences with an invited report is clearly overrated as compared to the number of points for a patent or for scientific publications. Attempts to evaluate results based on two years’ history, mainly by the number of publications, journal ratings, and the number of conference participations will lead to trivial subject matters, encouraging perfunctory research and promoting those researchers who publish the same results (often of little significance) in multiple articles and theses. Given that there are no mechanisms provided for evaluating significance of different conferences and the majority of works submitted for conferences (including international conferences) are admitted regardless of their novelty and quality, a researcher can thus boost up their SAEI almost infinitely. As a result, even the right of the Commission to adjust SAEI values cannot help the accrued points evaluate actual scientific activity of the personnel and objective value of their results. Biases in the total points become inevitable; an unfair remuneration system is formed. A scientist faces a dilemma: to engage in fundamental research or to “earn points,” taking part even in conferences they do not need. The existing system of the calculation of department heads’ SAEI considerably diminishes their own points compared to the total points, as in most cases R U S S I A 55 1/14/09 8:51:07 PM department heads have personal SAEI exceeding average SAEI in their departments several times. Thus, department heads’ individual scientific activity is partially devalued by the existing calculation procedure. It would be more reasonable to add a certain percent of the average SAEI in the department to its head’s SAEI. The distribution of the part of the Fund intended for incentive bonuses for scientists proportionally, depending on SAEI, seems unjustified: we can see that a low-SAEI employee is given the same bonus as one with high SAEI (despite the former’s inefficient performance). It would be more reasonable to separate several groups according to the number of points or qualification and assign a fixed equal-distribution proportion of the Fund for them, or at least, to make the bonus proportional to a logarithm function. If the number of researchers in an institute is small, the 5% of the Incentive Bonus Fund intended for payments to scientific management becomes insufficient to provide the projected bonus even for one research fellow at an average. There are messages from institutes that point out multiple inaccuracies in the text of the Order; a number of its paragraphs can be interpreted ambiguously. A number of institutes point out that the typical Regulations do not consider a number of aspects of scientists’ research activity that characterize its efficiency and take a lot of time; they suggest therefore that institute Senates should be entitled to introduce additional parameters reflecting the research activity in a given institute more fully (such parameters are listed below). Having considered the Order in question, the Board of Directors of RAS Institutes adopted the following resolution: “We apply to the Presidium of RAS for support and ask it to raise an issue in the Ministry of Education and Science of Russia and Ministry of Social and Healthcare Development of Russia on the revision of the Regulations On the Procedure and Conditions for Incentive Bonuses to RAS Research Staff and Scientific Supervisors or adoption of new Regulations, as the joint Order of the Ministry of Education and Science of Russia, Ministry of Social and Healthcare Development of Russia, and RAS of November 3, 2006 No. 273/745/68 giving effect to them does not lead to encouraging scientists who actively work for the country, provides incorrect focus on what is important and less important in the work of scientists and research 56 IPR_digest_eng.indb 56 teams, and requires considerable revision.” (Minutes of the enlarged meeting of the Bureau of the Board of Directors of RAS Institutes on July 3, 2007) PROPOSED AMENDMENTS TO THE ORDER Institute Senates and directorates must have a right to define the proportions of different parts of the Incentive Bonus Fund themselves. The Senate must have a right to allocate a certain part of the Incentive Bonus Fund for supporting young researchers. The Senate must have an opportunity to allocate a certain proportion of the Incentive Bonus Fund for support of new research. The Senate must have a right to supplement the official list of journals by journals that reflect the specifics of the field but are not enlisted by the Higher Attestation Commission. It is advisable to include all the activity concerning scientific results fixed in the written form as a separate (first) item on the SAEI assessment charts: – Programs of budgetary research projects, registered in the VINITI (All-Russian Institute of Scientific and Technical Information); – Reports on the performance of such research projects; – Reports made at the governmental bodies’ order, reports at the meeting of a Senate, a Joint Council, or a Presidium (including defense of grant reports); – Evidence of the fact that the new project is attested (measurement instruments, techniques, drafts of official documents, data on the registration in registers and databases, including international ones). Registered design documentation, regulations, special reports, and classified reports on budgetary topics should be given the same status as publications in lowimpact-factor journals, at the Senate’s approval. As published monographs usually have a volume of less than 12 to 15 printer’s sheets (52 to 65 A4 sheets) and the number of points assigned for monographs is insufficient, we propose to increase the multiplier to the value of 2. Points for poster papers should be assigned with a coefficient 0.5 to an oral paper. Points should be assigned for participation in annual institute-scale contests and conferences of young scientists. N E W E C O N O M Y : 1/14/09 8:51:07 PM Along with lecture courses, development and delivery of practical training sessions and workshops must be accounted for. Apart from patents, registered know-hows should be accounted as intellectual property with 15 points assigned. Points should also be assigned for: – Current supervision of a postgraduate student; – Organizational activity, such as preparing and facilitating large-scale scientific conferences and symposia, including international ones (developing a program, selecting papers, working as group supervisors, etc.); – Development and testing of new research methods (they require as much time as writing papers). The percentage of the Fund intended for bonuses to directorates is limited to 5%. We think that this 5% should be treated as bonuses paid for management of the institute, while points accumulated in accordance with Appendix 2 for their scientific activity should be accounted in the remaining part of the Fund. The same goes about heads of divisions and departments. We believe the best way to assess the performance of a director is to add some percentage of the average SAEI in the respective division or department to the director’s own points. MODERNIZATION OF RAS ORGANIZATIONAL STRUCTURE This issue is very complex. It is obvious that RAS needs updating its organizational structure to match the market environment. The scientific centers which are closest to RAS in term of their science organization and management system to be studied are the National Center of Scientific Research (CNRS) in France and Max Planck Society (MPS) in Germany. Unlike RAS, they have functioned in the market economy since their establishment and accrued positive and negative experience along for the time passed. In order to study their valuable experience, it would be possible to run a joint project of RAS and the cited research centers, with the following on the agenda: – Analysis and comparison of the management system in these institutes; – Training of the most promising scientific managers of RAS in CNRS, Max Planck Society, and other European centers; – Joint seminars (by RAS, CNRS, and Max Planck Society) on the modern forms of market-oriented I N N O V A T I O N IPR_digest_eng.indb 57 I N S I G H T I N T O science organization and management for RAS managers, from a chief of a laboratory up. The following key issues can be discussed at such seminars: – Optimization of the scientific and organizational structure of a research institute in the market environment; – Criteria and mechanisms of assessment of scientific rating of individual scientists and research teams; – Propagating fresh scientific information, as well as information on non-budgetary financing sources and scientific forums; – Organizing international cooperation and developing international projects; – Human resource policy and training fresh graduates; – Multiple-access usage of expensive equipment and joint mastering of new technologies; – Organizing scientific information networks and regional scientific and technical multiple-access centers; – State support of fundamental science as a governmental policy; – A technology of putting fundamental research results into practice; – Intellectual property protection. Another major field of the organizational restructuring of academic institutes could be opening of offices/departments of technology commercialization in order to boost up commercial application of research results, patenting, and licensing. Such departments have already been established and working efficiently enough in state higher educational institutions of Tomsk and Novosibirsk. The responsibilities of technology commercialization departments must include finding promising technologies developed in academic institutes and putting them into commercial production, initial market studies, expert study of the technologies that are the most suitable for commercialization, developing the system of optimum intellectual property protection, negotiations with potential customers, etc. As service and maintenance departments are gradually disappearing, technology commercialization departments could also take on procurement, international relations and other organizational activities. All these steps will also enable researchers to focus on their direct responsibilities, that is, on research. Consolidation of RAS branches is a structural reform step already executed. However, a number of di- R U S S I A 57 1/14/09 8:51:07 PM rectors of academic institutes believe that this step has not improved the Academy performance. Thus, after the merge of general physicists and nuclear physicists about one-third of the Academy’s potential is concentrated in the department of physical sciences; however, this merge did not change much actually. Staff reduction equal for all RAS institutes is going to take the next three years; in the process the institutes will be merged, regardless of their staff lists and research results. It is technical and technological institutes, with their filled staff lists, with their developed systems of researcher training, that will suffer most, and weak institutes, with huge numbers of vacancies, without material and technical, experimental and technological resources, without maintenance personnel, and without any responsibility for training and hiring young researchers, will have all the benefits. The key point is that RAS will not be able to efficiently fulfill its function in the national innovation system without being a state organization. Political wisdom is to grant RAS maximum independence in the issues which pertain to its field of competence. One crucial proposal that would require a comprehensive discussion can be to divide RAS into two principal 58 IPR_digest_eng.indb 58 managing bodies: the Presidium and the Board of Directors (much like the two houses of the federal parliament). Such division would be reasonable, as, on the one hand, RAS is a network of hundreds of institutes and other organizations, and, on the other hand, a community of more than 1,000 people representing the national scientific elite (not only those who work in RAS institutes!) and meeting twice a year at RAS General Meetings. The division in question could be facilitated if the Board of Directors of RAS Institutes (or its Bureau) were given the authority of a collective governing body authorized to take decisions on the activities of RAS institutes. On the other hand, the RAS General Meeting could then turn into an assembly of the national scientific elite discussing any issues concerning development of science in Russia and integration of efforts of the scientific community. On the whole, there is yet much to be discussed in the process of RAS reform. A reasonable approach would lie in involving people with experience of work in RAS institutes into taking crucial decisions. Directorates and the academic community should be also involved into the discussion actively. N E W E C O N O M Y : 1/14/09 8:51:07 PM Involvement of the Russian Academy of Sciences (in its Capacity of a Cornerstone of the State-Owned Scientific Sector) in Innovation-Based Development of the Russian Economy Transition of Russian economy to the path of innovation-based development is a pressing and urgent task of the today’s economic policy. On February 8, 2008, during an expanded session of the State Council of Russia Vladimir Putin made a speech named On Russia’s Development Strategy through 2020, where he mentioned that no radical improvements in efficiency of the country’s economy are possible within the traditional development pattern based on selling fuel and raw materials. “The only real alternative to the above-mentioned scenario… is a strategy of innovation-based development of the country,” he said. Creation of a national innovation system is a prerequisite to successful implementation of Russia’s innovation-based development scenario. Efficiency of the national innovation system will largely depend on its structure and on how precise and consistent its elements are in carrying out the tasks determined by the state policy. But so far, the concept of a National Innovation System (NIS) has not been recognized by the law. Nor has it been defined in the document named Basics of the Policy of the Russian Federation on the Promotion of Science and Technology for the Period of Time up to 2010 and for Further Perspective (approved by the President of the Russian Federation on March 30, 2002, No. Pr-576), which mentions creation of a NIS among priority tasks of the state. We think that defining this term and making it an integral part of federal laws governing science and innovation-related policies is a pressing political need. The state-owned science sector forms a major part of the NIS, since it is the main source of Russian innovations aiming to ensure the national security and solve the most important social and economical problems. The state science sector can subdivided into a number of segments (Academias, industrial science, university science), or into a number of categories by organizational form (scientific institutions within the structure of state academies of sci- I N N O V A T I O N IPR_digest_eng.indb 59 I N S I G H T I N T O ences, state research centers, scientific organizations of higher education institutions, etc.). The NIS can be formed by all constituent elements of the state science sector in cooperation with budgetary and non-budgetary innovation support funds, organizations of the innovation sector, and small and medium enterprises (which are quite receptive to new technologies and willing to implement them). But for the NIS to be effective, the federal law must provide for a number of supportive measures for each link in the innovation chain. If we look at the overall statistics for the entire Russia, we can see that the state innovation sector has the largest number of research workers and accounts for the largest share of financing allocated for scientific research, development, and experimental design work (referred to as R&D work elsewhere in this article). The state science sector plays an extremely important part in research and development work done for the defense industry. It should be mentioned that the concept of the state science sector itself, its composition, structure, and the principle of its support by the state (since it is a major component of the NIS) must be also defined in the law as soon as possible. The law must also define specific mechanisms and procedures for involving state-owned scientific organizations in innovation processes. For that purpose, it is necessary to modify the legal definition of a scientific organization to address the specific features it has as an economic entity, and to establish a system of required quantitative and qualitative standards. It should be mentioned that the existing version of the Federal Law of August 23, 1996, No. 127-FZ On Science and National Scientific and Technical Policy which describes the status and areas of activity of scientific organizations, doesn’t even mention the term innovation activity. In fact, due to certain provisions of the budget R U S S I A 59 1/14/09 8:51:07 PM law, the omission of innovation activity from the list of legally approved areas of activity of scientific organizations becomes a serious obstacle to their becoming a part of the NIS. The state science sector (and, first and foremost, the Russian Academy of Sciences) is the largest source of fundamental knowledge in our country. Transition of economy to the path of innovation-based development means that it is necessary to design and implement mechanisms for fastest possible conversion of new fundamental knowledge into advanced technologies and integration thereof in most important spheres of activity, especially in economy, education, and healthcare. In the process of transforming results of fundamental research into new products and technologies a gap may exist between a condition of a scientific solution after it has been developed in a scientific organization, and the condition that is required for its successful commercialization by the industrial sector. Prevention of such gaps is a task of the state, which must take active part in the first stage of creation of scientific knowledge by financing its development until it reaches a stage where benefits of its commercial implementation become obvious to business people; after that, the scientific knowledge can be handed over to business for commercialization. And creating a commercially valuable solution is possible only if the results of the prior fundamental research have been brought to a finished form. The best way to improve the state science sector and increase its efficiency is to incorporate it into the system of partnership between the state and private business that exists in the area of science and innovation. Arguments about approaches to use and conflicts of opinions (ranging from “The Russian Academy of Sciences should work only in the field of fundamental science without bothering about innovations” to “The RAS is an important component of the national innovation system, and, in the long-term, perhaps its crucial component, playing the main part in creation and implementation of breakthrough innovations”) have now been finally resolved by the new By-laws of the Russian Academy of Sciences, approved by the Decree of the Russian Government No. 785 of November 19, 2007. According to the By-laws, the areas of activity of the Academy and its main goals include the following: – fundamental and applied scientific research into the most important problems of natural, technical, humanitarian, and social sciences; 60 IPR_digest_eng.indb 60 – preparing forecasts of technological development of the world economy based on results produced by fundamental science; determining the place and role of Russia in the market of high-tech products; – strengthening scientific relations and cooperation with specialized state academies of sciences and other scientific organizations involved in fundamental or applied research; – expanding relations between science and industry; participating in innovation-related activities and in implementing scientific and technical achievements; assisting development of science-intensive branches of the Russian economy. So, the Russian Academy of Sciences, which is responsible for fundamental research, must take part not just in generation of new knowledge, but also (and this is very important!) in bringing that knowledge to a finished form and passing it to business companies for subsequent commercialization. Therefore, it is very important that the Russian Academy of Sciences and higher education institutions should not only be allowed to participate in innovation-related activities, but also be responsible for selecting those fundamental research works which have practical value and bringing them to a finished form. Then we will be able to build the partnership of the state and business about which everyone is talking today. Solutions to the above problems can include (a) targeted state support of scientific institutions of RAS encouraging them to bring any fundamental research with a practical value to a finished form and (b) laws setting forth the procedures of passing the resulting technologies to the country’s economy. One should mention the role played by State Research Centers (SRCs) in development of innovation processes. As a rule, SRCs perform a complete cycle of work, from “targeted” fundamental and exploratory research to developing and implementing industrial technologies. SRCs have considerable material and human resources, vast scientific and technical potential, unique lab facilities for tests and experiments; all of those form a foundation for innovation activities, including development of science-intensive, high-tech products for both domestic and international markets on the basis of research data produced by the SRCs themselves. The scientific and technical potential of state Academies of Sciences and SRCs should be used to solve N E W E C O N O M Y : 1/14/09 8:51:07 PM problems that impede development of science and technology, and to activate and expand cooperation in the innovation sector. The recent years have witnessed ongoing positive changes in financing of science by the state. At the same time, the rate of increase of science financing falls behind the gross national product growth rate. The share of state investments in R&D financing remains higher in Russia than anywhere else in the world, and the share of private investment is very low. The chronic underfinancing of science in the previous years led to the following problems: – loss of human resources (a lot of talented scientists and professionals left science for other activities, or left Russia altogether: during 1990–2005, the total number of people employed in R&D more than halved); – scientific and experimental facilities and equipment are becoming outdated; certain branches of science and research have virtually no scientific or specialized equipment or devices meeting the modern international requirements; – imbalance in financing different regions of the country is increasing. State financing of the state science sector is inconsistent, and there is no single coordinating center. The Program for Fundamental Research is not sufficiently supported by existing laws; there are no clear regulations with regard to how the fundamental research is to be financed, from what sums and under which articles of the Budget. For example, financing of fundamental research within the system of SRCs has all but stopped. Why? In 2005 the structure of the Federal Budget was changed, and the section named Fundamental Research and Assistance to Scientific and Technical Progress was removed from it. Fundamental research is financed today under the General State Matters section. Applied research is financed under the National Economy section. As a result, we have a situation where the link between fundamental and applied research is broken as early as at the financial planning stage. A definition of “targeted fundamental research” must be included in the appropriate legal acts, and the functional classification of the Budget of the Russian Federation must be modified to eliminate the gap between financing of fundamental and applied research. I N N O V A T I O N IPR_digest_eng.indb 61 I N S I G H T I N T O It would be advisable to consider including all fundamental and “targeted” fundamental research programs conducted by state academies of sciences, SRCs, and higher education establishments into a single federal program, and to create an entity that will coordinate and manage that research. It should be also said that the Ministry of Education and Science of the Russian Federation and the Russian Academy of Sciences prepare requests for budget allocations only for fundamental research. Within the state targeted programs, science financing is allocated by the Ministry of the Economic Development, and any scientific activities outside of those programs are financed by the Ministry of Finance; thus, the principle of a united chain of technological development is broken again. Our achievements in such areas as the national nuclear, rocket, cosmic, and aviation industries were made possible because scientists from institutes of the Academy of Sciences and those from specialized research institutes were actively cooperating throughout the entire process of development of those industries; and the laws and regulations that exist today often hinder such cooperation instead of encouraging it. In addition to the already written Fundamentals of the Policy of the Russian Federation in Science, Innovations, and Investments and the corresponding Federal Targeted Program that is already underway, it is necessary to design a system for strategic planning and long-term forecasting. As a result, fundamental innovations will help our economy to become more competitive, which is especially important today, when technology in developed countries is rising to a new level. It is necessary to propose a legal mechanism for regulating these matters; in other worlds, a federal law on long-term forecasting and strategic planning should be drafted. The Program for Fundamental Scientific Research should become the basis for a long-term forecast of Russia’s scientific and technological development; the Program, which is based on a comprehensive analysis of results of fundamental and applied research and partial results of those theoretical, technological and design projects which are currently in progress, helps to select those priority areas of scientific and technical progress which should become points of concentration of available limited resources, and to work out methods and principles of reforming the economic mechanism with a view to entering an innovation-based path of economic development. R U S S I A 61 1/14/09 8:51:07 PM On April 21, 2008, the Russian President suggested that a long-term plan of scientific and technological development of the country through 2030 should be prepared based on the Concept of the Long-Term Socio-Economic Development of the Russian Federation through 2020. Creation of an organizational structure that will take in account the accumulated experience is an extremely important prerequisite for successful preparation of such a plan. Successful participation of the state science sector in developing and implementation of science-intensive technologies is hindered, among other things, by a number of shortcomings and discrepancies in the existing law. A lot of legislative work has been done lately to create a favorable environment for innovation-related activities. On January 1, 2008, the Federal Law of July 19, 2007 No. 195-FZ On Amending Certain Legal Acts of the Russian Federation As Regards Creating a Favorable Fiscal Environment for Financing Innovation Activities took effect; the Law has introduced a number of changes in the Tax Code of the Russian Federation, stipulating a number of privileges and preferences as far as rights for intellectual work results are concerned, including the following: increased share of organizations’ gross revenues that can be allocated for research and development work, exclusion of donations made by scientific research support funds from the taxable income of recipient organizations, faster depreciation for scientific and educational institutions, and others. The above changes are a much needed, if minor, step toward creating a system for fiscal stimulation of science and innovation. Those organizations of the state science sector which become a part of the NIS, as well as private companies in the innovation business, should be granted additional privileges with regard to value added tax, profit tax and corporate property tax, at least during the initial period (3–5 years) of commercial implementation of their innovative solutions. Besides, it is very important that the measures of fiscal support should be supplemented by removing any red-tape restriction, so that organizations involved in innovation activities could operate under very favorable conditions. Creation of an intellectual property market – which will serve as a motivating factor for developers of innovative technologies, contractor companies fulfilling state orders, and official organizations placing state orders – is a fundamental prerequisite of innovation-based development. However, an analysis of the last ten years 62 IPR_digest_eng.indb 62 of our movement toward the innovation-driven economy shows that no such motivation exists in Russia. The main problem still lies with the fact that there is no comprehensive or near-comprehensive set of laws governing innovation activities undertaken for the purpose of fulfilling state orders for R&D works. State order means essentially that the state is interested in having a certain product created in a certain sector of economy. However, the state cannot have it done without a contractor who will do the work. The existing procedure for fulfilling state orders does not provide any instructions on how the government agency which has placed the order will cooperate with the contractor in future, and, therefore, does not facilitate the process of receiving a patent by the contractor. And this state of affairs will continue to exist until a standard form of state contract is created, covering not only the direct interests of the state and the contractor, but also their future perspectives or, even better, setting forth the procedures for future use of intellectual properties. Putting intellectual properties on the balance sheet presents another extremely important problem. As a rule, patented inventions developed by scientific institutions of the RAS are not used by the institutions themselves to produce the corresponding products, so placing the patents on balance sheets of those institutions is questionable from a formal viewpoint. Moreover, with the existing methods of patent valuation (both the market-value approach and the cost approach) one cannot get an objective estimate of a patent value without placing an unreasonably high fiscal burden on state scientific institutions. That is why the RAS proposes to valuate such patents when rights for their use are sold, and to formulate a valuation procedure that can be used by scientific organization for that purpose. Patents and licenses are the principal innovation products of scientific institutions within the structure of the Academies of Sciences. In the past, whenever a scientific institution received a license fee for some solution, it used to pay a part of that fee (approximately 40%–50%) to the state as a tax (for financing the process of development of that solution) and keep the rest. But during the last few years the financial operation permissions issued to the RAS by the Ministry of Finance did not specify the procedure of dealing with the license fees, so at the end of each year, all revenues from the licenses sold by organizations of RAS went to the state budget. If an institute of the RAS does N E W E C O N O M Y : 1/14/09 8:51:07 PM not control license fees received for the licenses it sells, then it cannot pay the fees that are due to the inventor or developer, and incurs losses from participating in innovation-related activities. As a result, the number of license agreements has significantly dropped, and development of innovative solutions has slowed down. This problem is closely connected with the problem of motivating scientific organizations and personnel to take part in innovation-related activities. The procedure for remunerating and encouraging creators of innovative solutions must be improved. In accordance with the existing system of encouraging bonus payments to scientific personnel, the “secrecy bonus” is paltry, and the largest bonuses can be received for participation in international conferences and for publications in prestigious (mostly foreign) magazines. The problems related to establishment of small innovation enterprises by scientific organizations and institutions of higher education remain unresolved; the mechanism of transfer of R&D results obtained by RAS institutes to business entities for subsequent commercialization is not clearly defined. Today, the status of state-financed institutions does not let them create innovation companies or use non-budgetary funds for performing innovation-related work and transferring scientific findings to industrial enterprises. After January 1, 2009, certain regulations on possessing, using, and managing state-owned property held by constituent organizations of the RAS will change; however, the competent authorities have not yet determined the procedure for transferring managed property, including intellectual property, to third parties for the purpose of their participating in innovation-related activities. Start-ups which are established in Russia and the rest of the world with a view to implementing innovative solutions cannot afford buying a license at the initial period of their existence; therefore, it is necessary to create a well-designed system of transfer of innovative technologies to such start-up enterprises. That system should be based on license agreements and installment royalty payments. And it is very important that an organization that has developed a scientific solution should have right to (a) transfer the solution as its contribution into the charter capital of such a newly created small start-up enterprises and (b) use non-budgetary funds for commercializing its solutions through such small start-ups. I N N O V A T I O N IPR_digest_eng.indb 63 I N S I G H T I N T O The problems of taxation of scientific institutions within the RAS structure have become especially urgent after the property tax and land tax privileges had been revoked. The state is supposed to provide allowance to set off property tax and land tax paid by institutes of the RAS, but the allowance is often late or not paid fully. Scientific institutions of the RAS are running up debts and penalties on the above-mentioned taxes, which seriously deteriorates their financial condition. The problem is especially pressing for those institutions which are engaged in researching dual-purpose technologies; such researches usually require a well-developed infrastructure and large territory. This problem must be solved without delay, because it hurts the infrastructure and material assets of Russian science – the infrastructure and assets which could be used for creating new technology parks, scientific centers, and other elements of innovation infrastructure. This leads us to another paradox. Technology parks are normally created in locations with a high concentration of science, e.g. in scientific centers of the RAS, but the law does not provide for participation of RAS in creation of technology parks, so the RAS cannot offer its facilities for the purpose of creating or improving technology parks; unfortunately, the existing situation practically prevents scientific centers from actively participating in improvement of innovation infrastructure. And the prospects of future development of scientific centers depend not only on fundamental research, but also on developing applied solutions and on creating technology parks. The program for creating business incubators which is currently implemented by the Ministry of Economic Development is rapidly progressing toward that goal. The existing laws require a number of changes that will take into account the specific aspects of leasing premises to small businesses which rent office or work space in business incubators, innovation centers an other similar establishments that provide privileges for their tenants, allow delayed rent payment, etc. State scientific organizations and higher education institutions should be given the right to lease premises and property on favorable terms to small businesses created by them, or to business incubators, technology parks, and other innovation-related entities, which requires modifying those parts of the Decree of the Government of the Russian Federation No. 156 of March 23, 1006, that deal with managing federal property. R U S S I A 63 1/14/09 8:51:07 PM Upkeep of innovation-support entities during the initial period of their existence presents another problem. For example, the law stipulates that constituent parts of the Russian Federation that create business incubators are responsible for their upkeep; however, the law contains no provisions with regard to upkeep of those business incubators which have been established by the Federation and then placed under management of state-owned organizations. An analysis undertaken by the Federal Agency for Intellectual Property, Patents, and Trademarks has demonstrated that in 2006 the profits from using intellectual property in national economy contributed almost RUR 10 billion to the Russian GDP. Of course, that is a very small percentage. But it demonstrates that Russian science has a potential. To make that potential a reality the state should solve the problems which hinder participation of state-owned scientific organizations in innovation-related activities, and it should define the place and roles of these organizations in the national innovation system. Today, Russia has everything that is needed for a great breakthrough in creating its national innovation system and knowledge-based economy, and modification of the relevant laws is an important prerequisite for such a breakthrough. Sergey Aldoshin Vice-President of RAS, Director of the Institute of Problems of Chemical Physics of RAS, Member of RAS Evgeny Kablov Member of the Presidium of RAS, President of the Association of State Research Centers, General Director of the Federal State Unitary Enterprise the All-Russian Scienctific Research Institute of Aviation Materials, Member of RAS Vladimir Potapov Head of the Innovation and Expertise Department of the Institute of Problems of Chemical Physics of RAS 64 IPR_digest_eng.indb 64 N E W E C O N O M Y : 1/14/09 8:51:07 PM Problems of Financing Scientific Research Levan Mindeli Director of the Institute of Science Development Problems of RAS, D. Sc. In Economics Financing scientific research is a most important factor which determines the dynamics of a nation’s scientific potential, and, eventually, the practical results of research and development. All the developed countries encourage their national research, including consistent budgetary support of R&D. One of the principal parameters that characterize R&D is the amount of domestic expenditures on research and development, including current expenditures and capital investment. TABLE 1 DOMESTIC EXPENDITURES ON RESEARCH AND DEVELOPMENT COUNTRY TOTAL, $ MILLION % OF GDP 1 Russia 20,281.3 1.07 2 UK 35,590.8 1.78 3 Germany 66,688.6 2.53 4 Israel 7,985.1 4.65 5 China 86,758.2 1.42 6 Korea 35,885.8 3.23 7 US 343,747.5 2.62 8 France 41,436.3 2.11 9 Sweden 11,815.4 3.73 138,782.1 3.39 10 Japan Source: Science, technologies, and innovations of Russia 2008. Brief statistic collection - M.: ISS RAS, 2008. I N N O V A T I O N IPR_digest_eng.indb 65 I N S I G H T I N T O As it can be seen from the table, the absolute value of domestic expenditures on research and development in Russia is 17 times lower than in the US, 7 times lower than in Japan, and 3 times lower than in Germany. Internal expenditures per one researcher are 20 to 25 times lower than in developed countries. It is due to the fact that during the economic reforms of the 1990s, when the basics of the market economy were laid, even areas which are traditionally supported by the government worldwide, including fundamental science, were left without financial support utterly necessary for their development. Spontaneous disorganization processes were building up in research; scientific activity dwindled dramatically. Even in 1991 domestic expenditures on research and development were 66.9% of the 1990 figure, while in 1997 they barely reached 28%. For the first five years of the reforms (1991-1996) allocations from the federal budget dropped sixfold; the number of people employed in scientific research became twice as low and average monthly payment thrice as low.1 Given the poor financing of scientific organizations, expenditures for equipment and materials were cut and long-term projects were curtailed, with prevalence of short-term projects based on the existing results and resources. The resource hunger was very serious. Fixed assets channeled for research and development dropped more than threefold from 1990 to 1999. Fixed asset replacement rate was only 2.1%, compared to 10.5% in 1991. The circumstances only started changing for the better in late 1990s, when a number of actions was taken with a view to improving the financial situation under the Concept of Reforming of Russian Science, 1998–2000. In 1999 the line “Fundamental Research and Assistance to Scientific and Technological Advance” of the federal budget 1. L.E. Mindeli, A.V. Martynenko et al. Reforming of the Russian science: analysis and problems. – M.: CSRS, 2001. P. 8. R U S S I A 65 1/14/09 8:51:07 PM was financed in full (in 1998 only 5.6% was actually allocated), and budget expenditures for science grew by 7.3% (in real terms). In 2000 RUR 17,094.7 million was allocated from the federal budget, compared to RUR 15,926.7 million envisaged by the Law on the Federal Budget for the year in question.2 At present solving the problem of science financing remains a most important task for the government. Scenarios of the Concept for the Long-Term Strategy through 2020 envisage growth of domestic expenditures on research and development up to 3% of the GDP. This must, in turn, be bound to the growing efficiency of using the existing research potential and R&D quality. The principal goal of the improving of the R&D financing system is to make possible the development of the national scientific sector, given the limited financial resources. Therefore, the scientific policy in this area must aim to reach the following objectives: – Making usage of federal budget funds channeled for research and development more efficient. – Ensuring top-priority financing of fundamental research. – Active usage of R&D financing under targeted programs. – Attracting additional (alternative) sources of financing science. Let us consider these areas of activity in detail. MAKING USAGE OF FEDERAL BUDGET FUNDS MORE EFFICIENT Budgetary funds amount to some 60% of the financing of domestic expenditures on research and development. This figure has not changed for the five last years. At the same time, the growth of science financing from the federal budget is still lagging behind the growth of macroeconomic indicators. The total allocations for science amounted to some 1% of the GDP in 2007, with allocations for civil projects at only 0.33%. Science totaled 5% of the federal budget expenditures in 2007 (3.25% in 1995), including civil projects – 1.79% (1.6% in 1995). To raise the efficiency of federal budget R&D funds usage, principles of forming the federal budget for science and budget classification must be adjusted. When the budget is formed, it must be relieved of inappropriate expenditures, and the number of organizations financed directly from the budget should be reduced. Implemen2. Ibid., p.148. 66 IPR_digest_eng.indb 66 tation of this principle envisages top-priority support of fundamental research forming the scientific base of the new technological structures. Budget funds should also be allocated for financing fundamental research projects in areas where the Russian scientists hold leading positions. Priorities of state financing also include selective support of the part of applied research that forms the innovation potential of the country, in order to transfer the national economy to modern technology structure. TABLE 2 BUDGETARY FINANCING OF CIVIL SCIENTIFIC RESEARCH AND EXPERIMENTAL DEVELOPMENT (RUR BILLION) 2007 Federal budget expenditures 2008 2009 2010 5,983.0 7,536.2 9,024.7 10,320.3 Financing approved by the Government 107.3 of the Russian Federation 130.8 182.1 217.5 % of the total budget expenditures 0.07 0.07 0.08 0.08 Including expenditures for fundamental research 52.1 65.6 83.7 99.7 % of the total budget expenditures 0.03 0.03 0.04 0.04 Source: www.ras.ru Expenditures for functioning of scientific institutions must be restructured. Besides, budget estimations of scientific institutions should by all means be submitted for approval to a superior organization. In order to make budget expenditures more efficient, transfer from costbased financing (when the amount allocated depends on the staff list and the previous-year expenses) to resultbased financing should be accelerated. The system of budget financing must be based on the concentration of money on the priority areas of scientific and technical development and crucial N E W E C O N O M Y : 1/14/09 8:51:07 PM technologies. New methodological approaches must be applied when identifying such priorities. Research and development meeting the national priorities should be entitled for state support. The priority list will be based on the forecasts of science development and innovation trends. ENSURING TOP-PRIORITY FINANCING OF FUNDAMENTAL RESEARCH The percentage of allocations for fundamental research grew from 36.8% in 1995 to 50% in 2007 (exclusive of the expenditures for international research projects), while the share of applied research accordingly dropped (from 63.2% in 1995 to 50%). This trend should be considered positive as fundamental science in itself has no commercial aspect and has to be supported by the state. As for applied research, it can be financed with non-budgetary funds used, as such research usually solves specific practical tasks, and, given the growing commercialization of scientific research, this kind of services is in demand from commercial entities. The federal budget for science should have a quota for fundamental research conducted by scientific organizations of the Russian Academy of Sciences, branch academies, and universities under governmental contracts (including the program for state support of integration of fundamental science and higher education). As earlier, a considerable share of the federal budget expenditures should be channeled for financing of the Russian Foundation for Basic Research (RFBR) and Russian Foundation for Humanities (RFH). The activities of these foundations should be based on the timely response to the changing trends in the international and Russian fundamental research and in the structure of priority fields. Competitive financing through grants allocated by state foundations is so far the most transparent form of science financing. However the budget of these funds has stayed at one level for many years (it amounts to 7% of the state expenditures for civil research), despite the ever-high demand for grants and the well-adjusted mechanism of support estimated highly both by the scientific community and by independent experts.3 3. I.G. Dezhina. Mechanisms of state financing of science in Russia.- M: IET, 2006 – p. 97, 121. I N N O V A T I O N IPR_digest_eng.indb 67 I N S I G H T I N T O ACTIVE USAGE OF R&D FINANCING UNDER TARGETED PROGRAMS Financing under targeted programs implies systematic allocation of funds n accordance with approved long-term programs aimed at solving specific socio-economic tasks. Such financing needs a special organizational and procedural mechanism. Thus, financial resources are channeled for research programs beyond the scope of individual competing scientific centers and disciplines, rather than given to particular research institute. Financing under targeted programs solves quite a number of socio-economic and management tasks: support of topical research fields, training professionals in such fields, stimulating the industry to implement R&D results, and getting small investment businesses participating. Federal targeted programs of Russia (FTPs) serve as an instrument for implementing top-priority strategic tasks; at the same time they represent a form of budgetary and non-budgetary financing of science. In 1990s the FTP number was too great (up to 155), with the amount of resources needed for their implementation exceeding the financial opportunities of the state. As a result, the government usually failed to meet the budget obligations for FTP financing; the plans for their non-budgetary financing also failed. At present some 50 FTPs are being implemented; the government has reasons to believe that targeted expenditures are a more advanced mechanism than base financing, and the growth of their percentage will result in more efficient spending of budgetary funds. At the same time, the procedures for financing under targeted programs are not as yet devised fully, and red-tape and lobbying still present an issue. To date research and development under FTPs account for more than one-third of the funds allocated for priority fields of science and technology. 95.7% of them are channeled for the FTP for Research and Development in Priority Fields of Science and Technology. The modern concept of science financing must be oriented at active usage of the mechanism of managing research and development activity through targeted programs. Financial resources should be concentrated on implementing federal programs contributing to stabilization and growing efficiency of the economy. To achieve this, a procedure for forming and development of priority science and technology fields, aimed at developing specific programs, should be formed. No doubt differences in approaches to fundamental and applied research should be taken into account. We can point out in this connection R U S S I A 67 1/14/09 8:51:07 PM that in 2008–2010 the Russian government is planning to channel some RUR 600 billion for the development of such priority fields and nano- and biotechnology, nuclear power, and aerospace research under federal targeted programs. ATTRACTING ADDITIONAL (ALTERNATIVE) SOURCES OF FINANCING SCIENCE Due to the relatively diminished base financing of scientific organizations, especially those involved in applied research, the need to develop funding source alternative to budgetary financing is ever-growing. The development of a system of non-budgetary funding sources is based upon attraction of financial resources from the commercial sector. We also believe that a specialized common system of resource provision for science can be based on the Bank of Development, which, apart from accruing considerable financial resources, can provide privileged loans to research, development and innovation organizations. Developing the regional initiative in research, development and innovation activity will help further separation of responsibilities between federal and regional executive bodies in this aspect. Such separation will be provided through specifying an individual line in regional budgets for financing regional programs and projects. The executive bodies of the Russian regions should have a right to form non-budget regional foundations for development of science and technology. Besides, creation of venture financing funds for science-intensive commercial developments should be enhanced. Indirect methods of stimulating scientific research and innovation deserve great attention. In order to establish favorable conditions, a set of measures should be developed for tax stimulation (deduction of up to 50% of taxable revenues by sums channeled by enterprises for scientific and innovation activity; partial exemption from corporate profit tax for four years); privileged loans for investment projects; using revenues from property sale for development of scientific activity; enhancing the resource base of science and creation of infrastructure. In early 2008 the Presidium of the Government of the Russian Federation discussed the relevant tax policy. It was decided to implement further steps for support of priority research fields already from 2009 on. The amount of expenses which can be written off as production costs will be increased 1.5-fold even for the cases when the re- 68 IPR_digest_eng.indb 68 search result is negative. It will enable further inflow of investment into scientific research. The listed tasks and problems are fully relevant for the current activity of the Russian Academy of Sciences. According to the By-Laws of RAS approved by the Government of the Russian Federation on November 19, 2007, financial resources for the activity of RAS and affiliated organizations are: – federal budget funds allocated for program implementation, government contract execution, and investment; – funds from public and private funds, including international ones; – funds received as remuneration for fulfillment of contracts and agreements signed with legal entities and natural persons in Russia and other countries; – funds obtained through usage of property and property rights; – voluntary donations from different organizations (including foreign organizations) and natural persons; – other funds obtained through activities RAS is involved in. Budget funds remain the core of RAS functioning. In 2007 the budgetary financing of the Academy grew 4.7-fold from 2001. Counting non-budgetary sources, in 2007 the Academy received almost RUR 62.5 billion, with 63.5% budget funds, 33.4% non-budget funds, and 3.1% additional budget funds received by organizations and bureaus of RAS from leasing federal property.4 Budget funding of RAS is implemented according to the Program of Fundamental Scientific Research of State Academies of Sciences approved by the government. Research projects within programs of presidiums of state academies of sciences are financed on a competitive basis. When such programs are developed, mechanisms should be envisaged for financial provision of interdisciplinary research done jointly by several organizations affiliated with the same state academy of sciences but specializing in different fields, as well as transparent mechanisms for efficiency of its realization. Competitive financial provision of fundamental research in state academies of sciences based on the results of project examination should be characterized by openness of information and regular public reporting for individual projects and for entire programs on specific subjects. 4. Report on the General Meeting of the Russian Academy of Sciences, May 28 – June 2, 2008 / www.ras.ru N E W E C O N O M Y : 1/14/09 8:51:07 PM Within different fields of fundamental research measures can be taken for infrastructure development (purchase of expensive scientific equipment, providing access to scientific digital resources, subscriptions for periodicals), for the creation of conditions conducive to enhancing the efficiency of fundamental research, and for the support of research done by postgraduate students and young research fellows. TABLE 3 ANNUAL ALLOCATIONS FROM THE FEDERAL BUDGET FOR THE IMPLEMENTATION OF THE PROGRAM FOR FUNDAMENTAL RESEARCH IN STATE ACADEMIES OF SCIENCES FOR 2008–2012 (RUR MILLION) 2008 2009 2010–2012 Total 46,693.34 49,418.98 52,330 including RAS 38,628.49 40,362.05 42,390.33 Source: Program for Fundamental Research in State Academies of Sciences for 2008–2012. Approved by the Order of the Government of the Russian Federation of February 27, 2008 No. 233-r.- Moscow, 2008. As the table shows, RAS accounts for over 80% of “academic” allocations from the federal budget. The is why reforms in the RAS institutions conducted in accordance with the Decrees of the Government of the Russian Federation No. 236 of April 22, 2006 On the Pilot Project of Wage Increase for Employees of the Research Organizations of the Russian Academy of Sciences and No. 785 of November 19, 2007 On the Russian Academy of Sciences are of great interest. Under the pilot project the average 2007 monthly wages of RAS research fellows (paid from the budget) more than tripled the 2005 level, amounting to RUR 18,941. As for budget wages of the RAS employees on the whole, they also grew more than 2.5 times. Wages of all employees from all sources grew more than 2.4-fold, exceeding RUR 21,000 in late 2007. But equally important tasks, apart from raising wages and introducing stimulating bonuses, were to get rid of deadweight personnel, restore normal production discipline, plan and account for the efficiency of work of research fellows and scientific departments of academic institutes.5 5. Appraising the results of the pilot project, we should not forget that wages of scientists abroad, even with the purchasing-power parity considered, remain dozens of times as big as wages of same-level scientists in Russia. I N N O V A T I O N IPR_digest_eng.indb 69 I N S I G H T I N T O The implementation of the pilot project was accompanied by serious problems as regards the development of specific regulations. The regulations on stimulating bonuses were coordinated with great pains. The stumbling-block was the different understanding of the term “efficiency of scientific activity” (as a criterion determining the bonuses) by the Ministry of Education and Science and the Academy of Sciences. In accordance with the Decree of the Government of the Russian Federation No. 785 of November 19, 2007 On the Russian Academy of Sciences, RAS institutes shall stop being budgetary institutions and, as such, their funding from the Federal Treasury shall be suspended. The “academic” funds from the budget will be allocated as subsidies to the Russian Academy of Sciences, as the chief manager of the federal budget funds, by transfers to its account in the Federal Treasury. Driven by the regulations on the procedure of granting subsidies, RAS will transfer the funds in question to the accounts of affiliated organizations in commercial banks. Several types of subsidies are to be granted. First of all, there are subsidies for completing tasks for the Program for Fundamental Research in State Academies of Sciences approved by the government. Subsidies will also be allocated for completing special governmental orders. Much organizational work is still ahead due to this, related to the development of specific mechanisms of bringing subsidies to academic organizations, development of the reporting procedure on the usage of the allocated funds, retraining of accounting personnel, and, finally, the choice of the commercial bank(s) where the organizations will keep their accounts. The status of the chief manager of the federal budget funds will enable the leading scientific, educational, healthcare and cultural institutions to develop their functions and spheres more efficiently, assessing the trends and prospects of development on a comprehensive scale. In particular, such a status enables the Russian Academy of Sciences to win its independence from the Ministry of Education and Science, which has enough unsolved problems of its own with kindergartens, schools, specialized secondary and higher educational institutions. The reform of the system of financing scientific institutions must be built with this postulate taken into consideration, along with a necessity to provide greater transparency of financial flows. R U S S I A 69 1/14/09 8:51:07 PM Innovation-Based Development of Russia: What Needs to Be Done? Mikhail Prokhorov President of the ONEXIM Group WHAT IS HAPPENING The world financial crisis has very clearly demonstrated that Russia today is an integral part of the world’s political and economic scene; in that scene, it has found a niche for itself and is intending to move forward. But before we accelerate our forward movement, and even before we decide on which paths of development to take, we need to look around us and find out in what sort of environment we are working. A need for such an analysis has existed for a long time, but it has become even more pressing after the recent changes in the worlds economy. In a nutshell, that environment can be succinctly described with just one word: globalization. It is very similar to the process of colonization in the eighteenth and nineteenth centuries, but it is happening at a new evolutionary stage. The process involves both various resources (traditional or new) and forms of control of those resources. Territorial resources (land regarded as capital) and natural resources (deposits of fossil fuels and other minerals, water and biological resources) can be classified as traditional resources. The category of new resources, in my opinion, includes, most importantly, innovation resources (the world’s intellectual potential, intellectual property, and the possibility of controlling and managing traditional resources without possessing a formal sovereignty over them), as well as information resources (information space and information technologies), non-traditional natural resources (renewable sources of power and ecological resources) and, finally, again territorial resources: land, but now regarded as a basis for creating an economical space. Globalization wipes away national borders in all areas, but innovation and information resources become affected faster than anything else. The above-mentioned factors lead us to a number of very interesting conclusions: 70 IPR_digest_eng.indb 70 – It is hardly possible to make a major breakthrough in the area of innovations (and even less so to build an innovation-based economy) in a single country: everything we create at home should and will become available for everyone else. Our goal is to become an important part of the kitchen where the global innovation pie is being baked, and to be among the first to partake of that pie. – Values of old competitive advantages are becoming increasingly questionable. For example, classic technology parks tied to a specific location are growing obsolete and empty. Paradoxically enough, they are becoming a deadweight hindering growth of innovation processes. For example, it is becoming obvious that the Silicon Valley, for many years cited as an example to follow, today is losing its leading position. Globalization makes innovation businesses work round the clock: the world’s most advanced companies open project offices (or outsource projects to third-party companies) in different countries and different time zones, which means that the work continues 24 hours a day. The space is thus “unlocked” and the time is harnessed. – Russia has to find its own way of innovation-based development using the world’s experience and taking in account future trends, since no two scenarios are identical and there is no such thing as “the only correct path.” – Brain drain that has been taking place during the past 20 years (according to statistics, approximately half a million of top-class scientific and technical workers left our country during that period) is not a critical factor. Moreover, today, this “drain” can become a competitive advantage rather than a problem (provided that the innovation pro- N E W E C O N O M Y : 1/14/09 8:51:07 PM cess is correctly organized). With a properly organized innovation business and correctly performed “re-recruitment” of personnel, it can be regarded as an efficient tool that can be used for rapidly integrating Russian science into the global innovation resource, especially if we take in account the intellectual potential available in our country. – An innovation breakthrough should be based on what is a natural result of all competitive advantages of the country as a whole rather than on some abstract conception. Now that we have a clear understanding of major trends in innovation economy, we need to find out what are the main difficulties, so that we can figure out a correct way to overcome them. What problems are awaiting Russia on its way to an innovation breakthrough? I would like to specifically mention the following ones: – We in Russia have forgotten how to formulate and solve problems that require a holistic or “systemsthinking” approach. – There is no established system for large-scale production of innovative products. – The economy at large is not very open-minded toward innovation, which results in slow implementation of innovative solutions. – Science and business are still divided by a deep gap which is created today not so much by departmental red-tape and organizational barriers as by the fact that business is overly eager to use easily accessible foreign innovation resources. – The intellectual potential of Russia is not directed at solving large-scale crucial problems, which is due, among other things, to the feeling of being fed up by numerous Soviet “projects of the century.” – There are virtually no markets in Russia ready to consume innovative products. And those that do exist are not systematic and are fragmentary. WHAT NEEDS TO BE DONE All of the above makes it clear that a need exists to find or develop conditions or factors conducive to achieving the main goal, namely, transition of Russia to an innovation-based economy. My own hand-on experience of working in what can be called “the business of science” has demonstrated that there are probably five of those factors. I N N O V A T I O N IPR_digest_eng.indb 71 I N S I G H T I N T O Factor number one: Russia’s national economic and geographic competitive advantages. Factor number two: availability of strong intellectual resources. Factor number three: availability of international-level infrastructure for innovation-based economy. Factor number four: constructive relationships between the state and the business. And, finally, factor number five: a correct choice of strategic priorities. Let us have a more detailed look at these factors. Factor number one: National competitive advantages. – World-scale energy resources and other natural resources. – Considerable financial resources from utilizing natural resources and developing the basic economy sectors. – A unique geographic location in relation to transportation routes which gives Russia a strategic advantage in establishing multilateral external economic relations, makes it a natural provider of transit transportation services, and serves as a stimulus for developing an advanced transportation network. – There are several areas in our diversified verticallyintegrated economy where an innovation breakthrough is possible. Factor number two: Intellectual resources. It can be subdivided in three parts: One: Ideological open-mindedness and high creativity of the peoples of Russia. Two: Raising the level of intellectual and scientific environment by developing mathematics, theoretical physics, etc. Three: Russia historically has had very strong and well financed fundamental research potential, which is exactly what can open the door to innovational breakthroughs. Factor number three: World-level innovation infrastructure. What is the traditional innovation infrastructure? It is a classical technological park or, in other words, a specific territory with stationary research and production facilities. It is characterized by existence of numerous independent (not interconnected) projects; normally, the same group of people works on all those projects, moving them from stage to stage of the same innovation line (from the original idea through the R&D stage to R U S S I A 71 1/14/09 8:51:08 PM producing a pilot batch of products, etc.); the nature and structure of such a line would be defined by what fixed equipment is available in that particular park, and by what final-stage equipment and infrastructure can be accessed by the park’s personnel. Emergence of a common worldwide information space and increased division of labor have made such an infrastructure obsolete. What about the apparent success of those modern technological parks that specialize in information technologies? Apparent is the operative word here, since an IT park is, in essence, a high-tech office center, and information technologies are actually still on a roll. Technology parks are going to be replaced by scientific system integrators (SSI) which help one to find and use those elements of scientific infrastructure of the entire world that are most suitable for the goals of one’s project. Of course, people remain the key component of a SSI – people who understand the market, formulate and substantiate tasks, select subcontractors and suppliers throughout the world, perform the “assembly” and control of a new technology at the final stage, and take care of its industrial implementation. Obviously enough, Russia will hardly be able to move from technology parks straight to scientific integrators. It would be a good idea to think about an intermediate stage. My colleagues and I call this intermediate stage a “techno-hub.” The principle task of a techno-hub is to concentrate intellect. How can that be done? By building several modern science centers equipped with multipurpose laboratories, testing equipment, pilot production facilities etc, with a view to creating an entire network of “growth points” of intellectual potential. In presentday Russia, such a network can provide a system of large and small bridges between science and business, helping to convert knowledge and inventions into technologies, and technologies into commercial products, and to create a sufficient concentration of venture capital to start an innovation business. That is exactly what the task of technohubs will be: to fill the gap in our innovation process. Factor number four: Constructive relationships between the state and the business. One: We, all together, need to create a new Russian model of innovation-based development. Of course, instead of rejecting the international experience, I would suggest making a sort of hybrid model incorporating the best elements of the Chinese and American models. In other words, a Russian model should include the Ameri- 72 IPR_digest_eng.indb 72 can experience of effective strategic management with goal-oriented business engineering as well as the high speed of industrial implementation of innovations along with prompt response to market changes that is typical for the Chinese model. Besides, the Russian model should incorporate business forecasting as well as estimation of possible effects that new technologies may have on economics and on social and cultural environment. Deviations from that approach can be allowed only for those projects which are directly related to national security. Two: It is necessary to define the respective roles of the state and business in the process of creation of an innovation-based economy. To put it simply, we could say that the state selects seeds and grows seedlings, and then the business grows trees from which it then makes paper, pulp and other products. Of course, it is not a simple task. The state and business may have very different viewpoints on each other’s role in various aspects of technological development, from strategy of science development to financing of personnel training. What is the most reliable way to harmonize interests of the state and those of business while preserving the natural difference of viewpoints on sources and targets of financing within a project, on physical and intellectual products created as a part of innovation projects, etc? Specialized stateowned structures and companies that focus their activities on strategic stimulation of the innovation-based path of development of the Russian economy can be used as a powerful tool to solve that problem. On the whole, the respective roles of the state and business could look something like this: The State: – Designs a comprehensive strategy for development of such areas as fundamental science, industrial sectors, national priorities, environmental safety, non-production sectors, and education while taking in account the cutting-edge trends in nanotechnologies and needs of national security; coordinates work done by both state-owned and private entities. – Keeps intellectual property rights for defenserelated innovations during the R&D stage (and sometimes during the fundamental research stage), and provides an environment conducive to creation of intellectual property by developers, scientists, and laboratories. N E W E C O N O M Y : 1/14/09 8:51:08 PM – Recoups the bulk of the budget’s expenditures for science and R&D by selling technologies to business for further development or commercialization. – Takes care of technologizing general education and of formation of a new layer of well-trained middle-level personnel. – Creates national-scale innovation infrastructure units, using assistance of other investors and partially reimbursing its expenditures by leasing facilities to private foundations and research and production companies; assists in creation of a social and transport infrastructure for mass production of nano-products. – Finances fundamental scientific research and higher education institutions as well as a part of development and design works, takes part in financing of major nanotechnology projects, including those that have good commercial potential. Business: – Designs a strategy for development of R&D and industry taking in account the newest trends in nanotechnologies and market demand; prepares proposals for development of fundamental science and education. – Purchases rights for intellectual property from scientists, developers, research teams, or defense companies during the R&D stage (sometimes during the fundamental research stage) for commercializing the solutions and implementing them in appropriate sectors of economy. – Commercializes promising results of R&D and pilot production. – Takes care of technologizing parts of vocational education, provides targeted support of general education. – Creates small companies for starting promising innovation projects (so called start-ups) and science and production centers, or “hubs” (for leasing them to small businesses, among other things), and creates production facilities for mass production of nano-products. – Performs expert examinations of and provides financing for applied R&D projects. – Finances development of part of the scientific infrastructure, new science and production infrastructure projects, and special educational projects. And the third task is to jointly decide on priorities in creation of new markets of innovation products and technologies. I N N O V A T I O N IPR_digest_eng.indb 73 I N S I G H T I N T O Factor number five: National strategic priorities. I think there is no need to reinvent the wheel. Innovation breakthrough should lead toward solving the global problems of humankind related to food, energy, ecology, and transportation. The last problem, by the way, is a new one, caused by rapidly increasing prices for energy. WHAT HAS TO BE DONE FIRST THING How can we move from choosing global tasks to defining and achieving the strategic priority goals? Imagine a pyramid whose top, or the first level, consists of priority goals in creation of new domestic or international markets and/or participation in existing ones. At this level, success is contingent on proper use of the national competitive advantages we have discussed above. So, considering that Russia (a) has a strong energy sector and colossal reserves of minerals, (b) has the largest territory and most diversified mix of soils, (c) has a huge transportation and transit system, linking together different markets, and (d) has historically had great intellectual and scientific potentials, I would emphasize the following key strategic priority areas: – Alternative energy. I think it is completely obvious that we have to switch from non-renewable energy sources to renewable ones. The question is, when will that happen? I suggest that we stop theoretical discussions and turn our attention to practical tasks right now, so that we can become world leaders in this area. In my opinion, alternative energy sources could include hydrogen energy, sun, wind, and nuclear energy, which now is attempting to increase the uranium utilization efficiency rate by an order of magnitude. Today, its coefficient of performance is 1.5%–2%. If the problem is not solved, the world’s total reserves of uranium will last no longer than 100–120 years. – Catalysis. It covers everything that has to do with water purification, ecology, environment-friendly transport, and efficient while environment-friendly manufacturing. We have a very strong catalysis school. We need to create markets that will be able to produce and sell catalysis-related scientific products worldwide. – Education, or supporting our high intellectual level. We have a huge territory but, unfortunately, not enough population. In the global economy, we R U S S I A 73 1/14/09 8:51:08 PM cannot compete against China or India with their colossal labor resources. But we can and we must compete in the intellectual sphere. In our opinion, intellect today cannot be regarded only as one of aspects of capital (intellectual property) or of labor; its real value lies in the fact that it can be used not just for production within the existing economics: it also opens the door to creating new economy models which will become competitive in future. – Paradoxically enough, agriculture belongs here too. There is a segment where our country is still the world’s leader. I am talking about seed breeding. We have some unique types of seeds which can be used as a starting point for creating a bank of seed hybrids which can be marketed worldwide. – Improving our transport is probably the most controversial area. Our country stretches across nine time zones. And if fuel prices keep growing at the current rate, the majority of population simply won’t be able to afford travels by air or by surface transport. The second level of the pyramid includes key support sectors: science and engineering. Materials science (including nanotechnologies) is one of them. These sectors are exceptionally important, but mostly for innovation markets, which have educated customers prepared to place orders for new materials. Chemistry, mathematics, biotechnologies, molecular biology, and some other sciences can also fall into this “support” category. And the third level of the pyramid (the bottom, or basic level) is the creation of innovation market envi- 74 IPR_digest_eng.indb 74 ronment as such, which is growing along with economy development. Such an environment enables businesses of all levels to evolve and to attempt (by overcoming mental inertia) to invent something new in order to beat their competition, and not just the domestic competition, but the international one as well. So, what should be done to achieve that goal? The answer is, we should do everything we have already discussed: Create a network of techno-hubs providing a favorable organizational and economic environment for numerous innovation companies, especially at early stages of their existence; ensure that their access to loans and tax privileges is free of red tape. And another very, very important thing is to ensure that innovations become fashionable. (This can become a major incentive, and it is perhaps one of the most important tasks of both business and the state. Innovation activities must become fashionable, so that the questions “who invented what” or “which innovations are being marketed” will be discussed at social gatherings, fashionable parties, and elsewhere alongside of the eternal topics of “who travelled where” or “who was where.” Successful businessmen should regard selection and support of startup innovation companies as their duty of honor, and a large number of startups under one’s wing should become a thing to boast about. And then, perhaps, a nationwide top list will be made). It is my sincere belief that we hold our future in our own hands. Our country doesn’t have any irreparable weaknesses, and we are quite capable of an innovation breakthrough. It is time to be enterprising! N E W E C O N O M Y : 1/14/09 8:51:08 PM Civil Society and Transition to the E-Government Elena Dyakova Chief of the Workgroup on the Development of Information Society in Russia under the Public Chamber of Russia, D. Sc. in Political Science 2008 can be rightfully called a breakthrough year for the governmental digitalization policy: on February 7, 2008 the Strategy of Development of Information Society in Russia was approved by the Presidential Decree No. PR-212, and in July a session of the State Council was held in Petrozavodsk, dedicated to the implementation of the Strategy. Within the session, President Dmitry Medvedev called transition to the information society one of the most pressing problems of the national development. Changes were made to the federal targeted program for Electronic Russia, aimed to strengthen its social component. At present the regions of the Russian Federation are to develop the regional programs of information society development till December 15, 2008, in the framework of the Strategy implementation and in accordance with the List of Orders of the President of the Russian Federation formed after the presidium session of the State Council of the Russian Federation on July 17, 2008 and Governmental Telegram No. 000327 of August 19, 2008 No. 814059 signed by the Minister of Communications and Mass Media of Russia I.O. Shchegolev. Information technology and communications are entering people’s everyday lives more and more actively. In 2006 the home segment of IT and communication services reached the level of certain industrial sectors and even outstripped the corporate consumption segment, which shows that Russia is entering the mass digitalization stage. Let us consider only some basic figures: – The mobile network penetration level rose from mere 2.6 users (connections) per 100 people to estimated 119.1 users in late 2007, which is already much more than the average European figure. The number of mobile phones per 100 households grew from 9 to 142 in 2002–2006. – The number of personal computers per 100 households grew from 6 to 33 in 2000–2006. The lead- I N N O V A T I O N IPR_digest_eng.indb 75 I N S I G H T I N T O ing region of Russia in this regard is the YamaloNenetsky Autonomous District (73 computers per 100 households). With the national average proportion of households having at least one computer at 31%, Russia is ahead Bulgaria and Romania and close to Greece. It should also be pointed out that the number of computers used in offices grew from 15 to 25.8 per 100 employees in 2002–2006. – The number of households having Internet access in Russia grew from 13% in 2005 to 17.1% in 2006; by late 2007 the number of broadband connections grew more than by 50% as compared to 2006, reaching nearly 5 million. The percentage of Internet users within the adult population exceeded 26% at the end of 2007. The YamaloNenetsky Autonomous District tops the league table here, too, with 61.8%. – The number of sites (2nd-level domains) in the .RU zone is more than 1 million, with a half of the sites registered within the last 1.5 years. Simultaneously there was rapid growth of social network services: the most popular of them, Odnoklassniki.ru, topped 20 million users, with the prevalent share of people in their most active age (25 to 40 years). New focuses of civil initiatives are formed within the C2C (citizen-to-citizen) relationships which are the core of social networks. There are also social network services with a clearly pronounced focus on public welfare issues. One example is the portal http://www.deafworld.ru/ created in the city of Nizhny Tagil, Sverdlovsk Region. The site motto reads, “We Hear With Our Hearts.” Despite its small age, the portal has a history of its own. At first it was a small informative site oriented at the community of hearing-impaired people. It was R U S S I A 75 1/14/09 8:51:08 PM already in 2005, during a hot line with President Vladimir Putin, that the site originator, Alexander Zhuchenko, raised the issue of hand-language translation or a crawl line in news programs on central TV channels; the issue was solved successfully. To date the site has transformed into a portal, which does not only contain useful practical information necessary for hearing-impaired people, but also helps them to find a job, provides advice to parents of deaf children, tests hearing aids, and arranges specific practical actions. Thus, at present there is the action “Let Mum Find You” dedicated to adoption of deaf children from orphanages. In this way the Internet enabled the active person from a provincial Russian city to create a network that unites people from the Sverdlovsk Region and from entire Russia, contributing to social integration and adaptation of hearing-impaired people. Apart from the new C2C relationships, a transition to the information society generates the demand for a new model of G2C (government-to-citizen) relationships. In other words, a mass “market” of governmental information services is forming in the country, facilitating its transition to the e-government model. Let us recall that e-government, or electronic government, means use of Internet technology as a platform for continual optimization of services, political involvement of citizens, and management through changing internal and external relationships. I.L. Bachilo defines an electronic nation as a “nation that provides for the development of an information society”, and an electronic government as technological infrastructure leading to the information society and the “electronic nation.”1 The strengths that e-government offers, well-known and described many times, include the following: introduction of IT and communication technologies into public administration makes it possible to cut costs of bureaucratic procedures, improve the performance of state bodies, enhance the people’s opportunities to form the civil society through expanding access to information, making state bodies’ work more transparent, and removing red-tape. Four primary delivery models are usually outlined in the egovernment model: Government-to-Citizen or Government-to-Customer (G2C), Government-to-Business (G2B), 1. Electronic Government and the Administrative Reform. Message delivered at the All-Russian Conference on the Electronic Government of the 21st Century within the National Forum “Information Society, Electronic Nation, Electronic Government,” Moscow, September 30, 2008. 76 IPR_digest_eng.indb 76 Government-to-Employees (G2E, covering the relationship between the government and people employed in public structures), and Government-to-Government (G2G, the relationship between different levels of the authorities). In Russia the G2E relationship is the quickest to be transferred into an electronic format (“electronic document circulation”), along with G2G, though to a lesser extent (a stumbling-block here is such an infamous problem as narrow approaches and the tendency of each governmental body to create a separate information system basically solving only its own tasks). An active and fruitful discussion of problems which IT specialists encounter while introducing IT in these areas is going on in the professional community. It should be emphasized that these problems are mostly organizational and legal rather than purely technical. It is obvious today that, to make digitalization really contribute to enhancing the governance efficiency, it is necessary, on the one hand, to optimize and streamline the existing management chains, and, on the other hand, to create an appropriate legislative framework that will make electronic document circulation as legal as the paperwork. That is why transition to “electronic regulations” and “electronic document circulation” is one of the lines of the administrative reform, and the discussion of the egovernment problems is going within the more general discussion of state machinery reforms. However, the discussions show that both IT specialists and experts tend to treat the transfer of G2C (government-to-citizen) into the electronic form as just a derivative of the solving of G2E and G2G digitalization problems. So it is issues of forming the technology and infrastructure for the transition to electronic document circulation and interactive communication of citizens with governmental bodies, pursuant to the Federal Law On Personal Data, that are paid the greatest attention. At best the discussion participants mention low technical knowledge and qualification of people in using IT resources, but they seem to assume that such knowledge will improve automatically as soon as people obtain the opportunity to receive governmental services online. As a result, despite the fact that the Strategy of Development of Information Society in Russia is based on the declaration that “the IT, telecommunication, and high-tech development trends in Russia prevent reckoning on considerable changes in the near future without joint targeted efforts of the government, business and civil society,” so far transition to the information society is of- N E W E C O N O M Y : 1/14/09 8:51:08 PM ten understood by its implementers as a technical, rather than a social, task. As for the efforts of the government, business and civil society, they poorly match at the best and are aimed differently at the worst. In order to see this, it will suffice to read the statutory documents regulating digitalization processes. As it is well-known, the federal targeted program for Electronic Russia adopted in January 2002 became a very important step in the forming of a governmental policy in IT development. The principal goal of the Program was rightly formulated from the viewpoint of public/private interaction both in the economic and social sphere: “making the economy and public administration more efficient by using information technologies and computers and implementing technological prerequisites for the development of civil society through establishing general rights for free information access.” But it was already at the adoption that some experts pointed out: in similar Western programs all the used information technologies (e-commerce, e-government, e-business, etc.) are considered together as an integrated environment, a single launching ground for the “digital economy” and the information society, rather than as independent individual activities, while the Electronic Russia integrated the information technologies inconsistently. Unlike Western programs oriented at the formation of a new economy and the information society, the Russian program was aiming to solve a number of very important but low-level technical tasks. Another point that the experts mentioned was its declarative nature, abundance of commonplaces and vague success criteria. These drawbacks were partly corrected in the new version of the Program adopted in 2006, with a focus on creating an integrated e-government structure in Russia, digital interaction between different governmental bodies, and regional digitalization. However among the seven basic implementation lines of the Program2 the concept of 2. A system of standards and recommendations in IT usage for public administration; efficient digital interaction between different governmental bodies and integration of governmental information systems; IT-based support of efficient interaction of governmental bodies with people and businesses; introduction of information systems supporting the activities of the governmental bodies; establishing governmental information system supporting the activities of the President, Government, and Federal Assembly of the Russian Federation; creating standardized software solutions supporting the activities of the governmental bodies; managing the implementation of the program steps. I N N O V A T I O N IPR_digest_eng.indb 77 I N S I G H T I N T O an e-citizen, one who is going to interact with e-government, was never found. In other words, the new version of the federal targeted program for Electronic Russia sets certain tasks for the government and the business, while civil society institutions and citizens themselves remain out of the developers’ view. The Concept for Regional Digitalization through 20103 maintains the same trend: it is intended to “introduce information technologies into national and municipal governance in order to provide services in the electronic form to the population.” No wonder, therefore, that the federal targeted program for Electronic Russia does not attract any interest with the people. Sure thing, according to polls, the awareness of the program is growing constantly. Thus, according to the poll arranged by the National Institute of Regional Studies and Political Technologies in 2007, 29% of the pollees know about the program or have heard about it; moreover, 15% are familiar with the principal provisions of the program, and the awareness level for certain lines of the program, such as Public Access to the Internet, Digitalization of Schools, or Tele-Medicine, reaches 40%.4 However a cycle of 10 focus groups on digitalization problems arranged in the Urals Federal District in May to August 2008, showed that virtually none of the group members could remember what the federal targeted program for Electronic Russia was, despite that the focus groups included mostly computer and Internet users living in megalopolises as well as in small and medium towns and cities.5 It does not mean that the focus group members are unaware of the public Internet access centers or the Cybermail program. But they do not connect these actions with the federal targeted program for Electronic Russia. As for digitalization of schools, they tend to consider it, not without reason, in the framework of the top-priority national project for Education, rather than the federal targeted program for Electronic Russia. In other words, people are interested above all by social consequences of IT introduction, ignoring such a technically-oriented program as the Electronic Russia is. 3. Approved by the Order of the Government of the Russian Federation as of July 17, 2006 No. 1024-r. 4. National Institute of Regional Studies and Political Technologies. Results of the poll conducted in order to study the public opinion on the federal targeted program for Electronic Russia. Electronic document. URL: http://www.e-rus.ru/upload/ docs/20051128170932.ppt, checked Oct 06, 2008. 5. Grant of the Russian Fund for Humanities No. 08-03-83307a/U. R U S S I A 77 1/14/09 8:51:08 PM It should be emphasized that the already mentioned Strategy of Development of Information Society in Russia has not just corrected the technical bias of the federal targeted program for Electronic Russia, but also reviewed the principal goal of the state digitalization policy: according to the Strategy, the goal of the transition to the information society is to improve people’s life quality, and one of the principal lines of the strategy implementation is to enhance people’s access to up-to-date IT and telecommunication services, including a public access system created with the state legal information system incorporated into it. The Strategy also aims to stimulate people and companies to use IT and telecommunication technologies, raise training quality, and establish a system of continual training of state employees in IT and telecommunications. However, when the Action Plan on the Strategy of Development of Information Society in Russia was formed, the task of involving people into the information society and “electronic nation” was in fact overlooked. The Draft Action Plan refers virtually to no civil society institutions participating in the forming of the information society; public discussion mechanisms, such as public hearings and public examination of proposed actions by the Public Chamber of the Russian Federation, are also excluded. It is significant that neither the Public Chamber nor other civil society institutions are mentioned a single time in the Responsible Entities column of the Plan. Meanwhile, speeches delivered by supreme leaders of Russia at public events and forums in 2008 (including the 2nd All-Russia Civic Forum Go Russia!, First Congress of the Association of Lawyers of Russia, 12th Russian Internet Forum, etc.) showed that the role of public associations and non-commercial organizations in developing the information society in Russia and enhancing the feedback from the people, as the customer of IT services, constantly grows. But, once again, the Draft Action Plan on the Strategy of Development of Information Society in Russia pays almost no attention to the issues of interaction with the Public Chamber of the Russian Federation. The Plan tends to assume that it will suffice to provide people with physical access to IT and telecommunications and with the necessary content (including public services in the digital form) to make them ready and willing to use the computer.6 But when it comes to mastering 6. If our mobile phone operators thought along the same pattern, they certainly would not spend money on advertising and finding out which services can better attract different categories of customers. 78 IPR_digest_eng.indb 78 IT, it is not just learning to manage a new device: skills of innovational behavior are formed, along with the ability to command and use fundamentally new opportunities. Such a transition is impossible just through a technological change, without large-scale investment into human capital. World experience shows that different groups of people master IT to very different extents. A so-called digital divide or digital gap is formed. In all countries there are groups of people who learn to use the new technology quickly and easily, actively using it for solving business and domestic tasks. These are, above all, young educated people earning their living with intellectual work, dwelling in big cities and having relatively big incomes. It is them who are of principal interest for the IT business, people at whom advertising and marketing strategy of IT companies is oriented above all. At the same time, other groups fall into a kind of an information ghetto: difficulty to master the new technology makes them less competitive on the labor market, usually lowering their self-esteem and making them invent different forms of justifying their reluctance to use IT (“I am afraid,” “it does harm to my health,”, “I don’t need it,” etc.). In fact the status of such people comes closer and closer to that of a person unable to read in the society where all the important information is only provided in writing. People in the “information ghetto” include, above all, senior people with poor education and low incomes, those who are involved in primarily physical work, people living in small towns and rural areas. In-family digital divide, where elder members of the family, unable to master the new skills, lose authority for the younger members, is also an issue. A situation arises where youngsters are actively involved both in real-life and digital social networks, while senior people are pressed out of real-life contacts, withdrawing to their family circle where they do not have enough authority, and unable to use virtual networks. Territorial and cultural differences collide with social and demographic ones. Thus, it is well known that Scandinavia is much ahead of other European countries and South Korea of other Asian nations, in term of their population computer literacy. The Russian situation has the digital gap present in all of its principal aspects. The stronger the mass digitalization processes, the stronger becomes the digital divide. For example, differences between regions by such a crucial criteria as the percentage of households with Internet access reach an 80-fold (!) difference between the most N E W E C O N O M Y : 1/14/09 8:51:08 PM and least developed regions, which makes the task of leveling out the digital divide between the regions, set in the Strategy of Development of Information Society in Russia, especially pressing. As it was shown above, the digital divide does not only mean inequality of physical access or different level of computer skills. Overcoming it will lead to a number of crucial social consequences: – The generation gap, with senior respondents ignoring the advantages of the digital revolution, will be eliminated. – Senior people will join social network services and compensate for the deficit of real-life communication, restoring active attitude to life and implementing their intellectual potential. – IT and communication technologies can work as a social elevator for young people from small and remote towns, and they already do. But in order for this social elevator to start running and for senior people to join social network services, we need an active and consistent policy in the field of eliminating computer illiteracy. It was not a coincidence that President Dmitry Medvedev, delivering his speech at the session of the State Council in Petrozavodsk dedicated to the implementation of the Strategy of Development of Information Society in Russia on July 17, 2008, set a direct task to overcome the digital divide, enhance people’s computer literacy, and create a system of continual training in IT and communications. It will be recalled that, according to the President, in Europe 70% of the adult population pass retraining courses in IT and telecommunications annually. But so far, according to focus group data, people often do not understand clearly what an “information society” is, thinking it is sort of a gossip club; as for egovernment, they say it is either “a government of some state on the Internet” or a system for spying on all citizens using electronic communications. Such data are a result of the fact that transition problems are considered purely technological and are not discussed or examined publicly. It is interesting that people evidently unable to formulate precisely what an e-government is, say at the same time quite clearly that they want to receive references, certificates, or other documents they need in an electronic form and would prefer transferring schools and hospitals to electronic document circulation (including digital school record-books and medical histories). I N N O V A T I O N IPR_digest_eng.indb 79 I N S I G H T I N T O In other words, today the state, digitalizing its services and the entire social sphere, and the people, whom these services actually target, are literally at cross-purposes. While for young people IT has become an integral part of their lives, entered into their everyday patterns and is causing neither admiration nor fear, people of medium and senior ages still feel uneasy in this field, having diverse fears and disbelief concerning IT and communications (which was also shown by focus groups). Meanwhile, no one is trying to clear away their fears and disbeliefs; on the whole, the state only makes minimum, if any, efforts to show its citizens how they will benefit from the transition to information society and e-government. Moreover, a number of actions taken are in fact a profanation of the very notion of digital service delivery.7 No wonder, therefore, that people’s opinions on how computer and the Internet affected the work of governmental authorities differ greatly. Table 1 show the evaluation of IT influence on the work of officials obtained in the course of the poll in the Khanty-Mansiysky Autonomous District – Yugra in May 2008.8 It can be seen that some two-fifths (43.1%) of the pollees think that IT usage helped raise the quality of service delivery. One-third (36.3%) is inclined to think that there were no substantial changes; others either preferred not to answer or said that they had not visited official agencies for a long time and did not know how they worked. Only 2.9% of the respondents said that the work of governmental bodies became worse as a result of IT and communication technology usage. People’s evaluation of how IT and communications influenced the authorities’ performance correlates poorly with their sex, age, or education. Vocation is slightly more relevant: students, specialists, and employees, i.e. people 7. One clear proof is the popular joke that the main result of digitalization is a new pretext invented by officials in order not to render the requested service: “sorry, my computer is down.” 8. The poll was conducted from May 01 to May 15, 2008 (except holidays) by standardized telephone interviews. The sample included 708 people from 17 communities selected by multi-step probability sampling. The poll was performed by the Center for Social Communications and Information Technologies Non-Commercial Partnership and ordered by the Committee for Information Resources of the Administration of the Governor of the Khanty-Mansiysky Autonomous District – Yugra. It is of prime significance that such studies have started being implemented at the regional level. R U S S I A 79 1/14/09 8:51:08 PM TABLE 1 TABLE 2 EVALUATION OF HOW IT AND COMMUNICATIONS INFLUENCED THE AUTHORITIES’ PERFORMANCE EVALUATION OF HOW THE OFFICIAL AUTHORITIES’ WEB SITES ARE USEFUL IN THE EVERYDAY LIFE BECAUSE OF USAGE OF COMPUTERS AND THE INTERNET, THE GOVERNMENTAL AUTHORITIES’ PERFORMANCE % OF THE TOTAL NUMBER OF THE POLLEES Became better OFFICIAL AUTHORITIES’ WEB SITES ARE % OF THE TOTAL NUMBER OF THE POLLEES Very useful 14.5 43.1 Quite useful 52.7 Became worse 2.9 Rather useless 13.7 Remained the same 36.3 Totally useless 2.0 Undecided 10.8 Undecided 17.1 Visited governmental bodies a long time ago 6.9 Did not see computers and/or the Internet used by officials 0.0 more actively using computers and the Internet, say that the authorities started working better with the introduction of IT and communications into their work more often, than workers and retired people, that is, people belonging to the strata less involved in IT usage. The most important factor that influenced the evaluation was, however, the sector in which the people worked, rather than their profession: people employed by the state assess the changes caused by IT introduction positively 1.5 times as often as people working for commercial companies, and twice as often as people working in large oil companies (in other words, “internal evaluations” of digitalization results were greater than “external” ones, which is clearly not a surprise). The reverse side of the medal is orientation of governmental bodies and, largely, the business at solving their internal problems, with the ability of people to master the new technologies left out of account. It will suffice to look at the current state of such an important instrument of interaction with citizens as official web sites and portals of governmental bodies. Official agencies started creating their own web pages during the 1990s. With only 25 federal and 30 regional sites in 1997, to date nearly all the federal authorities and the majority of regional authorities have 80 IPR_digest_eng.indb 80 their own web portals. In 2003 the Russian Government adopted the Decree No. 98 On Providing Access to Information on the Activities of the Government of the Russian Federation and Federal Executive Authorities. Under the Decree the federal executive authorities were to provide access to the information on their activity (except the classified information) by creating information resources and deploying them in public information systems. It was also recommended to the executive authorities of the Russian regions and the local authorities to take steps to arrange access to the information on their activity for people and companies. It should be specially emphasized that people assess the idea of official sites and portals quite positively. Thus, during the 2008 poll in the Khanty-Mansiysky Autonomous District – Yugra that we already mentioned the respondents generally said that the official authorities’ web sites are useful in the everyday life. See Table 2. As we see, two-thirds (67.2%) of the respondents think that official web sites of governmental authorities are useful in everyday life to a certain extent. Only 2% of the pollees were categorical in their opinion that such sites are totally useless. The existing official sites are generally based on the model of a structure-oriented state information resource that follows the structure of governmental bodies and assumes that the user is rather competent and knows certain specific features of the authorities’ activities. This means that web sites of Russian state structures are basically organized as an “electronic book”, that N E W E C O N O M Y : 1/14/09 8:51:08 PM is, a number of publications and databases without or almost without interactive services. Low availability of interactive services at such online offices shows insufficient attention to common users, that is, to immediate customers of governmental services. World experience shows that, in order to raise the interactivity level, we need a transition to problem-oriented information resources which do not require any special knowledge for using them. A good example of a problem-oriented web site is the Singapore E-citizen portal. Launched in early 2000, it was acknowledged at once as a model resource as regards the organization of G2C interaction. The portal navigation is based on the “life-as-travel” principle. The portal developers assumed that a citizen starts interacting with state institutions at the moment of their birth and continues this interaction during their entire life. The portal is therefore built upon such nodes as birth registration, issues of healthcare, education, public welfare, defense, business organization, and taxation; people are provided with information and services in an intuitively clear form. As for web sites of Russian governmental bodies, they provide a lot of useful information but assume that their user must have a high level of administrative competency, know the subordination structure of different agencies and departments, distinguish between a decree and an order. Web portals often contain detailed descriptions of the administrative structure, at the same time lacking simple information, like the opening hours of different departments. Such flaws stem from the fact that administrative processes are not optimized for the user when transferred into the electronic format. That is why, evaluating governmental web sites, technical visitor counting or monitoring of the content compliance to the legal requirements is not enough; such sites should be exposed to public discussion and public examination. Such openness became a primary purpose of the annual Public Acknowledgement Contest for the best web site of a governmental body, held for the second time already in the Urals Federal District under the auspices of the Plenipotentiary Representative of the President in the Urals Federal District, P.M. Latyshev. The contest results show that, in order to be efficient, an official site of a public authority must have a well-thought concept based on a clear vision of specific information services that users need. I N N O V A T I O N IPR_digest_eng.indb 81 I N S I G H T I N T O On the whole, social aspects of digitalization are clearly not paid enough attention as yet, making state expenditures in this field less efficient than they could be. Another problem is the passive attitude of citizens, who do not understand their interests clearly and cannot formulate an unambiguous request to the state on what precisely they need. In view of the pressing nature of the situation, the Public Chamber of the Russian Federation formed a Workgroup on the Development of Information Society in Russia in 2006. The Workgroup activity was first aimed at enhancing feedback between the citizens and business entities, on the one hand, and the governmental authorities, on the other hand. The Workgroup experts included representatives of the governmental bodies, non-commercial organizations and commercial structures involved in the introduction of IT and communications. The Workgroup formed close ties with the Commission on Information Policy of the Federation Council of the Federal Assembly of the Russian Federation and the Federal Agency for Information Technologies; it works in close contact with the Plenipotentiary Representative of the President in the Urals Federal District, P.M. Latyshev. This year the Workgroup has received an opportunity to hold first public hearings in Russia dedicated to information society development problems, with social aspects of digitalization discussed. Even now the experience we got during the work of the group enables us to make a number of specific proposals aimed at strengthening the social component of the Strategy of Development of Information Society in Russia. We need a special program for training people to live in an information society, as organizing the process of continual training in IT and telecommunications for different categories of people is a task of national importance. Special attention should be paid to training the following social groups: – First of all, training retired people, with their specific needs taken into consideration: they need to be trained to use electronic financial services (especially after transition to a “digital social card”), state information services and other socially important information, and e-mail. The training programs should not leave out the fact that for many senior people it is difficult even to send an SMS message through their mobile phone. We believe that, in order to train senior people, the Workgroup initiative to launch the movement R U S S I A 81 1/14/09 8:51:08 PM of “digital Pioneers” should be used. Under this initiative senior people are to be trained by teenagers who have studied at special tutors’ courses. – Training people involved in manual labor. As far as we know the problem with such people is not realized at all, while the motivation of such people is usually higher than that of retired people. The fact that they do not use IT in their labor activities as yet must not imply that they should be excluded from the information revolution processes. – Another important field is people with their social opportunities limited by physical disabilities. Computers and the Internet provide a unique chance for such people to establish connection with the world, enter the labor market, etc. We would not like to create an impression that social aspects of digitalization only have to do with training people. Public examination of the adopted solutions from the users’ viewpoint is as important. Neither should the necessity to develop a national standard in IT training be forgot; such a standard will depend on what kind of a user (or 82 IPR_digest_eng.indb 82 users of different levels) we would like to produce. World experience would be useful here, above all, the experience of the European Computer Driving License program (of course, with national specifics taken into account). Integrating people into an “electronic nation” is therefore a complex and multi-aspect process that requires active interaction of governmental authorities and the Public Chamber of the Russian Federation. The Strategy of Development of Information Society in Russia sets the task to bring the percentage of governmental services that can be delivered with IT and telecommunications used to 100% by 2015. We see clearly that, in order for each citizen to be able to perform several simple steps at his home computer or in a public Internet access center, the government has to solve a bundle of complex technical and legal problems. However, solving them should be based on people’s interests, and, in order to integrate them into the process, the principle voiced in the Strategy should be followed strictly: “The development of an information society in Russia is based on the partnership of the government, the business and the civil society.” N E W E C O N O M Y : 1/14/09 8:51:08 PM Vladimir Matyukhin Implementing Urgent Tasks and Innovational Solutions for IT Development in Russia as the New Economy is Being Built Head of the Federal Agency for Information Technologies, D.Sc. in Engineering The strategy of reform and digitalization chosen in the recent years for the real sector of the national economy, governmental service sphere, and administrative system, along with the social and political relationships, is crucial for strengthening Russia’s positions as a full-fledged partner in the group of technologically and economically developed countries. Alongside with that, Russia is staying politically independent and integral, preserving its national identity and cultural traditions and rapidly developing the civil society based on the fundamental principles of a modern constitutional state, – a postindustrial, informational, socially oriented society enjoying economic and informational sovereignty. Such a society is, above all, to solve humanitarian issues (medicine, education, professional self-actualization, affordable high-quality services, etc.). The chief priority of the state policy in this field is to provide people, enterprises and corporations, as well as major national operators, with information, IT and high-tech systems capable of quick information storage, transmission and processing. One goal of a modern democratic society is to meet the needs of citizens, businesses, the society as a whole, and governmental bodies. It is clear that there is no point in progress for the sake of the progress alone, without a mission to make people’s lives safe and creative. The leaders of the Russian Federation placed a crucial task on the agenda: to implement the national innovational development model efficiently. In accordance with the requirements of the state policy for development and usage of high information technologies and appropriate engineering and technical solutions the general strategy is to be realized consistently. This suggests establishment of the prerequisites necessary for creating the basics of a modern information society, reaching a new level of target investments and attracting strategic investors, intensive usage of the existing intellectual potential for im- I N N O V A T I O N IPR_digest_eng.indb 83 I N S I G H T I N T O provement both of the real economic sector and governmental services to people and companies, which, in turn, will ensure stable growth of innovations and the gross domestic product. The Okinawa Charter on the Global Information Society and the Russian information society development strategy define principal goals and principles of Russia’s development in the 21st century based on wide usage of innovational information technologies. It is no accident that at the enlarged meeting of the Council of State dedicated to the Strategy of Development of Russia through 2020 President of the Russian Federation pointed out: “Come to think that some 25 million people, more than one-third of the working population, are employed in the system of public administration. Trillions of rubles of investments and current state expenditures circulate here, and we must therefore perfect the operation of this system, a backbone of the entire state, continually and purposefully.” The course for accelerated innovational development of the Russian economy and its greater competitiveness on the world market necessitates practically simultaneous growth in a very wide range of scientific and technological areas. Such growth can be based on fundamentally new opportunities opened due to largescale usage of up-to-date information technologies and the creation of an e-government. In his messages to the Federal Assembly President of the Russian Federation has set the objective of building an electronic government which is to ensure: – Strict regulation and accountability of officials’ actions and curtailment of staffs of governmental bodies at all levels. – Greater competitiveness of the Russian economy through reducing time and resources wasted for paperwork. R U S S I A 83 1/14/09 8:51:08 PM – Relieved administrative pressure on the business (through introducing digital invoices and other accounting, tax, and reporting documents). – Reduction of corruption due to greater transparency and remote interaction of governmental bodies with the population and the business. – High-quality mass remote governmental services to people, as a real, standardized and controllable end-product of governmental bodies. – Introduction of convenient mechanisms of interaction with the authorities (services can be received and paid for without leaving home) and the resulting positive social response among a wide audience due to the growing life quality and targeted anti-poverty measures. – Forming a new market of personal data processing tools and systems, and establishing the necessary prerequisites for the business initiatives of Russian manufacturers supplying their solutions under the program of building an “electronic government.” Improving the public administration system, anticorruption war, solving the problems of public welfare are extremely complex tasks but information technologies make it possible to solve them practically and informally. Successful implementation of all these tasks is a nationwide challenge directly related to the development of the national infrastructure, science-intensive information technologies and engineering solutions (their efficient use is among the key strategic fields of the information society development in Russia). A leading role in the building of an information society at the governmental level is assigned to the Ministry of Communications and Mass Media of Russia. The Ministry has been charged with the task to work out the state policy in information technologies and find funds for its implementation. The Federal Agency for Information Technologies has been created within the Ministry. The Agency is responsible for state property management and state IT-related services, forming state information resources and providing access to them, introducing digital signatures, certifying authorized people’s digital signatures through certification authorities, inviting bids for state contracts and signing state contracts for supply of goods and services (including research, development, and engineering works for state purposes), certification issues, registration of state information resources and 84 IPR_digest_eng.indb 84 systems, accreditation of IT companies, etc. The Agency’s primary task with a view to forming a single information space within Russia (an objective reflected in the objectives and functions of the Ministry) is to facilitate a competent integration policy and massive implementation of breakthrough technological solutions based on unified technical requirements in different branches of the national economy, that is, to enable the readiness of innovational information technologies for wide introduction in the course of the implementation of different programs and projects. To this end, designs that seem to be different but are really identical from the viewpoint of technologies or differ only slightly must be united within the implemented IT programs and projects. As long as four years ago, almost immediately after it was formed, the Agency put forward specific proposals concerning the adjustment of the goals and priority objectives of the Federal Targeted Program for Electronic Russia, 2002–2010. As a result, the Program was revised and adjusted based on the proposed unified system approach. According to this approach, the principal objective of the Federal Targeted Program for Electronic Russia should be to create the information and technology infrastructure for legally valid electronic document exchange between different governmental agencies and for access to state information system data in order to provide people and businesses with high-quality remote digital governmental services organized on a one-stop basis. Today this objective enjoys unambiguous understanding on the part of the civil society. Experts encounter no difficulty in formulating and interpreting it in the context of building an electronic government in Russia. One additional difficulty of the task which should be emphasized lies in the fact that rather large funds have been invested (and are still being invested) into mutually incompatible IT solutions in different ministries, agencies, industries, regions of Russia, and municipal communities. But prevalence of bureaucratic, regional and industrial separatism, with an isolationist approach to creation of such systems (generally based upon different and noncoordinated designs, on different hardware, operation systems, and technologies) prevents their efficient interaction. Information stored in such systems cannot be used by other governmental bodies for quick access, which leads to considerable delays in inter-agency information exchange, repeated data acquisition, and duplicated information in different systems. Besides, only part of information is up- N E W E C O N O M Y : 1/14/09 8:51:09 PM dated timely, which leads to contradictions between data in different state information systems. At the same time it is these so-called inherited systems that still hold the greatest amount of data used by governmental bodies. Because of this, assembling a unified information space is a sine qua non for building the up-to-date e-government. In fact the Agency put forward a proposal to create, eventually, an information system for personal data processing, based on failsafe solutions, with a distributed system of data storage and processing, with its own structures in the regions of Russia and large cities. This system should stem from the existing and functioning structure of certification authorities and their registration centers. The distributed data storage technologies mentioned above enjoy wide use in world practice both by governmental bodies and by private corporations. A number of countries have made it a legal obligation to store the governmental data in a distributed system. This is necessitated, above all, by the requirement of safety and security of national information resources, an important factor given the threat of international terrorism and cyberterrorism. The tragic events of September 11, 2001 demonstrated the necessity of such a technology vividly: the international banking system was quick to draw the conclusion and initiated distributed disaster-proof data storage. Such systems are now introduced in Russia as well; an example is the Central Bank of Russia. A very important feature of the information and technology infrastructure of the modern e-government is the institute of trusted third parties that ensure adherence to the principles of guaranteed trust, provided that the actions of the trusted parties are duly audited by the civil society as to their legal validity. It should be specially emphasized that in this case the trust is based upon the guarantee that access to a digital document will only be provided to the required recipient, with an obligatory timestamp and integrity, authenticity, authorship, and confidentiality guaranteed. Along with those guarantees, procedures of providing the necessary legally valid certificates must be followed, making it possible to restore the entire sequence of events accompanying the processing and the necessary transformation of electronic documents. Today, as well as in the near future, Internet will be the principal and most popular information medium. It is well known that, apart from the advantages it offers, it also has a number of much less positive traits, such as full anonymity and poor information security. Nearly unlim- I N N O V A T I O N IPR_digest_eng.indb 85 I N S I G H T I N T O ited anonymity and impunity of Internet communication gave birth to new types of human interaction. At the same time, certain applied software for work with digital documents or personal data requires absolute guarantees of maintaining authorship, authenticity, and integrity of any transmitted digital documents. In other words, the socalled “authorship space” or “webs of trust” should be created within the Internet. We can cite specific examples that prove the importance of solving the problem of cross-border legally valid exchange of digital documents, as well as of a wide range of diversified tasks requiring a digital analog of an apostil (applied internationally with enough effect). We should acknowledge the fact that interests of numerous state structures, agencies, businesses and ordinary people meet here. These include electronic document circulation through the Internet by agencies executing phitosanitary, sanitary and epidemiologic, customs, border and other types of control, patent services, etc. It is well known that by now effective techniques and approaches aimed to overcome the “unlimited anonymity” of the Internet have already been developed and partially tested worldwide. As a large-scale example of such an approach I would like to name Internet2, an actually working project largely publicized by mass media. The most efficient and practical instrument to use is digital signature enabling the required high level of information security. Executing the steps of the Federal Targeted Program for Electronic Russia, the Agency consistently implemented urgent and long-term engineering solutions for creating principal components of the e-government IT infrastructure in Russia. Practical implementation of the related tasks is still being fulfilled within the Program. Today we can state that the actions completed within the Federal Targeted Program for Electronic Russia made it possible not only to construct isolated components of e-government IT infrastructure, but also to create a large-scale state-of-the-art national information system – the All-Russian State Information Center (ASIC). All the necessary software and hardware has been created that form a unified federal infrastructure necessary for governmental services delivery. The principal components of this infrastructure will be described in detail below. We should point out in this aspect that the infrastructure in question must be indeed based on the single digital signature system and the single identification space. R U S S I A 85 1/14/09 8:51:09 PM At present natural persons and legal entities are registered and identified at different ministerial and corporate levels. Actually, student and school identity cards, domestic passports (IDs), and a number of other identification systems somewhat simplify the construction of a nationwide ID system. However systems of personal accounting of population and of taxpayers, medical insurance systems, and social benefit cards differ considerably in different regions of Russia. Transition to a single national identification system makes it possible not only to minimize financial expenditures for creating and maintaining identification elements but also to simplify integration of ministerial and corporate information systems containing personal data and, eventually, implement citizens’ constitutional rights for receiving information in a one-stop mode in accordance with the access level granted to them. We would now like to describe in greater detail the identification elements created in the framework of the work done. The functional requirements implemented in the unified identification elements provide: protection of personal data, legally valid interaction of people, legal entities, and the state through digital signatures, multifunctionality, and service provision within the existing infrastructure of card acceptance and servicing (due to the existence of different interface types, including contactless interfaces). A unified identification element can be used not only for receiving digital governmental services remotely, but also as social and corporate cards, in different banking systems, in e-commerce, in education systems, on the transport, and in different systems of identification and access control. To date the unified identification element already has working applications enabling identification of an ASIC user, signing documents with a digital signature, using it in the Sberkart payment system and for receiving of social benefits, and using it as a ticket in the subway, bus, or train. As the ASIC can interact with diverse information systems, the unified identification element can be used as a universal ticket. Receiving digital governmental services remotely requires considerable improvement of the legal base. Let us consider one example to illustrate the issue. Today it is a general rule that services to a particular person that involve their identity are provided upon producing a passport. For example, the service of state 86 IPR_digest_eng.indb 86 registration of realty is provided by an authorized person of the Federal Registration Service, but another, “invisible” participant of the procedure is the authorized person of the passport office who has issued the document identifying the citizen’s personality in accordance with their legal rights and responsibilities. So this kind of a service is a result of the activity performed by two categories of authorized people responsible for legal content of the resulting document (an entry to the state register and an appropriate certificate), as well as for observing the information documenting regulations. The passport itself is made by FGUP Goznak, a federal state-owned unitary enterprise. Certain documents for registration of rights require notary’s attestation according to law. After the transition to the digital form the content of the activity of the authorized person of the Federal Registration Service will not change (in our example) as the service remains the same, it is simply provided remotely. But data documenting procedures change their form dramatically. In fact ASIC assumes the functions of FGUP Goznak. All that means that state functions of governmental bodies and people responsible for issuing digital signature key certificates and timestamps, working with identification elements, transforming documents from the paper form into the digital form, and vice versa, all must be regulated by appropriate statutory acts. Having analyzed the progress of the implementation of the Federal Targeted Program for Electronic Russia, the Agency prepared proposals concerning the creation and development of the infrastructure of legally valid interaction between different agencies, providing access to information on government service delivery for people and organizations, and remote digital government service delivery. The Agency’s proposals concerning the creation of the e-government IT infrastructure were discussed at a number of international forums and conferences. They were considered and approved by the Committee for Information Policy of the Federation Council, Expert Council of the Agency, and the Council of Chief Designers on the Digitalization of the Regions of the Russian Federation. The proposals went into the Governmental Commission for the Administrative Reform; after the discussion at the Commission meeting appropriate orders were given. In the course of the implementation of those orders the proposals were coordinated with other governmental bodies and were implemented in the Decree of the Government of the Russian Federation of December 25, 2007 N E W E C O N O M Y : 1/14/09 8:51:09 PM No. 931 On Certain Measures Concerning Support of Informational Interaction of Governmental Bodies and Local Government Bodies When Delivering Governmental Services to People and Legal Entities. The Decree in question intends to streamline communication of federal executive bodies, executive bodies of the Russian regions, other governmental bodies, and local government bodies in the course of delivering governmental services to people and companies with IT used. It is very important that the Decree sets forth the procedure for communication of different executive bodies during the delivery of governmental services to people and companies using hardware, software, and telecommunication infrastructure of ASIC. The document obliges federal executive bodies to start delivering governmental services associated with exchange of information contained in the databases of information systems of federal executive bodies, executive bodies of the Russian regions, other governmental bodies, and local government bodies, using hardware, software, and telecommunication infrastructure of ASIC, in accordance with the plan approved by the Government of the Russian Federation. It is natural to suppose that the ministries and agencies, regions of Russia and municipalities will face a large piece of joint practical work in order to perform the task. Yet I can say that to date the Agency has already implemented 17 model services to the population. The same Decree stipulates that: – Using ASIC by federal executive bodies, executive bodies of the Russian regions, other governmental bodies, and local government bodies for data exchange between information systems in order to deliver governmental services shall be free of charge. – The resources of the Center shall be used by federal executive bodies, executive bodies of the Russian regions, other governmental bodies, and local government bodies for deployment of their own databases under contracts signed with the federal executive body to which the Center’s resources are assigned. – The procedure for informational interaction of federal executive bodies in the course of delivering governmental services to people and companies with the Center’s resources used shall be set forth by joint regulations approved by the Ministry of Communications and Mass Media of Russia and the federal executive bodies participating in the informational interaction in question. I N N O V A T I O N IPR_digest_eng.indb 87 I N S I G H T I N T O – ASIC resources shall be used in the course of interaction of federal executive bodies, executive bodies of the Russian regions, other governmental bodies, and local government bodies delivering governmental services in accordance with the requirements to technologies, formats, communication protocols, unified software tools and their application approved by Ministry of Communications and Mass Media. The Decree also envisages allocations to federal executive bodies for research and design aimed to create and purchase software and hardware necessary to create and operate departmental information systems based on the opinion letter of the Ministry of Communications and Mass Media on the appropriateness of such expenditures, given the possibility to use ASIC resources. As for the creation and development of ASIC proper, it must be financed from the federal budget funds channeled for the implementation of the Federal Targeted Program for Electronic Russia. The document also contains a recommendation to governmental bodies of Russian regions concerning the need to create regional information centers in order to deliver governmental services with telecommunication technologies used. Since January 1, 2009 federal executive bodies must deliver governmental services to people and legal entities using ASIC resources through a single web portal of governmental services. No doubt large-scale and laborious work is ahead, as the portal is to be filled with specific content on the services provided and functions performed. In pursuance of the Decree of the Government of the Russian Federation of December 25, 2007 No. 931 the Ministry of Communications and Mass Media issued its Order of March 11, 2008 No. 32 (registered by the Ministry of Justice of Russia on March 21, 2008 under the registration No. 11394) which approved the Regulations on the All-Russian State Information Center. In accordance with the Regulations the Agency was named as operator of ASIC and ASIC resources were formally assigned to it. In accordance with the provisions of the Regulations, ASIC is created in order to: – make the public administration system more efficient, in particular as regards law-abiding by civil officials and delivery of high-quality and easy-to-access governmental services to people and companies; R U S S I A 87 1/14/09 8:51:09 PM – unify processes of digital governmental services delivery by federal bodies and local governmental bodies; – optimize informational interaction of federal executive bodies and their regional branches between themselves, with regional executive bodies, local governments, people, and legal entities; – create a feedback system for customers of governmental services; information obtained is to be used for developing and taking administrative decisions, as well as for more precise measurements of target parameters of executive bodies’ activity; – guarantee rights and lawful interests of people, legal entities, and governmental bodies in international digital communications in accordance with the legislation of the Russian Federation; – eliminate duplicate information systems of governmental bodies, local governmental bodies, and other information systems for digital service delivery to people and legal entities. In order for ASIC to perform the set tasks efficiently, the Regulations set forth the following ASIC structure and hierarchy, in full compliance with the Agency’s proposals: – an information subsystem of the federal (main and backup) information center and information subsystems of information centers in federal districts of the Russian Federation interacting with information systems of governmental bodies, local governmental bodies, and other information systems for digital service delivery to people and legal entities; – a subsystem of certification authorities comprising a federal (root) certification authority and certification authorities in federal districts of the Russian Federation used for digital governmental service delivery to people and legal entities, and a subsystem guaranteeing legal validity of electronic documents in the framework of governmental services and inter-agency communications; – a subsystem of controlled access to state information systems and information systems used for digital governmental service delivery to people and legal entities; – an ASIC audit subsystem; – an ASIC telecommunications subsystem. 88 IPR_digest_eng.indb 88 The following has been achieved by now in the framework of ASIC creation: – software/hardware systems (hereafter, SHSs) of the federal information and certification authorities have been created; the technology of their interaction within ASIC has been tested; – an Internet portal of governmental services has been created and deployed based on an ASIC SHS. Since March 2008 it has been operating in the test mode at http//www.ogic.ru; – a system of ASIC access has been created, enabling identification of users and assigning of authorities using digital signatures, with key certificates issued by the federal certification authority (an ASIC service); – standardized ASIC SHSs have been developed for remote communication of governmental bodies, organizations, and population during governmental service delivery using ASIC services; – information security issues have been studied, in order to guarantee security of personal data during their storage and processing with ASIC services used; – the Notary software/hardware system has been created, capable of transforming a paper document into an electronic document and vice versa, as well as of verifying electronic documents with the notary’s digital signature (the proposed solutions can be applied in practice); – a technical node of inter-agency interaction has been created, which enables automated interaction with external automated systems of governmental bodies of the Russian Federation built on different platforms. Within the implementation of the state contract under the Federal Targeted Program for Electronic Russia, 2002–2010 further development of ASIC services was planned for 2008, including: – development of the governmental service web portal: rebuilding the site interface in order to make it easily accessible for any Internet user and arranging it in such a way as to ensure simple and efficient search and return of information. Besides, the content of the governmental service web portal should offer information about the general list/register of governmental services, detailed and systematized information on every governmental service and on the possibility to deliver it in a digital form, and valid up-to-date document forms. The user must also N E W E C O N O M Y : 1/14/09 8:51:09 PM be able to submit requests and notifications that do not require identification of the sender. Another perspective of the governmental service web portal development is enabling digital interaction of governmental service customers with governmental bodies, with digital signatures used; – development of ASIC services that implement legally valid communications in accordance with the approved regulations; – equipping certain ministries and agencies with software/hardware systems for testing and further implementation of their interaction with each other and with the population when delivering governmental services to people and legal entities with ASIC IT and telecommunication infrastructure used; – arranging the issue of placement and launch of software/hardware systems for remote electronic interaction of people with Russian governmental bodies on receiving digital governmental services with ASIC services used in multifunctional centers of governmental and municipal services; – improvement of ASIC information security components in order to enable processing of information containing personal data; – creation of a system of personalization of ASIC identification elements for electronic card issue and arranging organizational and legal issues related to the procedure for distribution of these cards to create a single identification space enabling controlled digital governmental service delivery and access to state information systems using ASIC infrastructure; – development of the engineering infrastructure for the deployment of federal and regional ASIC nodes. Another important sign was the Order of the Government of the Russian Federation of February 9, 2008 No. 157-r actualizing the Concept of the Administrative Reform in the Russian Federation in 2006–2010 (approved by the Order of the Government of the Russian Federation of October 25, 2005 No. 1789-r). Urgent and essential amendments to the Concept became necessary, to a considerable extent, due to the series of operations and actions of the Agency. The importance of this event for the Agency lies in the fact that actions under the Federal Targeted Program for Electronic Russia and other tasks assigned to the Agency fit naturally into the course of the administrative reform pursued in accordance with the Concept. Every section of I N N O V A T I O N IPR_digest_eng.indb 89 I N S I G H T I N T O the Concept was revised, and the second section – “Goals and objectives of the administrative reform” – included a new subsection: “The administrative reform in 2009– 2010,” which directly points out the necessity to execute works in the priority fields, such as: creation of multifunctional centers of governmental and municipal services in the regions of Russia and transition of federal executive bodies to digital service delivery with ASIC used. ASIC creation by the Agency was generally oriented at efficient solving of the problems set in the documents cited above. ASIC creation and development will undoubtedly result in the forming of the necessary technological, informational and organizational infrastructures supporting information exchange within the entire public administration system. The Agency has been also paying due attention to the development of mutually beneficial international cooperation in the field of information technologies. In 2007 the Agency put forward detailed proposals concerning organization of an experimental area of the pilot project on Organization of Cross-Border Interaction with Digital Signatures Used in the framework of the Shanghai Cooperation Organization (SCO). Special mention of the project was made in the final communiqué of the meeting of Heads of the SCO Governments as one of the top-priority fields of economic cooperation. The speech of the Chair of the Government of the Russian Federation pointed out that “we all recognize the promising nature of cooperation in state-of-the-art technologies. Russia has a pilot project in this field, a project of organizing cross-border interaction with digital signatures used. And today I confirm once again our readiness to implement this project.” The cited initiatives were supported by the Secretariat of the Integration Committee of the Eurasian Economic Community, which, together with the Agency, prepared the project of an Agreement on Mutual Recognition of Digital Documents, the first edition of the international legal act in the field. Respective technological solutions for cross-border interaction have been successfully demonstrated at international conferences in Germany, Kyrgyzstan, Kazakhstan, Moldova, Poland, Russia, and Uzbekistan. Governmental and commercial circles of Austria, Hungary, Israel, Italy, Portugal, Slovakia, Sweden, the Czech Republic, and certain other countries implementing their national digitalization projects showed their interest to these solutions. R U S S I A 89 1/14/09 8:51:09 PM This is not the only example of the Agency’s practice of organizing constructive international cooperation. For example, in February 2008 in Beijing, at the fourth meeting of the Special Workgroup for Electronic Trade of SCO Nations the Russian party supported by the International Congress of Industrialists and Entrepreneurs presented an international electronic trade ground based on ASIC services. Such a trade ground evoked genuine interest of the foreign participants as a possible prototype of arranging cross-border electronic trade in SCO countries with digital signatures used. The proposed trade ground features not only IT support of placement and registration of held bids and tenders but also more advanced services of order forming, analysis of demand for and offer of goods and services, contract performance, counterfeit identification, and retrospective restoration of individual transactions performed by participants of electronic procedures for possible hearings in court. Technological services created by the agency, if appropriately supported by administrative rules and regulations of their use, will undoubtedly raise efficiency of state and municipal procurement and ensure real transition to usage of modern information technologies based on a common informational and organizational platform representing a nationwide authorized information system of trusted interactions. It should be noted that the creation of a nationwide IT infrastructure incorporating the needs of the population, businesses, and the entire new economy of Russia to the maximum extent, is a very important aspect. The general IT infrastructure of an e-government, created at the budget expense at the first stage, can be efficiently used and developed based on a public/private partnership. The state undertakes investment in longterm infrastructural projects, while the business is to develop the quantity and quality of its services to people. Such an approach found general support of Russian industrialists and entrepreneurs and was approved at conferences and seminars in St. Petersburg, Moscow, Nizhny Novgorod, and other cities of different Russian regions. To summarize the above, the idea of building an electronic government system is a point of crystallization of interests where mutually beneficial partnership of the state, business and civil society is consolidated. Suc- 90 IPR_digest_eng.indb 90 cessful comprehensive solution of the above issues is extremely important for all sectors of the national economy. In fact the tasks that have been set and are being solved have to do with the improvement of performance of governmental bodies and a transition to a completely new level of their interaction among themselves, with companies and enterprises, with the regions of Russia, with the corporate sector of the national economy, and, finally, with citizens – with all the population of Russia. Solving fundamental nationwide issues is of key importance both for cardinal improvement of the public administration and service sphere and for further systematic and stable development of the entire national economy within the realization of its new model. One of the essential conditions guaranteeing the growth of the Russian economy and the governmental service sphere is extensive involvement of powerful intellectual resources and innovational information technologies in economic processes. The solutions implemented by the Agency aim to “unite” the government and the general public based on the common informational and organizational platform representing a nationwide authorized information system, much in the same way as the unity of the power vertical, economy, and legal space is achieved in Russia. All these solutions are contributing to accelerated modernization of the national economy. Using high information technologies, innovational techniques and approaches in most principal areas of the public life is absolutely necessary during the period of costly reforms of the entire public administration system, when we should thoroughly analyze, select, and supply to the science-intensive market only the most promising and efficient information technologies and solutions. In the information society, which features permanent development of the IT and communications revolution, innovational information technologies penetrate all the fields of public life. A global information economy is formed, digital occupations appear, digital forms of public administration and corporate governance develop, the infosphere and the global network communication environment are formed. All these should be our goals for efficient building and further successful implementation of the new model of Russia’s economic development. N E W E C O N O M Y : 1/14/09 8:51:09 PM The Role of Standardization and Management in Russia’s Innovational Development Evgeny Petrosyan Deputy Head of the Federal Agency on Technical Regulation and Metrology, PhD in Physics and Mathematics The modern world, with its rapidly globalizing trade relations, wider and wider gaps between novel and obsolete solutions, new products and technologies entering our life dynamically and entailing new forms of competition, necessitates a new type of relationships between the government and the business community. Innovations are new ideas, discoveries, and research results that enter our life. The goal of standardization is to help the development of innovation processes. Standards set forth progressive norms that generalize the results of scientific research and advanced designs. Standardization makes different technical solutions compatible and enables inter-industry cooperation, guaranteeing efficient introduction of science-intensive technologies in manufacturing. In the course of innovational economic development standardization sets a target level for manufacturers of goods and providers of services perfecting their technologies. Studies in Germany, Austria, Switzerland, and a number of other countries showed that the aggregate annual effect on the national economy from standardization work accounts for about 1% of the gross domestic product. Expanding innovation-based standardization, one of effective instruments of the economic development, and improving its performance is impossible without an active governmental policy. International standards are to play an important role for the creation of the national innovational economy, for they are an efficient instrument of transferring new knowledge and high technologies to the market. The state should establish preconditions for innovation activity using administrative and financial instruments, but if the manufacturers themselves are not ready for innovations then nothing can help. That is why the state must also facilitate innovation technology introduction and application. Best tools for this purpose are technical regulation mechanisms, standardization above all. I N N O V A T I O N IPR_digest_eng.indb 91 I N S I G H T I N T O Legal grounds for standardization, including standardization in the field of innovations, are provided by the Federal Law On Technical Regulation (of December 22, 2002 No. 184-FZ, as amended by the Federal Law of May 1, 2007 No. 65-FZ). This Law stipulates the most general legal grounds of standardization in the Russian Federation. The goals and principles of standardization are defined there, along with standardization documents, regulations for development and approval of national standards, the legal status and functions of the national standardization body, technical committees for standardization, and other participants of standardization activities. However, the current legislation leaves the following issues unsettled: – A provision on the status and role of standardization as a key factor supporting the governmental socio-economic policy and an efficient instrument making the national industry competitive. – A provision on the necessity of an efficient state policy in the field of standardization, involvement of federal executive bodies in standardization activities, and coordination of such activities. – Provisions specifying the structure of the national standardization system (NSS), the legal status and functions of all NSS participants, including federal executive bodies, scientific organizations (above all, organizations doing research in standardization), self-regulated organizations, public associations of businesspeople and consumers, and commercial and non-commercial standardization organizations. – A provision on the necessity of legal regulation of standardization, including different status of standards in the fields not covered by the Federal Law On Technical Regulation – in labor protection, R U S S I A 91 1/14/09 8:51:09 PM ecology, social relationships, communications, environmental protection, etc. All these issues must inevitably be legally regulated, all the more so since an analysis of foreign legal regulation practice shows that most countries have their national laws on standardization and on the legal status of the national standardization organization (Austria, Belgium, Brazil, Hungary, Israel, China, Republic of Korea, Mexico, New Zealand, Japan, Armenia, Belarus, Moldova, Ukraine, and others). Compulsory technical regulation, i.e. mandatory requirements to a product, should not be too strict and must leave it possible for manufacturers to choose their own economically justified solutions, provided that the required safety level is maintained – it is especially important for new, insufficiently studied technologies (GMO, nanotechnologies, hydrogen economy). The requirements should not be onerous, even less so unjustified. Therefore, requirements to innovational products could be set by compulsory technical regulations combined with voluntary standards developed by communities of manufacturers and scientists who can assume responsibility before the society that such requirements will be feasible, while maintaining the necessary security level to the maximum extent. That is why the laws and statutory acts to be adopted should stimulate application of national standards as documents reflecting the level of modern science and technology development and the coordinated position of the powers, the industry, and the business community. Innovations are impossible without cardinal changes in the managers’ minds, without them applying adequate and appropriate efforts for improvement of their activity, without better understanding of what we want and where we are going. Innovations in industry require innovations in management. The word “management” penetrates into our life more and more, much like the term “innovation.” They are practically inseparable. We must introduce promising innovation management mechanisms. Innovations are impossible without risk assessment. And we should mean it. We must identify and calculate the risks which we can face when introducing innovations. The risk management mechanism serves to this effect. It is important to coordinate revenues from innovations with the expenditures for their achievement. The situation when the effect from innovation activity may be comparable with possible damage from wrong or untimely actions is absurd. 92 IPR_digest_eng.indb 92 That is why project management has become one of the most important investment mechanisms today. Any innovation must start with skilful project activity. In other words, any innovation should be treated as a project with a complex lifecycle. Innovations are as impossible without re-engineering mechanisms. And standards once again play a crucial role here, which means the need of a speedy reform of standardization. This has to do both with legal/organizational foundations of standardization and with its fields. To this effect, the Draft Federal Law On Standardization is under active preparation now. We need more and more extensive development of standardization in the self-regulated sphere and creation of new technical committees for innovational fields. We need multiple sets of new standards supporting innovational development processes. Much has already been done and is done in the field. New technical committees (TCs) are established. The following TCs are actively functioning in Russia: TC 100 for Strategic and Innovational Management, TC 10 for Promising Production Technologies, Management, and Risk Assessment, and TC 20 Environmental Management and Economy. The international ISO TC for Nanotechnologies has been established recently; the similar TC 441 for Nanotechnologies and Nanomaterials now exists in Russia as well. TC 29 for Hydrogen Technologies, TC 468 for Digitalization of Healthcare, TC 461 for Information and Communication Technologies in Education, and TC 471 for Social Responsibility are working. Sets of standards in innovations either already exist or are in the final phase of their development. The set of standards in risk management has been developed; project management standards are being actively developed. Standards for integrated management systems are under development. Of course the starting point is terminology. At present the standard for terms and definitions in the field of innovations is under development. To this end, the Security Council of the Russian Federation has prepared a “perspective program for developing national standards enabling their harmonization with international standards in science, engineering, and manufacturing” until 2012. Innovation technology standards will be developed under this program. Within the 5 years to come we are to develop over 3,500 harmonized national standards in such key fields as fuel and energy, transport, IT and electronics, manufacturing, new materials and chemical products, scientific N E W E C O N O M Y : 1/14/09 8:51:09 PM instruments, and resource saving. Forecast data suggest that the implementation of the program will make it possible to: – make the percentage of national standards harmonized with international standards 1.7 times as big as in 2006 (a reference year); – increase the percentage of modern innovational standards within the general number of national standards in science, engineering, and manufacturing 1.5-fold; – bring the profit from the application of harmonized national standards to RUR 20 billion. Environmental management must not be left out of account in this context. Nearly all ISO 14000 standards have been introduced as national standards, including lifecycle assessment and greenhouse gas accounting. Innovational development (like any other) is impossible without innovation breakthroughs in IT. Mechanisms and tools for using promising information technologies in enterprise architecture and integration are needed. A set of standards in this field is under development right now. A unified information system on technical regulation is being created in parallel; regrettably however, the latter project has no permanent funding. It has not been financed this year, and the delay reduces the relevance of the results already achieved. As possible damage from using innovation products has been explored insufficiently, information on cases when damage was caused by using innovation products must be collected and continually analyzed. A system for registration and analysis of technical regulation violations must be created as soon as possible. Such a system is already being developed under the Federal Law On Technical Regulation, but the work is still at the initial stage; it should be activated. Another promising informational and innovational field is development of digital data libraries which can help automate lifecycle maintenance processes and use up-to-date methods of cataloging and codification. Cataloging and codification of products and services combined with new information technologies enhance the efficiency of procurement and logistics. At present the Draft Federal Law On Cataloging of Products is under development; in accordance to the law, a single catalog of products purchased for state purposes is to exist. But this catalog and these mechanisms can and must be used by all enterprises regardless of their type of I N N O V A T I O N IPR_digest_eng.indb 93 I N S I G H T I N T O procurement. It is even more necessary for innovation products and services, for this catalog contains information on the regulatory documents containing the requirements to the products in question. Innovation activities cannot develop without information support, in the first place, without regulatory documents. The Federal Agency on Technical Regulation and Metrology keeps the Federal Information Fund of Technical Regulations and Standards containing data on the effective regulatory documents and their texts. Unfortunately most information centers created in other federal executive bodies and formerly owning the funds of documents accepted by such executive bodies currently do not work, and these funds are practically lost. The unified catalog described above becomes therefore quite important as it is the only information resource that makes it possible to restore and maintain information on effective regulatory documents in the field of technical regulation. A few words on the role of standardization and metrology for nanotechnology development. These issues are attached importance in the world due to several reasons. First, nanotechnologies emerged at the turn of scientific disciplines with well-established terminologies and classification principles, and the first task is to bring order in the field by standardizing the classification and terminology. To this effect, international standardization organizations created special technical committees for standardization in nanotechnologies – ISO TC 229 Nanotechnologies and IEC TC 113 Nanotechnology – Standardization for Electrical and Electronic Products. At present there are 20 projects on international standards under development by three workgroups of TC 229 (terminology and classification, metrology, and general standardization, including safety issues). Second, an important feature of nanotechnologies is that means of metrological assurance become a technological tool implementing the very nanotechnological process (for example, atomic force microscopes and tunnel microscopes are not only a means for examining and measuring particles but also enable their movement if necessary). Such a transformation can only be executed by standardization methods. Third, the safety problem concerning nanotechnology, nanomaterial, and nanoproduct application becomes more and more evident. One example is the problem of controlling self-organization processes in biological nanostructures and nanorobots. Potentially R U S S I A 93 1/14/09 8:51:09 PM dangerous technologies, substances, materials, and products must be studied, and the results of such studies are to be used when developing technical regulations and standards for potentially dangerous technologies and products of the nanoindustry. Fourth, in order to apply nanotechnology results successfully, we must develop and adopt a certification system for nanotechnologies and nanoproducts. In the world practice such systems have not yet been created, primarily because there are no adequate legal provisions. The Federal Targeted Program for the Development of the Nanoindustry Infrastructure in the Russian Federation, 2008–2010 identifies the problematic aspects cited above in its part concerning the creation and development of the nanoindustry methodological component. But I would like to emphasize once again that for their implementation the role of national standardization should be revised legislatively, and that at the highest level, the level of federal laws. Today it is clear that the public and governmental efforts for innovational economic development and stimulation of creation and development of competitive science-intensive technologies cannot be efficient without up-to-date standardization products. The assessment of innovational product conformity to the requirements set is also important. We should use easy mechanisms of conformity check: compulsory certification should mostly be replaced by declarations of conformity (the situation in pharmaceuticals proves that this is possible). Mechanisms for accreditation should 94 IPR_digest_eng.indb 94 also be revised in the direction of strengthening the component of voluntary evaluation of technical competency of assessment bodies. As for accreditation proper, it should move to the self-regulation sphere. The concept of development of a national accreditation system is therefore being worked out and the Draft Federal Law On Accreditation in the Field of Conformity Assessment is under development. To enable developing and perfecting quality management systems, the set of standards for conformity assessment is also being developed (based on ISO 9000 and ISO 17000). A positive example is the system of voluntary conformity assessment of innovation management systems at small and medium enterprises developed together with the Foundation for Assistance to Small Innovation Enterprises. International standardization is developing at a brisk pace. On October 14 the world community of standard developers and users is celebrating the World Standards Day. In 2008 the Federal Agency on Technical Regulation and Metrology marked this day with a conference on international standardization. From this tribune I would like to urge the industrial circles once again to apply and develop standards in the innovation sphere more actively. We have to become distinguished as generators of innovation standards or maybe even head the international standardization activity. Today we have no right to miss the chance, we must make the most out of the advantages that national and international standardization offers in order to lay new innovational paths of enhancing Russia’s competitiveness. N E W E C O N O M Y : 1/14/09 8:51:09 PM Problems of State and Industry Management of the Post-Reform Energy Sector Valentin Zavadnikov Chair of the Committee for Industrial Policy of the Federation Council GOALS, OBJECTIVES AND PROCESS OF THE ENERGY SECTOR REFORMING The goals and objectives of the energy sector reforming were identified in the Decree of the Government of the Russian Federation of July 11, 2001 No. 526 On the Reforming of the Energy Sector of the Russian Federation. This document defines the following principal goals of the energy sector reform in Russia: to enhance the performance of the sector enterprises, establish prerequisites for their investment-stimulation-based development, and guarantee reliable uninterrupted supply of electricity to consumers. In order to achieve the planned goal, the government set the task to transform the existing Federal (All-Russia) Wholesale Market of Electricity (Power) into a full-fledged competition-based wholesale electricity market and form efficient retail electricity markets that guarantee reliable electricity supply, as well as to create competitive markets of power, system services, and derived financial instruments. In the course of the electricity sector reform the system of state regulation of the sector and its structure changed: the natural-monopoly functions (transmission and supervisory control) and functions which can be implemented on a competition basis (generation and sale of electricity, repair, and services) were separated, and instead of former vertically integrated companies responsible for all those functions, structures have been created that focus on individual activities. Thus, prerequisites were established for developing a competitive electricity market, with prices formed by the balance of demand and supply rather than regulated by the state. The competing participants have to cut their production costs. On June 30, 2008, one key stage of the Russian energy sector reform was completed with the decomposi- I N N O V A T I O N IPR_digest_eng.indb 95 I N S I G H T I N T O tion of one of the world largest monopolies – RAO UES of Russia – into dozens of electricity companies. The energy sector entails a complex set of technologies. Its mismanagement can cause not only threats for people’s way of life, but also risks of anthropogenic catastrophes with lives lost. When developing the project for energy sector reform, its developers set the following objectives: to create a nationwide electric grid company maintaining the economic strengths of the UES of Russia; to create a self-regulating market; to form generating companies and develop competition in potentially competitive fields of electricity production and sales; and to enable investment-based development of the electricity supply sector. The pre-reform Russian Joint-Stock Company of Energy and Electrification Unified Energy System of Russia (RAO UES of Russia) has the following structure. The charter capital of the company comprised the property and shares of thermal power stations and hydroelectric power stations, trunk transmission lines, a supervisory control system, and blocks of shares of regional energy companies and energy-sector research and construction organizations. The holding owned 72% of the installed capacity of all Russia’s power stations and 96% of the transmission line length. For 15 years, the companies of the holding accounted for at least 70% of electricity and one-third of heat produced in Russia. In 2007 RAO UES of Russia produced 706 billion kWh. The basic structural elements of RAO UES of Russia were the so-called AO-energo, or joint-stock electricity companies – vertically integrated companies including a full production cycle, namely: production of electricity, its transmission over distribution trunk lines, dispatching, and sales. Such regional-level integration was complemented by vertical integration at the level of RAO UES of Russia uniting, apart from AO-energo, AO- R U S S I A 95 1/14/09 8:51:09 PM power stations (federal-level power stations producing and supplying electricity to the federal wholesale market of electricity (power)), high-voltage networks, and the central supervisory control system. Such a structure did not leave any room for competition. In the course of the reform AO-energo companies were split into functional divisions. Generating companies, grid companies, and sales companies emerged in each region. Afterwards they were integrated in interregional structures. Generating companies were formed from the existing generating facilities: wholesale generating companies (OGKs) and territorial generating companies (TGKs). During the reform six thermal-power OGKs and one hydroelectric OGK were created, along with 14 TGKs formed through interregional integration of power stations formerly belonging to AO-energo companies (usually power stations in several neighboring regions, except the property transferred to OGKs). Based on distribution and trunk grid companies interregional distribution grid companies (MRSKs) were formed according to the territorial principle and trunk grid companies (MSKs) were formed as a result of AOenergo reforming, with electric grid object property pertaining to the unified nationwide electric grid transferred to them, such as transmission lines from 220 kV and above (in a number of cases, 110 kV and above), international transmission lines, servicing transformer substations, and operation and maintenance equipment. At the next stage all MSKs merged into OAO Federal Grid Company of UES (FSK), an organization for managing the unified nationwide electricity grid, including the system of trunk lines connecting most regions of the country. Regional supervisory control services formed part of OAO System Operator of the Unified Energy System (SO UES) – an organization responsible for exclusive control of technologic modes of work of electricity objects and authorized to issue real-time supervision commands and orders mandatory for all the subjects of supervisory control, entities of the electric energy sector, and regulatedload consumers of electricity. The state owns from 50% to 100% of shares of SO UES, FSK, and MRSKs. Private shareholders appeared in thermal OGKs and TGKs; the state has no shares of those. The state retains the controlling interest of OAO RusGidro. 96 IPR_digest_eng.indb 96 OAO Administrator of the Trade System (ATS) was created, with its principal function to organize sales of electricity at the wholesale market. The reform of the wholesale and retail electricity markets became a key task of the energy sector reform. It is based on the model of a competitive wholesale electricity market launched on September 1, 2006, that stipulates its stepwise liberalization, in order for the complete amount of electricity to be sold at market prices by 2011 (except the electricity supplied to households). The wholesale market is complemented by a parallel balancing market; the aim of the latter is to enable real-time balance of electricity production and supply. On September 1, 2006 the new rules of the wholesale and retail electricity markets entered into effect. The wholesale market changed to regulated contracts between purchasers and generating companies; a spot market, or a dayahead market, was launched. By 2011, in accordance with the Decree of the Government of Russia of April 7, 2007, regulated contracts are to be gradually replaced by free (uncontrolled) contracts. Rules of functioning of different markets stipulate gradual retail electricity markets liberalization simultaneously with the wholesale electricity market liberalization, with private households provided with electricity under regulated tariffs, as earlier. At present a number of other markets are being created: the power market, the system service market, and the market of derived financial instruments. However, it would be too early to say that the construction of a functioning system of competitive electricity/power markets is complete. The liberalization process has just begun. It is supposed to finish in 2011, when it is planned to reject state regulation of retail tariffs completely. The electricity market is divided into two price zones: Europe (plus Urals) and Siberia. They are isolated as regards prices and supplies of electricity. Their integration, with a view to adopt a single pricing model, only started in 2008. There is another, so-called non-price zone including the electricity systems of the Far East, Arkhangelsk Region, Kaliningrad Region, and the Komi Republic. There are also isolated areas without any wholesale electricity market functioning; these are the northern and central districts of Yakutia, the Kamchatka Territory, the Chukotsky Autonomous District, the Magadan Region, and the Sakhalin Region. Apart from the two principal tasks, the structural reform and the creation of electricity markets, a third task N E W E C O N O M Y : 1/14/09 8:51:10 PM was necessitated in the course of the reforms – to launch the investment process in the field. It became clear in 2006 to 2008 that the energy sector resources for growth of output were exhausted and electricity consumption grew sharply almost simultaneously. A long-term document was worked out together with the Russian Academy of Sciences, named Target Vision of the Development of the Russian Energy Sector through 2030. The General Layout of Electricity Producing Facilities through 2020 was prepared jointly with the Ministry of Industry and Energy of the Russian Federation and approved by the Government of the Russian Federation. The holding of RAO UES of Russia developed the investment program for 2008–2012, to be renewed annually. It is a development program for the entire unified energy system of Russia, containing coordinated solutions for development of thermal, nuclear, and hydroelectric generation, the trunk line, the distribution grid, and the supervisory control. A market investment mechanism is supposed in thermal generation, with private investors involved. The investment mechanism in the hydroelectric generation company allows for both public and private investment. As for FSK, with its features of a national monopoly, the state owns over 75% of it, which hampers attraction of large private investment. A provision on the prohibition of distribution grids privatization until 2011, due to the specifics of their activity, was inserted into the Federal Law On Electric Energy Sector. A plan involving connection charge was selected, but this provision is temporary, as the Federal Law On Electric Energy Sector stipulates that connection charge is only to exist until January 1, 2011, and a new scheme of tariff regulation must be developed until then. Each link of the technological chain of the electric energy sector received its resources both for current funding and for investment development. The result was a balanced investment program for the sector. Due to the reform, companies appeared in Russia that provided such services as turnkey construction of power facilities. Such companies took financial responsibility for meeting the deadlines and quality of new facilities. The investment development phase had started already before RAO UES of Russia was decomposed. This enabled a centralized launch of the process of attracting private investment and development of solutions aimed I N N O V A T I O N IPR_digest_eng.indb 97 I N S I G H T I N T O at maintaining the integrity of the power sector as a technological complex in the changing circumstances. By mid-2006 principal decisions were made concerning the key issues of the reforms: liberalization of the electricity market and attracting private investors, including foreign investors, in generation. The legal base of the energy sector reform was developed. PROBLEMS FOUND BY THE END OF THE TRANSITION PERIOD OF THE ENERGY SECTOR REFORM However, a number of problems were found in the sector by the end of the transition period of the reform. Solving these problems will enhance the performance of the sector, improve its controllability and enable investment inflow in the sector. 1. The problem of cross-subsidizing. This covers cross-subsidizing between heat and electricity supply, interregional and regional subsidizing, and the largest – cross-subsidizing between different groups of consumers, above all, between households and industrial consumers. The amount of the latter is estimated at some RUR 120 billion per year. Cross-subsidizing can hinder full liberalization of retail electricity markets for a long time. The transfer of wholesale market prices into the retail electricity price is one of the basic principles of the system of electricity markets, crucial for the integrity and stability of the system. But the most important objective of the liberalization of retail markets (to enable the consumer to choose a sales company depending on the price and quality of its services) cannot be achieved until the problem of cross-subsidizing is solved. There is probably no alternative to a transfer of cross-subsidizing to the wholesale market while there are limited tariffs for private households. A temporary solution of this problem may be a rationed level of crosssubsidizing, with the system transparence guaranteed and region-specific forecast of cross-subsidizing enabled. 2. The problem of “fuel risks” is characterized by the following principal factors: – High wear of fixed assets (over 50%) leads to reduction of new units put into operation in all the subsectors of the fuel and energy sector. Besides, energy equipment used in the gas and energy sectors is uneconomical. There are almost no advanced combined-cycle plants and fume cleaners; renewable energy sources are used scarcely; R U S S I A 97 1/14/09 8:51:10 PM coal output equipment is obsolete both morally and technologically; the potential of the nuclear energy is used insufficiently. – Inflow of external investment in the fuel and energy sector is less than 13% of the total capital investment, with oil extraction accounting for 95% of the investment in question. – There is no competition between interchangeable energy resources; the structure of demand for them features excessive demand for gas and reduced share of coal. – There is no competitive energy market. – The negative influence of the fuel and energy sector on the environment is still high. – The oil and gas sector is too dependent on the world energy market condition. There is a trend to further increase of the oil/gas percentage in the structure of Russian exports; at the same time the potential for exports of other energy resources, including electricity, is used insufficiently. A directly related problem is the need to increase the total value of exports and imports of electricity (today it is only 3 to 5% percent of the total generation). – The lack of developed and stable legislation taking the specifics of the fuel and energy sector into full account is felt only too well. 3. The problem of possible lack of controllability of the sector without RAO UES of Russia. At present a new management structure is formed. The newly established Ministry of Energy of Russia assumes the functions of legal regulation of the sector, formerly performed by RAO UES of Russia. The state will maintain its domination in infrastructural companies – FSK, SO UES, and the MRSK holding. Self-governance of the sector has been introduced through the Market Council Non-Commercial Partnership protecting the interests of both suppliers and consumers. As the system has only been functioning for several months, it is too early to give forecasts on its efficiency. The participants of the market complain that the Market Council NonCommercial Partnership has set a too high membership fee, RUR 5 million. Besides, the providers of last resort do not have this amount planned in their tariffs, which makes it their net loss. Moreover, purchasers and sellers have only 8 seats in the Council while the state and state-controlled infrastructures have 12 seats. The participants of the market are thus left in the minority, a fact which considerably weakens the sector’s self-regulating ability. 98 IPR_digest_eng.indb 98 4. The problem of attracting investment into the sector. During the last 1.5 years three processes coincided that will influence the price factors associated with investments in the energy sector. The first one is the investment program of RAO UES of Russia that has formed extensive demand for equipment and consequently caused price growth in the market environment. The second one is the growth of the cost of the new generating facilities put into operation (per one MW) from 1.8 to 2 times (this growth is independent of processes in the Russian energy sector). And, finally, the third process is the world financial crisis. The impact of these factors will inevitably increase the cost of the new generation facilities in Russia. This is a problem which is important both for the consumer and for the process of implementation of investment projects. The principal sources of financing of generation companies’ investment projects are private investors’ funds attracted through selling new shares and taking loans. Given the world financial crisis, the growth of credit cost and lower availability of credits can increase the cost of the new generation facilities put into operation. Another important factor that influences the development of the investment process is the fact that is hard to forecast the expected electricity consumption due to a number of causes: – The overwhelming majority of industrial consumers cannot provide reliable long-term consumption forecasts. – The program of energy saving stimulation can influence the consumption. – It is hard to provide an expert judgment of expected consumption trends in the current unstable economic situation. However, the process of forming the forecast of consumption is necessary in order to justify the investment attraction into the sector and design the desired power market. 5. The problem of the operating conditions of the energy sector engineering facilities. Experts believe that the growing physical wear of engineering facilities is caused by the following factors: – Low own funds and low investment appeal of energy companies for strategic investors within the current model of regulated energy tariffs. – Low competitiveness as regards performance and reliability of a number of power machine building N E W E C O N O M Y : 1/14/09 8:51:10 PM and electrical enterprises, as well as insufficient competition on the engineering services market. Besides, the process equipment of the electricity sector does not meet the safety requirements, which may cause systemic accidents threatening people’s lives and health. As the technical regulation system is under reform now, by 2010 standards for safety of process equipment must be set forth in technical regulations. So far no technical regulations have been adopted either by the legislators or by the government. 6. The problems of forming the retail market. The relationships of three parties (electric grid companies, sales organizations, and management companies) on retail electricity markets are as yet unsettled as regards the amount of electricity supplied to residential blocks and liability for imbalance and in-house losses. Another problem is that of financial stability of sales companies, due to their low extra charge. In the conditions when generators and grids compete with sales companies, the acceptable profit margin enabling their stable functioning is important. There is also a problem of improving the legislation that regulates the activities of providers of last resort. A status of a provider of last resort can be granted to any sales company that supplies gas to private households. Such companies are obliged to sign an electricity supply contract with any consumer that has connected to the grid and has not signed a contract with an independent sales company. At the same time, the regulations for retail electricity market functioning stipulate that a contest for the status of a provider of last resort shall be held once in three years. The criterion is the minimum extra charge offered. The existing practice of such contests held in 2007 demonstrated their inefficiency: there were a lot of violations, and some companies won the contests with greater extra charge and without the infrastructure of payment collection and consumer servicing. The holding of unscheduled contests should be regulated as strictly as possible, with a change of the provider of last resort to be clearly substantiated. Another problem which was identified is the imperfectness of the new market system. There is no mechanism for making defaulting consumers pay the outstanding amount. 7. The problems of implementing the investment programs of generating companies. I N N O V A T I O N IPR_digest_eng.indb 99 I N S I G H T I N T O At present, the Western and Russian manufacturers of equipment for building new generating facilities are overloaded; besides, we lack qualified Russian engineers. As a result, the implementation of investment programs by new owners of generating companies can be frustrated. Both these problems should be solved by involving foreign manufacturers of equipment, reducing customs duties and administrative barriers for importing this equipment, introducing new technologies and materials as quickly as possible, and developing comprehensive programs for training Russian power engineers. The panel experts note the following concerning the problems formulated: – The autumn and winter of 2008/09 is the first season when the national electric energy sector functions without RAO UES of Russia, and the principal task for the period is to pass it without failures and accidents. To achieve this, actions of each market participant and market regulators should be governed by strict rules. – The ownership change and transition to the new procedures of functioning are taking place while the retail market regulations are not formed yet and the world financial crisis is developing. It may lead to mass defaults in payment and, as a result, bankruptcies of certain companies in the sector, in particular, sales companies. – The energy sector is entering the post-reform period and the world crisis with quite a number of problems: unsettled relationships of new participants of the electricity and power market; lack of understandings concerning a number of crucial issues, such as technical connection and payment for it, pricing, withdrawal of facilities for repair, the unsolved problem of cross-subsidizing, participation of businesses in the regulation of the electricity and power market, and insufficient stimulation of energy saving; and the absence of a competition-based retail electricity market. BASED ON THE ABOVE, WE RECOMMEND: To the Government of the Russian Federation: – To ensure continual monitoring and coordination of actions of all electric energy companies aimed at the reduction of post-reform risks in the sector. – To accelerate the development of a decree on the target model of the power market. R U S S I A 99 1/14/09 8:51:10 PM – To develop a system of forecasting demand and supply of electricity/power in order to preclude deficit of generating facilities. – To accelerate the development and adoption of technical regulations setting mandatory requirements to the safety of electric power stations and grids, high-voltage equipment, and generation units during their design, construction, installation, commissioning, and operation. – To develop an anti-crisis program for support of the energy sector. To the Ministry of Energy of the Russian Federation: – To estimate the environmental risks of fuel and energy sector companies together with the Ministry of Natural Resources and develop a program for support of the environmental policy of energy companies. – To estimate risks and analyze the feasibility of investment programs of energy companies and estimate the need to revise/adjust the General Layout of Electricity Producing Facilities through 2020, and, in particular, to assess the availability of fuel resources (gas) for the newly launched combinedcycle plants at the launch and through the operation period until payback. – To develop guidelines for consumption forecasting in order to form the investment demand. – To create a commission for revising investment programs, with OAO SO UES, Market Council Non-Commercial Partnership, generating companies, and general contractors for investment projects participating. Such a commission should envisage instruments for revision of the signed contracts based on penalties for deadline violations, provided that such terms and conditions are revised by the System Operator. – To consider establishment of a common knowledge base making it possible to control the implementation of generating companies’ investment programs at the state level, with all the generating 100 IPR_digest_eng.indb 100 companies and hired general contractors granted access to this knowledge base. – To audit the existing procurement regulations used by generating companies as regards the application of the Federal Law of the Russian Federation of July 21, 2005 No. 94-FZ On State and Municipal Procurement of the Goods, Works and Services or usage of procurement standards for ensuring transparency of procedures and substantiation of expenditures when justifying the tariffs or applying for preferential state funding. – To study instruments of accelerated certification of imported equipment under Russian construction standards and conditions for interaction with Rostekhnadzor (the Russian governmental agency organization for technical supervision). – To prepare proposals for the Government of the Russian Federation to reduce equipment import duties temporarily. – To develop a program for stimulation of energy saving in order to motivate consumers to reduce consumption voluntarily in the period when there is a threat of power limitations. – To monitor the financial stability of electricity sales companies and analyze the trends of electricity and heat tariff growth for retail customers in order to identify an acceptable profit margin level for sales companies together with the Federal Tariff Service. – To develop a methodology and criteria of selecting a provider of last resort, as well as a procedure to be followed when changing the provider of last resort and granting the status to another organization. – To accelerate the development of regulations for commercial accounting of electricity in retail markets. To the Federal Assembly of the Russian Federation: To debate the development and adoption of the necessary legislative package concerning the approval of the target model of the power and heat market and steps needed for its post-reform regulation; these issues should be discussed during the first half of 2009. N E W E C O N O M Y : 1/14/09 8:51:10 PM Problems and Paths of Innovation-Based Development of Russian Oil and Gas Industry and Applicable Laws Gennadiy Shmal Chair of the Union of Oil and Gas Producers of Russia, Ph.D. in Economics Russian oil and gas industry has always played an extremely important role in development of Russian economy and business. It is also a key factor in building the economic power of Russia and increasing its prestige in the international arena as one of the major international suppliers of oil and gas. An assessment of the world energy scene would suggest that demand for energy resources is likely to keep increasing throughout the world, including those macroregions that are located close to Russian power producers – in particular, in Europe and in the AsiaPacific region – which don’t have sufficient energy resources of their own. According to expert forecasts, in two decades the demand for fuel and energy resources in those regions will increase by 110-140 millions metric tons of oil equivalent. According to our plans (which are based on a forecast of extraction and transportation of fuel in Russia), we will be able to keep selling Russian oil, oil products, and especially gas in the international markets on competitive terms. At the same time, analyses of the present-day state of reproduction and utilization of the country’s mineral wealth are very troubling. According to estimates by the Russian Academy of Sciences, 16% of Russian total initial in-place resources have been extracted, and only 17% of total initial in-place resources have been well-explored, and inferred resources account only for 8% of that initial in-place amount. Not a single new oil deposit discovered during recent years can stand a comparison even with the runof-the-mill deposits discovered in 1970s, let alone with the Samotlor deposit. Even in the Khanty-Mansiysky Autonomous District, which is extremely important for Russia, deposits of 10 millions tons or more account only for 2% of total reserves, and 86% of reserves are found in small deposits. I N N O V A T I O N IPR_digest_eng.indb 101 I N S I G H T I N T O The state stopped financing search for and exploration of oil and gas deposits, while no effective market tool has been invented to encourage extractive companies to invest in that extremely important segment of the oil and gas industry. There are no effective incentives that could motivate companies to develop oil and gas fields in hard-to-reach regions with difficult geological conditions. The state-of-the-art technologies and technical solutions developed by Russian scientists for the purpose of exploring and developing deposits are rarely used. Western Siberia remains the main oil-producing region of Russia. Oil production in the Volga-Urals oil province and in the North Caucasus has been decreasing and will continue to decrease, because the reserves have been mostly depleted. Implementation of the project for development of oil reserves of Eastern Siberia and Far East has never been started. With all this in mind, it would seem obvious that it is necessary to pay more attention to geology, to invest (for the time being) in development of small, local-scale deposits, to control use of licenses issued for that purpose, to give attention to new technologies that could prolong life of those deposits that are at later stages of development, and to start implementing innovative solutions in all segments of the fuel and energy industry. We have to admit, however, that Russia is well behind the rest of oil-producing countries in all key areas of investment and innovation activities. Thus, the figures for capital investment per extracted ton of oil in leading Russian oil and gas companies are twice as low as in foreign ones. We have the world’s sixth strongest science sector, but at the same time, we are number 98 in the world in terms of efficiency of implementing solutions developed by our scientists. All civilized countries invest 2%–4% of their GDP in science while we invest 0.02%. R U S S I A 101 1/14/09 8:51:10 PM The above problems are strategic in nature, and their solution requires joint efforts and support from the state. So what does “innovation-based path of development of the country’s fuel industry” mean? First of all, it means a focus on rational, judicious business practices, an orientation toward capital investment not only in increasing extraction through application of new technologies, but also – and primarily – in replenishing the mineral resource base and improving the system for managing natural resources, and in training specialists of a new type. Innovation-based development is not limited to implementing new equipment and technologies; it means, first and foremost, that we should fully revive the practice of professional geological exploration and restore the role of our science as a leading factor in our industrial processes, which would also open the door to solving the problem of utilization of casinghead gas and to modernizing the oil-processing industry. In our understanding, the “innovation path” is a number of activities undertaken by the state which will open the door to implementing new technologies in mining and mineral-related industries in such a way that it will result in revival and growth of related industries and in switching to the science-intensive path of development. New job openings will help to solve numerous social problems and increase the tax base. One new job created in the oil and gas sector results in nine new job openings in related sectors. This is what should be the strategic goal of the state. What are the main impediments to medium-term and long-term development of mining and mineral-related industries? Shortcoming of existing laws, shortage of innovation resources, inefficiency of the state control and management system in the raw-materials sector, structural disproportions within the industry, and broken connections between production and science. The key areas to search for a solution of these problems are as follows: – Further improvement of regulations governing use of subsurface resources; use of such tools as licensing policy, innovation policy, and fiscal policy; – Encouragement of the process of increasing the explored reserves by (a) providing fiscal privileges, (b) changing rules of obtaining licenses for geological exploration, (c) restoring the principle of dual-control over minerals in order to revive 102 IPR_digest_eng.indb 102 the interest of federal subjects to exploring their mineral deposits, and (d) resurrecting of the geological science; – Regulation of intercorporate relations; creation of a favorable economic situation for establishment and development of small and medium-sized businesses specializing in working with small or difficult local mineral deposits; – Coordination of efforts of federal and regional authorities and improvement of their interaction with mineral extraction companies; improvement of the system of management of oil and gas companies. We believe that efficiency of the system for state control and mamagement in the area of subsurface resource use can be increased by concentrating the managing functions on the federal level, as well as by creating a system of regional branches of federal centers or agencies controlling mineral resources, and by establishing a specialized federal center of analysis and monitoring. The goal of such analytical and managing federal centers is to harmonize interests of corporations with the state strategy and programs and to perform quality monitoring of use of subsurface resources. Of course, improving applicable laws and regulations is a prerequisite to all of the above. Legislative work should aim to create an effective state management system capable of producing fundamental changes in the oil industry. Here is a list of laws and legal norms which are extremely important for the oil and gas industry and without which no successful work is possible today: The law On Subsurface Resources, the law On Oil and Gas, the law On Stimulating Extraction at Low-Yield Deposits, the law On the Country’s Resource Base, the law On Small and Medium Enterprises which are Independent Producers of Oil and Gas, a set of norms for the law On Agreements Regarding Products Sharing, the law On Regional Optimized Fuel Balance Sheets and Summary Fuel Balance Sheet for the Country as a Whole, and a system of legal regulations for the law On Technical Regulation. I should mention some disappointing facts with regard to the last law in the above list: technical governance of economic activities requires 600 technical regulation, each approved by a separate law. Over past three years, only three of them were approved. Implementation of the above-mentioned new model of development of mining and mineral-related N E W E C O N O M Y : 1/14/09 8:51:10 PM industries will open the door to launching new major projects in that field. Commercial success cannot be the only criterion in implementing deposit development projects in Eastern Siberia. Such projects cannot be even contemplated, much less implemented, without applying systemic approach, without solving social and economic problems of the regional development, and without an active participation of the state on both the federal and regional levels. One should remember the past experience of developing territories in Western Siberia. It was only with the help of a very powerful coordinating center (the State Planning Committee of the USSR) that our country was able to develop wild and marshy territories of Western Siberia. We do have a very extensive managing experience. The most important thing we need is a single managing center that can develop a systemic plan of actions. And a well-considered and well-planned systemic approach is exactly what we need in order to carry out our plans in Eastern Siberia and Far East. This program should receive a status of a national project. Development of new mineral-bearing areas will require totally new technologies of surveying for, exploring, mining, and transporting raw minerals, as well as new types of equipment. And in order to design and produce them in Russia we need an active government policy regarding innovation, a new national project, and tax privileges for investors who invest their money in development of national machine engineering. For a long time the Union of Oil and Gas Producers of Russia has been trying to maintain a dialogue with the executive and legislative branches of government in the context of an economic policy model which assumes that the state remains in control, looking for and proposing specific forms and methods of governmental management of the oil and gas industry. Today we try to join our efforts with other public associations, such as the Committee of the Russian Union of Industrialists and Entrepreneurs for energy safety, energy efficiency, and development of branches of the fuel and energy sector, and the appropriate committee of the Chamber of Trade and Commerce of the Russian Federation. The Union of Oil and Gas Producers of Russia has recommended to the Russian Government and to the State Duma to take a number of steps in order to create a more efficient economic system, to improve the existing pricing policy in the oil and gas industry, to use I N N O V A T I O N IPR_digest_eng.indb 103 I N S I G H T I N T O already allocated natural wealth with efficiency, and to improve the existing system of using the national wealth for social and economic purposes. Our recommendations include the following: – To design a new strategy for economic development of Russia, which should define the priorities of development; our energy strategy must be amended accordingly. – To create a system of privileges (including fiscal privileges) for those who develop new, hard-toaccess oil and gas provinces of Eastern Siberia, Far East, and the Timano-Pechora basin so that oil production becomes economically feasible for investors; to develop methods for fiscal protection and encouragement of scientific and technical progress and to use of “fiscal vacations” and tax loans extensively. – To establish a fiscal mechanism that will encourage oil and gas companies to invest in replenishing the mineral base. To introduce a differentiated mineral extraction tax, to apply flexible incentive taxation system to the following activities: exploitation of deteriorating deposits and development of new ones (primarily in oil-bearing areas without good infrastructure), development of hard-to-extract resources, implementation of state-of-the-art technologies, and putting in operation the nowidle low-yield wells. – To create an inter-industry council for utilization of subsurface resources that will be in charge of licensing and preparation of the Program for Geologic Exploration of Subsurface Resources and Mineral Resource Base. To raise the status of the Central Committee for Deposit Development and the State Committee for Reserves. – To provide incentives for small and medium oil companies. To develop a package of laws that will take in account the difficulties specific to medium and small enterprises. – To develop a system that will encourage extraction companies to open new resource development sites in such amounts that the overall resource base is fully replenished. – To develop a Mining Code that will set forth obligatory regulations regarding (a) conditions of development of oil and gas deposits and (b) current and final results of their development. R U S S I A 103 1/14/09 8:51:10 PM – To pass the law On Oil and Gas or the Energy Code, i.e. a set of laws and regulations governing activities related to the oil and gas industry. We suggest that the State Duma should demand a competent and independent analysis of all existing unjustified taxes that are burdening the oil and gas sector. That will be an effective way of keeping domestic fuel prices in check. It would be a good idea to pro- 104 IPR_digest_eng.indb 104 pose a conception of public control over the oil and gas sector; this could be done by consulting oil and gas councils that could be created on the model of those that work in Alaska, USA. A clever industrial policy (based on a well-designed legal foundation) and a correct energy strategy are what the direction of our innovation-based development is all about, and they form a basis of our economic success. N E W E C O N O M Y : 1/14/09 8:51:10 PM On Development of High Technologies in Biomedicine Alexander Gintsburg Vice President of Russian Academy of Medical Sciences (RAMS), Director of the Research Institute of RAMS Biotechnology started developing as an independent branch of science in the second half of the past century, and by 1970 it already attracted immense interest due to emerging prospects of its wide industrial application for producing unlimited amounts of natural protein bioregulators and biologically active substances (including rare and expensive ones), and for creating new species of plants and animals with pre-defined characteristics, which is instrumental in the light of the global problems faced by the world, including shortage of food and energy, disastrous environment deterioration, and, as a result, deterioration of health of the planet’s population, and so on. The present-day biotechnology is characterized by merging cutting-edge achievements of both science and industry: science almost literally becomes a productive force. In recent years, the greatest advances were made in such areas as biomedical technologies, genetic engineering, cell engineering, and creation of modern medical drugs. Technologies of industrial production of genetic engineering products (some of hormones, interferons, interleukins, monoclonal antibodies, a number of vaccines, etc.) were developed. Genomic and postgenomic technologies, nanotechnologies, and cellular technologies are some of the breakthroughs in medical biotechnology that were made during the past few years and are already used in many areas of clinical and preventive medicine. Genomic technologies led to a considerable advance in understanding the etiology of genetically determined diseases and to creation of modern methods of diagnosing such diseases, including prenatal diagnostics (primarily of those diseases that are caused by mutations in a single gene, such as certain forms of cancer, hereditary neurologic diseases etc.). Genetic diagnostic systems have been developed that allow diagnosing over 150 nosological forms of hereditary diseases. By combining the above I N N O V A T I O N IPR_digest_eng.indb 105 I N S I G H T I N T O technologies with bioinformatics, scientists developed an original computer program named Prognoz (“Prognosis”) for calculating the summary risk of development of the Down’s syndrome in a fetus; results produced by Prognoz are better than those of similar foreign programs. They also created of a number of computer databases (SYNGEN, CHRODIS, and NEUROGEN) for Russian genetic counseling centers (Genetic Medicine Center of the RAMS). Besides, some totally new approaches to treatment of hereditary diseases have been developed, including gene therapy, but so far, the world has not seen any spectacular breakthroughs in gene therapy: any results that have been already obtained are now at different stages of clinical trials, mostly in foreign countries (only a few research projects in that field are underway in Russia due to lack of financing). The progress in treatment of hereditary metabolic diseases is much more evident: foreign scientists have successfully used biotechnological methods to produce medicines for treatment of the Gaucher’s disease, mucopolysaccharidoses, and tyrosinemia, and developed methods of nutritional therapy of many hereditary metabolic diseases. Shortage of financing experienced by Russian science is very noticeable in this area, too. As a result, any cutting-edge treatment procedures used in Russia rely on western drugs and are conducted under supervision of drug manufacturers. Genetic diagnostics started to be used in environmental safety control and in forensic expertise. Modern proteomic methods helped to isolate a number of specific molecular markers of hard-to-diagnose tumors; these markers can be used in clinical practice for early diagnosis of malignant growths (Genetic Medicine Center of the RAMS, V. N. Orekhovich Biomedical Chemistry Research Institute of the RAMS, N. N. Blokhin Russian Oncologic Science Center of the RAMS, A. N. Sysin Research Institute of Human Ecology and Environmental Hygiene of the RAMS, and other research institutions). R U S S I A 105 1/14/09 8:51:10 PM Genetic biochips for molecular genetic diagnostics and evaluation of efficiency of pharmacotherapy in treating multifactorial diseases of children have been developed and are now used. The biochips have been introduced into clinical practice for the purpose of assessing detoxification genes in cases of atopic diseases in children, and for analysis of genetic mechanisms in children heart diseases (Children Health Science Center of the RAMS). Some research projects in biomedical nanotechnologies are underway aiming to solve certain problems related to express diagnostics of infectious diseases. The following products have been developed: an enzyme immunoassay (EIA) test system named MBS-Kor-IgM for detecting IgM antibodies to measles (the system has passed the procedure of state registration); an EIA test system for early diagnostics of rubella based on detecting IgM antibodies by the “trap method”; an EIA test system for detecting IgG antibodies to measles (it has successfully passed official testing in Russia and has been sent to the European WHO office for validation); a set of oligodeoxyribonucleotide primers for identifying the rubella virus in clinical samples by means of the polymerase chain reaction (PCR) technique taking in account genome variations of all known geographical isolates of the virus (the product has been patented); a new strain of parotitis virus (the Dragoon strain) used as an antigen in an EIA test system (I. I. Mechnikov Research Institute of Vaccines and Sera of the RAMS). Biochips have been created that are used as components in optic biosensors and atomic force microscopes; as a result, the time required to diagnose B and C virus hepatitis can be reduced by five to ten times. Utilization of nanotechnologies helped to start producing fullerenes and phospholipid nanoparticles for targeted delivery of cytostatics to tumors. The V. N. Orekhovich Biomedical Chemistry Research Institute used phospholipid nanoparticles to create a hepatoprotective drug named Phosphogliv which is now widely sold in pharmacies. Nanobiotechnology is – and will continue to be – used in creating liposomebased medicines, nanosome-based antibiotics, and other medicine forms for targeted drug delivery and personalized medicine selection, as well as for modern test-systems, diagnostic preparations, vaccines, new materials, etc. Research projects that are underway in the field of cellular technologies are of exceptional importance. Stem cells, which were discovered by a Russian scientist, today are an object of multi-level research works aiming to 106 IPR_digest_eng.indb 106 create technologies for treatment of numerous diseases, including hematological, oncologic, and cardiovascular diseases, neuropathies, and other conditions. The RAMS coordinates theoretical and applied studies of stem cells and cellular technologies, warning the medical and scientific circles against premature advertising and oversimplifying the problem. A method for producing cultures of mesenchymal stem cells and cardiomyoblast cells from autologous human marrow has been developed (and subsequently approved by the Russian Federal Service for Surveillance in Consumer Rights Protection and Human Well-being). The method is used in cellular therapy of various diseases related to loss or injury of cells in vital organs or tissues of the human body. Modified versions of the method are used to treat late radiation injuries of tissues, coronary disease, dilated cardiomyopathy, etc. (Medical Radiology Scientific Center of the RAMS). It has been demonstrated that it is safe to introduce stem cells during open heart surgery by means of IV or intramyocardial injection. A comparative analysis has been made of condition of patients before surgery and during one year after a surgery accompanied by infusion of marrow stem cells into the myocardium (the analysis addressed the patients’ clinical condition, characteristics of myocardial contractile function of the left ventricle (LV), and the parameters of LV perfusion) which has demonstrated that supplementing surgery with infusion of stem cells improves myocardial contractile function of the left ventricle (Russian Cardiologic Science and Production Center of the Ministry of Healthcare and Social Development of Russia). Success in development of cutting-edge biomedical technologies became a basis for considerable advances in creation of new medicines, including antibiotics. The following products have been developed: immobilized interferon alpha 2β, immobilized proinsulin, and a preparation called Imocent that is used for treating prostate pathologies (Pharmacology Research Institute of the Tomsk Scientific Center of the Siberian Branch of the RAMS). Some highly efficient biotechnologies have been developed that are used for producing biologically active biomass of certain autotrophs cultivated in submerged culture. These methods have no parallels anywhere in the world. Strains of autotrophs producing such antibiotics as lentinamycin B and eritadenine metabolite have been isolated; the latter antibiotic is also a hypolipidemic agent. A number of new derivatives of glycopeptides with a high antibacte- N E W E C O N O M Y : 1/14/09 8:51:11 PM rial effect have been produced. A new class of antivirus drugs has been discovered which can be used as a basis for developing new microbicides for protecting people from HIV virus and other infections (G. F. Hause New Antibiotics Research Institute of the RAMS). Despite the obvious shortage of funding allocated both for biotechnological research and for implementation of its results in clinical practice, fundamental research in the field of cutting-edge biomedical technologies keeps advancing. During the past two years, scientific institutions of the RAMS jointly with their collaborators in medical biotechnology research projects and teams headed by RAMS members have obtained some data that can become or already are a basis of newest biomedical technologies. Some of them are listed below. In the field of hematology, allele-specific primers have been developed that can be used for detecting oligonucleotide replacements in sequences of certain genes that determine genetic predisposition to hemochromatosis and thrombophilia, and some fluorescent probes for real-time PCR have been found (Hematology Science Center of RAMS). In the field of oncology, techniques have been developed for assessing vasculogenic mimicry in vitro and in human tumors. It has been established that stimulation of apoptosis is an important factor in stimulating formation of vascular-like structures by melanoma cells. These results can be used to create new antitumoral medicines with a unique therapeutic action. Antioxidants can partially block the process of creation of vascular-like structures by melanoma cell lines. A technology has been developed for producing magnetite-based magnetic drug delivery vehicles with coating from polystyrene and silica-based composite, and laboratory procedures of immunosorbent production have been developed. These products are used for separating cell fractions, for example in order to isolate stem cell fractions in oncology patients undergoing high-dosage chemotherapy accompanied by transplantation of autologous stem cells. A microchip-based immunoenzyme test system for detecting prostate specific antigen in human blood serum has been created. A new robotized technology has been developed, standardized, and tested that is used in preliminary fractionation of human blood serum proteome for massspectrometric detection of tumor markers. Peptides and proteins have been isolated that can be used in future to I N N O V A T I O N IPR_digest_eng.indb 107 I N S I G H T I N T O detect such pathologies (Russian Oncologic Science Center of the RAMS). It has been demonstrated that high levels of production of human recombinant lactoferrin takes place in a culture of leghorn hepatoma cells and in allantoic fluid of a chicken embryo. The produced recombinant lactoferrin has the same physico-immunochemical and biological properties as the female milk lactoferrin (P. A. Herzen Moscow Oncology Research Institute of the Ministry of Healthcare and Social Development of Russia). Antibodies of integrin αvβ3 capable of blocking melanoma cell invasion in vitro have been produced. The following products have been created: a test system for detecting cytostatic activity of L-asparaginase in transplanted human tumor cultures; a technology for manufacturing (a) electrochemical sensory devices based on cytochromes P450 and (b) nanostructured electrodes for electronic analysis of amyotrophic lateral sclerosis; laboratory procedures for producing phospholipid nanoparticles that will be used in creation of antitumor drugs (V. N. Orekhovich Biomedical Chemistry Research Institute of the RAMS). Epigenomic studies of oncology diseases found out the following facts: – The TMPRSS2/ERG4 chimerical gene can be used as a diagnostic marker of prostate cancer. – Chromosome 9p deletion occurs with a greater frequency in faster-recurring tumors, whereas abnormal methylation of the RAR gene occurs more frequently in tumors that do not show such a tendency for faster recurrence. – The short arm of chromosome 9 and gene p16 are more often deleted in dermal melanomas than in dysplastic nevi (Genetic Medicine Center of the RAMS). Polymorphisms in the fifth exon of the GSTP1 gene and in 21st and 26th exons of the MDR1 gene have been demonstrated to be responsible for creation of drug resistance in patients with chronic lymphoproliferative disorders (Research Institute of Molecular Biology and Biophysics of the Siberian Branch of the RAMS). In the field of cardiovascular pathology, a new open-heart thoracoscopic transmyocardial laser revascularization technique has been developed and tested (A. N. Bakulev Science Center of Cardiovascular Surgery of the RAMS). A method for anti-calcium treatment of bioprosthetic heart valves in young patients has been developed; clinical effectiveness of epoxy-treated biological prostheses (8 years of practical use) for reconstruction of R U S S I A 107 1/14/09 8:51:11 PM arteries of lower limbs and carotid bifurcation has been demonstrated (Science and Production Problem-Oriented Laboratory of Reconstructive Cardiovascular Surgery of the Siberian Branch of the RAMS). An original panel of genetic markers for testing for genetic predisposition to cardiovascular diseases has been created (Medical Genetics Research Institute and Cardiology Research Institute of the Tomsk Scientific Center of the Siberian Branch of the RAMS). In the field of ophthalmology, a cellular technology for transplanting allogeneic cultivated fibroblasts has been modified; the technology is used in treatment of corneal injuries: cultivated fibroblasts in collagen gel or an amniotic membrane are placed on the surface of the injured cornea and then covered by a therapeutic contact lens (Ocular Diseases Research Institute of the RAMS). In the field of phthisiology, molecular epidemiological typing of 880 strains of tuberculosis mycobacteria obtained from patients with different types of tuberculosis demonstrated that 66.6% of the strains belong to the “Beijing” family; these strains are dominant in 52.8% cases among convicts, and in 39.2% cases among civilian patients; 48.4% of strains have multidrug resistances and display a stable tendency toward clonal propagation; the following risk factors are associated with the risk of contracting the above strains: young age (younger than 35), lack of a permanent place of residence, and being confined in a jail or prison; there is no correlation with earlier BCG vaccinations. These data are essential for improving diagnostic methods, for choosing a correct treatment tactics, and for epidemiological activities (Central Tuberculosis Research Institute of the RAMS). In the field of infectious diseases, genetic engineering methods were used to create recombinant strains of baculoviruses expressing a number of proteins of the hepatitis C virus. Pegylated interferons have demonstrated a more pronounced therapeutic effect than recombinant alpha interferons in treatment of chronic hepatitis C 1b. A laboratory version of a PCR test system has been created with genus- and species-specific primers for detecting natural isolates of the Sindbis alphaviruses. A number of EIA test systems have been prepared and sent to diagnostic laboratories of some Russian cities; the systems are used in diagnosing diseases caused by CCHF virus, Sindbis virus, West Nile virus, Mosquito fevers viruses, Californian encephalitis group viruses, and Dhori virus (D. I. Ivanovsky Virology Research Institute of RAMS). 108 IPR_digest_eng.indb 108 An original mechanism of inhibitory action of antibodies has been proven to exist; the mechanism is related to nonimmune interaction between immunoglobulins and interleukin-2 (IL-2). It has been established that IL-2 connects to the effector part of an immunoglobulin molecule rather than to its active center. It was found that immunoglobulin inhibits the reaction of DTH effectors (whose activity is contingent on IL-2). It has been demonstrated that Phosprenyl (sodium polyprenyl phosphate) cancels the inhibitory effect of immunoglobulin. Since it had been shown earlier that Phosprenyl interacts with the rIL-2 alpha-chain (CD25) and blocks the action of IL-2, it follows that in the situation described above these two substances act as competitors (N. F. Gamaleya Research Institute of the RAMS). A study of biological factors affecting development of HIV in an in vitro HIV-infected cell culture has demonstrated that only one of mycoplasma types (namely, Mycoplasma arginini) results in gradual elimination of HIV virus from cells in cases of mixed mycoplasma/HIV infection. The elimination takes place because the sequence of stages of virus mRNA transcription and the sequence of virus protein translation are irreversibly broken down, and because virion assembly is interrupted due to the fact that mycoplasma binds cholesterol at the virus budding spots of the cell. A conception of gradual elimination of HIV infection from a cell population by using Mycoplasma arginini has been formulated (N. F. Gamaleya Research Institute of the RAMS). The herpes virus has been proven to have a number of effects on operation of DNAs of the placental barrier: the DNA-histone connection is broken up, DNA methylation is intensified, protein synthesis is suppressed, the number of apoptotic nuclei is increased (the Far Eastern Scientific Center of Physiology and Pathology of Breath of the Siberian Branch of the RAMS). The following products have been developed: a specific test system based on a liquid-crystal DNA microchip and DNA molecular construction for detecting bioactive compounds with antibacterial and antiviral effects and a new test (based on lactate dehydrogenase isozymes) for assessing levels of hypoxia in body organs (Interdepartamental Research Center of Biomedical Technologies). In the field of immunology and vaccinology, antiinfluenza candidate vaccines have been developed; they are based on actual influenza strains and sensitive cell cultures. For the first time, highly-productive reassortant virus strains containing hemagglutinin of avirulent avian N E W E C O N O M Y : 1/14/09 8:51:11 PM influenza virus were produced (by backcrossing) in order to create an effective vaccine for highly pathogenic varieties of A (H5N1) influenza viruses (D. I. Ivanovsky Virology Research Institute of RAMS). The following drugs and preparations were created and offered to consumers: Korgan (treatment of autoimmune diseases), Antikriz-5 (prevention of transplanted organs rejection), and polyoxidonium-containing vaccine Hep-A-invac against hepatitis A (State Scientific Center Immunology Institute of the Federal Medical Biology Agency of Russia). Preclinical trials of a new divalent (A+B) antihepatitis polyoxidonium-containing vaccine (Divakpol A+B) has been completed, and the normative documents have been drawn up. Three test batches of a hepatitis vaccine have been produced. A batch control protocol in production of hepatitis vaccine have been developed (State Scientific Center Immunology Institute of the Federal Medical Biology Agency of Russia, L. A. Tarasevich State Research Institute of Standardization and Control of Medical Biological Preparations of the Russian Federal Service for Rights Protection and Human Well-being). The second phase of clinical trials of two vaccines have been completed: a split three-component vaccine named Grifor®, and an aluminum-hydroxide-adsorbed inactivated subunit vaccine named OrniFlu for H5N1 avian influenza (I. I. Mechnikov Research Institute of Vaccines and Sera of the RAMS). A large-scale study of associations between polymorphic alleles of cytokines and human disease has been completed. Results produced by the study will be used in creating new diagnostic test systems (Clinical Immunology Institute of the Siberian branch of RAMS). In the field of pediatrics, it has been proven that accumulation of fragments of a transcribing part of a ribosomal gene in extracellular DNA can provoke autoimmune reaction and cause embryo death at early stages of embryogenesis. Excessive amounts of ribosomal genes in genomic DNA can lead to higher amounts of CpG-motifs which result in embryo death since they are responsible for stabilizing selection (Genetic Medicine Center of the RAMS). For the first time in Russia, the first stage of clinical trials of the method involving use of preparations of valproic acid for treatment of children with spinal muscular atrophy type I (Werdnig-Hoffman disease) has been successfully completed: improvement of clinical condition has been observed in 11 out of 13 patients, which was confirmed by laboratory tests (D. O. Ott Research Insti- I N N O V A T I O N IPR_digest_eng.indb 109 I N S I G H T I N T O tute of Obstetrics and Gynecology of the North-Western Branch of the RAMS) In the field of new nanotechnologies, a priority project has been started that is aimed at developing a new protamine-based nanoparticulate carrier for delivery of genetic-engineering constructs to cells (Experimental Medicine Research Institute of the North-Western Branch of the RAMS). Genetic engineering techniques were used to create a pRTGFP-based whole-cell biosensor which includes recombinant plasmid DNA responsible for synthesis of mutated green fluorescent protein of the Aequorea victoria jellyfish in rec+ strains of E. coli under control of the regulatory area of recA gene of Proteus mirabilis. When a chemical or physical mutagen damages the DNA, it induces expression of the reporter gene that encodes the mutant GFP, causing changes in intensity of the fluorescence (Biochemistry Research Institute of the Siberian Branch of the RAMS). A method for identifying regulatory sequences and marker genes that are used in creating genetically modified plants has been developed, tested, standardized, and implemented in the healthcare practice; the method incorporates multiplex asymmetric PCR and detection of results by enzyme assay on a biological microchip with a subsequent visualization of the assay results. Due to utilization of several techniques for detecting genetically modified plants (multiplex asymmetric PCR, a heteroduplex method of results registration, and use of enzyme assay to detect the heteroduplex complex), use of a biological microchip helped to considerably improve specificity and sensitivity of the method (less than 0.1%) (Nutrition Research Institute of the RAMS). Development of any new technology will achieve its goal only after the entire development cycle is completed, which consists of the following stages: fundamental research, development of a new biotech product, its industrial production, and its use in clinical practice for the purpose of diagnosing, treating, or preventing a disease or a group of diseases. Implementation of new technologies in Russia sometimes takes years more than it should – and not without some serious reasons. Biotechnology, including medical biotechnology, is a very finance-intensive field. The leading Western biotech companies spend up to 20%-25% of their budget on fundamental research. Government also takes part in financing biotech projects and programs. During the Soviet period, our country lagged behind the leaders in the field of biotechnology, and the distance considerably increased in 1990s due to R U S S I A 109 1/14/09 8:51:11 PM lack of financing. And only recently (owing to an inflows of funds), the situation in this field started looking up. Fundamental research in cutting-edge biomedical technologies also requires expensive state-of-the-art equipment and well-trained personnel. Russian fundamental research institutions do not receive enough financing to buy all the equipment they need. And if the National Health Project helped to upgrade some of hospital equipment in public hospitals, the personnel problems are still very serious. Training a good specialist requires not only money, but also a considerable time. Let us review the key problems using medical genetics as an example. The number of educational facilities and training personnel in the provinces is insufficient. Diagnostic laboratories often need not only medical doctors, but also chemists, citogeneticists, and other specialists. But the order No. 12n of the Ministry of Healthcare and Social Development of March 11, 2008, prohibits diagnostic laboratories of the genetic medical service from hiring people who hold degrees in chemistry or biology rather than in medicine. In Russia, DNA diagnostic methods are used for diagnosing over 150 hereditary diseases (compared to approximately 1,000 worldwide). And only the Genetic Medicine Center of the RAMS (the largest DNA diagnostics center in the Europe) can use these diagnostic methods to a full extent. The Medical Genetics Research Institute of Tomsk Scientific Center diagnoses 25 nosological entities, the D. O. Ott Research Institute of Obstetrics and Gynecology diagnoses 12, and the Neurology Scientific center of the Russian Academy of Medical Sciences, can diagnose about ten. DNA diagnostic methods are also used in some other institutions of the RAMS, RAS, and Ministry of Healthcare and Social Development of Russia. The clinical healthcare system also started to establish individual molecular genetics laboratories for the purpose of diagnosing the most common diseases, but that is not enough for Russia. More than once, the Presidium of the RAMS has discussed the problems related to implementing high-tech solutions developed by research institutions of the RAMN in clinical practice. Research institutions of the RAMN are actively promoting new technologies by training scientists and medical practitioners and by holding scientific events (congresses, meetings, seminars etc.) with a view to informing medical scientists and clinicians about the newest advances in medicine; they publish guidelines on recommended practices and scientific works, and widely implement their diagnostic and 110 IPR_digest_eng.indb 110 therapeutic technologies both in clinical practice and in disease prevention (by participating in various scientific and practical programs and works). The RAMS publishes a biennial journal named “Scientific solutions developed by research institutions of the RAMN for practical healthcare” which contains information about research results that are ready to be implemented or have already been implemented. So far, four issues of the journal have been published. However, there are certain problems that can hinder implementation of scientific achievements in clinical practice: – There is no single and clear regulatory act describing the procedures for implementing scientific achievements in the healthcare practice. – There is no mechanism for transfer of new, readyto-implement medical technologies developed by research institutions of the RAMS to the Ministry of Healthcare and Social Development of Russia for implementation in the state healthcare system. – Research institutions of the RAMS do not receive sufficient funding to prepare patent applications for their new technologies, to patent and register them, and to prepare the required documentation and take the technologies through clinical trials, which delays implementation of new technologies; – Use of the institute of partnership between the state and private business as a mechanism of attracting investment into national science needs to be streamlined. – There are no professionally trained specialists that could work in the areas of marketing studies and commercialization of science-intensive medical products. – The Standards for operation of practical healthcare institutions approved by the Ministry of Healthcare and Social Development of Russia all but ban implementation of new diagnostic and therapeutic technologies, since (1) they won’t be paid for by local compulsory medical insurance funds, and (2) the medical institution will be reprimanded for deviating from the standard. – There is not enough demand for new technologies that could be used in manufacturing medical drugs, immunobiological preparations, and diagnostic tools, which is a result of the break-down of the Russian medical and pharmaceutical industry. N E W E C O N O M Y : 1/14/09 8:51:11 PM Innovational Special Economic Zones Andrey Petrushin Deputy Head of the Federal Agency for Special Economic Zone Management, PhD in Engineering The Federal Law of July 22, 2005 No. 116-FZ On Special Economic Zones in the Russian Federation envisages creating special economic zones (SEZs) of the innovational type. Innovational special economic zones (ISEZs) are aimed, above all, at qualitatively new development of the regional economies and the entire Russian economy through improving the environment for the innovational business and creating stable competitive advantages for companies involved in science, education and high-tech. Principal goals of creating ISEZs are: – To contribute to the innovational economy development and formation of new market segments; – To develop manufacturing and high-tech economic sectors; – To develop new products; – To maintain and enhance the potential of highly qualified research and operating personnel; – To commercialize the results of scientific and technological research. Principal ISEZ tasks during their functioning are: – To explore areas with new economy and create an innovational environment; – To contribute to implementing strategic competitive edges through research and development at breakthrough lines of the technology progress; – To develop an efficient innovational infrastructure and enhance comprehensive scientific and technical advance and technological revamping of the economy, based on the public/private partnership; – To create favorable conditions for attracting domestic and foreign investment into high-tech and science-intensive production facilities; I N N O V A T I O N IPR_digest_eng.indb 111 I N S I G H T I N T O – To form a friendly administrative environment and social, engineering, transportation and other infrastructures; – To create new jobs for highly qualified professionals, especially fresh graduates; – To establish a comfortable environment for work and recreation. In accordance with the current law of the Russian Federation, the principal terms for innovational special economic zones are as follows: – SEZs must be deployed on two sites maximum, with their total area not exceeding three square kilometers; – A special economic zone cannot be distributed among several municipal communities; – A SEZ cannot include the complete territory of any administrative community; – A SEZ cannot exist for more than 20 years. The ISEZ functioning mechanism envisages preferential treatment for their residents in three fields important for an innovation business: – Tax and customs privileges and exemptions; – State funding of construction of internal and external infrastructural objects; – A friendly administrative environment. The law of the Russian Federation stipulates that ISEZ residents are entitled to exemption from corporate property tax, transport tax, and land tax for a certain period; their corporate profit tax can be reduced by up to 20%; their basic rate of the unified social tax can be reduced down to 14%, without prejudice to the regressive nature of the tax. SEZ residents can write off their research and development expenses as production costs (even when the research result is negative) to the amount of actual expenses borne in the appropriate period of R U S S I A 111 1/14/09 8:51:11 PM PREFERENCE CURRENT RATE FOR ISEZ RESIDENTS Unified social tax 26% 14% RUR 280,000 or less RUR 72,800 + 10.0% of the amount exceeding RUR 280,000 RUR 39,200 + 5.6% of the amount exceeding RUR 280,000 RUR 280,001 to RUR 600,000 RUR 104,800 + 2.0% of the amount exceeding RUR 600,000 RUR 57,120 + 2.0% of the amount exceeding RUR 600,000 Depreciation charges Accelerated depreciation rates can only be applied for equipment operated in aggressive environment and in more than one shift per day, with a maximum acceleration rate of 2 (3 for leased equipment). Accelerated depreciation rates can be applied for fixed assets (with a maximum acceleration rate of 2). Writing off research and Expenses for research and development used in development expenses as production are written off during a period of 2 years; production costs expenses for R&D are written off during 3 years. account (Tax Code of the Russian Federation, Article 262, paragraph 2). Innovational special economic zones have special customs treatment of a free customs zone. A one-stop system of governmental service delivery is implemented for SEZ residents. The engineering, social, and transportation infrastructures of ISEZs are funded from the federal budget and the budget of the Russian region the appropriate ISEZ is located in. An ISEZ resident is an individual entrepreneur or a commercial entity (except a state-owned unitary enterprise) registered in the municipal community that includes the SEZ in accordance with the current law of the Russian Federation, and having signed an innovational activity agreement with the SEZ administrative body. Within the SEZ an SEZ resident may be involved only in innovational activity, including: – Development and sales of high-tech products, including manufacturing, testing, and sales of pilot batches; – Creation of software products, data collecting, processing and transmitting systems, and distributed computing systems; 112 IPR_digest_eng.indb 112 R&D expenses are included into production costs in full in the appropriate period of account. – Installation and servicing of software products and systems. Innovational special economic zones are to become key nodes of development of the national R&D potential, as well as of its implementation in the manufacturing sector of economy by using scientific achievements as efficiently as possible. The contest for establishment of innovational special economic zones held by the Ministry for Economic Development and Trade of the Russian Federation in November 2005 gathered 29 applications. Four regions were named as winners: – Moscow City (Zelenograd), – St. Petersburg, – Tomsk Region (Tomsk), – Moscow Region (Dubna). ISEZs are actively developing. In April 2006 President of Russia V. Putin took part in the opening ceremony of the site of OOO NIOST, the largest SEZ resident in Tomsk. On October 30, 2007 First Deputy Chair of the Government of the Russian Federation S. Ivanov visited the construction site of ISEZ Dubna. The visit included a business meeting on the progress and prospects of ISEZ Dubna. N E W E C O N O M Y : 1/14/09 8:51:11 PM In April 2008 President Elect Dmitry Medvedev held a visiting session of the Presidium of the State Council, dedicated to the development of the innovational system in Russia, in Dubna. Head of the Federal Agency for Management of Special Economic Zones (RusSEZ) A. Alpatov presented the development project for ISEZ Dubna to D. Medvedev and other participants of the session. The ISEZ is managed in accordance with the Federal Law of July 22, 2005 No. 116-FZ On Special Economic Zones in the Russian Federation. The bodies in charge of the management are the appropriate regional department of RusSEZ, a branch or affiliated company of OAO Special Economic Zones, and the Supervisory Board of the SEZ. The Supervisory Board includes representatives of RusSEZ, the executive authority of the host region and the executive/administrative body of the host municipal community, the business entity in charge for the SEZ development (OAO Special Economic Zones), and resident companies, organizations, and public associations representing business interests (for example, the Chamber of Commerce and Industry of the Russian Federation). THE DUBNA INNOVATIONAL SPECIAL ECONOMIC ZONE (MOSCOW REGION) The town of Dubna is located at 120 kilometers’ distance to the north from Moscow, at the junction of the Volga River and the Moscow Canal. The city area exceeds 70 square kilometers. Dubna population counts 67,700 people. High intellectual potential, rich research traditions, experience exchange with foreign partners enabled Dubna to create a unique system of elementary and secondary education that provides young people with an opportunity to choose schools with advanced studies of physics and mathematics, other natural sciences, or economy and other humanities. Opportunities for receiving higher education are also rich with the branches of Moscow universities and institutes located in Dubna. A special pride of the town is the Dubna University of Nature, Society and Human, including a department of ecology and land management. Some 13,000 of the town residents have university education; over 1,000 have PhD degrees, and some 300 are doctors of sciences.1 1. Doctor of Sciences is an academic degree following the PhD, or candidate of sciences, in the Russian academic system. I N N O V A T I O N IPR_digest_eng.indb 113 I N S I G H T I N T O The average Dubna inhabitant is 33.2 years of age. Dubna as a center of nuclear studies started forming after the end of WWII and obtained the status of a town in 1956. Dubna is a major scientific center. Apart from the Joint Institute for Nuclear Research (JINR), it hosts the Center for Space Communications, the Research Institute for Nuclear Physics of the Lomonosov Moscow State University, and other research centers. The Dubna Innovational Special Economic Zone (Moscow Region) was created by the Decree of the Government of the Russian Federation of December 21, 2005 No. 781. The agreement signed between the Government of the Russian Federation, Government of the Moscow Region and Administration of Dubna stipulates that the SEZ is created on two sites with a total area of 187.7 hectares: – Site 1, with an area of 135.7 hectares (the left-bank part of the town between the Volga and the residential district – the territory of the Russian Center for Software Programming); – Site 2, with an area of 52 hectares (the rightbank part of the town within the New Industrial Zone). The goal of the SEZ is to increase the share of high-tech Russian products (above all, IT products), on world markets. To this end, an up-to-date research and technology park model should be applied. Such a park will include a university, research and engineering centers, and innovational enterprises. Priority fields for the Dubna ISEZ include: – Nuclear and physical technologies; – nanotechnologies; – information technologies; – design of complex technical systems; – biotechnologies. For resident companies a preferential rate of the regional portion of the corporate profit tax is set forth for the entire term of the SEZ existence. The profit obtained from the activity conducted within the SEZ is taxed by the Moscow Region at 13.5%. The total corporate profit tax for resident companies will be 20%. Free customs zone treatment is in force in the Dubna SEZ. Under the treatment imported goods can be stored and used within the SEZ without payment of customs duties and VAT, and Russian goods can be stored and used R U S S I A 113 1/14/09 8:51:11 PM The plan for the development and logistical support of the SEZ and adjacent areas is intended for 2006–2010 and envisages two phases: on conditions applied to exports and in accordance with the export tax regime, with excise duties paid but without export duties paid. THE TERM OF THE PREFERENTIAL TREATMENT TAX COMMON RATE FOR SEZ RESIDENTS Profit tax 24.0% 20% For the entire term of the SEZ existence Property tax Depends on the taxable property; 2.2% at an average 0% For 5 years since the property was registered Land tax 1.5% 0% For 5 years since the ownership right was accrued Transport tax Depends on the type and motor power of the vehicle 0 For 5 years since the vehicle was registered Unified social tax 26% 14% For the entire term of the innovational activity agreement SEZ residents whose business plans include capital construction can be granted land plots on terms of lease upon application. The lease payment is 0.4% of the plot cadastral value for the first year of the lease agreement and may not exceed 2% of the plot cadastral value in the next years. A one-stop system of governmental service delivery has been launched in Dubna, uniting some 17 governmental structures and agencies: Federal Tax Service, Federal Customs Service, Federal Migration Service, Pension Fund of the Russian Federation, and other services and organizations. SEZ Dubna features an advantageous location from the transport viewpoint. The federal highway Moscow-Dubna (A104), Sheremetyevo International Airport (at 90 km from the SEZ) and the Borki air field (9 km from the SEZ), and a railroad network serve the town. In order to provide for the development of the Dubna SEZ, the Federal Targeted Investment Program includes the following transport infrastructure objects: – Construction of a bridge over the Volga (from 2008); – Reconstruction of the federal highway A140 (from 2009); – Reconstruction of the dam bridge and tunnel under the Moscow Canal (from 2008). 114 IPR_digest_eng.indb 114 – 1st phase: 30,000 square meters of industrial and office facilities, principal objects of the public welfare infrastructure, and 100,000 square meters of residential space completed. – 2nd phase: 340,000 square meters of industrial and office facilities and 495,000 square meters of residential space completed by January 1, 2011. In view of the SEZ establishment and the projected population growth, the Government of the Moscow Region and Administration of Dubna are expanding the social welfare facilities. Residential blocks of the software developers’ community are under design. In 2007 a physical culture and sports center with a swimming-pool was completed. A secondary school, a kindergarten and three dormitories for employees of resident companies are being designed. It is planned to complete the following facilities in 2008: – An annex to the polyclinics near site No. 1 (2,000 square meters), – A medical treatment and diagnostics center near site No. 2 (4,000 square meters), – The first of the three dormitories for employees of resident companies in the campus. N E W E C O N O M Y : 1/14/09 8:51:12 PM The nearest customs office (Dubninsky, in 5 km from the Zone) functions temporarily as the customs terminal for the Zone. An Innovation and Technology Center is being constructed at Site No. 1 (Russian Center for Software Programming). The complex will include 5 buildings with a total space of 42,000 square meters, including a congress center. The buildings will be used as follows: – For renting office space to SEZ residents; – For one-stop governmental service delivery to SEZ residents. It is planned to complete and put into operation 5 buildings, including the congress center, in 2008. Along with the Innovation and Technology Center, a number of necessary engineering facilities are constructed at the site. The design of road networks and utility networks at Site No. 2 (New Industrial Zone) has been completed; construction of internal networks and roads has been started. Issues concerning connection to existing engineering and utility networks are being solved: specifications for the construction of a 110/10/10 kV power supply center from Tverenergo are being developed; the connection of OAO Federal Grid Company of the Unified Energy System to it is being coordinated. Customs infrastructure objects are under design for both sites. The General SEZ Development Plan considers construction of Russian Center for Software Programming buildings at Site No. 1 as one of the priorities. The Center will host providers of IT and communication products and services. Such products, competitive both on the Russian and world markets, will have a growing share in the structure of Russian exports. Residential blocks and social welfare facilities will be built at the site, too. The future development of Site No. 2, or the New Industrial Zone, is bound to the forming industrial park with its own infrastructure, to host warehouses, manufacturing facilities and administrative offices. The Special Economic Zone will form a part of the industrial park. A business center for innovational research-andproduction companies and experimental development companies will be constructed within the SEZ, along with warehouses and production facilities. As of September 1, 2008, 28 companies have been registered as residents of the SEZ. I N N O V A T I O N IPR_digest_eng.indb 115 I N S I G H T I N T O It is expected that some 40 residents employing over 1,100 people will operate in the SEZ by 2010. SEZ MANAGEMENT BODIES: Moscow Regional Branch of the Federal Agency for Management of Special Economic Zones: 19, ul. Universitetskaya, Dubna, Moscow Region 141980 Phone: +7 (49621) 4 7563, +7 (49621) 2 2860 Fax: +7 (49621) 2 2854 E-mail: [email protected] OAO Dubna Innovational Special Economic Zone: 48A, ul. Makarenko, Dubna, Moscow Region 141983 Phone: +7 (496) 219 0461, +7 (496) 219 0464 Fax: +7 (496) 219 0468 E-mail: [email protected] Supervisory Board of the Innovational Special Economic Zone in Dubna, Moscow Region THE ZELENOGRAD INNOVATIONAL SPECIAL ECONOMIC ZONE (MOSCOW CITY) The Zelenograd Administrative District of Moscow (the town of Zelenograd) is located to the north-west of Moscow on the Smolensk-Moscow Hills, 20 km from Moscow Ring Road and 15 km from the Sheremetyevo International Airport, in one of the most picturesque areas near Moscow. The area of the Administrative District is 37.22 square kilometers. The population of Zelenograd is 215,700 people; economically active population counts 132,300 people. Urban development in Zelenograd was based on open planning, using the relief features and maximum possible preservation of the greenery. Zelenograd features high concentration of intellectual, research, and innovation potentials, highly qualified human resources (44% of the working population have university education, estimated 40,000 people daily commute to Moscow to work), advantageous geographical location (near Moscow, the Sheremetyevo International Airport, and Moscow – St. Petersburg trunk railroad and federal highway), and engineering, powersupply and other communications. Zelenograd is an acknowledged center of Russian electronic industry. The town concentrates research-andproduction companies having high research potential and equipped with modern technologies. R U S S I A 115 1/14/09 8:51:12 PM The Zelenograd Innovational Special Economic Zone in Moscow was created by the Decree of the Government of the Russian Federation of December 21, 2005 No. 779. The agreement signed between the Government of the Russian Federation and the Government of Moscow No. 6676-GG/F7 of January 18, 2006 on the creation of the Zelenograd Innovational Special Economic Zone in Moscow stipulates that Zelenograd SEZ is created on two sites with a total area of 146.91 hectares: Companies registered in the Zelenograd SEZ receive a resident status which gives them a number of specific advantages, such as: – Reduced transport tax, land tax, and property tax; – Customs preferences. For resident companies a preferential rate of the regional portion of the corporate profit tax is set forth for the entire term of the SEZ existence. The profit obtained from the activity conducted within the SEZ is taxed by Moscow City at 13.5%. The total corporate profit tax for resident companies will be 20%. THE TERM OF THE PREFERENTIAL TREATMENT TAX COMMON RATE FOR SEZ RESIDENTS Profit tax 24.0% 20% For the entire term of the SEZ existence Property tax Depends on the taxable property; 2.2% at an average 0% For 5 years since the property was registered Land tax 1.5% 0% For 5 years since the ownership right was accrued Transport tax Depends on the type and motor power of the vehicle 0 For 5 years since the vehicle was registered Unified social tax 26% 14% For the entire term of the innovational activity agreement – Site No. 1, with an area of 4.47 hectares, is the territory of MIET – the Moscow State Institute of Electronic Technology (technical university) partly located at the site; – Site No. 2, or the Alabushevo Site, has an area of 142.44 hectares (the territory of Alabushevo Industrial Area). The goal of the Zelenograd SEZ is to develop innovational activity in high-tech by commercializing scientific developments and establishing scienceintensive facilities for production of new types of competitive products. Priority fields for Zelenograd SEZ are: – Micro- and nanoelectronics; – Optical electronics; – IT and communication systems; – Bioinformation technologies; – Nanotechnologies and nanomaterials. 116 IPR_digest_eng.indb 116 SEZ residents whose business plans include capital construction can be granted land plots on terms of lease upon application. The lease payment is 0.4% of the plot cadastral value for the first year of the lease agreement and may not exceed 2% of the plot cadastral value in the next years. A one-stop system of governmental service delivery is planned to be launched in the Zelenograd SEZ. In order to establish a favorable environment for the innovation business, all the necessary objects of the engineering, transport, public welfare, innovation, customs, and other infrastructures are going to be built in the Zelenograd SEZ and on adjacent areas at the expense of the federal budget, budget of Moscow, and other sources. Principal transport communications that link the planned Alabushevo Industrial Area with the central part of Zelenograd and other parts of the town are N E W E C O N O M Y : 1/14/09 8:51:12 PM Trety Zapadny Proezd (Proezd No. 4803) and Proezd No. 5371, which cross one of the town’s traffic arteries, Panfilovsky Prospekt that connects it with the Rossiya Highway (Moscow–St. Petersburg; Leningradskoye Shosse within Moscow) to the north of the projected area. To the south, one can drive to the Pyatnitskoe Shosse (Spas–Solnechnogorsk highway), in order to enter Moscow from the west through the community of Mitino. Besides, Zelenograd is located close to the crossing of the Rossiya Highway with the Second Concrete Road Ring, the backbone of the Central Ring Road of the Moscow Region. It is planned to complete the construction of power supply stations for the SEZ, which will enable Zelenograd to use the substations No. 445 Sigma, gas turbine plant at the heat supply network No. 2, No. 686 Era and gas turbine plant at the heat supply network No. 4, in 2009–2011. Gas supply to SEZ residents is not planned; gas will be used only to enable the work of heat and power generating facilities. In order to develop the customs infrastructure, the customs transport terminal will be built. At present its functions are executed by the nearest customs office, Zelenograd Customs in 1.5 km from the SEZ. The contest for the architectural concept of the Alabushevo Site has been conducted, and efficiency of investment in the SEZ has been assessed. Evata, Finland, developed the concept for Alabushevo Site. The first stage of Alabushevo development includes the construction of the following facilities: – Customs terminal infrastructure; – An administrative and business center with an exposition center; – A fire department; – Engineering and transport infrastructure. The second stage includes construction of an innovation business center, multiple-access centers, and a resource center for professional retraining. A SEZ resident, OAO Zelenograd Innovation and Technology Center is constructing the Technology Village research center at the MIET site. By 2009 a complex with a total space of 24,000 square meters will have been built here. The design of a number of innovation infrastructure objects has started at the MIET site, including: – A center for targeted (specialized) professional training with a space of 8,000 square meters; I N N O V A T I O N IPR_digest_eng.indb 117 I N S I G H T I N T O – An innovation center (business incubator) with a space of 8,000 square meters; – A technology transfer center with a space of 10,000 square meters; – Heat, water and electricity supply utilities, roads, and sewage. In the future an innovation infrastructure is going to be constructed at the MIET site to serve as an up-to-date equipment base used by research companies to train their employees, introduce or commercialize their technologies, and lead research in such fields as: – Microsystem technology and digital components; – Precision manufacture of printed boards; – Precision assembly of electronic devices and appliances; – Machining and packaging of electronic devices; – Tests and measurements. Within the Alabushevo site research and production zones, an auxiliary zone and a recreation zone are going to be created. All the stages of innovation activity will be conducted at this site, from developing materials, technologies, etc. to manufacture and sales of pilot batches. As of September 1, 2008, 11 companies have been registered as residents of the SEZ. It is expected that some 30 residents employing some 500 people will work in the Zelenograd SEZ in 2011 already. The implementation of the Zelenograd SEZ project will contribute to the innovational development of the national economy, solving a number of social issues on the way. In the SEZ functioning the intellectual and scientific potentials accrued by Zelenograd for the 48 years of its existence will be used in full; the problem of underemployment of the population of Zelenograd and the neighboring communities will be solved, along with the transport problem (Zelenograd– Moscow connection). Up to 1.0 million square meters of research and production space will be constructed in the Zone, enabling its residents to employ over 15,000 people. SEZ MANAGEMENT BODIES: Moscow City Branch of the Federal Agency for Management of Special Economic Zones: 1, Tsentralny Prospekt, Moscow 124482 Phone: +7 (495) 535 5381 Fax: +7 (495) 536 3878 Web: www.zelenograd.rosoez.ru R U S S I A 117 1/14/09 8:51:12 PM Branch of OAO Special Economic Zones in Moscow: 10th storey, 4, ul. Savyolkinsky proezd, Zelenograd, Moscow 124482 Phone: +7 (495) 739 6402, 783 7468 Fax: +7 (495) 739 6403 E-mail: [email protected] Supervisory Board of the Innovational Special Economic Zone in Moscow (with Yu.V. Roslyak, First Deputy Mayor of Moscow in the Government of Moscow, Head of the Committee for Economic Policy and Development of Moscow, as Chair of the Board) THE ST. PETERSBURG INNOVATIONAL SPECIAL ECONOMIC ZONE The city of St. Petersburg is situated at the eastern edge of the Gulf of Finland, at 664 km from Moscow. St. Petersburg is the administrative center of the North-Western Federal District and the second largest city in Russia. It is a major industrial, scientific, innovational and cultural center. Located at the junction of sea, river and surface transport lines, St. Petersburg is the gate to Europe for Russia, the nation’s strategic center closest to EU countries. Together with its administrative districts St. Petersburg covers a total area of 1,439 square kilometers. The city population is 4.6 million people. St. Petersburg hosts over 100 higher educational institutions, more than 40 research institutes of the Russian Academy of Sciences, and 500+ specialized research organizations, including 12 state scientific research centers. The St. Petersburg Innovational Special Economic Zone was created by the Decree of the Government of the Russian Federation of December 21, 2005 No. 780. The agreement signed between the Government of the Russian Federation and the Government of St. Petersburg of January 18, 2006 stipulates that the SEZ is created on two sites with a total area of 129.3 hectares: – Site No. 1: Neudorf, with an area of 18.9 hectares (Strelna, Petrodvorets District); – Site No. 2: Novo-Orlovskoe, with an area of 110.4 hectares (Primorsky District). The SEZ development goal is to rise to a fundamentally new technology level, develop the innovation 118 IPR_digest_eng.indb 118 business actively, create science-intensive products, and penetrate the domestic and foreign markets. Priority fields for St. Petersburg SEZ are: – Software development; – Medical and household appliance development; – Military and civil avionic equipment development; – Automated process control system development. The Law of St. Petersburg sets forth a preferential rate of the regional portion of the corporate profit tax for SEZ residents for the entire term of the SEZ existence. The profit obtained from the activity conducted within the SEZ is taxed by St. Petersburg at 13.5%. The total corporate profit tax for resident companies will be 20%. SEZ residents are exempt from: – Corporate property tax (on the property registered as the company’s assets, for 5 years since the property was registered); – Land tax (for 5 years since the land plot ownership right was accrued); – Transport tax (for 5 years since the vehicle was registered in accordance with the current law of the Russian Federation). SEZ residents whose business plans include capital construction can be granted land plots on terms of lease upon application. The lease payment is 0.4% of the plot cadastral value for the first year of the lease agreement and may not exceed 2% of the plot cadastral value in the next years. In order to establish a favorable environment for the innovation business, OAO Special Economic Zones is designing and building all the necessary objects of the road, engineering, and customs infrastructures in the SEZ and on adjacent areas at the expense of the federal budget and budget of St. Petersburg. The transport infrastructure comprises such major roads as St. Petersburg–Moscow, St. Petersburg–Pskov, and St. Petersburg – Narva. The city is an important railroad and port transportation node. The Pulkovo International Airport is located at 22 km from the SEZ. The airport is capable of accepting both passenger and freight aircraft. The following engineering, transport and public welfare infrastructure objects are going to be created in the SEZ: – Southern Road (from Kommunalny Pereulok to Ropshinskoye Shosse) 3.5 km long; N E W E C O N O M Y : 1/14/09 8:51:12 PM THE TERM OF THE PREFERENTIAL TREATMENT TAX COMMON RATE FOR SEZ RESIDENTS Profit tax 24.0% 20% For the entire term of the SEZ existence Property tax Depends on the taxable property; 2.2% at an average 0% For 5 years since the property was registered Land tax 1.5% 0% For 5 years since the ownership right was accrued Transport tax Depends on the type and motor power of the vehicle 0 For 5 years since the vehicle was registered Unified social tax 26% 14% For the entire term of the innovational activity agreement – Reconstruction of a section of Ropshinskoye Shosse from St. Petersburgskoye Shosse to the administrative border of the city, 4.8 km long; – Construction of a sewage manifold from Neudorf Zone to shaft No. 393 (ul. Pogranichnika Garkavogo, Petergofskoe Shosse), with a capacity of 960 cubic meters per day; – Construction of the water supply network sections which are located outside the SEZ; – Construction of a mid-range pressure gas pipeline, 0.8 km long, along ul. Svobody. The projects to be funded from the federal budget include the construction of a local wastewater treatment plant, internal sewage piping, a draining system, water supply and heat supply, and land planning of the site, including vertical layout. The necessary infrastructure for the customs office will be created. The construction of an administrative and business center that is to host governmental offices and offices of SEZ residents is going to start in the third quarter of 2008. The 14,000 square meters of the business center will be leased to SEZ residents on privileged terms (at reduced rates). Besides, 12 kilometers’ length of a telecommunication network will be built. The Neudorf Administrative and Business Center is to be put into operation in the third quarter of 2009. The architectural concept of the Novo-Orlovskoe Site has been developed. The first stage of construction is starting in September 2008. The estimated completion date is July 2010. I N N O V A T I O N IPR_digest_eng.indb 119 I N S I G H T I N T O SEZ residents in St. Petersburg can consult OAO Special Economic Zones for development and design of innovational facilities, expert assessment of construction/reconstruction costs with Russian and/or foreign contractors involved, general contractor functions, and connecting their facilities to electricity, heat, and gas supply networks. At present the customs infrastructure of the Zone is represented by the South-Western Customs Office of St. Petersburg Customs (Volkhonskoe Shosse, 111). The customs office is located at 39 km from the Novo-Orlovsky Site, and at 9 km from the Neudorf Site. Land surveying for cadastre registration of land plots has been funded from the budget of St. Petersburg. The site design and parcel plan for Neudorf have been prepared. The following specifications have been developed: – Specifications for electricity supply to the public and business area of Neudorf (OAO St. Petersburg Electricity Networks); – Specifications for connection of the industrial area of Neudorf to the engineering utility networks (GUP St. Petersburg Vodokanal, South-Western Branch). – The site design and parcel plan for Novo-Orlovsky have been prepared. When developed, the SEZ will be divided into the following major functional zones: – Industrial, experimental and technical; – Public and administrative; R U S S I A 119 1/14/09 8:51:12 PM – Educational and informational; – Sporting and recreational; – Entrance and customs. As of September 1, 2008, 26 companies have been registered as residents of the SEZ. It is expected that some 40 residents employing some 600 people will work in the St. Petersburg SEZ by 2011. SEZ MANAGEMENT BODIES: St. Petersburg City Branch of the Federal Agency for Management of Special Economic Zones: 16, prospekt Voznesensky, St. Petersburg 190000 Phone: +7 (812) 448 8840 E-mail: [email protected] Web: www.spb.rosoez.ru Branch of OAO Special Economic Zones in St. Petersburg: Office 604A, 5–7, ul. 6-ya Krasnoarmeyskaya, St. Petersburg 190005 Phone: +7 (812) 332 6824 Fax: +7 (812) 332 6825 E-mail: [email protected] Supervisory Board of the Innovational Special Economic Zone in St. Petersburg THE TOMSK INNOVATIONAL SPECIAL ECONOMIC ZONE The Tomsk Region is situated in the south-eastern part of the West Siberian Plain at 3,500 km from Moscow. The Region borders the Tyumen, Omsk, Novosibirsk, and Kemerovo Regions and the Krasnoyarsk Territory. The Region covers 314,400 square kilometers. Its population exceeds 1 million people. The city of Tomsk, the administrative center of the Tomsk Region, is located in the southern part of the Region, on the bank of the Tom River, a right tributary of the Ob. Tomsk is a very old educational and scientific center of Russia. It ranks first in the country in terms of the concentration of highly qualified research fellows. There are six state universities, two institutes, and 15 branches of non-resident higher educational institutions in Tomsk. Over 85,000 students study about 300 specialties. More than 20,000 are trained at professional colleges. One-fifth of all the people in Tomsk are students. The Tomsk Innovational Special Economic Zone was created by the Decree of the Government of the Russian Federation of December 21, 2005 No. 783. 120 IPR_digest_eng.indb 120 The agreement signed between the Government of the Russian Federation, the Government of the Tomsk Region, and the Administration of Tomsk stipulates that the SEZ is created on two sites with a total area of 207 hectares: – Site No. 1 (Southern), with an area of 192.4 hectares (the eastern part of the reserved territory of the Tomsk Scientific Center of the Siberian Branch of the Russian Academy of Sciences); – Site No. 2 (Northern), with an area of 14.6 hectares (part of the new industrial area of Tomsk near the Kuzovlevsky Trakt). Priority fields for the SEZ are: – Medical technologies and biotechnologies; – IT and communication technologies; – Electronics; – New materials and nanotechnologies. SEZ residents are entitled to the following types of privileged taxation: SEZ residents whose business plans include capital construction can be granted land plots on terms of lease upon application. The lease payment is 0.4% of the plot cadastral value for the first year of the lease agreement and may not exceed 2% of the plot cadastral value in the next years. Free customs zone treatment is in force in the Tomsk SEZ. Under the treatment imported goods can be stored and used within the SEZ without payment of customs duties and VAT, and Russian goods can be stored and used on conditions applied to exports and in accordance with the export tax regime, with excise duties paid but without export duties paid. A one-stop system of governmental service delivery has been launched in the Tomsk SEZ, uniting some 17 governmental structures and agencies: Federal Tax Service, Federal Customs Service, Federal Migration Service, Pension Fund of the Russian Federation, and other services and organizations. In order to establish a favorable environment for the innovation business, attract investment and highly qualified personnel, up-to-date engineering, transport, public welfare, and innovational infrastructures are under development in the SEZ. The total investment into the infrastructure is planned at RUR 6.54 billion before 2011. Tomsk is linked to the rest of Russia with roads of the second technical category belonging to the federal highway M53 Novosibirsk–Mariinsk–Krasnoyarsk. The SEZ is located at 10 km from the federal highway. The road network of Tomsk provides direct access to the site. N E W E C O N O M Y : 1/14/09 8:51:12 PM THE TERM OF THE PREFERENTIAL TREATMENT TAX COMMON RATE FOR SEZ RESIDENTS Profit tax 24.0% 20% For 10 years from the date of registration as a SEZ resident Property tax Depends on the taxable property; 2.2% at an average 0% For 10 years since the property was registered Land tax 1.5% 0% For 5 years since the ownership right was accrued Transport tax Depends on the type and motor power of the vehicle 0 For 10 years since the vehicle was registered Unified social tax 26% 14% For the entire term of the innovational activity agreement The nearest freight airport is Tolmachevo near Novosibirsk, at 300 km from Tomsk. The Bogashevo passenger airport is located at the distance of 18 km from Tomsk. The international terminal is going to open soon. The airport will be reconstructed, with a modern freight terminal built, in view of the planned transportation growth. By 2012 the airport will have a congress center, a hotel, a factory producing meals for serving on board, and a parking lot. The business-plan costs are estimated at RUR 3 billion. The main road of the SEZ was designed with the relief of the area and its configuration taken into account, along with the general development concept, according to which the territory is to be developed as a picturesque park area with high-tech buildings harmoniously fitting in. The developed engineering infrastructure enables OAO Tomsk Innovational Special Economic Zone to connect residents’ facilities to electricity, gas, and water supply lines. An existing high-pressure distribution gas pipeline with the rated pressure of 0.6 MPa and a capacity of 150,000 cubic meters per hour runs along the border of the Zone. Water is supplied to the area from wells of the Tomsk Scientific Center; the existing capacities are enough to satisfy the needs of the firststage SEZ facilities. The infrastructural complex will include the following buildings: I N N O V A T I O N IPR_digest_eng.indb 121 I N S I G H T I N T O – Business incubators for beginning companies; – Multiple-access centers for using high-tech equipment and information resources; – Centers of professional training for resident companies; – A technology transfer center; – Consulting and service companies. A customs office will be established in the SEZ (4 checkpoints at the Southern Site and 1 checkpoint at the Northern Site); the daily capacity of the customs office will be estimated later, with the number of resident companies’ applications taken into account. The nearest Tomsk Customs Office is located at 10 km from the SEZ. Its daily capacity is 2 railroad cars, 180 containers, and 8 panel trucks. As of September 1, 2008, 25 companies have been registered as residents of the SEZ. The largest company is OOO NIOST located at the Northern Site. The company is involved in the development and pilot batch manufacture of petrochemicals, introduction of innovative technical and technological solutions into monomer production, small-batch chemical production, plastics, synthetic rubber, and related materials and articles. The commissioning of the first building of the Center of Innovations and Technologies is planned for autumn of 2008. The building, with a space of 13,000 square meters, will have a customs office, access roads and a developed surrounding area. The transport route linking two densely populated districts of the city (Irkutsky Trakt and R U S S I A 121 1/14/09 8:51:12 PM Akademgorodok), will improve the traffic situation in the city, contributing to the development of new residential communities. After the Center of Innovations and Technologies opens, the larger, Southern, Site of the SEZ will start operating. Most SEZ residents will be based there. During the development of the SEZ project and its further implementation, significant efforts were and will be made to create a self-sufficient high-quality environment on a limited spot, including all the components necessary for high-tech research and production, as well as for organization of leisure, active recreation, and comfortable living of experts working in the SEZ, thus creating prerequisites for active research contacts at the turn of different industries. This approach suggests dividing the SEZ into the following functional zones: – Public and business; – Residential and communal; – Scientific and industrial; – Recreational; – Special area. 122 IPR_digest_eng.indb 122 Such favorable conditions will increase the appeal the Zone will have for its potential residents. It is expected that some 40 residents employing some 700 people will work in the Tomsk SEZ in 2011 already. SEZ MANAGEMENT BODIES: Tomsk Regional Branch of the Federal Agency for Management of Special Economic Zones: 147, ul. Krasnoarmeyskaya, Tomsk 634034 Phone: +7 (3822) 42 1934 Fax: +7 (3822) 42 1931 E-mail: [email protected] Web: www.tomsk.rosoez.ru OAO Tomsk Innovational Special Economic Zone: 10/4, prospekt Akademichesky, Tomsk 634021 Phone: +7 (3822) 42 1924 Fax: +7 (3822) 41 5055 E-mail: [email protected] Supervisory Board of the Innovational Special Economic Zone in Tomsk N E W E C O N O M Y : 1/14/09 8:51:12 PM I N N OVAT I O N S I N B U S I N E S S : C ATA L O G O F C OM PA N I E S IPR_digest_eng.indb 123 1/14/09 8:51:12 PM IPR_digest_eng.indb 124 1/14/09 8:51:15 PM AC T I V I T I E S AU X I L I A RY TO INDUST RY A ND M A R K ET FUNC T IONING IPR_digest_eng.indb 125 1/14/09 8:51:15 PM A DDR ESS: AELITA-SERVICE OOO T Y P E O F AC T I V I T Y: ACTIVITIES AUXILIARY TO MARKET FUNCTIONING HTTP://WWW.AELITA-SERVICE.RU AELITA-SERVICE BLDG 2, 34, 1-YA VLADIMIRSKAYA UL., MOSCOW 111141 RUSSIA C O N T AC T S : PHONE/FAX: +7 (495) 306 5656, +7 (405) 309 2124 E-MAIL: [email protected] A Zoya Sklyarenko CEO PhD, Chartered Auditor, member of the Moscow Audit Chamber, Zoya Sklyarenko has two Diplomas: in Science (Moscow Power Engineering Institute) and in Economics (Russian Academy of Management and Agrobusiness). 126 IPR_digest_eng.indb 126 uditing company OOO Aelita-service started its business on the Russian auditing and consulting market in 1998. During this period the company has accumulated solid experience in mandatory audit of companies and enterprises with different ownership, including companies with very complex structures. The audit qualification is confirmed by the General Audit License, the License for Jobs Involving National Security Information, by accreditation at NP “TsentrExpertZhKH” certifying due diligence of projects related to manufacturing, investments, and social programs, validation review of related tariffs and consumption standards on public utilities as well as full-scale financial and procedural examination of pricing and forming of tariffs on housing and public utilities services. OOO Aelita-service is member of the Audit Chamber of Russia and member of nonprofit partnership Interregional Center of Expert and Auditing Companies for Housing and Utilities Complex. The company’s main customers are federal state-owned and municipal unitary enterprises which provide housing and public utilities services and law-enforcement and property protection services to residents. The company has also accumulated vast experience in auditing enterprises with complex multidivisional structures. For some years the company has carried out mandatory auditing of FGUP Okhrana of the Russian Ministry of Internal Affairs which has 81 affiliates with separate balance sheets and over 240 standalone divisions without separate balance sheets all over 80 regions of the Russian Federation. The company developed a special audit procedure for economic and financial performance of companies with complex structures. This procedure makes it possible to grade mistakes and breaches of the RF legislation, to identify most complex accounting issues with high probability of eventual errors and breaches of the RF legislation, to characterize possible consequences of such errors/breaches and give advice on their correction. One of the company’s priorities is examination of tariffs on housing and public utilities services (HCS). The company examined more than 120 tariffs (prices) at 60 Russian HCS enterprises, with the total value of examination contracts exceeding RUR 2 million. With a view to improving the quality of its services, OOO Aelita-service developed automatic price and tariff examination procedures covering housing/maintenance costs, water supply, water disposal, evacuation and disposal of solid wastes. One of the new activities of OOO Aelita-service is CIPA (Certified International Professional Accountant) training for accountants and auditors. CIPA is the only one Russian-language-based training, examination and certification program for chartered accountants, auditors and financial managers. OOO Aelita-service has accreditation as CIPA-training center. This program is based on the IFRS, complies with IFAC standards and with the global training plan for professional accountants developed by United Nations Conference on Trade and Development – International Standards of Accounting and Reporting (UNCTAD/ISAR). The company’s activities follow key auditing principles, i.e. independence, good faith, neutrality, professional competence, confidentiality and professional behavior code. N E W E C O N O M Y : 1/14/09 8:51:15 PM A DDR ESS: EDIP AUDITING COMPANY, OOO T Y P E O F AC T I V I T Y: ACTIVITIES AUXILIARY TO MARKET FUNCTIONING HTTP://WWW.EDIP-AUDIT.RU 44B, UL. SHOLOM-ALEYKHEMA, BIROBIDZHAN, JEWISH AUTONOMOUS REGION 679000 C O N T AC T S : PHONE/FAX: +7 (42622) 68 048, 22 198, 21 992, 61 735, 22 178 E-MAIL: [email protected] O Irina Yukhimenko Director During the epoch when the economic reforms were beginning in the modern Russia, Irina founded the first auditing company in the Jewish Autonomous Region. She has been involved in practical audit since 1993. Heading a large company, she finds time to participate in public activities – she is member of the Advisory Council on Legislation under the Legislative Assembly of the Jewish Autonomous Region. She is also member of the Council of Auditors of the Far East Office of the Russian Chamber of Auditors. She has two university educations, one in economics and the other in law. I N N O V A T I O N IPR_digest_eng.indb 127 ur company was founded on February 10, 1993. Our present activities include general and special-purpose audit, accounting and legal support, managerial consulting, and business valuation. During the years of our work we have earned a reputation on the market of audit and related services as a company of highly qualified experts with high potential, working hard in team to achieve the joint result. Our main goal is to reduce the business risks of our customers as low as possible, acting within the current legislation. We help our customers identify and minimize economic risks, arrange tax planning, and evaluate the efficiency of decisions being made. We are ready to provide legal support in court and in other state bodies; we also offer other services. The years of fruitful work brought us the respect and acknowledgement of such customers based in the Jewish Autonomous Region as OAO Ushumunsky Open Cut Mine (lignite output), OAO Viktoria (knitwear), OAO Birobidzhanoblgaz (gas supply), MUP Municipal Heat Networks (transporting heat), and a number of other large enterprises based in the Region. More than 40 companies having different forms of ownership and activities have become Edip customers since it was founded. The recent years saw extensive development of the company activities, driven by the reasonable management policy. Today, we are known far beyond the Region borders: in the Khabarovsk and Maritime Territory, in the Sakhalin Region, Kamchatka Territory, and in the Chukotsky Autonomous District. The dynamic nature of modern business makes accuracy of calculations, legality of actions and quick response key success factors. This is especially true for accounting and tax reporting, an integral part of any business nowadays. Small and medium businesses tend to outsource their accounting and tax reporting. The number of such customers of ours grows steadily, indicating increasing market demand for this kind of service. When signing contracts and striking bargains, one should not disregard possible legal results. In order to avoid undesirable legal consequences, companies need highly qualified legal assistance. Hundreds of clients advised on legal issues, dozens of won suits in court, customers’ letters of gratitude – all of these are results of our vast experience. Our legal counsels are always eager to help you. We are not afraid of projects of any complexity and importance. Our staff continually improve their professional level, and we always try to render the widest range of services possible. We aim at creating and introducing uniform effective standards of financial and managerial accounting, analysis and control. Our audits enable us to assess the credibility level of the customer’s financial reports, evaluate the customer’s financial standing, and suggest steps to improve it, if necessary. Based on strict confidentiality, such cooperation helps the company management make sure that the accounting is kept according to the standards and the tax, accounting, and managerial reports contain no errors or inaccuracies, which in turn enables the company to avoid many risks. The constant growth of the numbers of our customers is the best proof of our high quality and professional level. We strive to form a trust relationship, based on perfect adherence to professional ethics, with all our customers. We hope to become a reliable partner for you. I N S I G H T I N T O R U S S I A 127 1/14/09 8:51:16 PM A DDR ESS: T Y P E O F AC T I V I T Y: SISTEMA-SAROV TECHNOPARK, OAO ACTIVITIES AUXILIARY TO INDUSTRY FUNCTIONING; RESEARCH AND DEVELOPMENT HTTP://WWW.ITECHNOPARK.RU 3, UL. PARKOVAYA, SATIS, DIVEYEVO DISTRICT, NIZHNY NOVGOROD REGION 607328 RUSSIA C O N T AC T S : PHONE: +7 (83130) 69 946 FAX: +7 (83130) 25 532 E-MAIL: [email protected] I Valentin Kostyukov Chair of the Supervisory Board, OAO Technopark Sistema-Sarov; Director, FGUP Russian Federal Nuclear Center – All-Russia Research and Development Institute of Experimental Physics Vladimir Zhigalov CEO, OAO Technopark Sistema-Sarov; Deputy Director for Investments and Innovations, FGUP Russian Federal Nuclear Center – All-Russia Research and Development Institute of Experimental Physics 128 IPR_digest_eng.indb 128 n late 2003, years before the urgent need to stop the nation’s dependence on its mineral resources and develop modern technologies was voiced in the government, the Russian Federal Nuclear Center had already developed an innovational development program, which became a practical prototype of the today’s technology park, a starting ground to create a new economy at the verge of science, research, and industrial production. For the decades of its work, the Russian Federal Nuclear Center – All-Russia Research and Development Institute of Experimental Physics has established strong research, technology, design, and engineering schools; a great scientific and technical potential has been accrued. The Federal Center has always featured innovational approach, starting from fundamental research through development to the design of a prototype, including pilot series and introduction into wide usage. It is therefore quite natural that one of the few Russian federal-level technology parks which really work appeared here, in the township of Satis, 5 km from Sarov. It was founded by a joint decision of the Rosatom, AFK Sistema, the Government of the Nizhny Novgorod Region, and the Russian Federal Nuclear Center, the chief initiator of the Sistema-Sarov Technology Park and the provider of technologies forming the foundation of the park operation. Due to the active support from P. Shantsev, the Governor of the Nizhny Novgorod Region, the technology park became a top priority project of the Region. The development concept and the general layout were financed from the regional budget; the Region also co-finances the construction of the main building of the Park, a business center. The fa ade of the technology park and its key element, it will include such business components as negotiation rooms, conference halls, offices, and auxiliary services: banks, cafes, shops, a restaurant, a sports center, and a hotel. But which is more, the Park is a place where the future starts, where unique projects and breakthrough technologies appear, where young researchers have an opportunity to start their career in science. A strategic partner of the Technology Park is AFK Sistema, a major Russian and CIS-wide public diversified corporation focusing on development and application of high technologies. Prospects through 2015 include: – Creating the necessary infrastructure for efficient development of the park. – Developing projects (the current project portfolio includes projects for a total of $1,200 million). – Over 100 companies functioning and some 5,000 new jobs created. An agreement has been signed between the Rosatom State Corporation and OAO AFK Sistema on the implementation of national-level projects under private/public partnership, including IT projects, creation of complex integrated systems serving Russia’s fuel and energy sector and telecommunications, new technologies in energy, sophisticated technologies for the oil and gas sector, and safety systems. The development concept of the Park envisages development of large projects and small innovation firms, as well as educational activity – creation of the International Higher School of Physics and Information Technologies, as a component of the Nuclear University. N E W E C O N O M Y : 1/14/09 8:51:16 PM AGR IC U LT U R E . FOOD PRODUCTS A N D BE V E R AGE S IPR_digest_eng.indb 129 1/14/09 8:51:16 PM A DDR ESS: T Y P E O F AC T I V I T Y: EKONIVA GROUP AGRICULTURE HTTP://WWW.EKONIVA.COM ZAKHAROVO, ODINTSOVO DISTRICT, MOSCOW REGION 143022 RUSSIA C O N T AC T S : PHONE/FAX: +7 (495) 933 0031, 933 0034 E-MAIL: [email protected] T Stefan Dürr President Born in the German land of Baden-Wuerttemberg in 1964, Stefan graduated from Bayreuth University as an agronomist, soil scientist, and soil ecologist. He was the first student from West Germany to come to the USSR for practical training in 1989. In 1994 Stefan Dürr founded the German-Russian joint venture EkoNiva. He coordinates the project for RussianGerman Agrarian and Political Dialog implemented with the support of the German Federal Ministry of Food, Agriculture and Consumer Protection and the Agrarian Committee of the Russian State Duma. He is decorated with the silver medal “For a Contribution to the Development of Russia’s Agroindustrial Sector” and awarded with the P. Stolypin National Prize “Agrarian Elite of Russia.” 130 IPR_digest_eng.indb 130 he German-Russian joint venture EkoNiva started working in Russia in 1994, when a new economy was forming and the domestic agroindustrial sector had to change its working methods to new, more promising ones. At first EkoNiva considered its task to accumulate advanced technologies discovered in agriculture and to introduce them into Russian agricultural business. EkoNiva was among the first companies in Russia to start importing efficient and energysaving agricultural equipment, propagate and introduce precision agricultural systems, and actively develop the regional service center network featuring high-quality maintenance of agricultural equipment. At present EkoNiva is one of the leaders among the suppliers of foreign agricultural machinery to Russia and the largest John Deere dealer in Europe. EkoNiva pays much attention to search of new highly productive cultivars of crops. Continual monitoring of world achievements in selection enables us to keep pace with everything new in the sector and select cultivars which are fit for Russia. Before putting them into production, they are bound to pass comprehensive tests. EkoNiva was one of the first companies to introduce such cultivars of brewery barley as Thuringia and Annabel on the Russian market. Owing to new frost-resistant cultivars, winter barley and rape are now grown in the Central Black Earth Belt. In grain management EkoNiva introduces modern North American technologies of after-harvesting processing and storage, making grain management controllable, reliable and low-costing. It is important that EkoNiva offers comprehensive solutions to Russian agricultural producers, including machinery, seeds, technologies, training and consulting of agrarian producers, with foreign experts invited if necessary, maximizing the output and profits. Before recommending new machinery, cultivars, or technologies to Russian agrarian producers, EkoNiva tests them at its own agricultural enterprises, a large test-field for innovations. Successful innovations are impossible without a mentality change of people working on the plough-land. EkoNiva has made a considerable breakthrough in this field. Its employees undergo professional training regularly, with training abroad if necessary. EkoNiva arranges familiarization travels to Europe and North America where Russian agrarian producers can see the features of the modern agricultural business with their own eyes, exchange experience, and find something necessary or useful for their own agricultural facilities. The intellectual capital assets are the principal prerequisite for introducing high technologies into agricultural production and its efficient development. EkoNiva Group unites 25 enterprises focusing on different areas of agriculture in 16 regions of Russia. Our activities include: supply and maintenance of agricultural machinery produced by world leading manufacturers: John Deere, Vaderstad, Kverneland, Grimme, JCB, Lemken, WestfaliaSurge, AgGrowth; our own agricultural production grounds covering more than 100,000 hectares; dairy and meat livestock farming (over 10,000 head of cattle); seed growing. N E W E C O N O M Y : 1/14/09 8:51:16 PM MAY COMPANY OAO T Y P E O F AC T I V I T Y: FOOD PRODUCTS AND BEVERAGES A DDR ESS: C O N T AC T S : HTTP://WWW.MAYCOMPANY.RU 19, PROEKTIRUEMY PR. 4294, MOSCOW 109235 RUSSIA PHONE: +7 (495) 775 7505 FAX: +7 (495) 775 5515 E-MAIL: [email protected] F Igor Lisinenko CEO Ph.D. in Sociology, D.Sc. in Economy, former Deputy of the Russian State Duma, holder of the Order of Red Star. I N N O V A T I O N IPR_digest_eng.indb 131 ounded in 1991, May Company is a world-class tea and coffee expert and one of the five largest tea companies in the world. We follow the innovation-based path in such areas as development of our marketing strategies and constant improvement of technologies. May Company is the only Russian company that has its own offices in tea exporting countries. The leading German audit association TÜV has certified business processes of the May Company as compliant with the ISO 9001:2000 international standard. Today, May Company is a marketing business whose mission is “To effectively satisfy each person’s demand for tea and coffee.” Innovations play an important part in the process of development of new products: we create products that are 100% natural and functional, very tasty, but also very fast and easy to cook, which is important in the fast-paced modern life. The company has implemented a resource-saving strategy. Our ongoing efforts to reduce consumption of packaging materials, to increase the production efficiency, and to reduce production overhead without affecting the product’s quality result in lower retail prices. Many of the production, storage, and product processing activities at the company’s facilities are automated or robotized. We expect a lot from all our existing and prospective partners in the field of development of new materials; we want materials that have special properties and combine several seemingly incompatible qualities: they must be environment-friendly (biodegradable), have excellent barrier properties, and be cheap, all at the same time. Today, our interest is attracted to electronic paper technologies that can be used in creating interactive packaging. We are closely watching development of biotechnologies that can produce agricultural crops (and, first of all, tea) with pre-defined and enhanced properties without aggressive DNA modifications. Implementation of energy-saving technologies is another goal of our company. Our brands Curtis, Maisky, and Lisma include innovative high quality teas that are loved by consumers in Russia and abroad. It should be noted that our multi-brand strategy accounts for all price segments, all tastes, and all income ranges, so that we can satisfy consumers from all walks of life. May Company believes in importance of innovation in marketing, and dedicates a lot of material and intellectual resources to research in that field. All our tea blends are created by top-notch tea testers. Our company supports the official food industry development policy of the Russian Federation. In the spring of 2008, for the first time in history of the post-reform Russia, a session of the Consulting Council of the Ministry of Agriculture took place in a new setting, namely, in the central Moscow office of May Company. May Company has 15 medals of the annual international Prodexpo exhibition. Our brands have received more than 350 medals and awards of different contest, exhibition, and salons. We believe sincerely that by joining our efforts in the field of applied science and innovative activities we change the world for the better. I N S I G H T I N T O R U S S I A 131 1/14/09 8:51:17 PM IPR_digest_eng.indb 132 1/14/09 8:51:17 PM CONST RUC T ION. CONST RUC T ION M AT ER I A L S IPR_digest_eng.indb 133 1/14/09 8:51:17 PM INNOVATION TRADE POWER COMPANY (OOO ITEK) OOO A DDR ESS: T Y P E O F AC T I V I T Y: CONSTRUCTION; FABRICATED METAL PRODUCTS; TRANSPORT HTTP://WWW.ITEK-N.RU LEGAL ADDRESS: BLDG 4, 24/35, UL. KRZHIZHANOVSKOGO, MOSCOW 117218 RUSSIA MAILING ADDRESS: P/O BOX 17, MOSCOW 117638 RUSSIA C O N T AC T S : PHONE: +7 (495) 660 0885 PHONE/FAX: +7 (495) 223 0002 E-MAIL: [email protected] (PR DEPARTMENT) I Pavel Puzyrev CEO We are a young and quickly progressing company, with great development potential and vast experience accumulated during the years of active operation. TEK Group (Investment Trade Power Company) has been operating on the Russian market since 2001. Throughout its history it has proved to be a reliable and stable partner with solid experience in commercial business. OOO ITEK is a multi-discipline company, and this provides it with an opportunity of diversified participation in different construction-related projects, i.e. sales and investment, playing the role of a general contractor and therefore ensuring continuous and quick control at all construction stages. The company invests primarily into construction, the major part of which is social projects, i.e. more affordable, comfortable and modern residential facilities in Moscow and the Moscow Region. The process is implemented both through financial investments and through complex supplies of main construction consumables (concrete, re-bars, bricks etc.) and other necessary components (cables, pipes, elevators etc.). The invested money is channeled not only for new housing construction, but also to improvement of the local infrastructure in the area which hosts new investment facilities. In 2008 the company started certain projects as a general contractor. Another company’s business is production and supply of cabling and wiring products (CW), construction materials, electrical items, various equipment and consumable materials for manufacturers both in Moscow and in other Russian cities. Being one of the largest CW suppliers to large enterprises, our company cooperates with nearly all cable producers. ITEK GROUP CONSISTS OF THE FOLLOWING DIVISIONS: ITEK-Nedvizhimost The company invests in new housing construction in the Moscow Region and also acts as a reliable partner for sales of housing with construction supported with the third party investments. The company’s construction investment geography covers most of the Moscow Region. ITEK-Elektro This company’s business is wholesale sales of cabling and wiring products and electrical products to end users from the Russian Federation and CIS. To our customers and clients we offer delivery of high-quality products compliant with most advanced standards under reasonable prices, quick execution of procurement orders, timely financial paperwork and best customization. The company always keeps in stock more than 10 000 CW items for various applications. ITEK-A The company’s main business is provision of high-quality and reliable cargo and construction material transportation services incorporating producers, suppliers and end users within Russia into one general network. ITEK Group is not going to stop at what has been achieved; it proactively promotes its main businesses along with trying itself in some new activities. For instance, in 2007 it started supporting agricultural farms in Kabardino-Balkaria. 134 IPR_digest_eng.indb 134 N E W E C O N O M Y : 1/14/09 8:51:17 PM C O N T AC T S : INTERENERGOSERVIS T Y P E O F AC T I V I T Y: ZAO ELECTRICITY SUPPLY A DDR ESS: BUILDING 3A, VORONTSOVSKY PARK, MOSCOW 117630 RUSSIA PHONE: +7 (495) 120 8496, 128 8727 FAX: +7 (495) 330 8029, 333 1270 E-MAIL: [email protected] I Elena Pisarenko CEO Pisarenko graduated from the Higher Operation Economic Institute. ZAO Interenergoservis was established in 1992 and serviced power generation companies worldwide. The Company focuses on power equipment manufactured in the CIS, providing state-of-the-art solutions in construction of new and reconstruction of existing plants. I N N O V A T I O N IPR_digest_eng.indb 135 nterenergoservis services include project development, construction, refurbishment, restoration and repair of power plants, consulting and training foreign engineers at plants and in training centers in Russia. We have extensive experience in reconstruction and repair of power stations and electric mains. One of the large-scale projects implemented by the company is the reconstruction of the Nassiria thermal power station in Iraq, with four 200-MW units. At present the station is working under its nominal load of 800 MW. In order to make the its operation more stable, Interenergoservis is now renovating the recirculating water system of the Nassiria thermal power station, with equipment and pipelines supplied and the cooling tower and water conditioning structure rebuilt. Interenergoservis supplied equipment for power stations to Mongolia, Iraq, India, Syria and other countries. At present we have started the work over a major project for restoration of two units of the Southern Baghdad thermal power station, Iraq. The Company quality management system has an ISO 9001:2000 certificate as of September 5, 2003, which covers development and management of power generation projects, including planning, organization, subcontractor work coordination, and project monitoring and audit. Our principal activities include: – Turnkey construction of new power stations, substations and electric mains; – Upgrading, renovation and repair of power facilities and power equipment; – Supply of up-to-date equipment, materials and spare parts for electricity supply companies; – State-of-the-art solutions for construction of new plants and reconstruction and upgrade of existing ones; – Overhauling, renovation and replacement of boilers, turbines, and generators of thermal power stations; – Overhauling and replacement of electric devices of any type at power plants; – Repair of power cables and control cables, with the fault isolated and the damaged cable replaced; – Assessment of the state of metal in pipes and steam lines, with the faulty units replaced or renovated by heat-treating; – Repair and replacement of power station auxiliary equipment; – All-inclusive construction works when restoring power generating facilities; – Renovation, repair and replacement of telemechanics and communications equipment; – Production engineering and introduction of up-to-date ISO 9001 compliant automated process control systems at power stations; – Commissioning and launch of power generation facilities; – Training services for engineers at leading enterprises in the field and in training centers in Russia; – A wide range of consulting services. I N S I G H T I N T O R U S S I A 135 1/14/09 8:51:17 PM A DDR ESS: MASTERFIBREALLIANCE OOO Svetlana Bibikova CEO An experienced expert in economics and financial management, Svetlana Bibikova graduated from the Plekhanov Russian Academy of Economics and worked in several manufacturing and metal companies for many years. From 2005 she is CEO of OOO Masterfibre-Alliance. 136 IPR_digest_eng.indb 136 T Y P E O F AC T I V I T Y: RUBBER AND PLASTIC PRODUCTS; CONSTRUCTION HTTP://WWW.SPORT-FLOOR.RU WWW.MASTERFIBRE-ALLIANCE.RU 28, UL. BOLSHAYA OCHAKOVSKAYA, MOSCOW, RUSSIA C O N T AC T S : PHONE: +7 (495) 221 5074, 506 8931, 501 1103 Company profile OOO Masterfibre-Alliance belongs to the group of companies developing the Sport Floor brand. The company produces flooring for closed and open sports grounds (for professional, children’s and mass sports), as well as artificial lawns. The Masterfibre-Alliance product catalog includes rubber crumb flooring, polymer floors (from polyurethane and acrylics), epoxy coatings and self-leveling floors. The history of Masterfibre-Alliance started in 2005, when the company obtained the license for manufacturing rubber crumb flooring under an innovational Australian technology adjusted to the Russian climate. Today, apart from sports grounds flooring, Masterfibre-Alliance also manufactures industrial flooring for small and medium businesses (floors for garages, stables, warehouses, car service facilities, etc.). Since the moment of its foundation the company has been involved in active cooperation with state companies and organizations financed from the state budget. Among our customers there are such organizations as UZhS-1 (residential construction), Mosstroy-4 (construction), and Glavmosstroy (construction). We participate in the development of Moscow yards in cooperation with Mosproekt (construction design institute), Mosarkhitektura (architectural department) and Chief Urban Planning Department of Moscow, helping our children to grow up healthy and active. Masterfibre-Alliance products and solutions obtained several diplomas at Russian innovational exhibitions; they were also approved by the Art Council of the Chief Urban Planning Department of Moscow. Our team The team working for Masterfibre-Alliance includes experts of high professional level responsible for continual improvement of our technologies, logistics and manufacturing. We arrange training sessions for our operators, and our customers can be sure: every Masterfibre-Alliance employee working over their projects is a true professional. Our employees assume personal responsibility for the quality of our products; that’s why we are sure of it, and all types of our products have a many-year warranty. Our values We consider it our duty to support development of sports in Russia. We build our work on the principles of social responsibility. We are committed to quality and try our best to make our environmentally friendly, injury-free floorings available for the widest possible range of customers. We want every child to have an opportunity to go in for sports or play at children’s ground without risk. Customer-oriented approach is a must for us. We always strive to offer a customized solution which will suit the particular customer best. N E W E C O N O M Y : 1/14/09 8:51:18 PM A DDR ESS: T Y P E O F AC T I V I T Y: NEATEH STROY OOO CONSTRUCTION; ACTIVITIES AUXILIARY TO MARKET FUNCTIONING HTTP://WWW.NEATEHSTROY.RU OFFICE 133, BUILDING 8, 1, UL. ENISEYSKAYA, MOSCOW 129344 RUSSIA C O N T AC T S : PHONE/FAX: +7 (495) 223 2441, 972 3384, (985) 221 0993 E-MAIL: [email protected] T Valery Strebkov CEO Valery started his career at the age of 17, working as a metal turner at the Zagorsk MechanoOptical Plant, Moscow Region. Later he worked in the Central Research Institute of SpecialPurpose Machine Engineering (Khotkovo) and studied in the All-Union Correspondence Machine Engineering Institute, obtaining a diploma of a mechanical engineer in precision mechanical instruments. During the next years Strebkov worked as a design engineer, held such positions as head of the measuring instruments department, chief power engineer, engineering manager of VNPO Remdetal. He participated in the development and tests of technical and medical precision measuring instruments. Since 1997 Strebkov has worked on the market of metal structures and frame tent shelters on his own. His brilliant mind and engineering expertise enabled him to invent and perfect a specific shelter design. He patented quite a number of important subassemblies and models. I N N O V A T I O N IPR_digest_eng.indb 137 he group formed by the companies NEATEH STROY and NEATEH STROY CENTER operates on the market of frame tent shelters used for a variety of purposes: from construction site weather protection to large warehouse complexes. The company operates throughout Russia, from Kaliningrad to Sakhalin, from Murmansk to Sochi and Astrakhan. Innovational solutions by OOO NEATEH STROY make it possible to assemble over 1,000 different sizes and types of shelters, with structure spans of up to 44.5 m. It only takes one or two months to construct such a shelter, from the moment of the order to the completed building entirely ready to operation. This means we can construct our buildings “here and now,” providing quick solutions for a wide range of time-dependent business needs. The latest designs of OOO NEATEH STROY include portable shelters, sliding-roof shelters for working with large-dimension freight, and a technology for reconstruction of old unused workshops into spacious multifunctional production facilities. NEATEH STROY frames can be used for building greenhouses covered by special tent fabric. The modular frame simplifies the installation greatly; large shelters can be quickly converted into several small ones, and, vice versa, a small shelter can be upgraded to a larger one using a set of additional parts. NEATEH STROY shelters have been successfully used by such corporations as TRANSSTROY, TRANSMONOLIT, METROSTROY, TRANSGIDROSTROY, Mostotrest, Volgomost, Elgad, Mosstroy-31, Myulkhan Morflot, Knauf, Zodchy, Vishera, Tilts (Latvia), Latvias Tilty (Latvia), SIA TVA Construction (Latvia), Arzamix (Finland), shipbuilding companies: Krasnye Barrikady, Astrakhansky Korabel, Moryak, Vyborg Shipyard, etc. OOO NEATEH STROY has a registered trademark, a license from the Federal Agency on Technical Regulation and Metrology, and an international ISO 9001:2000 certificate. NEATEH STROY and NEATEH STROY CENTER participate in a number of international expositions in Moscow and CIS countries. We are eager to offer you our services in construction of any-purpose easy-toassemble frame tent shelters. Your order will be completed within one month! I N S I G H T I N T O R U S S I A 137 1/14/09 8:51:18 PM A DDR ESS: T Y P E O F AC T I V I T Y: PERESVET GROUP CONSTRUCTION HTTP://WWW.GKPERESVET.RU BUILDING 1, 14, UL. PERVAYA DUBROVSKAYA, MOSCOW 115088 RUSSIA C O N T AC T S : PHONE: +7 (495) 789-8888 FAX: +7 (495) 677-1519 P Oleg Pronin General Director Member of the Peresvet Group Board of Directors Graduated in law from the Academy of the Federal Security Service, with the German language as his second major. Encourages honesty, faithfulness to one’s word and respect to people in his team. Does not make difference between how he builds his life and his company: “I live in such a way: I love my job, and it loves me too. That is why the business is developing successfully.” Peresvet Group has solid experience in dealing with elite and business class real estate. The following are some examples of the completed elite class projects in Moscow: the District at Patriarchy Ponds, Tikhomirovo (Kuntsevo-2) residential compound, and Hymenaeus business and retail center; business class: Cascade and Olympus residential compounds in Moscow, and Blue Topaz in Volgograd. 138 IPR_digest_eng.indb 138 eresvet Group dates back to 1995. Today the activities of Peresvet Group member companies cover most of market sectors: development of residential and commercial real estate, real estate broker’s services, mortgage services, housing and public utilities, insurance, and construction and finishing materials. Peresvet Group has its presence in the Moscow Region, big cities in the Volga Federal District and the South of Russia (Volgograd, Nizhny Novgorod, Saratov, Rostov-on-Don and Krasnodar), Uzbekistan and Ukraine. The main focus of the Group’s activities is property development. Peresvet Group carries out a full cycle of development, from working out the project concept and land allocation to realty sale and management. At present, the portfolio of the Peresvet Group includes more than 60 projects covering a total area of more than 4.1 million square meters. The biggest urban residential real estate projects are the following: Emerald City, a housing development in the city of Saratov. The total area of construction will make up approximately 640,000 square meters. The housing development will represent a uniform architectural ensemble. The project envisages complex site development basing on the “city in the city” principle. A housing project for 8 central city blocks in Krasnodar. It is planned to build the residential quarters of elite and business classes, a luxury residential area, and an A (B+) class business center in this area. Block 217 (an A class business center) and two office and residential business-class complexes were the first to be commissioned. The out-of-town residential real estate segment includes the Cottage village Zhem-Ilyi (Zhemchuzhina Ilyinki, the Russian for Pearl of Ilyinka), Moscow Region, 9 km away from Moscow Ring Road. The project stipulates building of town-houses and low-rise multipleapartment buildings. The total area of buildings on 38 hectares will be 184,170 square meters, including dwelling space of 110,000 square meters. The village will be a business class infrastructure including a shop, a fitness center with a swimming pool, a restaurant, chemist’s, cleaner’s, a kindergarten, and a bank department. Particular attention will be paid to the security of future tenants (checkpoints, around-the-clock security and video control systems). There is a Program of building of the April mall chain in the segment of commercial real estate. At present it includes 5 projects with the gross construction area of 105,276 square meters at different stages of implementation in the towns of the Moscow and Kaluga Regions (Obninsk, Pavlovsky Posad, Klimovsk, Sergiev Posad, and Electrostal). In total, it is planned to build at least 10 shopping centers with the gross area of 200,000 square meters under the April brand. The A class office complex Peresvet-Plaza (property 5, ul. Sharikopodshipnikovskaya, Moscow). The concept author is Zaha Hadid, a world-renowned architect. The projected seven-floor building has a dynamic complicated form with cantilevers protruding considerably regarding the external dimensions of the ground floor (either overhanging or retreating in depth). The idea of the British architects was to create the feeling of airiness both in the exterior and interior of the building, fill the space with light and arrange free open zones. The entire building is designed in the typical Zaha Hadid hi-tech style. N E W E C O N O M Y : 1/14/09 8:51:18 PM C O N T AC T S : A DDR ESS: SFERA-N T Y P E O F AC T I V I T Y: OOO CONSTRUCTION OFFICE 410, 10, UL.FABRICHNAYA, NOVOSIBIRSK 630007 RUSSIA PHONE: +7 (383) 299 3860; +7 (383) 227 8208 PHONE/FAX: +7 (383) 227 8215 E-MAIL: [email protected], [email protected] S Viktor Kutakov Director In 1998 he graduated with honors from Novosibirsk Surveying & Mapping College with majors in land development. In 2006 he completed distant education in Siberian State Surveying & Mapping Academy with majors in Informational Systems. Track records: 1998 – 2000 he spent in FGU ZapSibNIIgiprozem (geodetic surveyor); 2000 – Committee for Land Resources and Land Development of Novosibirsk District of the Novosibirsk Region (specialist, II category); 2001 – FGU Land Cadastre Chamber of the Novosibirsk Region; 2002 – FGU Novosibirsk Cadastre Center Zemlya. In February 2002 he established and led OOO SFERA-N. I N N O V A T I O N IPR_digest_eng.indb 139 FERA-N was established in 2002. The company is a professional in all kinds of topographical and geodesic maps and land development. In June 2003 OOO SFERA-N obtained License No. 698 of the Federal Security Service of Russia in the Novosibirsk Region and Licenses No. 3SG-0015G and No. 3SG-0015K of the Federal Service for Geodesy and Mapping of Russia. During development process the company acquired experience in such activities as design of buildings and facilities (License No. GS-6-5401-26-0-54052315-98-004795-1 of the Federal Agency for Construction, Housing and Communal Infrastructure) and appraisal (License No. 010625 of the Federal Agency for State Property Management). The company plans to obtain an exploration license and accreditation for technical inventory of real-estate units. The list of geodesic and land development activities includes: – Land plot allocation and on-site delineation of boundaries; – Geodesic survey and engineering of any nature; – General topographic survey at 1:5000 – 1:10000 scale; – Design siting and layout; – As-built survey; – Survey of underground and surface facilities; – Leveling of surface; – Estimation of maximum (minimum) land plot dimensions; – Boundary survey and land plot inventory for registration of land ownership rights; – All kind of land-related formalities, from application to local authorities through to obtaining documents from State Registration Agency; – Land-related diligence documents. The Company also fulfills various design jobs: – Design of buildings and facilities up to 25 floors high inclusively; – Development of general layout solutions, engineering service designs, and planting of greenery; – Design of heating, ventilation, air conditioning, water supply, sewage, heating system, up to 10 kV electricity supply, electrical lighting systems; – Design of transportation facilities and transportation complexes, as well as design of streets and local roads in residential areas. Appraisal during real estate-related transactions implies a number of standards which are strictly followed by our appraisers: – Correct identification of property and all respective property-related rights; – Consideration of intended use and mission of appraisal targets; – Identification of constraints and estimation of appraisal date; – Identification of the appraised type of value; – Consideration of all types of legal restrictions of right of property; – Identification and consideration of cost-impacting factors related to appraised property, equipment or intangible assets. The Company offers all types of appraisal activities. I N S I G H T I N T O R U S S I A 139 1/14/09 8:51:19 PM A DDR ESS: SILIKON INNOVATION FIRM, OOO T Y P E O F AC T I V I T Y: CONSTRUCTION MATERIALS HTTP://WWW.SILIKON-IF.RU OFFICE 716V, 165, UL. NEMIROVICHA-DANCHENKO, NOVOSIBIRSK 630087 RUSSIA C O N T AC T S : PHONE: +7 (383) 346 5247 PHONE/FAX: +7 (383) 346 5535 E-MAIL: [email protected] S Yury Peterson CEO Author of 8 inventions and 40 publications, laureate of the Director of the Year contest, Peterson is listed in the Russia’s Best People Encyclopedia and the book “Golden Fund of the Nation.” He is a corresponding member of the Academy of Social Sciences. 140 IPR_digest_eng.indb 140 ilikon Innovation Firm, established in 1991, was the initiator and pioneer of mass application of Silikon waterproof (doped) non-autoclaved foam-gas concrete. Its overall technical qualities and cost efficiency surpass both traditional (brick, wood, panels) and modern (foam plastic, mineral wool, etc.) materials. Silikon can be used both in low-rise construction and multistoried construction. The principal activity of OOO Silikon is design, supply of equipment and components, commissioning, and support of plants for manufacturing blocks and structures from waterproof foam-gas concrete. The plants have different capacities (from 500 to 200,000 cubic meters per year) and have all the necessary facilities, from warehouses to a mini-laboratory. They feature low cost, low energy consumption and quick commissioning and payback. With the total cost of organizing block production 10 to 30 times lower than the cost of a similar-capacity brick plant, the Silikon plant can produce nearly all that is required for erection of a building structure. During the 17 years of its work OOO Silikon Innovation Firm, holding a leading position in the field, supplied more than 130 plants to different regions of Russia, as well as to China, Iran, Ukraine, Mongolia, Kazakhstan, and Kyrgyzstan. Together with the Administration of the Novosibirsk Region, the Siberian Branch of the Russian Agricultural Academy, and other organizations, the firm participates in pilot projects within top-priority national projects Affordable and Comfortable Housing to Russian Citizens and Development of the Agroindustrial Sector, and federal targeted programs Housing, Energy Saving, Own House, and Russia’s Environment and Natural Resources. The company’s task is to construct environmentally friendly, heat-saving individual houses in rural areas, with a cost of $20,000 to $40,000. OOO Silikon, a pioneer in many aspects of non-autoclaved foam-gas concrete production and application, boasts a lot of innovations: – Waterproof (doped) foam-gas concrete. – Intensive production technology with thermal and mechanical mass activation, enabling a 2- to 4-fold reduction of the holding period. – The patented flexible-bottom formwork and laser cutting. – Mass production of blocks with different textures. – Cost-efficient high-performance design of “warm-core” outward walling. – Cost-efficient “warm” foundation from waterproof foam-gas concrete for low-rise construction. – A range of all-inclusive micro and mini plants capable of producing from 2–3 to 100 houses per year. – A mini laboratory with a set of equipment for continual nondestructive quality control. – Portable truck equipment for producing monolithic foam-gas concrete to be fed into the walls, ceilings, and floors, with an activating mixer, dosing concrete elevator, and an autonomous power generating unit. Innovations offered by Silikon enable considerable (1.5 to 3 times) reduction of construction cost while ensuring better quality. As a consequence, the housing becomes more affordable, and energy and natural resources are saved. N E W E C O N O M Y : 1/14/09 8:51:19 PM ECOLOGY IPR_digest_eng.indb 141 1/14/09 8:51:20 PM METTEM TECHNOLOGIES BARRIER TRADE MARK, ZAO A DDR ESS: T Y P E O F AC T I V I T Y: PURIFICATION OF WATER HTTP://WWW.BARRIER.RU BUILDING 3, UL. PARKOVAYA, BALASHIKHA, MOSCOW REGION, RUSSIA 143900 C O N T AC T S : PHONE: +7 (495) 529 42 93 FAX: +7 (495) 677 1519 E-MAIL: [email protected] M Vladimir Maslyukov CEO A true expert of his business, Maslyukov graduated with honors in computational mathematics and computer science from the Lomonosov Moscow State University, where he did his postgraduate studies afterwards. Before heading ZAO METTEM Technologies, he had come a long way from an employee to the director of Luxoft, and later worked as Quality Director for ZAO Kaspersky Lab. Maslyukov continues using every opportunity to improve his skills. He obtained an Executive MBA degree and studied in the business school of Antwerp University, Belgium. 142 IPR_digest_eng.indb 142 ETTEM Technologies, existing since 1993, produces certified domestic water filters under the BARRIER trade mark. By 2000 the company had been selling BARRIER filters throughout Russia and in multiple CIS and extra-CIS countries (Ukraine, Belarus, France, Serbia, etc.). Today METTEM Technologies is a recognized leader of the national pitcher filter market. More than 6 million Russian families use BARRIER products. In 2007 BARRIER water filters were named Trade Mark No. 1 and Brand of the Year in Russia and won the Choice of the Year award in Ukraine. Their quality was recognized by such international organizations as Water Quality Association and National Sanitation Foundation (NSF). The company has also passed the ISO 9000:2001 certification. BARRIER pitcher filters Requiring no special installation, ready to operate right after the purchase, BARRIER pitcher filters enjoy high demand both in Russia and abroad. Today there are 7 designs available on the market, all sizes, all colors: BARRIER Grand, BARRIER Grand Neo, BARRIER Norma, BARRIER Premia, BARRIER Extra, BARRIER Compact, and BARRIER Eco. Replaceable cartridges for pitcher filters BARRIER offers four types of cartridges, depending on the type of water contamination. All cartridges feature unique design by ZAO METTEM Technologies unrivalled by any other domestic filter manufacturer. BARRIER-4 provides high-quality treatment of tap water without much contamination, cleansing the water of active chlorine, organochlorine impurities, pesticides, and petroleum products. BARRIER-5 cleanses the water, adding some fluorine according to sanitation norms to prevent caries. BARRIER-6 decreases the hardness of water, eliminating most contaminants at the same time. BARRIER-7 reduces the inorganic iron content in the water. Tap nozzle filters The BARRIER Selecta filter is mounted directly on the tap. Its convenient filtering mode switch (continual/periodic) enables saving the cartridge resource. BARRIER Optima, installed near the sink, has a separate tap for clean water. A microprocessor-driven cartridge life indicator will show the exact time when the cartridge has to be replaced. Streamline filters BARRIER streamline filters are powerful systems utilizing the latest water treatment technologies. Integrated in the running water piping, they provide unlimited clear water supply. BARRIER VM is a unique pre-filter for household appliances. Eliminating coarse particles, it protects the heating units from damage caused by dirty tap water. BARRIER Aqualine is an efficient streamline filter enabling high-quality treatment of tap water. BARRIER Profi is a three-step filter manufactured in three versions: for water without much contamination, for hard water, and for water with excessive inorganic iron content. The filter cleanses tap water, preserving its natural salt balance. BARRIER COSMOS provides four-step reverse osmosis water treatment. Being the only filter which eliminates bacteria and viruses in addition to mechanical impurities, it is recommended for water that can be hazardous from the microbiological viewpoint. At the same time, BARRIER C-OSMOS does not shift the pH, preserving it at the neutral level. N E W E C O N O M Y : 1/14/09 8:51:20 PM NAFTAGAZPOSTAVKA T Y P E O F AC T I V I T Y: ZAO TOURISM A DDR ESS: 54, BUILDING 1, UL. MOSFILMOVSKAYA, MOSCOW 119590 RUSSIA C O N T AC T S : PHONE/FAX: +7 (495) 775 0764 E-MAIL: [email protected] I Alexey Khorunzhy CEO Born in 1956, Khorunzhy graduated from the Moscow Aviation Institute where he majored in designing antenna feed systems. He has been the CEO of the company since 2002. Since March 2008, he has been an advisor to the head of the Federal Service for Supervision over Use of Natural Resources. Since 1997, he has been occupying executive positions in various enterprises of the gas industry. His total work experience is 29 years. I N N O V A T I O N IPR_digest_eng.indb 143 n the Firovo District of the Tver Region, a project is underway to construct a business club that will be called “Ecological Tourism Center Two Capitals.” The project involves 15 separate plots bordering Lake Shlino (one of the most beautiful lakes in the Valdai uplands) on one side and a forest on the other side. The fact that the club is located in such a special place and in a point that can be equally easily reached from both Russian capitals – Moscow and St. Petersburg – means that it can be used for meetings of the business elite, corporate events, and conferences, with optional entertainment, recreation, and tourism services (fishing, hunting, recreational tourism). A yacht club and a park of hydroplanes are some of the obvious advantages of the new club that will be appreciated not only by the guests, but also by professionals of the tourism industry. Thanks to the partnership with Naftagazpostavka, investors of the project have an opportunity to take part in a modern, ecologically-oriented project combining ancient Russian traditions and innovative trends. The club location is uniquely suitable for ecotourism. In the present-day technological world, active recreation not only gives one new impressions and information, but also brings some rest to people who are tired of the noise and polluted air of megalopolises. The territory around Lake Shlino has a number of features – such as its geographical location, biological diversity, intact natural flora, viable populations of large predators, historical and cultural heritage, low urbanization level (as compared to the Moscow and Leningrad Regions) and numerous villages that preserved their traditional, ancient appearance – which form a combination of factors that is exceptionally favorable for a successful ecotourism business. The Valdai upland has the cleanest environment in Central Russia. The territory is surrounded by forests. It lies in a moderately continental climate. Winters are fairly mild, with enough snow. Summers are cool and wet. Large populations of moose, European roes, brown bears, wolves, foxes, and some birds (heathcock, wood grouse, hazel grouse, ducks, etc) are found in the territory of the club. Over 30 species of fish are found in the lake, including eel, carp, pikeperch, asp, pike, grayling, whitefish, vendace, and bream. Ecotourism routes can be developed to satisfy even the most demanding tourists, across forests, mountains, and along waterways. While on the route, travelers can enjoy the unique landscape views, wild nature, and historical sites that are monuments to the history of development of Russian state. During walks around the lake (which appeared in the post-glacial period), our contemporaries can observe the same world, nature, and wild animals that was seen by countless generations of those peoples who lived on this land before us. For example, tourists can see here a Russian bear and Russian wolf – and see them in a legendary land, the kingdom of the Russian bear and the last place in the Europe where the oncenumerous population of wolves still exits. Members and guests of the business club can also enjoy hunting, fishing, river boating, bike trips, skiing, yachting, kitesurfing, and jet-skiing. I N S I G H T I N T O R U S S I A 143 1/14/09 8:51:20 PM C O N T AC T S : PRESS-TORF ENVIRONMENTAL INITIATIVE CENTER T Y P E O F AC T I V I T Y: A DDR ESS: CHEMICALS AND CHEMICAL PRODUCTS; SEWAGE AND REFUSE DISPOSAL, SANITATION AND SIMILAR ACTIVITIES HTTP://WWW.PRESS-TORF.M-B.RU, WWW.M-B.RU 90, UL. TRUDA, KIROV 610046 RUSSIA PHONE: +7 (8332) 38 5944, 65 4483 FAX: +7 (8332) 64 3501 E-MAIL: [email protected], [email protected] S Anatoly Kozminykh President Born in Kirov in 1958, Kozminykh has a university degree and is qualified as a patent engineer by the Russian Society of Inventors and Innovators. In February 1993 he founded ZAO Marketing Bureau, which he has been heading since. He initiated the establishment of ZAO Press-Torf Environmental Initiative Center, being its cofounder and president. Kozminykh received special training in marketing, management, finance, and law, including SABIT training, training in the Japanese-Russian Economic Center and in the Academy of National Economy under the Government of the Russian Federation. Within Press-Torf, Anatoly directs commercialization of new technologies. A co-author of some technologies, he participated in multiple international and Russian innovation forums where Press-Torf projects received awards. 144 IPR_digest_eng.indb 144 mall Innovation Enterprise ZAO Press-Torf Environmental Initiative Center was founded in 2002 as an affiliated company of ZAO Marketing Bureau, a well-known Russian metal trader established in 1993. Among the founders of Press-Torf there were scientists and researchers developing means for elimination of oil spills and spills of biologically active substances. Our primary activities include: – Applied research in biotechnology; – Bioremediation of oil-polluted soil and water; – Technologies for elimination of heavy metal salts and radioactive nuclides from industrial sewage. The company produces the Sorbonaft hydrophobic peat-based oil sorbent on a commercial basis, using an original technology based on the works by O. M. Gridin, D.Sc. in engineering, Professor of Moscow Mining Institute, member of the Russian Academy of Natural Sciences. Based on this sorbent, an oil spill recovery technology was developed. Special stationary equipment makes it possible not only to process a 100-square-meter polluted area within one minute, but also to utilize the oil-saturated sorbent later. The Foundation for Assistance to Small Innovation Enterprises supports another project of ZAO Press-Torf, a compact mobile sorbent application kit. The kit is indispensable for elimination of small (local) polluted areas that special-purpose vehicles cannot reach. A similar kit proved really helpful in 2007, when the consequences of an oil pipeline rupture were eliminated in the Nizhny Novgorod Region. The International Science and Technology Center (ISTC) helped us create several versions of oil-oxidizing hydrophobic biological sorbents under the Biosorbonaft brand; new facilities for biological sorbent and oil-oxidizing culture production are being launched at the existing plant. Special absorbent materials have been developed for enterprises with hazardous substances in their sewage (above all, heavy metal salts and radioactive nuclides). Based on nanocomposite powders, they can absorb 95% to 100% of the substances in question within a broad range of pH values. Our long-standing partners include the Russian Technical Physics Research Institute (Russian Federal Nuclear Center) in Snezhinsk, NPO Vektor in Novosibirsk, Institute of Biology of the Ural Branch of the Russian Academy of Sciences in Syktyvkar, Moscow State University, and Petroleum Chemisorption Institute of the Siberian Branch of the Russian Academy of Sciences in Tomsk. Our business offers include: – Technology transfer and elimination of oil spills. – Creation of oil sorbent protective stock, on a consignment stock basis. – Research and development projects in environmental protection and biotechnology. N E W E C O N O M Y : 1/14/09 8:51:20 PM E L EC T R IC A L M AC H I N E RY A N D A P PA R A T U S , E L E C T R O N I C A N D OP T IC A L EQU IPMENT IPR_digest_eng.indb 145 1/14/09 8:51:21 PM BOLID RESEARCH AND PRODUCTION COMPANY, OOO T Y P E O F AC T I V I T Y: A DDR ESS: ELECTRICAL MACHINERY AND APPARATUS, ELECTRONIC AND OPTICAL EQUIPMENT; RESEARCH AND DEVELOPMENT HTTP://WWW.PNPBOLID.RU BUILDING 6, 2, UL. ELEKTROZAVODSKAYA, NOVOSIBIRSK 630015 RUSSIA C O N T AC T S : PHONE: +7 (383) 325 3317 PHONE/FAX: +7 (383) 325 3315 E-MAIL: [email protected] T Leonid Sarin Director Sarin graduated from the Novosibirsk Electrical Engineering Institute in 1981. After serving in the Soviet Army he worked in the Siberian Research Institute of Energy for 13 years. It was in this institute that he organized the laboratory of composite resistance materials in 1989, becoming its head. Since 1998 Sarin heads OOO Bolid Research and Production Company. 146 IPR_digest_eng.indb 146 he principal area OOO Bolid Research and Production Company (PNP Bolid) focuses on is development of composite conductive and dielectric materials, including multifunctional nanomaterials, and production of composite-material-based electric devices and household appliances. Since 1995 PNP Bolid has its own plant facilities. Commercial products manufactured from the new composite conductive material EKOM include the following: – Protective resistors for neutral grounding in 3 kV to 35 kV networks (protection from arc surges and ferromagnetic resonances). – Cubicle switchboard resistors for partial neutral grounding in 3 kV, 6 kV, and 10 kV substation networks and internal networks of power stations, including nuclear ones. – Pulse load resistors for overshoot suppression cabinets used to protect electric motors with RC chains. – Household and industrial infrared heating devices (electric-panel heaters). – A modular load device for commissioning gas-turbine and gas piston power stations. EKOM is patented in Russia. PNP Bolid also has utility model patents for the electricpanel heater and protective resistor. To date the company has produced and commissioned over 500 resistors with rated voltages of 3, 6, 10, and 35 kV. The resistors have been installed in internal networks of combined heat-and-power stations (CHPSs) and aerial cable networks with different neutral grounding modes. The high professional level of PNP Bolid employees and its up-to-date precision instruments enable the company to conduct a wide range of operations related to electricity network examination and analysis. The company completes the full operation cycle, starting at the design phase and ending at the installation and commissioning phase. The professional qualification of our personnel guarantees high quality. Such works have already been completed for substations of Northern, Eastern and Central Networks of OAO Kuzbassenergo, CHPS-3 of OAO Saratovenergo, CHPS-2, CHPS-3, and CHPS-4 of OAO Novosibirskenergo, CHPS-9 and CHPS-11 of OAO Irkutskenergo, OAO Gazprom, etc. PNP Bolid leads extensive research. We regularly provide the data on the usage of our resistors at different scientific conferences in St. Petersburg, Moscow, Norilsk, as well as in Ukraine. Besides, PNP Bolid holds a biennial scientific and technical conference on Overshoot Suppression and Neutral Grounding Modes in 6 to 35 kV Networks (in cooperation with the department of high-voltage electrophysics and engineering of the Novosibirsk State Technical University and ZAO Feniks-88). Thus, the fourth national conference was held on September 26–28, 2006, hosting over 160 experts in power supply systems and companies involved in oil and gas, chemicals, mining, and metals. Future plans of the company include introducing new technologies, penetrating new markets, and developing and manufacturing new high-quality products. The company’s awards include: – The medal of the contest winner at the Fifth Specialized Exhibition and Congress of YUKOS (Tomsk, 2004). N E W E C O N O M Y : 1/14/09 8:51:21 PM – A diploma of the contest “Siberian Athens” in the nomination “New Scientific Projects and Technologies” (Novosibirsk, 2001, 2003, and 2004). – A diploma of the contest “Golden Medal of the Siberian Fair” in the nomination “Energy and Resource Saving” (Novosibirsk, 1997, 1998, and 1999). – A diploma in Energy and Electrical Engineering (Khabarovsk, 2003). – A diploma of the ElectroTechnoExpo exhibition (Moscow, 2002). – A diploma of the exhibition of Electricity Networks of Russia (Moscow, 2006 and 2007). – Winner of the Golden Mercury contest (2007). – Winner of the Novosibirsk Brand contest of products, services and technologies (2003, 2005, and 2007). – A diploma of the conference, seminar, and specialized exhibition of RAO UES of Russia (Moscow, 2007). – The order “Professional of Russia,” 2nd degree (2007). – The decoration “Golden Fund of Enterprise of Russia” (2007). – The honorary sign “Engineering Glory of Russia” (2007). Business proposal PNP Bolid offers the following services: – Development of new composite materials at the customer’s request, including materials with nanoparticles, having the necessary electrophysical properties. – Analysis of voltage surges in electricity networks of power supply enterprises and coal strips. – Diagnostics of problems arising in operation of power units. – Overshoot suppression systems for 6 to 35 kV distribution networks with resistors used to ground the neutral. – A modular load device for checking autonomous power supply units. – Heating appliances with prolonged service life, power-saving, environmentally friendly and fire-safe. – An industrial floodlight for exterior lighting of large production areas, featuring power saving and prolonged service life. I N N O V A T I O N IPR_digest_eng.indb 147 I N S I G H T I N T O R U S S I A 147 1/14/09 8:51:21 PM EMK OOO Petr Trifonov Director Trifonov is decorated with orders “Leader of the Russian Economy” and “Star of Creativity,” as well as medals. Always in the heart of all production-related issues, he reacts promptly and correctly to changes in the market demand, improving the technologies and enhancing the personnel qualification. Attentive and friendly but exigent, he enjoys well-deserved authority among the employees. He has diplomas and letters of gratitude from different public organizations and state bodies. 148 IPR_digest_eng.indb 148 T Y P E O F AC T I V I T Y: A DDR ESS: C O N T AC T S : FABRICATED METAL PRODUCTS; ELECTRICAL MACHINERY AND APPARATUS HTTP://WWW.TRAMP.RU 46, UL. 22-GO PARTSYEZDA, SAMARA 443066 RUSSIA PHONE/FAX: +7 (846) 999 3045, 279 2610, 279 2659 E-MAIL: [email protected] OOO EMK was founded in 1995 and initially focused on electrical products supply. With the ongoing development of own production the company received an opportunity to react to market changes more promptly, diversifying the product range, enhancing quality, and raising the technological level and design of its products. Production of electrical equipment for residential and industrial objects, commercial organizations, public welfare institutions, etc. is the main activity of the company. OOO EMK manufactures more than 100 types of certified high-voltage and low-voltage electric equipment. Three processing sections (blank section, assembly section and powder coating section), as well as the testing laboratory and a shop, enable the company to manufacture electrical devices and parts. The electrical engineering laboratory checks the equipment for standard compliance. All the products to be supplied to customers are controlled by the laboratory. Moreover, our services include testing customers’ electric materials if necessary. The core of our products is formed by customized equipment manufactured under customers’ specifications. Our products are sold both in Samara Region and outside it. Reasonable pricing, combined with good quality and reliability, is what makes OOO EMK products different. Equipping the company with up-to-date facilities is a most important issue for any plant. OOO EMK pays great attention to this aspect. The plant has a machining section, repair section, cutting and bending section, painting section, and assembly section. We understand perfectly that new modern process equipment is a must for improving the quality and labor environment. However, the renovation proceeds slower than we would wish because of the high costs. Both Russian and imported components are used during the assembly, but Russian ones are preferred now, as they are cheaper and offer the same quality today as the foreign ones. Using domestically produced components enables us to reduce the labor input and make the finished product more cost-efficient. The planned expansion will involve introduction of state-of-the-art manufacturing technologies, ISO 9001 compliant quality management, and manufacture of new products. Thus, we have already launched production of concrete modular package substations and replaced arc welding with Kemppi-type welding in carbon dioxide environment; the latter made it possible to reduce electrolytic grinding machine operation and cut the time needed for finishing welds; we therefore received an opportunity to release operators’ time and transfer metalworkers to other operations. OOO EMK is an active participant of charity projects of such organizations as Patrons of Art of the Century International Fund, “Star of Creativity” supervisory council of the Russian National Academy of Culture, and the All-Russia Public Movement My Shar Zemnoy Podarim Detyam (Let’s Give the Globe to the Children). We sponsor orphanages, churches, etc. Petr Mikhaylovich Trifonov has headed OOO EMK since its foundation. A moderntype manager with an economic university degree, he has shown himself a professional in electrical engineering, managing to expand the production facilities considerably, enhance the quality, increase the output, and create new jobs. N E W E C O N O M Y : 1/14/09 8:51:21 PM IRE-POLUS A DDR ESS: SCIENCE AND TECHNOLOGY SOCIETY, OOO T Y P E O F AC T I V I T Y: ELECTRONIC AND OPTICAL EQUIPMENT HTTP://WWW.NTOIRE-POLUS.RU 1, PL. AKADEMIKA VVEDENSKOGO, FRYAZINO, MOSCOW REGION 141190 RUSSIA C O N T AC T S : PHONE: +7 (495) 702 9589 FAX: +7 (495) 702 9573 E-MAIL: [email protected] F Valentin Gapontsev CEO Gapontsev was born in Moscow in 1939. He graduated from the Lvov Polytechnic Institute and started working in a special design bureau of the Ministry of Radio Industry of the USSR in Lvov. After completing postgraduate studies at the Moscow Institute of Physics and Technology, he was hired by the Institute of Radiotechnics and Electronics of the Academy of Sciences of the USSR, where he worked for 35 years. Gapontsev is an outstanding, internationally renowned Russian scientist, author of more than 400 scientific papers, patents, and reports prepared for major international conferences. In 1991 he founded IRE-Polus, which he eventually built into a strong international concern, IPG Photonics Corp. (headquartered in Massachusetts, USA) which is a world leader in the fiber laser industry. Gapontsev is currently the CEO and Chairman of the Board of PG Photonics Corp. I N N O V A T I O N IPR_digest_eng.indb 149 ounded in 1991, IRE-Polus was a founder – and now is a key part – of the transnational corporation IPG Photonics Corp., which has scientific centers, manufacturing facilities, and sales offices in Russia, Germany, USA, Italy, United Kingdom, India, Japan, South Korea, and China. IPG is the only company of Russian origin that has become a leader in the world market of laser and fiber appliances. IPG is headed by an internationally renowned scientist, Valentin Gapontsev. Starting virtually from scratch, without a technology base, financing, or state support, he and a handful of his assistants managed to very rapidly develop a breakthrough technology platform for fiber lasers and amplifiers, and brought to the market hundreds of competitively priced unique tools and systems with unprecedented performance characteristics, opening the door to a great variety of new applications of laser technology. As a result, a small Russian engineering company grew into an international concern which is an undisputed leader in its sector, controlling over 75% of world’s production in the fastest-growing sector of laser and electronic appliances which is potentially worth billions and billions of dollars. The company has created a powerful vertically-integrated group of research and production enterprises which lists among its permanent customers most of the leading automotive, aircraft, space, telecommunications, and microelectronics companies, as well as heavy industry enterprises, nuclear power plants, railroad carriage plants, shipbuilding companies, metal works, major oil and gas companies, construction companies, etc. Today IRE-Polus, located in the town of Fryazino (Moscow Region), jointly with other companies of the IPG Group develops and manufactures fiber and laser optic components, aggregates, modules, instruments, subsystems and systems used in following fields: fiber, free-space, and satellite optic communication, cable TV, laser material processing, optical radars, remote control of industrial facilities and atmosphere, monitoring and testing, sensors, scientific research, and biomedicine. And it is only IPG that manufactures super-powerful fiber lasers whose output power is measured in kilowatts: such lasers have been developed and are manufactured for many sectors of industry. Such well-knows automotive companies as Hyundai, Toyota, PS, Nissan, BMW, Bosch, Thyssen Krupp, Dana Automation, Arcelor, Magna, Delphi, and others realized that fiber lasers produced by IPG suite their needs better than any others and can replace traditional arc-welding appliances in manufacture of spare parts and even in line assembly of cars and trucks. And some of the largest integrator companies, including Amada, Mitsubishi Heavy Metal, SHI, Daihen, Bystronic, Siemens, GSI, WainTrail, Fincantieri, Finsomac, and Comau, started replacing gas lasers in metal cutting and welding machines by IPG fiber lasers. In the telecommunication field, virtually all of the world’s leading manufacturers, including Siemens, NEC, Alcatel, Lucent, Marconi, Fujitsu, C-Core, and many others, are customers of IPG. During the past few years, IRE-Poyus have been successfully implementing in Russia and CIS its cutting-edge solutions in such areas as backbone and regional optical fiber communication. With technologies of the new breakthrough generation in its toolset, IRE-Polus can become a starting point of a whole new area of modern high-tech industry in Russia. I N S I G H T I N T O R U S S I A 149 1/14/09 8:51:22 PM KOSMOS GROUP T Y P E O F AC T I V I T Y: A DDR ESS: C O N T AC T S : ELECTRICAL MACHINERY AND APPARATUS, ELECTRONIC AND OPTICAL EQUIPMENT HTTP://WWW.KOSMOS.RU 6, UL. PROIZVODSTVENNAYA, MOSCOW 119619 RUSSIA PHONE: +7 (495) 787 4246 FAX: +7 (495) 787 4247 E-MAIL: [email protected] K Alexander Savelyev President. Member of the Expert Council under the Energy Committee of the State Duma In 1983 Savelyev graduated from the Moscow Technological Institute of Light Industry, Automation Department (MTILP). In 1983–1986 he was a senior engineer in the MTILP data center. In 1986–1991 he worked for the Main Administration for Service of the Diplomatic Corps (GlavUPDK). In 1991–1992 he founded and became the president of the Young People Association for Business and Cultural Cooperation with Foreign Countries (MADiKS) under GlavUPDK. Starting from 1993 and until now he is a founder and CEO of Kosmos Group. 150 IPR_digest_eng.indb 150 OSMOS Company (former Topservice) was established in 1993 and registered in Moscow. Currently it is a dynamically developing production and distributing company which holds a leading position in the power-saving appliance market. Our specialty is marketing, manufacturing, and distribution of Kosmos brand goods. Kosmos means high-quality power-saving and efficient electrical appliances at most affordable prices! The best factories in six countries – Russia, Ukraine, Belarus, China, Korea, and Japan – use state-of-the-art technologies to produce Kosmos products. Our team consists of approximately 300 persons. Kosmos representative offices are located in 17 cites in Russia, Ukraine, Belarus, Kazakhstan, and Uzbekistan. The distribution network consists of 700 dealers in 110 Russian cities and 11 dealers in CIS countries and the Baltic States. Its products are distributed to major retail chains like METRO, REAL, Media Markt, Carrefour, SELGROS, OBI, LEROY MERLIN, CASTORAMA, DIXY, HOME CENTER, MOSMART, AUCHAN, SEVENTH CONTINENT, PEREKRESTOK, MIR, LENTA, etc. Kosmos sees one of its priorities in the expansion and development of powersaving lamps production in Russia. We have a unique in-house technology for powersaving lamp manufacturing. The product line of our lamps can replace standard filament lamps in any lighting appliances, due to their minimum dimensions and technical specifications. In November 2008 Kosmos will start Russia-first large-scale industrial assembly of power-saving lamps in the city of Saransk. This project was supported by the Government of Republic of Mordovia. There were several development stages in the company’s history: creation of a nationwide electrical goods distribution network, development and marketing of the Kosmos brand, gaining a leading position; setting up the first power-saving product manufacturing facilities in Russia; establishment of Kosmos Energo-Service company which performs as a complex solution developer in the power saving field today. Innovation products – A system of automatic lighting adjustment based on a vandal-proof lighting appliance with an optical-acoustic ON/OFF switch and a motion detector. A compact luminous tube equipped with an electronic microprocessor-based ballast guarantees more than a million on-off cycles. In the dark it provides bias lighting (at 20% of lamp capacity), while upon the detector triggering the lamp switches to 100% capacity. – An automatic system of commercial accounting of power consumption with the wireless ZIGBEE data transmission unit which, apart from commercial power consumption registration, also allows to adjust allowed electric loads both for individual end consumers and for consumer groups. That allows to reduce power network loads through fixing all connected loads at values stipulated in the consumer agreements. In case of any power-saving arrangements which result in release of extra power reserves this new system holds the new consumption settings fixed and does not allow consumers to switch back to power-hungry technologies. N E W E C O N O M Y : 1/14/09 8:51:22 PM ORION SCIENTIFIC AND TECHNOLOGICAL CENTER, OOO A DDR ESS: T Y P E O F AC T I V I T Y: ELECTRICAL MACHINERY AND APPARATUS, ELECTRONIC AND OPTICAL EQUIPMENT HTTP://WWW.NTC-ORION.RU OFFICE V-202, 20A, UL. KUSKOVSKAYA, MOSCOW 111141 RUSSIA C O N T AC T S : PHONE/FAX: +7 (495) 660 2566 (MULTI-CHANNEL) E-MAIL: [email protected] O Alexander Ilyin CEO Alexander graduated from the automation and computers department of the Gubkin Russian State University of Oil and Gas, Moscow, 1980. From 1980 to 1990 he worked as a design engineer in the Geophysics Research Institute. He was awarded the Prize of the Council of Ministers of the USSR for developing an application package for processing seismic prospecting data. From 1990 to 2001 Ilyin held senior managerial positions in a number of Russian companies. He has headed Orion Group since the moment of its foundation in 2001. He organized conferences on different aspects of cash machine operation and maintenance. I N N O V A T I O N IPR_digest_eng.indb 151 rion Scientific and Technological Center produces different electronic equipment certified under ISO 9002:96. Priority fields include development, manufacture, and support of cash registers, computerized cash machines, PoS terminals, digital scales, shop equipment, and other retail automation equipment. Since 2001 OOO Orion has proved competitive not only throughout Russia, but also in CIS countries, such as Uzbekistan, Georgia, Belarus, Azerbaijan, Armenia, and Kazakhstan. Today’s OOO Orion has a highly professional team of developers (designers, circuit engineers, and software developers). The company assembles its products at a state-of-the-art plant in Naro-Fominsk, Moscow Region. The floor area of its production facilities is about 4,000 square meters. The plant has the following shops: – A machine shop for machining of metal parts and assembly of mechanical components. – A foundry for casting plastic parts. – An assembly shop where electronic components and controlling units are assembled, and ready equipment is test-run. The production facilities are equipped with up-to-date imported devices, such as: – KuASY thermoplastic-molding machines. – JUKI surface-mounting equipment. – Selective soldering machines SPA-400 (Germany), for automation of dense-packed point-to-point wiring. OOO Orion has formed long-term relationships with leading manufacturers of hardware components, sub-assemblies and units from Europe, South Asia and Japan. The company uses state-of-the-art devices created by leaders in microelectronics, such as ROHM ELECTRONICS, ALPS ELECTRIC, TEXAS INSTRUMENTS, HOLTEK, MINMAX ENERGY TECHNOLOGY, ANALOG DEVICES, etc. OOO Orion is a member of the Russian Association of Cash Machine Manufacturers and the Association of Russian Manufacturers of Electronic Apparatus and Devices. The company has an extensive dealer network; 1700 maintenance centers throughout Russia have signed dealership and maintenance contracts with OOO Orion. The company can manufacture custom electronic devices at the customer’s request: – Assembling electronic units. – Manufacturing plastic and metal parts, including housing parts. I N S I G H T I N T O R U S S I A 151 1/14/09 8:51:22 PM POWER STATION SIMULATORS ZAO T Y P E O F AC T I V I T Y: ELECTRICAL MACHINERY AND APPARATUS A DDR ESS: C O N T AC T S : HTTP://WWW.FPPS.RU 15, SEMENOVSKY PER., MOSCOW 107023 RUSSIA PHONE/FAX: +7 (495) 360 0926 PHONE: +7 (495) 360 4777 E-MAIL: [email protected] P Alexander Rubashkin CEO Rubashkin has been working in the electric power industry since he graduated from the Moscow Power Engineering Institute in 1960. From 1960 to 1993, he worked in ORGRES (SOYUZTEKHENERGO) Firm. He started with a position in the automation department. During that period, he participated in installing and fine-tuning of automation equipment at the State District Power Stations. In 1972, he organized a computing center of the firm and became its head. He was invited to the USA, Finland, China as a simulation modeling expert. In 2007, the Scientific Council of the Moscow Power Engineering Institute awarded him the D.Sc. degree for his thesis dealing with the theory of creation of comprehensive (all-mode) analytical models of thermomechanical processes and control systems of power generation units at thermal power plants. Rubashkin is an author of more than 40 scientific papers and reports. 152 IPR_digest_eng.indb 152 ower Station Simulators was originally established in 1991. The company focuses on the following activities: development of analytical digital models of technological processes and management system processes at power generation units of fossil power stations and in electric power grids, and use of such models in creation of simulation software (used for training operators of power enterprises) and for analyzing complex operation modes of power equipment. All models and simulators created by the company are developed with the help of the original highly efficient modeling software named SIM-2000 (certificate of Russian Patents Department No. 2001610817 of July 2, 2001. Developed and owned by A. S. Rubashkin and V. A. Rubashkin). The modeling technique developed by a team headed by A.S. Rubashkin is based on processing structural and design characteristics of the modeled equipment. Unlike most of other well-known techniques used for the same purpose (including those used in Europe and the USA), our technique not only reproduces those processes that have already been studied during practical operation of the equipment, but can also design, research and predict any processes and operation modes, including those that have never been tested experimentally – for example, during the pre-launch (design) period. Simulators use the same hardware and software to model both equipment operation processes and equipment control systems. Simulators developed by ZAO Power Station Simulators are used: – At training centers and departments of power grids and power stations for the purpose of teaching and training their personnel. By the end of the year 2007, 28 simulators of 14 different types were installed and functioning at 21 sites. These simulators can model 13 different types of boiler units and 8 types of steam turbines, as well as different heating systems for power units and stations, including the closedfeed one. Models and simulators of combined cycle plants and those of complex power grids powered by one or multiple stations. – In higher educational institutions for teaching power-related subjects to students and for R&D. – By personnel of scientific, engineering, and power enterprises for analyzing and improving operation modes of active and newly designed power complexes. Besides, the company’s simulators are widely used in network-wide, regional, national, and international competitions of fossil power plant operators. The company keeps enhancing and upgrading the existing software to stay abreast with the ever increasing computing capabilities of new hardware that appears on the market. The company keeps in touch with practically all customers who bought one or more simulators, providing consultations on use of simulators for personnel training and enhancement of equipment performance, and gathering information about new wishes of customers and any shortcomings of the simulators. Any faults or bugs are fixed free of charge by patches or instructions that are e-mailed to customers, or by supplying new, enhanced versions of the simulation software. N E W E C O N O M Y : 1/14/09 8:51:23 PM GEOLOGIC A ND PROSPEC T ING AC T I V I T I E S IPR_digest_eng.indb 153 1/14/09 8:51:23 PM MAPPING SURVEYING BUREAU ZAO A DDR ESS: T Y P E O F AC T I V I T Y: GEOLOGIC AND PROSPECTING ACTIVITIES HTTP://WWW.K-G-B.RU BUILDING 1, 21, UL. YASNOGORSKAYA, MOSCOW 117463 RUSSIA C O N T AC T S : PHONE/ FAX: +7 (495) 412 0529, 427 7911 E-MAIL: [email protected] M Dmitry Boronin Director Boronin graduated from the Moscow Topographical Polytechnic School and Plekhanov Russian Academy of Economics, and did his postgraduate study in the All-Russia Research Institute of Scientific And Technological Advance and Information (VNIINTPI) of the Federal Agency of Construction, Housing and Housing Services of the Russian Federation of Russia (Rosstroy). His awards include the title of an Honorary Geodesist, a diploma from the Patriarch of Russia, and the Order of the Saint Blessed Prince Daniil of Moscow (3rd degree). 154 IPR_digest_eng.indb 154 apping Surveying Bureau, established in Moscow in 2002, has all the necessary licenses and permissions to work in geology, geodetics and mapping surveying. These include licenses from the Federal Agency of Construction, Housing and Housing Services of the Russian Federation (Rosstroy), Federal Security Service of the Russian Federation, and the Federal Agency of Geodesy and Cartography. The company focuses on geological, geodetic and mapping activities in such fields as engineering survey, construction, building management, landmarking, cadastre management, and other survey-related and specific tasks. The company uses up-to-date geological and geodetic equipment. Field measurement data are analyzed and reports are generated with the help of professional software, based on the information supplied by permanently functioning GPS stations in Moscow and the Moscow Region. Office analysis results can be delivered to a customer in either analog or digital form. Office studies involve Russian and foreign geographic information systems. Using state-of-the-art equipment and software gives us a competitive edge and enables us to complete the tasks quickly and with high quality. The core of the company is its highly qualified experts with university education and wide experience of work in geology, geodetics and mapping surveying. Our mission is to bring new geological and geodetic technologies, based on the most recent Russian and foreign developments, to Russia and the CIS countries. For the five years of active work the company grew its staff to one hundred of trained employees with a background in geology, geodetics, photogrammetry, mapping and landmarking. Most employees’ experience in the field exceeds 20 years. Principal activities of ZAO Mapping Surveying Bureau include: – Geodetics. – Topographic photography. – Digital photogrammetry and topography. – Scanning photos and maps and digitalizing maps. – Mapping, including digital mapping. – Land cadastre, monitoring of land and land management. – Land inventory. – Engineering survey for construction. – Processing satellite photos. – Geological engineering survey. – Ecological engineering survey. We pay a lot of attention to professional training and development of our employees and to introducing new technologies in the field. The competence and good will of our team is a crucial factor in starting long and fruitful partnerships with our customers. ZAO Mapping Surveying Bureau features a high level of professionalism. Our employees feel at home with geodetic instruments and equipment, being able to perform any task in geology, geodetics and mapping surveying. The company uses state-of-the-art equipment, software and technologies. N E W E C O N O M Y : 1/14/09 8:51:23 PM PERM TERRITORIAL CENTER OF STATE MONITORING OOO T Y P E O F AC T I V I T Y: A DDR ESS: C O N T AC T S : GEOLOGIC AND PROSPECTING ACTIVITIES; RESEARCH AND DEVELOPMENT HTTP://WWW.PGM.PERM.RU 60, UL. N. OSTROVSKOGO, PERM 614007 RUSSIA PHONE: + 7 (342) 210 7757 FAX: + 7 (342) 210 7599 E-MAIL: [email protected] I Mikhail Kutergin CEO Perm Territorial Center of State Monitoring of Geological Environment was established in 1995 under the Natural Resource Committee of the Perm Region and Komi-Permyatsky Autonomous District as a special structure in charge of monitoring, analysis and forecast of geological processes. I N N O V A T I O N IPR_digest_eng.indb 155 n early 2006 the Company was restructured into OAO Perm Territorial Center of State Monitoring of Mineral Resources Status (OAO Permgeomonitoring) and in May 2008 in was reformed into OOO Permgeomonitoring. Main Company’s business targets are: – Informational support of Perm Territory Administration and Ministry of Mineral Resources of the RF on the status of geological environment and prudent management of the geological environment, as well as environmental safety during mineral resource management; – State monitoring of geological environment; – Control over ground water contamination and depletion; – Administration, coordination and software support to companies involved in geological environment monitoring within the Perm Territory; – Registration of useful underground water reserves and estimation of their possible utilization; – Establishment of a territorial database of geological environment monitoring; – Development of an integrated analytical and information system of geological environment monitoring within the Perm Territory. To fulfill these objectives the Company executes the following activities: – Collection, analysis, processing and systematization of geological, hydro-geological, mining, processing, water balance and other information related to environmental control and resource management; – Development and compilation of programs, design and budget estimation related to geological environment monitoring programs, hydro-geological, geo-ecological studies and their implementation; – Estimation of fresh, mineral and technical underground waters flow rates/resources at water intake points; – Geo-ecological studies of any nature; – Development of feasibility studies, summaries, recommendations on most efficient management and protection of mineral resources and water bodies, location of artificial waste disposals and dumps; – Development and introduction of a territorial-level informational and analysis subsystem for geological environment monitoring within the RF USEMS; – Preparation of hydro-geological, geotechnical and geo-ecological maps; – Creation of databases covering underground water reserves and their management, dangerous geological processes and their development; – Delivery of information to interested companies and mineral developers on geological environment status, as well as about eventual emergencies related to geological environment changes; – Development of programs dedicated to safety and rehabilitation of geological environment and water bodies; – Design audit as regards geological environment monitoring and control. I N S I G H T I N T O R U S S I A 155 1/14/09 8:51:24 PM SPETSGEOLOGORAZVEDKA OOO C O N T AC T S : T Y P E O F AC T I V I T Y: A DDR ESS: GEOLOGIC AND PROSPECTING ACTIVITIES 2, UL. SEDOVA, TULA 300028 RUSSIA PHONE: +7 (4872) 353 686, 359 003; FAX: +7 (4872) 350557 E-MAIL: [email protected] S Vladimir Zubchenko CEO Zubchenko graduated from the Dnepropetrovsk Mining Institute in 1976. He worked in geological prospecting expeditions in Tajikistan, Uzbekistan, Turkmenistan, West Ukraine and Moscow Region, participated in geological prospecting for the national-scale project of the Yavansky Chemical Plant in Tajikistan. In mid-80s he drilled freshwater wells for borderline kishlaks (villages) and frontier posts in the Eastern Pamir. Vladimir is Corresponding Member of the International Academy of Social Sciences and Chair of the Tula Regional Branch of the Russian Geologic Society. An initiator of a song festival dedicated to the Geologist Day (2004), he organized a real high day not only for his colleagues but for all lovers of guitar poetry. For the five years the festival gained popularity, becoming an interregional event; OOO Spetsgeologorazvedka remains its chief organizer and sponsor. In 2007 the Ministry of Natural Resources of Russia decorated Zubchenko with the “First Class Prospector” breastplate. 156 IPR_digest_eng.indb 156 petsgeologorazvedka was established by a group of colleagues headed by V. V. Zubchenko in 1994. Zubchenko had already had vast experience of geologic practice and management gained in multiple regions of the Soviet Union. The new firm rented a drilling machine and started drilling new and repairing existing water wells for different companies. Later the Company bought out the drilling machine, purchased other equipment, increased the staff, and started systematic expansion of its activities. The Company met its 15th anniversary with some results to boast of. It would take several pages just to list all the types of drilling, prospecting, groundwater survey, hydrologic, geophysical, survey and design work our team performs today. We will name only some of them here: groundwater studies for protection and replenishment of subsurface waters, estimation of human-caused environmental impact caused by injection of industrial sewage into aquifers, construction of surface and sub-surface water environmental monitoring networks, study of exogenous processes in the natural environment and in populated areas, collection, summary and analysis of historic data on the environmental situation and forecasts of its possible changes. The rise of the national economy boosted up the demand for such services as geological engineering survey for industrial and residential construction, oil and gas pipelines, water pipelines, roads, etc.; as the land plots are gradually put into circulation on the market, the need to determine and fix the lot lines and their registration in the cadastre grows, too. V. V. Zubchenko says that geology is a mega-science covering a variety of adjacent sciences, uniting quite different fields and methods of work. That provides for the great number of activities that OOO Spetsgeologorazvedka is involved in and for its great potential of further growth, impossible without innovations. At present the Company has a large fleet of equipment, a certified soil lab and a chemical lab, an optimum store of drilling apparatus and heavy machinery, state-of-theart digital appliances, satellite positioning systems and latest software. But the Company’s principal resource is its professional team, with its core formed by field experts with university education and 15 to 30 years of working experience. OOO Spetsgeologorazvedka works in many regions of Russia, including the Tver Region, Krasnodar Territory, the Republic of Bashkortostan, etc. The Company is involved into a battery of studies within the regional targeted programs for Environment and Natural Resources of the Tula Region, 2007–2011 and Reduction of the Risks and Remediation of the Consequences of Natural and Human-Caused Emergencies in the Tula Region, 2008–2010; it manages the environmental monitoring programs at the closeddown coal mines and pits of the Moscow Coal Basin. In 2008 the Company successfully completed works under a federal contract (survey for fresh groundwater in the valley of the Krushma River, Aleksin District, Tula Region, to be used for water supply to Tula). N E W E C O N O M Y : 1/14/09 8:51:24 PM H E A LT HC A R E IPR_digest_eng.indb 157 1/14/09 8:51:25 PM A DDR ESS: MALAVIT T Y P E O F AC T I V I T Y: FIRM, OOO HEALTHCARE HTTP://WWW.MALAVIT.RU 49, ZMEINOGORSKY TRAKT, BARNAUL, ALTAI TERRITORY 656045 RUSSIA C O N T AC T S : PHONE/FAX: +7 (3852) 68 5544 E-MAIL: [email protected] D Viktor Dvornikov CEO Viktor Dvornikov is Doctor of Sciences in biology and a professor of integrative medicine. He bears the titles of an Honored Inventor of Russia and Labor Hero of Russia. He is a member of the Russian and European Academies of Natural Sciences and a number of Russian and foreign academies. He is decorated with the Order of Peace (2nd class) and Vernadsky Star (the highest award of an international academic union); he was laureate of Ludwig Nobel Prize and National Patrimony Prize 2006. He was elected into the Territory’s Public Chamber (a public consultative body) of the second convocation. 158 IPR_digest_eng.indb 158 evelopment and usage of medicines based on natural raw materials has become one of the most promising fields of development of world clinical and preventive medicine in the latest decades. Among the Russian companies working in the field OOO Malavit Firm is one of the leaders. The company’s founder, architect, and CEO is Viktor Dvornikov. Having graduated from the Altai State Medical Institute, Dvornikov plunged into research in new approaches to cancer treatment. In 1990 Viktor created Malavit, a unique highly efficient broad spectrum health-improving medicine with 37 natural ingredients based on structured water. In order to initiate its industrial production and implementation of other scientific projects Viktor Dvornikov founded OOO Malavit Firm together with Tatyana Dvornikova, a member of the European Academy of Natural Sciences (Hanover) and Yury Nikolayevich Yastremsky, an Honored Inventor of Russia. Today the Company produces the Malavit line of medicines: a soap, a cream gel, a toothpaste, anti-cellulite and children’s creams, articulation creams and a shampoo created under Dvornikov’s original Malavit technology. In the near future the firm is going to produce cloudy cosmetics and toners, washes, suppositories, and bioactive supplements. Besides, from 2007 on the firm is involved in the development of the project of global water treatment at water intakes and industrial wastewater drainages of large cities, development of tourism infrastructure in the Mountainous Altai, and bottling of pure potable water. One confirmation of the Company’s high achievements was the opening of Malavit Center – the Altai Research Center of the Russian Academy of Natural Sciences. In 2007 OOO Malavit Aqua was registered, along with the Malavit Altai Research Center of Water Research. The employees of the Centers study the structure and biological functions of water, methods of its cleaning from the “information smog,” develop new power, power-saving and information technologies and alternative energy sources. Malavit Firm has developed prototypes of mini-hydroelectric power stations enabling larger power and simpler designs as compared to the existing technical solutions. In November 2007 Malavit was one of the representatives within the Russian Delegation at World Energy 2007, Rome. Besides, Malavit management took active part in the joint Russian-Australian Business Forum “Innovation in building our economies and linking Russia and Australia” (Brisbane, September 5–6, 2007). Working over the Malavit technology, the Company has received more than 80 titles of protection for inventions, useful models, and industrial designs. The results of Malavit research and production repeatedly got high estimates at innovation and investment expositions in Russia, Germany, Belgium, France, Switzerland, and other countries. The Company’s activities were acknowledged with the National Patrimony Prize 2006 and the Golden Medal for Guarantee of Quality and Safety (2005 and 2007). In 2007 the International Club of Business Leaders awarded the Company with the title of a Leader of the Russian Business. Viktor Dvornikov was decorated with numerous orders and medals for his significant contribution to the protection of the national health. In March 2008 he was awarded the Labor Hero Order in the Kremlin. N E W E C O N O M Y : 1/14/09 8:51:25 PM A DDR ESS: LABORATORY NIZAR T Y P E O F AC T I V I T Y: HEALTHCARE HTTP://WWW.NIZAR.RU 6, 1-Y DOROZHNY PR., MOSCOW, RUSSIA C O N T AC T S : PHONE/FAX: +7 (495) 916 9695 E-MAIL: [email protected] N Umar Akhsyanov President A professional doctor, Umar Akhsyanov is the founder of the Nizar Laboratory and first president of the Russian Perfume and Cosmetics Association. He participated in research in the laboratory of bioactive emulsions of the Central Institute of Hematology and Blood Transfusion, upholding his PhD thesis on the subject: Application of fluorocarbon emulsions as an oxygen-carrying blood substitute. Akhsyanov is the author of over 100 publications and patents, including those on using bioactive emulsions in cosmetology and medicine and on using apparative cosmetology equipment. I N N O V A T I O N IPR_digest_eng.indb 159 izar Laboratory was founded in 1991, stemming from the laboratory of bioactive emulsions of the Central Institute of Hematology and Blood Transfusion and Institute of Blood Substitutes and Hormonal Agents. The research experience accrued in the field of creating emulsions and liposomal preparations largely predefined the initial direction of the company development – application of scientific knowledge for development and production of new modern cosmetic preparations and cosmetic semiproducts under world highest standards. The research laboratory has always been the chief generator of Nizar’s ideas. It is here that the current principal activity of Nizar – creation of highly active carrier nanosystems acting as bioactive substances and universal carriers of active substances and related cosmetic preparations – stemmed from its fundamental research. The research team of Nizar consists of highly qualified employees, scientists of different specializations – doctors, biologists, chemists, process engineers, including PhDs in medicine, biology, and chemistry. According to the statement of the International Institute of Industrial Property, the estimated result of the company’s intellectual activity for 2001 exceeded RUR 200 million. This result was confirmed by the certificate issued by the Institute. The research team of Nizar actively cooperates with the leading scientific organizations of Russia and the CIS. Through 17 years of the laboratory activity more than 500 cosmetic preparations and more than 50 nanodisperse semiproducts were developed, tested, and certified. Among fundamentally new inventions which are used for cosmetic production until today the following can be highlighted: liposomal dispersions with 80 to 250 nm particles, nanoemulsion forms of oxygen carriers based on perfluorocarbon and silicone emulsions, and an oxygen mineral water complex with high content of Karlovy Vary mineral salt, a component that influences oxygen and carbon dioxide delivery and biological activity. Recent achievements in the field of nanotechnologies and nanoparticles include the third-generation nanosystem NizaCell™. The internal structure and functionality of this multiple nanoemulsion of silicone compounds resembles a living cell with W/O emulsion having particle sizes from 60 to 90 nm. Another one is the Nizazol™ micellar preparation, which consists of minute particles (20–50 nm) containing different bioactive substances. The micelle form of bioactive substances increases skin application efficiency from 5 to 10 times. Nizar Laboratory has 25 patents of the Russian Federation and multiple scientific publications in Russian and international journals. The production facilities of Nizar Laboratory are located in the town of Pushchino, Moscow Region. Their capacity comes up to 1.5 million pieces of cosmetic products per month. Semiproducts manufactured by Nizar are exported to Europe, Asia, America, and Africa. Up-to-date high-tech equipment of its production workshops enables the laboratory to produce almost any cosmetics. Nizar meets highest Russian and international standards; it is ISO 9001 certified. I N S I G H T I N T O R U S S I A 159 1/14/09 8:51:25 PM ACADEMY OF BEAUTY AND HEALTH T Y P E O F AC T I V I T Y: HEALTHCARE A DDR ESS: C O N T AC T S : 4, UL. NOVAYA IPATOVKA, MOSCOW 125297 RUSSIA PHONE: +7 (499) 745 8813 FAX: +7 (499) 150 8376 M Marina Larskaya President, Professor, Doctor of Sciences in Medicine, Member of Russian Academy of Medical and Technical Sciences (RAMTN) 160 IPR_digest_eng.indb 160 odern medicine means constant scientific search, highest possible professional level of doctors, state-of-the-art equipment, and a comprehensive approach to healthcare organization. I am glad that today Russia has doctors and clinics for which all these criteria are a reality rather than just another handful of nice words. One of such clinics is the Academy of Beauty and Health established by Marina Vladimirovna Larskaya, professor, Doctor of Sciences in Medicine, Member of the Russian Academy of Medical and Technical Sciences. For the seventeen years of its existence the clinic has become one of Russia’s leading medical institutions using laser technologies. Operations and treatment unique for Russia and for all the world are conducted here, with cutting-edge designs used. This is not a surprise, as the founder of the clinic, Professor Larskaya, with her 30 years of medical experience, stood at the origins of the world laser medicine. She is an author of two major discoveries in the field. It is under her leadership that the Academy of Beauty and Health became a No. 1 clinic for treatment of post-operation scars, burns, accidents, injuries, and animal bites of children and grown-ups. Professor Larskaya has developed innovational equipment and techniques for treatment of congenital and acquired defects, aftereffects of injuries, diseases, and operations. Without any surgical intervention and incisions, with just an endolaser appliance, functions of articulations, intervertebral disks, and muscles can be restored, and vascular defects or tumors eliminated. Neither the issues of beauty are forgotten here: the endolaser technique makes it possible to model a new figure, make the face young and neat, and get rid of wrinkles. Patients from all Russia and many countries, including extra-CIS, come to the Academy for treatment or esthetical correction. Thousands of children and adults have already managed to regain health and life quality. A new department of the Academy formed recently is the Clinic of Biolaser Technologies and Autologous Cell Transplantations. To eliminate signs of age and correct esthetic features, we use nanotechnologies. No harmful materials are allowed to enter the organism: we work with the patient’s own live cells, and the patient is rejuvenated smoothly and naturally. Such an approach supports the patients’ health, along with making them look better. The clinic is based on the multiprofile hospital which has all the necessary departments and services. Besides, it is a basic clinic of the Medical Department of Moscow State University. All that guarantees most efficient performance and safety of all the techniques used. The clinic is included into the governmental program for nanotechnologies. Professor Larskaya’s designs in the field of laser surgery brought her a state award. But the president of the clinic is not going to stop at what has been accomplished. Professor Larskaya is positive that nanotechnologies have an infinite potential in the medicine. In this regard the availability of the necessary equipment is an important factor. Since the 1980s, when modern laser equipment started to appear, the development of advanced medical technologies has never ceased. Several discoveries of world importance have been made in the laser medicine since. All this served as a basis for the emerging field of laser dermatology, cosmetology, plastic surgery, and reconstructive surgery. N E W E C O N O M Y : 1/14/09 8:51:25 PM A DDR ESS: AKELA-N T Y P E O F AC T I V I T Y: OOO HEALTHCARE 20, 1-Y MICHURINSKY TUP., MKRN. SKHODNYA, KHIMKI, MOSCOW REGION 141420 RUSSIA C O N T AC T S : PHONE: +7 (495) 574 0159, 574 0151 E-MAIL: [email protected] A Irina Kolesova CEO Born in 1957, Irina graduated from the Moscow Financial Institute in 1980. She has headed OOO Akela-N since 1992. Vladimir Potapov Director for Research and Production Vladimir was born in 1951 and graduated from the Moscow Bauman Higher Technical School in 1974. He holds a PhD degree, is a corresponding member of the Russian Academy of Medical and Technical Sciences and a laureate of the Vocation Prize (2008). I N N O V A T I O N IPR_digest_eng.indb 161 kela-N was founded in December 1990. Its founders saw as their mission to create a perfect highly-efficient multi-purpose facility for producing rare noble gases of ultra-high purity: krypton, xenon, neon, and gas mixtures to be used by different commercial enterprises. As of the foundation of the company such gases were mostly used in electrical engineering and electronics, defense and space industry, and in different research institutes and laboratories for fundamental research and development. It was ten years ago that the team of OOO Akela-N developed a unique technology of commercial xenon purification for use in medicine. This invention enabled the company to start financing the project for introducing xenon into medicine. This project is of great importance for healthcare development both in Russia and worldwide. The clinical trials of medicinal xenon produced by OOO Akela-N under the KseMed® brand, as well as many years of its wide use in medicine, proved its high efficiency and safety as an anesthetic and discovered quite a range of indications for its use as a multipurpose medicine. Unlike other artificial anesthetics, xenon is a natural noble gas safe for the human organism. The patient recovers from anesthesia in two to three minutes already, with fully recovered conscience and without any side effects. In December 2007 the Ethical Committee of the Ministry for Healthcare and Social Development of the Russian Federation issued a permit for holding clinical trials of KseMed® on children – a unique case as no other medicine in the world was tested on children. The future trials will enable xenon use not only in the child surgery, but also in obstetric anesthesiology where doctors work with two patients, the newborn baby and the mother, at a time. Apart from the principal indication of xenon usage as an anesthetic, its use as a multipurpose medicine is developing actively. Xenon therapy treats the most terrible illnesses of the 21st century efficiently; thus, it can be used to influence the human immune system, making it use inner resources for recovery, for example, when treating AIDS, drug addiction and alcoholism. KseMed® usage for treating stresses and depressions should also be mentioned; this application is actively used in military medicine and in emergencies. The extensive work done by OOO Akela-N in the field of how xenon influences the human organism was highly estimated by the Ministry for Healthcare and Social Development of the Russian Federation. V.N. Potapov who heads this field of research was awarded the Vocation Prize for Best Doctors of Russia (2008) in the nomination of a New Field in Medicine. OOO Akela-N, the only producer of medical xenon in Russia, is continuing targeted financing of comprehensive study of xenon influence on the human organism and search of new fields where it can be applied in medicine. OOO Akela-N has a gas analysis laboratory created simultaneously with its foundation. The laboratory is accredited by the Federal Agency on Technical Regulation and Metrology in Quantitative Chemical Analysis of Medicinal Gases. The accreditation enabled the laboratory to expand its activates considerably under the auspices of the Ministry for Healthcare and Social Development of the Russian Federation; at present it is one of the backbone laboratories in the Ministry system. I N S I G H T I N T O R U S S I A 161 1/14/09 8:51:26 PM CENTER OF CLINICAL NEUROLOGY T Y P E O F AC T I V I T Y: OOO HEALTHCARE A DDR ESS: HTTP://WWW.NEUROMED.RU 22–24, NEVSKY PROSP., ST. PETERSBURG RUSSIA C O N T AC T S : PHONE: +7 (812) 314 5884 FAX: +7 (812) 315 7657 A Elena Ukhanova CEO Elena Ukhanova graduated from the Leningrad Pediatric Medical Institute in 1980. She had professional training under the program “Hospital Management Professional,” Stockholm Care, 1996–1997, and another under the program “Management in Healthcare,” Intersectorial Institute of Extension Training and Management Training of the St. Petersburg State University of Economics and Finance, 2003–2004. She also studied at the work experience program “Company management: European experience and innovations” in Germany and Switzerland in 2007. Ukhanova works as CEO of the Center of Clinical Neurology since 2002. 162 IPR_digest_eng.indb 162 specialized neurological out-patient clinic for adults and children, OOO Center of Clinical Neurology was established in St. Petersburg in 2002. The principal goals of the Center personnel are to reduce the number of people who become disabled because of CNS diseases, to assist the rehabilitation of patients, and to help them in their social adaptation. As cerebrovascular pathology holds the first place in Russia in terms of residual disability cases, cardiac neurology became the first specialization to be developed by the Center. Born on the verge of two fundamental sciences, neurology and cardiology, cardiac neurology requires profound knowledge and constant self-development. The Center has been therefore allocating funds for financing professional training of its specialists (at extension courses and at seminars arranged by the Center itself) since the moment it was founded. Developing optimal criteria of diagnostics and treatment of epilepsy is another area the Center focuses on. We have studied the experience of our foreign colleagues from Denmark and Switzerland. This line of work requires further investment. To date a number of non-invasive diagnostic techniques performed on the existing equipment (video-EEG, nightly EEG monitoring, electroencephalography with topographic mapping) help make a quick and accurate diagnosis and select the right therapy. During the first years of the Center’s operation, a special medical record form for epileptic patients was developed. The Center performs research on forming and improving medical service quality standards. Medical examination tests have been developed for physicians, neurologists, cardiologists, endocrinologists, along with standards for ultrasonic diagnostic tests and functional diagnostics tests. We use our own standards for medical documents given out to patients. Time spent for diagnostic and treatment is also studied in order to identify optimum timing criteria for a given service. Our flexible pricing policy enables people with different levels of income receive medical treatment to the extent they choose. For example, diagnostic programs “Cardiovascular system examination in a day” and “Essential hypertension diagnostic program” we developed are popular both with young people and those in their middle years. Programs “Thyroid diagnostics” and “Early diabetes mellitus detection” are also being launched successfully. Programs for observation of children after a perinatal pathology (0 to 18 years of age) developed by the Center are extremely affordable. Perinatal pathology is another field the Center works in, because it is such patients that later form the lion’s share of people with minor neurological problems, and, as a consequence, increase the ranks of those with social adaptation problems. At present the Center conducts research on the “health passport” necessary for all Russian citizens. Since 2008, the Center has been designing the work criteria of visiting nurses. In the course of the Center work, a neuro-ophthalmologist’s consulting room and a nocturnal sleep laboratory were established. N E W E C O N O M Y : 1/14/09 8:51:26 PM I T. C O M M U N I C A T I O N S IPR_digest_eng.indb 163 1/14/09 8:51:27 PM CENTER OF INFRASTRUCTURAL PROJECTS T Y P E O F AC T I V I T Y: ZAO IT A DDR ESS: C O N T AC T S : HTTP://WWW.CIP.RU 65, UL. PROFSOYUZNAYA, MOSCOW 117997 RUSSIA PHONE: +7 (495) 514 0999 FAX: +7 (495) 514 0998 E-MAIL: [email protected] F Aleksey Rogachev Technical Director Graduated from the department of computer science and cybernetics of the Lomonosov Moscow State University. Since 1981 he has been working in the field of geographic information systems. Since 1994 he was deputy director of the State Center of Geographic Information Systems and Technologies. He participated in the development and commissioning of digital mapping technologies and coorganized digital map production in the Military Topography Bureau and the Federal Service for Geodesy and Cartography, being in charge of technological normative document preparation. Rogachev was a member of the Commission for State Licensing of Topographic and Geodesic Service Activity and the Workgroup of the Subcommittee 211 (geomatics) of the International Organization for Standardization. Since 2004 he was deputy CEO in ZAO Center of Infrastructural Projects, and in 2007 he became technical director of the Center. 164 IPR_digest_eng.indb 164 ounded in 2000, the Center of Infrastructural Projects (CIP) is focused on implementing decision support systems (DSSs) in management of geographically distributed corporate assets through geographical information technologies. CIP offers turnkey DSS development, from collecting, processing, and analyzing data through designing the appropriate models to creating all-inclusive managerial workplaces in a certain domain. Such DSSs are based upon the Geographically Distributed Resource Integrated Management System (GDRIMS). This enables wide-ranging analysis and estimation of the state of different infrastructural objects, forecast of possible changes, and consequent development of algorithms and techniques of quick decision support for most efficient management of infrastructural objects. Technologies offered by CIP make it possible for the customer to acquire up-to-date, accurate, and full geospatial data and the models of the DSS subject areas needed for successful management of territorial and economic infrastructural units. The following large customers were the first to order GDRIMS development to the Center: – OAO Federal Grid Company of RAO UES (OAO FGC UES) – for the set of electricity grids with a voltage of 330 kV and above. At present the projects for creating the GDRIMS of 220-kV transmission lines with a total length exceeding 90,000 km for OAO FGC UES are under development; – OAO Moscow United Electricity Grid Company (OAO MUEGC) for 110–6 kV distribution grids (with a total length exceeding 54,000 km) throughout the Moscow Region (47,000 square kilometers). Today CIP holds strong positions on the market of geographic information technologies. Its products find wide application in most diverse areas: – cadastral management of land and property; – urban development, zoning, and territory management; – electricity supply; – mining and oil extraction; – forestry and water resources; – rail and road transport; – housing and communal services; – environmental monitoring and weather forecast; – public security and reacting to emergencies. The Center of Infrastructural Projects employs more than 200 highly qualified specialists with extensive experience in geographic information systems, meteorology, satellite survey, aerial mapping, computer data processing, and modeling of complex processes. Many of them have academic degrees. In 2007 ZAO Center of Infrastructural Projects was awarded its first international prize for “contribution to the competitive edge of Russia.” N E W E C O N O M Y : 1/14/09 8:51:27 PM AEROSCAN T Y P E O F AC T I V I T Y: ZAO IT A DDR ESS: C O N T AC T S : HTTP://WWW.AERO-SCAN.RU 34/63, UL. OBRUCHEVA, MOSCOW 117342 RUSSIA PHONE: +7 (495) 334 9876 FAX: +7 (495) 334 9876 E-MAIL: [email protected] A Igor Kulikov CEO Graduated with honors from the Kharkov Military Aviation High School. In 1984 he started military service in 10th Separate Reconnaissance Aviation Regiment (Byelorussia); afterwards he served in reconnaissance aviation above the Polar Circle, in Monchegorsk. In 1990 he entered the Gagarin Air Force Academy (navigation department) and graduated with honors in 1993. In 1993–1996 he did his postgraduate studies in the Air Force Academy; he is PhD in military sciences and associate professor. After retirement from the army he worked in higher educational institutions and research institutes of Moscow, doing research and teaching. In 2002 he became deputy CEO of ZAO AeroScan, Moscow, and from 2004 he is CEO of ZAO AeroScan. His principal interests are space-follow-up control, air survey, geographic information systems, and applied research in the field of using different manned and unmanned aircraft types in the fuel and energy sector. I N N O V A T I O N IPR_digest_eng.indb 165 eroScan was founded in October 2003 as an affiliate of ZAO Center of Infrastructural Projects for air survey of elongated or wide areas. To this end the company uses advanced technologies and ground and air laser scanning equipment combined with video shooting and digital aerial photography. Data obtained by ZAO AeroScan make it possible to create the following IT products: – 3D digital models of terrain and relief; – digital high-precision orthophotographic plans; – digital models of engineering networks. The Company’s principal service is high-quality 3D technical monitoring of surface and underground infrastructural objects for different industrial customers and territorial management. As of today, the Company employs over 100 specialists, having a good professional background of ground and aerial photography, on the one hand, and vast experience in geodesy, air survey, mapping, IT, and geographic information systems, on the other hand. Due to its high management level and HR potential, the Company became a leader in terms of the total service worth after the four years of its activity on the air survey market in Russia. Using aerial laser scanning, the Company surveyed a total of over 70,000 kilometers of elongated and wide (over 40,000 square meters) objects in 2004–2006. ZAO AeroScan customers are large companies, administrations of certain Russian regions, and municipalities. Among the objects monitored by the Company for its customers are the following ones: – high-voltage transmission lines of OAO Federal Grid Company of the Unified Energy System (OAO FGC UES) and distribution grids of OAO Moscow United Electricity Grid Company (OAO MUEGC); – route of the East Siberia – Pacific Ocean oil pipeline. One of the few Russian companies to successfully master and use laser scanning technologies, ZAO AeroScan actively promotes its proprietary invention, a unique 8-channel integrated air survey suite that offers: – an aerial laser scanner; – photo and video equipment; – IR and UV cameras; – a broadband radio frequency recorder; – data collection and processing systems. ZAO AeroScan was the first in Russia to start using airships for air survey. ZAO AeroScan offers 3D technical monitoring and data collection in any region of Russia, enabling its clients to solve a virtually unlimited range of tasks for managing however composite infrastructural units. I N S I G H T I N T O R U S S I A 165 1/14/09 8:51:27 PM CENTER OF INFRASTRUCTURAL PROJECTS ZAO Scanning the Reality. Formatting the Life. Controlling the Future. 166 IPR_digest_eng.indb 166 Infrastructural solutions: a unique chance ZAO Center of Infrastructural Projects (CIP) is a unique company that combines the processes of management, control, optimization, and maintenance of however complex infrastructural objects. The infrastructural management know-how components include: – continual systematic monitoring of the area and all objects with high-tech methods of earth remote sensing used; – sorting and optimization of structures that store the collected data based on comprehensive IT solutions; – automated management of multiprofile groups of service and maintenance of infrastructural objects. What is efficient infrastructure management? Comprehensive usage of techniques developed and offered by CIP enables revolutionary growth of efficiency of construction and operation of complicated infrastructural projects. 1. Systematic inventory-taking, registration and control of data on objects can make land and property accounting and management much more profound, accurate, and relevant. The efficiency of such accounting (up to 15%) boosts up the market price of the objects radically, makes capital expenditure appraisal more adequate, and enables a more precise tax policy. 2. Economical management of maintenance and repair (M&R) makes it possible to achieve the following important results: – a transition from the planned/preventive M&R scheme to status-triggered M&R where only those sites are subject to M&R that really need it; – efficient organization of maintenance teams due to shutdown of redundant operations and random checks, status-triggered works, and unbiased accounting and control of costs and labor; – total savings of up to 20% of the costs under the traditional scheme. 3. Optimization of material supply, procurement, and stock-keeping provides a considerable saving rate (depending on the infrastructure scope and material and equipment cost). 4. Insurance risks are considerably reduced due to the continual infrastructure monitoring. 5. Construction becomes more profitable with 15% of the total construction budget saved through unbiased control of all the stages of design and construction. Russia: a country which is all infrastructure Russia has traditionally been a country of large industrial companies and natural monopolies, which formed the backbone of the efficient national development from generation to generation, from the Baltic Sea to Sakhalin. The backbone sectors of the national economy – oil and gas extraction, electricity supply, railroad transport, telecommunications, metal processing, the defense industry, agriculture and construction – all need global infrastructural networks. The unified energy system, the gas transporting network, Russian railroads that have been all forming N E W E C O N O M Y : 1/14/09 8:51:27 PM for decades and the new telecommunication network which is being formed now are of strategic importance in terms of both economy and national security. At the same time heads of large corporations and regions of Russia have to face a host of infrastructural problems which need quick and clever solutions. The sore spots of the Russian economic system are, in both the nationwide and local aspects: – wear of basic production assets and infrastructure created as long ago as in the Soviet epoch; – need for a comprehensive upgrade, in fact for a new industrialization of the country after the transformational socio-economic crisis of the 90s; – underdeveloped transport and logistic communications and a tremendous length of trunk lines (tens of thousands of kilometers); – the necessity to make real-time management decisions without stopping complex industrial and transport systems stretched over millions of square kilometers, in different time zones, regions, and climates; – global tasks stemming from the economic growth of the recent years in Russia, that is, large-scale projects in industry and construction, often involving development and operation of infrastructure, sometimes in harsh conditions. Environment: challenges and opportunities As the economy is gradually developing, creating and using environmentally friendly, resource-saving technologies is accruing more and more importance. Preservation and rebirth of Russia’s nature has been acknowledged as a key priority of the governmental policy. “The environmental problems should be discussed practically and persistently, and nature protection should be made a systematic everyday duty of the governmental powers at all levels,” Vladimir Putin has emphasized. The only possible way out of the difficult environmental situation is based on comprehensive innovational solutions in analysis, assessment, and development of the infrastructure of any possible complexity. A systematic approach to solving environmental problems based on an infrastructural analysis, design, and management requires: – continual monitoring of the environmental situation in each region and in the entire country; – new efficient means of controlling emissions and meeting the environmental safety requirements; – environmental-friendly design of large industrial, transport, urban development, and other infrastructural objects. Today’s opportunities of studying, designing and controlling global infrastructural systems make it possible to reach a qualitatively new and higher level of building the human environment. Infrastructural design and infrastructural management enabling multifactor analysis (with the environmental component analyzed, too) are bound to play a key role in this process. I N N O V A T I O N IPR_digest_eng.indb 167 I N S I G H T I N T O R U S S I A 167 1/14/09 8:51:27 PM AR TEKHNOLOGICAL RESEARCH T Y P E O F AC T I V I T Y: OOO IT A DDR ESS: C O N T AC T S : HTTP://WWW.ARTECH.SU 9, SH. ENTUZIASTOV, MOSCOW 111024 RUSSIA PHONE.: +7 (495) 916 9732 FAX: +7 (495) 727 1685, 727 1684 E-MAIL: [email protected] A Alexander Sadchikhin CEO Sadchikhin graduated from the faculty of experimental and theoretical physics of the Moscow Engineering Physics Institute in 1976. He holds a D.Sc. degree in engineering, as well as a degree in physico-mathematical sciences. Sadchikhin co-authored over 100 scientific works and inventions. One of his inventions won silver and bronze medals at international invention exhibitions in Geneva and Brussels. On successful completion of his postgraduate studies, he joined the staff of the Moscow Research Institute of Instrumental Automatics. In 1984 he was appointed the head of a new laboratory that was created in the institute with a view to developing new technologies in the field of projection systems. Since 1991, he has been occupying leading positions in non-state companies created by him with a focus on development and manufacturing projection display systems utilizing new physical principles. Since 1994, he has been working in his current position. 168 IPR_digest_eng.indb 168 R Technological Research (also known as ARTI, from its Russian acronym) is a Russian company that specializes in developing multiple-user composite screen systems (video walls) and integrated systems based on such video walls that are used in situation centers, urban safety video monitoring systems, and various decision-taking centers. The company designs and commercially produces projection cubes with 50”, 67”, 84”, 100”, and 120” screen diagonals that are used as components in large composite screens (video walls), and video processors for controlling the image on the display units. Some of the company’s customers (the General Directorate for Special Programs of the President of the Russian Federation and the Federal Bodyguard Service of Russia) requested that the company should minimize the gap between images on component displays in video walls that were planned to be installed in governmental facilities. To solve this problem, ARTI developed and patented a technology for mounting acrylic screens that was named “Images without borders.” The patented technology is based on the principle of mechanical compensation of inter-screen gaps by means of specially designed springs. With this technology, the mechanical gap between screen sides can be reduced to 0.02-0.05 mm. The gap is stabilized for the thermal expansion quotient of modern screen materials. At the same time, the company solved the problem of thermal distortion of the screens’ geometry, which had been previously caused by differences in properties of the screen material and those of the mounting hardware. As a result, the screens can now be used within a wide range of temperatures without any distortion (they have been tested at temperatures ranging from +5°C to +50°C). The patented technology has advantages over foreign technologies both in terms of the working temperature range and in terms of the width of gaps between images of individual projection cubes. Another very important thing is that in practical implementation of this technology (unlike with similar foreign technologies) there is no need to use any precision machining technologies in manufacture of video-cubes. In 2004, the company completed designing an earthquake-proof version of its projection cubes for use in power unit control panels and at local emergency centers of nuclear power plants. These cubes can withstand an earthquake of VII degree (MSK-64 scale) at heights of up to 10 meters, which is equivalent to a shock of VI degree (on the MSK scale) at a height of 20 meters. Hardware and software solutions developed by our company have been installed in the situational center of the President of the Russian Federation, situational centers of Russian regions, at sites belonging to the General Directorate for Special Programs of the President of the Russian Federation, at the prototype international environmental safety situation center that has been created as a part of a program of the Russia–NATO Council, and at facilities of the Russian Defense Ministry. In implementing our solutions, we pay special attention to seamless integration of our specially developed software (used for displaying information on group-use screens) into various information analysis systems. The management system developed by ARTI can be adapted to any tasks set by the customer. N E W E C O N O M Y : 1/14/09 8:51:27 PM A DDR ESS: COMCOR (AKADO TELECOM) T Y P E O F AC T I V I T Y: OAO COMMUNICATIONS HTTP://WWW.AKADO-TELECOM.RU REGISTERED OFFICE ADDRESS: PAVILION 4, ALL-RUSSIAN EXHIBITION CENTER, MOSCOW 129223 RUSSIA PLACE OF PERFORMANCE: 15, MKR. 29, 3 DOROZHNY PR., MOSCOW 117535 RUSSIA C O N T AC T S : PHONE: +7 (495) 411 7171; FAX: +7 (495) 411 7151 E-MAIL: [email protected] M Denis Lobanov CEO Lobanov graduated from the Bauman State Technical University, and later completed postgraduate studies at the Moscow State Academy of Instrument Making and Informatics (1994). Ph.D. in technical sciences. From 1997 to 2004, he worked in the Moscow State Telephone Network. From June 2004 to January 2005, he headed the Territorial Development Service of OAO Central Telegraph. In January 2005 he returned to the Moscow State Telephone Network as the Head of its Sales Division, and later was appointed the Head of the Service Delivery Division. In July 2006 he became a Deputy General Director for Commercial Activity in the Moscow State Telephone Network, and worked in that capacity until February 2008, when the shareholders meeting of OAO Comcor approved his appointment as the CEO of OAO Comcor. I N N O V A T I O N IPR_digest_eng.indb 169 oscow Telecommunication Corporation (COMCOR) is the largest communication services provider and the leading company in the telecommunication market in terms of technological solutions. The company was founded in June 1992. Since April 2008, OAO COMCOR has been operating under the trademark of AKADO Telecom. It is a part of a telecommunication holding named the AKADO Group of Companies (ZAO Akado) that specializes in providing integrated telecommunication services including television, Internet access, and telephone services. Today, the network of AKADO Telecom is one of the world’s largest metropolitan area network in terms of the volume and diversity of it services and spread of its communication lines. The total length of communication lines is over 18,000 kilometers; one-third of all buildings in Moscow are connected to the AKADO network. Services of AKADO Telecom cover all of Moscow and the territory within 30–50 kilometers around it. The company is a diversified telecommunication operator in the Moscow communications market, offering different types of solutions of varying complexity for different types of customers, including large companies, small and medium-sized businesses, and communication service providers. With its integrated toolset including both classic and cutting-edge technologies (Metro DWDM, 10 Gigabit Ethernet, MPLS, VPLS, SDH) as well as systems for video broadcasting via CATV and over-IP networks, AKADO Telecom can develop flexible and scalable communication solutions and offer sets of services that exactly match the needs of their customers. The company offers services in the following areas: data transfer, Internet access, digital telephony, corporate networks, data protection, datacenter cervices, dedicated digital communication channels, broadcasting TV signals, and transmitting digital audio and video content. AKADO Telekom cooperates with construction companies and owners of real estate used for business purposes, offering them to install modern integraed telecommunication infrastructure in commercial real estate of any size or purpose. A special flexible pricing system has been developed for ISP companies. The network infrastructure of AKADO Telekom enables telecommunication operators to extend coverage areas of their own networks and diversify their services while maintaining high levels of accessibility and manageability of their services. AKADO Telekom owns a modern datacenter for hosting corporate Internet resources and corporate information storage systems, etc. Banks and financial companies of the Moscow Region can use the COMCOR-Bank network to access the payment system of the Bank of Russia for performing real-time online payments, or to connect to various financial or information services. AKADO Telekom offers infosecurity solutions (both individualized and standard ones) based on centralized protection tools. The company has all required licenses to provide confidential information protection services, and infosecurity standards of its network comply with high-level official security requirements. I N S I G H T I N T O R U S S I A 169 1/14/09 8:51:28 PM COMLINK TELECOM T Y P E O F AC T I V I T Y: OOO COMMUNICATIONS A DDR ESS: HTTP://WWW.COMLINKTEL.RU 35, UL. DEKABRISTOV, ST. PETERSBURG 190121 RUSSIA C O N T AC T S : PHONE: +7 (812) 329 6700 E-MAIL: [email protected] C Sergey Gorelov CEO Aleksey Mikhaylov Commercial Director 170 IPR_digest_eng.indb 170 omlink Telecom can be cited as an example of a successful small enterprise. The company whose creation was financed with personal funds of its two cofounders has been successfully working in the telecommunication market of St. Petersburg for more than seven years now, competing with largest telecommunication corporations of the city. Comlink Telecom offers the most up-to-date digital communication services: – 100 Mbit/s Internet access over a leased line; – data transfer, connection of offices into a VLAN or VPN; – connecting customers to St. Petersburg phone lines and allocating intra-city phone numbers; – access to long-distance calls (including international ones); – e-mail, web site hosting, dial-up connection. Today, over 700 large businesses are customers of Comlink Telecom, and the company’s own optical fiber network covers most of St. Petersburg. The list of subscribers of Comlink Telecom includes construction corporations, business centers, state-owned enterprises and organizations, banks, vendors of computers and office equipment, travel companies, media, and many other types of businesses. Every month, Comlink Telecom connects up to 30 new corporate customers to its network. “Innovations are the cornerstone of Comlink Telecom’s success,” says the company’s commercial director Alexey Mikhailov. First of all, he means technological innovations: Comlink Telecom was among the first companies to use state-of-the-art optical fiber communication lines. It was also one of the first telecommunication companies to implement the triple-play service in its network, and its monitoring system is capable of tracking performance of every single node and client, which ensures that the communication service is smooth and uninterrupted. The second area where innovations are used is the company management. Comlink Telecom has built an efficient team of managers and specialists who have the knowledge and training required to implement innovations and cutting-edge communication technologies and to keep the equipment working without any interruptions or downtime. The management structure created by Comlink Telecom can successfully manage a telecommunication operator company of any size. In the nearest future, Comlink Telecom plans to offer its services at the regional Russian markets and to open offices in all Russian cities with population of above 100,000. And the third area of innovative activity is the client service. The company was able to find an individual approach to each customer’s problems, and it makes sure that any questions or requests receive immediate attention at any hour of day and night. As a result, customers of Comlink Telecom are extremely loyal to their service provider. Experts believe that owing to innovations, Comlink Telecom is rapidly developing, and that in two or three years it can grow from a small local communication service provider to a large national-scale telecommunication company. Comlink Telecom benefits from the favorable state of affairs on the Russian communication market, from the high innovative potential of the company, and from the support of small and medium-sized businesses by the state. N E W E C O N O M Y : 1/14/09 8:51:28 PM DENCOM T Y P E O F AC T I V I T Y: OOO COMMUNICATIONS A DDR ESS: C O N T AC T S : HTTP://WWW.DENCOM.RU 2, KOMMUNALNY PR., KHIMKI 141400 RUSSIA PHONE: +7 (495) 573 3374; FAX: +7 (495) 572 6444 E-MAIL: [email protected] D Denis Ermakov CEO Working at a motor transport enterprise, Ermakov rose from a metalworker to a foreman within two years. Since 1995 he worked as a self-employed business person. In 2003 he created OOO DenCom, a manufacturing company he has headed since. Every step a person makes should be bound to a particular goal. Our goal is to establish a Russian production facility matching world’s best analogs and meeting both civil and military requirements. If you are interested in the field, if we have similar objectives – we will be glad to hear from you! I N N O V A T I O N IPR_digest_eng.indb 171 enCom manufactures wireline and wireless communication equipment, hearing protection devices, and safety helmets. Working on the market of professional communication equipment for several years, we saw that Russian manufacturers virtually vanished from the activity. The market was flooded by imported equipment, often not of a very high quality but cheap and looking nice. After several years of work on the market we decided to start small-scale manufacture of equipment, based on the operation conditions and requirements set by our customers. At first it seemed an unreal dream to compete with cheap Asian analogs. But eventually we won customers who appreciated the quality of out products – a fact which gives us confidence. Now we know that manufacturing quality Russian products is worth trying. Another step forward was the launch of two new lines: hearing protection communication devices and safety helmets. However different the areas may seem, they are in fact closely related. There are a lot of activities where such equipment is in great demand. Virtually any enterprise has areas with noise level that can be dangerous for personnel. Deafness is an insidious disease which comes unnoticed little by little. Moreover, when the noise level is high, certain information or orders can be misheard, which, once again, may affect product quality and people’s safety. Our hearing protection devices solve both problems at a time, providing: – Comfortable communication in small groups and plant-wide. – A hot link to expert technicians. These factors are quick to influence the performance, in terms of both quality and speed. We offer a wide range of wireline and wireless solutions. Our mission is to seek new solutions, diversify the product range and reach the level of world’s best analogs. Safety helmets are a new and promising area for us. To date we have developed a number of helmet models for different sports; apart from head protection, they can also serve as a communication facility. The experience we have gained enabled us to start designing a safety helmet for civil aviation pilots, a task undertaken at the initiative of the Ministry of Civil Aviation. Prior to commercial manufacturing, we submit the prototypes for test use; based on test use results, adjustments are made to the design. I N S I G H T I N T O R U S S I A 171 1/14/09 8:51:29 PM GEYSER SCIENTIFIC AND PRODUCTION COMPANY, OOO T Y P E O F AC T I V I T Y: COMMUNICATIONS A DDR ESS: C O N T AC T S : HTTP://WWW.GEYSER.RU 13, UL. VOLNAYA, MOSCOW 105118 RUSSIA PHONE: +7 (495) 784 6330 FAX: +7 (495) 784 6329 E-MAIL: [email protected] G Viktor Koval CEO Victor A. Koval graduated from A.F. Mozhaysky Military Engineering Institute and the Institute of Business Administration in the Academy of National Economy under the Government of the Russian Federation (in Strategic Management). He also studied in the Rotterdam Management School of the Erasmus University. He has more than 10 publications in industry periodicals and proceedings of international conferences on optimum usage of available frequencies, problems of wireless access development, and satellite communications. 172 IPR_digest_eng.indb 172 eyser Scientific and Production Company was founded by experts in satellite communications, navigation, electronics and computer science in 1991. Innovational activity became one of the Company’s top priorities right from the beginning, and now we count multiple solutions which we have brought all the way from ideas to marketable products. Today one of the company’s principal innovation fields is the development and launch of its complex telematics systems Kupol. Satellite navigation systems (GLONASS, GPS, and GALILEO) and cutting-edge communication technologies (from satellite communication to broadband access) combined with computers and the Internet create a breakthrough in the interaction with the world. Information on the status of the object and remote control are now available in real time, regardless of where the object is actually located, and the Internet enables any authorized person to access such information from any place with web access. Our innovational approach drove us to create the telematic platform. A basic solution uniting communications, mapping, navigation, IT, and nanoelectronics, it serves as a foundation for a family of ready-to-use software and hardware products. A number of multifunctional smart proprietary user terminals used as end equipment are adapted to specific tasks that different customers face, from personal trackers small enough to go in a child’s pocket to automated systems used to control coal-mining bucket-wheel excavators remotely. Software for user terminals and dispatching systems, developed internally as well, makes it possible to implement virtually any algorithm of collecting, processing and analyzing data supplied from different sources, such as analog and digital gauges, instruments and meters, photo and video cameras, etc.). A broad range of end products have been created based on these algorithms, from democratic systems with Internet access to multi-layer distributed dispatching systems. Kupol navigation and telematics systems can be adapted to business processes and used in different fields involving transport equipment or operation of complex stationary engineering systems. Kupol-based automated dispatching systems are used in many different activities: in municipal and intercity passenger transport, optimization and control of freight transportation, automated mining-and-transport equipment control, electricity supply, construction and utilities. When installed, such systems increase the enterprise performance by 20 to 30 percent, enabling them to cover the initial deployment cost within six to ten months. Along with industrial solutions, Geyser Scientific and Production Company has developed and applied search-and-rescue systems (with a possibility to send a signal in need of immediate aid) and systems for monitoring and detection of birds and animals. For the Kupol system the company team was awarded a Prize of the Government of the Russian Federation in science and engineering. N E W E C O N O M Y : 1/14/09 8:51:29 PM A DDR ESS: MICROM T Y P E O F AC T I V I T Y: OOO IT HTTP://WWW.MICROM.RU 5/3, UL. FEDOROVA, SURGUT, KHANTY-MANSIYSKY AUTONOMOUS DISTRICT – YUGRA 628400 RUSSIA C O N T AC T S : PHONE/FAX: +7 (3462) 21 1593 E-MAIL: [email protected] S Alexander Kartashev Director Kartashev has been trained as an industrial electronics engineer at the Tomsk State University of Management Systems and Radioelectoronics. I N N O V A T I O N IPR_digest_eng.indb 173 ome of the goals faced by present-day Russia include the need to rise to a new development level and ensure that the process of its economic development remains stable. The leading part in the efforts aiming to achieve these goals belongs to innovations that can be used to keep upgrading the technical and technological production base, to design and produce new competitive products, and to penetrate the international market of goods and services. Information technologies, automated systems, and high-tech manufacturing methods are the factors that form the foundation of an innovative economy. Integrated, flexible automation accompanied by wide use of information technologies and automated systems is a cornerstone of the innovation-based economy. Therefore, automated high technologies must become the foundation of all structural changes in the economy of Russian regions and their innovation-related infrastructure. These are the present-day development principles that are followed by OOO Microm, a company specializing in developing integrated IT-solutions in the field of automated control systems and energy saving systems. Such systems can be used by enterprises to switch to modern production management technologies, which, in turn, will result in a more rational use of available material and technical resources. The team of OOO Microm consists of highly trained and skilled specialists. It is because of them that the company has received numerous diplomas for its active work in creation of energy-saving technologies aiming to boost the efficiency of use of fuel and energy resources and to encourage enterprises to embark on the path of innovationbased economic development. The company’s key area of expertise include: – Design of automated control systems. – Software development. – Development of integrated hardware-and-software solutions. – Assembly and fine-tuning of integrated hardware-and-software units. – Software user support. – Warranty and post-warranty service for integrated hardware-and-software units. The company’s team has developed a number of original solutions in the field of automated control and energy saving systems. We have developed and implemented a number of solutions for our final product, which is an automated integrated software and hardware system with specially designed software and hardware. The system featuring highly reliable hardware and software has been fully developed and is now commercially manufactured. Today’s market of information technologies and energy saving solutions generates strong demand for the innovative products created by OOO Microm. By using these products, municipal housing organizations, oil and gas enterprises, and power companies will be able to automate a considerable part of their production management processes and cut down the costs. I N S I G H T I N T O R U S S I A 173 1/14/09 8:51:29 PM NATIONAL RADIOTECHNICAL BUREAU ZAO T Y P E O F AC T I V I T Y: A DDR ESS: C O N T AC T S : IT; ELECTRICAL MACHINERY AND APPARATUS, ELECTRONIC AND OPTICAL EQUIPMENT HTTP://WWW.NRTB.RU 2, 2 SPASONALIVKOVSKY PER., MOSCOW 119991 RUSSIA PHONE/FAX: +7 (495) 230 1856 E-MAIL: [email protected], [email protected] I Viktor Prikhodko Chair of the Board. D.Sc. in Engineering, professor, full member of the Academy of Security 174 IPR_digest_eng.indb 174 nnovation-based development is contingent on a combination of two key interrelated and interdependent components: scientific advances and new technologies in which these advances are actualized and which, in turn, provide an incentive for further scientific research that is demanded by the market. And the principles of innovation-based development are exactly what ZAO National Radio-Technical Bureau (NRTB) is using as guidelines in its work. NRTB specializes in development and sales of integrated solutions in such areas as information technologies, automated management and communication systems, and ensuring electro-magnetic compatibility (EMC) of various electronic devices. ZAO NRTB boasts a close-knit team of highly trained specialists, most of whom have doctorate degrees in technical sciences as well as academic titles of Professor or Senior Researcher. The company’s key areas of expertise include: – Development of software for monitoring and control of automatic equipment at control centers of various levels. – Development of integrated software-and-hardware units (including specially developed software) for managing group or single information display systems. – Design of on-board and ground radionavigation systems. – Design and construction of wireless communication facilities. – Ensuring EMC of various electronic devices. Development of EMC solutions for electronic devices is one of the most important areas of the company’s work. Scientists of NRTB have created a number of original scientific EMCrelated solutions which have been patented in Russia. For example, the company’s solutions aiming to ensure EMC of radio communication systems were awarded bronze medals and diplomas of the French Association of Inventors and Producers (A.I.F.F.) at the international invention exhibition Concours Lepine in Strasburg (September 2007), and silver medals of the Brussels Eureka invention contest that was held in Brussels in November 2007 as a part of the 56th world exhibition of innovation, research, and new technologies Innova Energy 2007. For its high-quality solutions, ZAO NRTB has been awarded a diploma by the Federal Service for Intellectual Property, Patents, and Trademarks of the Russian Federation. Results of our development work have been actualized in our final product: an automated integrated software and hardware system with specialized software. The system is widely used in implementing new radio communication standards (including the 3G standards), wireless broadband systems, and digital TV. The specialized software utilizes original methods of electromagnetic field calculation, and it can estimate field strength in specified points or areas (with any emission angles and any refraction conditions) with a very high accuracy. The software has been certified in the voluntary certification system for information technologies that are used in state information resources. Thanks to its package of technical and technological EMC-related solutions, the company won the ZUBR 2006 national industrial security award and gold medal in the category “General high-tech solutions used in the interests of national defense and security.” N E W E C O N O M Y : 1/14/09 8:51:30 PM SAMARA OPTICAL CABLE COMPANY T Y P E O F AC T I V I T Y: ZAO COMMUNICATIONS A DDR ESS: HTTP://WWW.SOCCOM.RU 9, UL. KABELNAYA, SAMARA 443022 RUSSIA C O N T AC T S : PHONE/FAX: +7 (846) 955 1193 E-MAIL: [email protected] T Alexander Vyrypaev CEO Alexander Vyrypaev graduated from the Industrial and Residential Construction Department of the Kuybyshev Engineering and Construction Institute in 1975. In 1997 he studied under the TACIS program in Belgium and worked in Siemens and Corning Inc. to gain experience. In 2002 he finished the Netherlands Institute of Marketing (NIMA) and graduated from the State University of Management. He has worked for ZAO Samara Optical Cable Company from the moment it was founded, as Commercial Director since 1997 and as CEO since 2002. He was the winner of the yearly Best Business Achievements contest as the Best Top Manager of the Year. In 2004 he was elected Member of the International Academy of Telecommunications Quality. In June 2007 he received the Russian Quality Leader title. I N N O V A T I O N IPR_digest_eng.indb 175 he first Russian joint venture producing fiber optic cables, ZAO Samara Optical Cable Company was founded on April 17, 1997. Its founders included ZAO Samara Cable Company, a leading manufacturer of copper communication cables in the CIS, and CORNING Inc., US, a world leader in producing optic fiber. Since its inception, ZAO Samara Optical Cable Company has supplied over 43,000 km of fiber optic cable without any customer complaints. The company’s customers include operators of Svyazinvest Holding, alternative cable and cellular communication operators, oil and gas companies, OAO RZD (Russian Railways), electricity supply companies, and broadband access network operators. Optical cables made in Samara lie on the bottoms of the Volga and Angara Rivers, in the mountains of Urals, Kamchatka, and the Maritime Territory, in the steppes of Kuban and Kazakhstan, in Siberia and the Far East, and in many other regions of Russia and the CIS. The company has developed and successfully introduced an integrated management system, including the quality management system, the environmental management system, and the labor safety management system, which is objectively the best among optic cable manufacturing plants. This status has been confirmed by the Quality Award of the Government of the Russian Federation, the highest national award in the field of quality assurance (Decree of the Government of the Russian Federation No. 739 of December 6, 2003), and MS ISO 9001:2001 and GOST R ISO 9001:2001 certificates, as well as the international certificate MS ISO 9001:2000 (KEMA). The integrated management system covers all the processes in the enterprise lifecycle, from cable design and development through material supplies to acceptance tests and cable supply to the customers. Samara Optical Cable Company was one of the first companies in Russia (and the only one in the activity) to certify its environmental management system under GOST R ISO 14001:2004. In May 2007 the product quality assessment within the Russian Quality Program finished successfully. ZAO Samara Optical Cable Company, again the only one in the activity, received the Certificate No. 169-tsEP-09-07, issued by the All-Russian Quality Organization and confirming that the company’s products meet the highest quality level set by the Russian Quality Program. The company’s activities were marked with a number of Russian and international awards. ZAO Samara Optical Cable Company was the only optic cable manufacturer to win the chief national prize, “Russian National Olympus,” in 2005. In 2006 the company was named laureate of the international award “Leader of the Economic Development of Russia” in the Economic Growth Leader nomination. In April 2007 the European Public Commission awarding the European Standard international prize named ZAO Samara Optical Cable Company the winner of this highstatus international award. In May 2008 the company was awarded with the international “Crystal Drop – Transparency Award” as the Best CIS Company with an Irreproachable Business Reputation. Another award of ours is the international business prize “National Economy Elite 2008” whose principal goal is to recognize the achievements of companies successfully working in different fields. I N S I G H T I N T O R U S S I A 175 1/14/09 8:51:30 PM IPR_digest_eng.indb 176 1/14/09 8:51:32 PM M AC H I N E RY A N D EQU IPMENT IPR_digest_eng.indb 177 1/14/09 8:51:32 PM CRANE SERVICE PLUS T Y P E O F AC T I V I T Y: OOO MACHINERY AND EQUIPMENT A DDR ESS: C O N T AC T S : HTTP://WWW.BMZ.VOLOGDA.RU 18, POSHEKHONSKOE SH., VOLOGDA 160022 RUSSIA PHONE/ FAX: +7 (8172) 71 5460, 71 5466 E-MAIL: [email protected] B Dmitry Kobylin Commercial Director Kobylin was born in the township of Vychegodsky, Arkhangelsk Region, in 1977. His career started in 1996, when he graduated from school and worked at a plant, entering the remote education department of the Vologda Polytechnic Institute (in vehicles and vehicle servicing) at the same time. In 1999 he transferred to the internal department of the Institute, majoring in economics and management at machine engineering enterprises. He worked as an economist for an official distributor of OAO AvtoVAZ since his 5th year of study and for a year after the graduation. Kobylin received additional professional training as deputy economic manager of OAO AvtoVAZ sales network in the International Market Institute (Togliatti). In 2005 he entered APP BMZ (Byvalovo Machine Engineering Plant Industrial Enterprise Association) as a manager in the sales department; later he was promoted to the position of the department head; since 2007 he is Commercial Director of OOO Crane Service Plus (within APP BMZ). 178 IPR_digest_eng.indb 178 yvalovo Machine Engineering Plant based in Vologda is an enterprise with enormous experience in the machine engineering market. The plant will celebrate its 65th anniversary in 2008. The history of the plant starts on November 21, 1943, when an engine repair plant was created in Vologda based on an existing tractor engine shop. The new facility was reorganized into a repair plant for engine overhauling and planned maintenance. The era of crane construction, now a priority activity at the plant, began in 1972. It was then that the largest gantry manufacturing facility in the North-West of Russia was launched here. The crane shop opened in 1977, and by 1990 the plant had been producing up to 123 cranes per year. Mastering new crane types continually, the plant personnel works in close contact with the principal research institute in the field, VNIIPTMASH (Moscow), ensuring the high technical level of the equipment produced. The present capabilities of the plant enable building a gantry crane with a lifting capacity of up to 36 tons, height of up to 14 m, and span of up to 32 m, depending on the customer’s specification. The crane modifications produced at the plant (general, container crane, magnetic cranes, grab cranes, with fixed or moving cabin) are successfully used at enterprises involved in manufacture of petroleum products, electricity supply, machine engineering, transport, forestry, construction, agroindustrial production, etc. All the cranes are equipped with modern safety devices. The plant capacities enable it to manufacture up to 10 cranes per month, featuring modern design, high loading/unloading performance, simple operation and maintainability. Owing to these strengths, APP BMZ gantries work reliably in different climates under temperatures from –40°C to +40°C. The KK-20 and KKD-32 series of cranes are certified by the Gosstandart (Russian Standard System). The service department is ready to perform a professional installation of the crane or to render any repair services if necessary. Today, the plant is launching new bridge crane manufacturing areas that will utilize cutting-edge designs, technologies, and equipment. The plant technical policy is committed to the development of new technologies and products, along with quality assurance. The key short-term goal of APP BMZ is to further perfect its quality management system. As regards the product range, we are going to continue manufacturing familiar products, enhancing their qualities at the same time. In order to achieve this goal, the plant is using state-of-the-art technologies in welding and painting. The engineering department is planning to continue further technology development and improvement. The development and implementation of such a program enables APP BMZ to secure its strategic positions in manufacturing weight lifting machinery. The company is continuing the improvement policy within its programs, going ever forward, to highly efficient business. Respect and care for our partners are the qualities that make our team stand out. Each of our customers gets an individual project where their individual requirements and specific features of their production processes are taken into account. N E W E C O N O M Y : 1/14/09 8:51:32 PM C O N T AC T S : A DDR ESS: DOROGOBUZHKOTLOMASH T Y P E O F AC T I V I T Y: OAO MACHINERY AND EQUIPMENT HTTP://WWW.DKM.RU PGT VERKHNEDNEPROVSKIY, DOROGOBUZH DISTRICT, SMOLENSK REGION 215750 RUSSIA PHONE/FAX: +7 (48144) 53 400, 51 560 PHONE: +7 (48144) 53 566, 53 245, 54 177 E-MAIL: [email protected] D Sergey Petrikov CEO Petrikov was born in 1958 and graduated from the Kalinin Polytechnic Institute in 1984, specializing in caterpillar and wheeled machinery. He started his career at Dorogobuzhkotlomash in 1992. In 1994 he was made Commercial and Financial Director, becoming Member of the Board in 1998 and CEO in January 2005. Sergey has a PhD degree in Engineering and awards: “Honorary Constructor” (2004) and “Leader of the Economic Development of Russia” (2006). I N N O V A T I O N IPR_digest_eng.indb 179 orogobuzhkotlomash (Dorogobuzh Boiler Factory) is a flagship of hot-water boiler manufacturing in Russia. Founded in 1962, the factory is advantageously located in the historical heart of Russia, within 300 km to the west from Moscow, on a large railroad junction near Moscow–Minsk highway. The factory employs some 900 people. Our total output exceeds 15,000 hot-water boilers successfully operating at the domestic and foreign market. The company customers include OAO RZD (Russian Railways), the Russian Ministry of Defense, and utility companies of such megalopolises as Moscow and St. Petersburg, along with industrial centers and small townships. Highly qualified personnel, intellectual resources, unique designs and technologies, patents and certificates (both Russian and international, including ISO 9001 and TÜV) guarantee the quality of OAO Dorogobuzhkotlomash products. The company’s activities include turnkey services, from design through production and supply to installation and service maintenance, based on the widest range of heat-and-power engineering products available in Russia. The production program of the company includes over 75 types and dimensions of hot-water boilers, from 0.05 MW to 209 MW fired by different types of fuel. OAO Dorogobuzhkotlomash is a leader in production of boilers PTVM, KV-GM, and KV-R with their rated power exceeding 10 MW. Such boilers traditionally form the core of our output. This highly automated energy-saving equipment meets all the latest technical, economic, and environmental requirements. Since 1997 the company has ranked among the top three Russian manufacturers operating at the national mini boiler market. We offer boilers from 0.05 MW to 7.56 MW and certified modular boiler plants MK DKM with a total capacity of 0.22 MW to 32 MW. Confirming its status of a leader of Russian boiler construction, OAO Dorogobuzhkotlomash is continually diversifying its products range based on promising developments and solutions. For the recent period alone a number of innovational appliances have been introduced: Vacumatic vacuum boilers, Smolensk three-way water-tube boilers, and a Dorogobuzhkotlomash know-how with no imported analogs, a line of tunnel-design boilers. Owing to the diversification of manufacturing facilities, Dorogobuzhkotlomash product range now includes Caterpillar-based gas-piston power stations, waste heat boilers, chillers, portable modular boiler plants for eliminating heating network emergencies, and multifunctional modular buildings. The potential of the company was revealed when it launched batch production of steam boilers E-1.0-0.9GM. Partnerships with world leading manufacturers of burners, boiler accessories, and boiler automation enable us to offer our customers different supply options featuring optimum cost/quality ratio, with local operating conditions taken into consideration as thoroughly as possible. Apart from its manufacturing business, OAO Dorogobuzhkotlomash actively participates in the life of the region and the country. The company invests into public welfare under the national projects Affordable and Comfortable Housing to Russian Citizens and Modern Healthcare and the program for Roads of Russia which is now under consideration. I N S I G H T I N T O R U S S I A 179 1/14/09 8:51:32 PM A DDR ESS: ILMA TECHNOLOGY T Y P E O F AC T I V I T Y: ООО MACHINERY AND EQUIPMENT Alexander Savinkov General Director Graduated from School 1964, Moscow, with a silver medal; in 2004, graduated in design engineering from Moscow State Technical University MAMI. 180 IPR_digest_eng.indb 180 HTTP://WWW.ILMATECH.RU 4, UL. GEFSIMANSKIE PRUDY, SERGIEV POSAD, MOSCOW REGION 141312 RUSSIA C O N T AC T S : PHONE: +7 (495) 968 0457 PHONE/FAX: +7 (496) 549 2526 Ilma Technology operates in several key markets: – Design, supply, and commissioning of extrusion plastic complex production lines with four types of output: flat decorated furniture edging, drip irrigation hoses, high-quality homogeneous and heterogeneous PVC floorings for public buildings and sport facilities, and next-generation cellular glass products; – Design and supply of recirculation water-cooling systems for all types of facilities, with energy-saving technologies applied; – Supply of raw material and recycled waste preparation equipment for plastic production and thermoplastic material recycling equipment; – Supply of ice arena equipment (quick-built skating-rinks and permanent ice for sport centers and commercial centers). Founded in 2003, the company initially specialized in industrial cooling systems based on European equipment. Then plastic manufacturing facilities became the main focus of the company, and its product range was diversified again in 2005, when it incorporated systems for granulated polymer raw material preparation and transportation, as well as polymer recycling equipment. In 2006 the OOO Ilma Technology management deemed the company ready to start designing and supplying complex production lines. The specific offer of lines was chosen based on the affinity of the technology, lack of similar end products on the domestic market and the market demand. The present Russian market is witnessing the replacement of imported furniture edging by domestic products; agricultural companies are starting to be interested in drip irrigation systems that can increase productivity and raise the profitability of certain crops. Due to the high rates of business construction and construction of sporting facilities, flooring and transparent roofing materials are promising fields, too. The OOO Ilma Technology Engineering Department cooperates with equipment manufacturers, adjusting certain assemblies and helping its European colleagues adapt the imported equipment to be used in Russia. OOO Ilma Technology also plans to organize production of systems for raw material preparation and transportation within the next two years. The Company constantly participates in specialized expositions of construction technology and plastic manufacturing. Inspired by Russia’s win of the right to host the 2014 Winter Olympics, OOO Ilma Technology launched a new project close to its existing activities, that is, designing and equipping ice arenas. An alliance with Industrial Frigo, Italy, enables the company to offer virtually any technical solution to the customer, from regional sporting centers to Olympic-class ice arenas. OOO Ilma Technology is especially proud of its solutions for skating-rinks in small townships. The implementation of such projects, possible even with small investment amounts, makes going in for winter sports possible for population groups with any income levels. N E W E C O N O M Y : 1/14/09 8:51:32 PM A DDR ESS: LINARES T Y P E O F AC T I V I T Y: OOO MACHINERY AND EQUIPMENT HTTP://WWW.LINARES.RU OFFICE 11, 7, UL. SPORTIVNAYA, SHCHERBINKA, 142171 MOSCOW REGION, RUSSIA C O N T AC T S : PHONE: +7 (495) 984 7857 PHONE/FAX: +7 (495) 580 2710 E-MAIL: [email protected] L Igor Filatov CEO I N N O V A T I O N IPR_digest_eng.indb 181 inares started its business in 1997. Originally it was established as a machine-repairing company. At first OOO Linares was providing its services to Swiss SiberHegner in equipment repair, commissioning and startup. Such cooperation with the Swiss company, including Linares specialists training by SiberHegner, resulted in unique experience in operations on the international market of hi-tech metal-working equipment. Further expanding its business, OOO Linares started active supply and servicing of a diversified range of metal-working equipment. Today the company acts as a dealer of Taiwanese producers with their strongest advantage lying in lower – against the European producers – prices along with high reliability. Korean equipment, above all Ares Seiki and Awea, is well-known throughout the world with customers based in Germany, France, UK and USA. OOO Linares provides equipment delivery, custom clearance, warranty services, training, consulting on equipment selection and purchase. Equipment supplied and serviced by the company includes Matech and Summit turning lathes, Ares Seiki and Awea milling machines, Top Work grinding machines, Equiptop polishers, Ecowin electrical discharge machines, etc. During the recent years the company’s clientele has progressively increased, annual sales turnover growing by 10 to 15% annually. Among the customers there are quite a few long-standing partners who purchase our equipment from year to year. In the near future the company plans to arrange tooling production and then to start assembly of machines from ready subassemblies purchased from original manufactures. That will cut the taxes and transportation costs, simplify custom clearance and thus result in lower equipment costs. OOO Linares decided to open its own production in Staritsa, Tver Region. The prepared facilities will host a sales office and a training center with a total area of approximately 1,000 square meters with a 250-square-meter showroom, and later a 1,300-squaremeter production workshop as well. We are also planning to construct a workshop for jumbo equipment, mainly for bridge-type machines manufacturing large components with table dimensions starting from 5 m and above. In fact, all companies dealing with machine-tool sales are facing one and the same problem: a company buys a machine, but its specialists cannot run it professionally, which results in unexpected faults and other problems. Willing to reverse the situation, OOO Linares decided to arrange a training center where customers’ employees can learn how to program and maintain NC-machines. The classes will be equipped with machines and all comers will be able to learn to run them. No other Russian supplier has anything similar. Another advantage of an in-house training center is that the company’s repair specialists can regularly improve their qualification. Unlike many other equipment suppliers which are focused on sales only, OOO Linares also cares for the usage prospects of the supplied equipment, always eager to open better opportunities for its customers. The company’s main goal is not to stand still, but to make continuous progress. I N S I G H T I N T O R U S S I A 181 1/14/09 8:51:33 PM RUSINNOVACIA GROUP T Y P E O F AC T I V I T Y: A DDR ESS: C O N T AC T S : MACHINERY AND EQUIPMENT; ELECTRONIC AND OPTICAL EQUIPMENT; FABRICATED METAL PRODUCTS HTTP://WWW.RIWORD.COM1.RU, WWW.RUSINNTORG.RU 4, KOSMODAMIANSKAYA NAB., MOSCOW 115035 RUSSIA PHONE: +7 (495) 625 5905, 646 0800 E-MAIL: [email protected], [email protected] R Dmitry Orlov Manager of the Group Graduated from the Bauman Moscow Higher Technical School (the machine engineering faculty) in 1984. Worked as a scientist in the Central Research Institute of Chemistry and Physics until 1995 (during that period, Orlov completed a number of scientific works on technology, decision-making theory, and science history). Since 1995, headed CEO of Svyatogor, Altacom, and Rusinnovacia companies specializing in innovation and business management of manufacturing. A co-founder and originator of the project for creating the Rusinnovacia Group. 182 IPR_digest_eng.indb 182 usinnovacia Group was founded in Moscow in 1999. It specializes in developing innovative solutions for the industry. The Group consists of the following companies: – OOO InnTex ECO: business assets and real estate; – OOO Systemic Institute of Nanotechnology Research (SINTI): scientific research and design works; – OOO KapitalStroy: business asset management; – OOO Largus+: trading house. We are creating a network of enterprises to produce spare parts for manufacturers of robotic systems and machinery, automobiles, and aircraft of the entire world. That is what the future export potential of Russia is based on. A complex of processes for casting metals under pressure is based on German experience of creating state-of-the-art ISO 9001 compliant production lines; the new production line, which comprises a complete production cycle, is being implemented at the modernized foundry facility of OOO InnTex ECO; the profits generated by the line are expected to gradually reach $70–80 million per year, with the annual output of cast metals reaching 10–12 tons. The innovations implemented by our company are aimed at automating the process of casting accompanied by a simultaneous automated analysis of the technological process which is compared on the fly with the technology standards; in this way, we ensure high quality of our products and minimize costs, increase productivity, and automate the metering procedures. As a part of its innovative work, the Rusinnovacia Group has founded OOO Systemic Institute of Nanotechnology Research (SINTI). SINTI focuses on R&D works aimed at creating technologies and elements that will serve as a foundation for development of nanoelectronics, and on implementing the results in the computer industry and the special instrument-making industry. The Institute is creating a nanotechnology park with a focus on: – small-scale production of nanostructures (with element sizes ranging from 10 to 130 nanometers) that can be used in making electronic instruments – small-scale production of very-large-scale and ultra-large-scale integrated circuits. To achieve that goal, the following tasks should be completed: – To design an EUV nano lithograph operating at the 13.4 nm wavelength and capable of working with resolutions of 10–30 nm, and to develop key technologies for manufacturing such a nanolithograph. – To design an immersion nanolithograph operating at the 193 nm wavelength and capable of working with resolutions of 65–130 nm, and to develop key technologies for manufacturing such a nanolithograph. Since the year 2000, OOO Largus+ has been a trading company within Rusinnovacia group. After two years of operating in the market of promotional equipment, OOO Largus+ has become Russia’s leader in this segment due to its dynamic marketing policy, a diversified product mix, and cooperation with the best Russian and foreign subcontractors. N E W E C O N O M Y : 1/14/09 8:51:34 PM SIBSELMASH NOVOSIBIRSK PRODUCTION ASSOCIATION, OAO T Y P E O F AC T I V I T Y: MACHINERY AND EQUIPMENT A DDR ESS: C O N T AC T S : 38, UL. STANTSIONNAYA, NOVOSIBIRSK 630108 RUSSIA PHONE/FAX: +7 (383) 341 6101 E-MAIL: [email protected] N Oleg Kostochkin CEO Born in Novosibirsk, in 1988 Kostochkin graduated from the Novosibirsk Electrical Engineering Institute, obtaining the qualification of a mechanical engineer. Later he received training in financial management under the Presidential Program of Professional Training. In 1988 he started working as a foreman in one the Sibselmash shops. In 1997 Oleg was made Deputy Director of GUP Sibselmash Machine Engineering Plant; in 2003 he became Deputy Director of FGUP Novosibirsk Sibselmash Production Association; since 2007 he works as CEO, OAO Novosibirsk Sibselmash Production Association. I N N O V A T I O N IPR_digest_eng.indb 183 ovosibirsk Sibselmash Production Association was the largest defense enterprise in the USSR and a leading manufacturer of trailers for agriculture as well. As the state military contracts dwindled dramatically in the early 1990s, agricultural machinery became the main focus of the company. Today our line of agricultural machinery includes: – Tillage machines: harrows, cultivators, skim plows, etc. – Seeders: seed-fertilizer seeders and trash seeders. – Different modifications of tillers and seeders. Agricultural machinery produced by OAO Novosibirsk Sibselmash Production Association is well known in all the regions of Russia for its reliability and simple usage and maintenance. Instead of the military production, the company launched a new product line of mining equipment. Clever application of facilities and technologies formerly used for defense manufacturing resulted in the gradual growth of the mining equipment percentage within the total output; it has already outstripped agricultural machinery, reaching 55%. OAO Novosibirsk Sibselmash Production Association proved itself a leading manufacturer of belt conveyors. Mining equipment we produce complies with all the quality and safety requirements applicable. Our product range includes the following machines: – Excavating equipment. – Chippings transport equipment. – Equipment for forming surface depots. – Ore-dressing plant transportation systems. All our products are certified and compliant with state and interindustry standards. In order to optimize the manufacturing processes, the company undertakes programs for cost reduction and plant re-equipment. Committed to the innovational path of the national development, OAO Novosibirsk Sibselmash Production Association designs and manufactures its products with the new scientific results and future industrial prospects taken into account. We do our best to make our products more attractive and competitive. Along with improving the products currently manufactured, we are looking for investment projects in activities new to us. I N S I G H T I N T O R U S S I A 183 1/14/09 8:51:35 PM T Y P E O F AC T I V I T Y: V.S. GRIZODUBOVA FLIGHT TESTS AND PRODUCTION (LIIP) VEHICLES AND TRANSPORT EQUIPMENT; ELECTRICITY SUPPLY; RESEARCH AND DEVELOPMENT C O N T AC T S : A DDR ESS: ZHUKOVSKIY-5, MOSCOW REGION 140185 RUSSIA PHONE: +7 (495) 556 5015, 556 5486 E-MAIL: [email protected] O Vyacheslav Bushuyev Chair of the Board Honored Military Pilot of the USSR, Corresponding member of the Tsiolkovsky Russian Academy of Cosmonautics Valery Troshchilov Vice Chair of the Board General Designer for Innovations Member of the International Academy of Corporate Development 184 IPR_digest_eng.indb 184 ur innovation-related work began with the idea that we developed and patented back in 1978. Our discovery demonstrated that it is possible to improve the ecological condition of the Earth’s atmosphere by more than 60% through lowering the required thrust of engines, which, in turn, would result in lower emission of poisonous combustion products by engines that operate by oxidizing (i.e. burning) fuel. That early work continued in developing new thermodynamic cycles of environment-friendly engines for generating thrust without relying on combustion processes. By that time, the scientific world had realized that the Carnot cycle, which forms the basis of power generation in the existing civilization, needed a replacement. A Carnot ideal machine is a simple cylinder with a piston, and its coefficient of performance (COP) does not depend on what fuel is used in the cycle (which is exactly why the potential of the thermodynamic cycle is so limited). COP of the best turbines used at power stations is approximately 35%–40%, and that of internal combustion engines does not exceed 30%. In other words, all that 70% of fuel does is burn atmospheric oxygen without any useful effect whatsoever, not to mention such side effects as discharge of poisonous gases and the planet-wide greenhouse effect. It is interesting to recall that Sadi Carnot himself never denied that the engine science can be further improved. On the contrary, he actually said, “Heat is nothing else that the motive power – or, more precisely, motion that has changed its form.” We have managed to crystallize that idea in actual designs which have a potential power-to-motion COP of 95%–97%, and are totally environment-friendly. Implementation of such processes (there are approximately 4 types of them) demonstrated that it is possible to create aircraft – including those with zero-length launch – with a very high lift force (8–9 metric tons per square meter of the aircraft surface). This is more than a tenfold increase as compared to the traditional methods of generating lift in airplane and helicopter engineering. And, finally, we came to be convinced that direct transformation of energy into electricity is possible. Methods of modern Russian physics helped to find out that the dominant theory of “frozen” static electricity does not reflect the true picture of the microworld of electric charges. The idea of “immobility” of charges is a good illustration of absurdity of those ancient theories that exist since the era of “the king of electrostatics” Nikola Tesla. Modern research into the microworld has discovered colossal spatial non-uniformity of matter, its micro charges, and micro fields generated by those charges. For example, nuclear density averages 1014 grams per cubic centimeter, while just outside of the nucleus matter the density is zero. Electric field of the nucleus at a distance of 0.5*10-8 cm from the nucleus (the first Bohr orbit) measures E=2*107 CGS units, and outside of an atom the resultant electric field strength virtually equals zero. So, inequalities in charge distribution are immense. The physicists, however, normally use concepts of uniform field, constant field force, constant matter density, etc. Therefore, as we have already mentioned, the new insight into capabilities of the nucleus as a direct electric power generator, and into the possibility of transforming static electricity into dynamic one, has opened the door to sketching general principles of industrial-strength power generators that can be con- N E W E C O N O M Y : 1/14/09 8:51:35 PM structed anywhere in the world without having to flood vast areas or build and service extremely long transmission lines. As far as power generation is concerned, the potential of electrostatic generators is similar to new possibilities of nuclear power plants. Today, we have created 118 patentable solutions, and received patents for 14 of them. Our patents mostly focus on considerable improvement of aero- and hydrodynamic qualities of ships, boats, and aircraft, as well as on improving safety of airplanes and helicopters in flight and ensuring buoyancy of vessels. Thus, the problem of preventing a plane from entering a fatal spin during critical maneuvers has been practically solved, and the possibility of flow separation during the most critical take-off and landing phases has been eliminated, which translates into hundreds of saved lives, millions dollars worth of saved aircraft, and successfully completed important missions. Using our own research and technical solutions as a basis, we have developed a program for creation of innovation products in such fields as environment-friendly power generation and transport; implementation of the program will help to lay a foundation for creating a new technological base of the post-crisis economy – that is, machinery of the sixth generation that will be simple in design, environment-friendly, and several times cheaper to build and maintain than the existing machines. Our company was established in 1994 as a legal successor of the Zhukovsky Flight Testing and Research Enterprise, which had been created in 1964 by a decree of the Soviet Government and was headed by Valentina Stepanovna Grizodubova, a deputy of the Supreme Council of the USSR and a heroic pilot decorated by the highest military and civil awards of the country. The company is located in the industrial zone of Zhukovsky airport. Areas of expertise: – Research and development work with a focus on creating tools for flight testing and research, radioelectronic devices, launch-site measurement systems, and systems for air-dropping people and objects without parachutes. – Flight testing and studying systems and complexes of aviation and rocket technology with the help of mobile testing complexes. – Registering record-setting results in aviation. – Onboard trajectory measurements during testing and fine-tuning of new aircraft and spacecraft models. – Maintenance and repairs of aircraft. – Innovation activities in such areas as environment-friendly power generation and transport: – Designing energy-saving solutions in the following areas: aircraft, ballistic and space objects, sea and river vessels, high-velocity surface transport. – Designing new types of environment-friendly engines for aviation and water transport. – Designing non-traditional aircraft. – Designing autonomous, environmentally friendly sources of electric power. I N N O V A T I O N IPR_digest_eng.indb 185 I N S I G H T I N T O R U S S I A 185 1/14/09 8:51:35 PM IPR_digest_eng.indb 186 1/14/09 8:51:35 PM MEDICA L A PPLI A NCES A N D INST RUMENTS IPR_digest_eng.indb 187 1/14/09 8:51:35 PM A DDR ESS: IMMUNOTEX RESEARCH AND PRODUCTION COMPANY T Y P E O F AC T I V I T Y: MEDICAL APPLIANCES AND INSTRUMENTS HTTP://WWW.IMMUNOTEX.RU PLACE OF INCORPORATION: 384, UL. LENINA, STAVROPOL 355003 RUSSIA PRODUCTION DEPARTMENT ADDRESS: 9, UL. GRAZHDANSKAYA, STAVROPOL 355008 RUSSIA C O N T AC T S : PHONE/FAX: +7 (8652) 28 3793, 28 2689 E-MAIL: [email protected] C Mikhail Baturin Director PhD in physics and mathematics, he has been in small business since 2000, acquiring considerable experience. Mikhail’s research manager, V.A. Baturin, is a D.Sc. in medicine and professor. He has supervised development and production of medical equipment, including enzyme immunoassay and clinical microbiology diagnostic kits and test systems. 188 IPR_digest_eng.indb 188 ertain difficulties arise in the establishment of an up-to-date healthcare system in Russia. One of them is the archaic diagnostic equipment of polyclinics and outpatient departments, which cannot mostly afford to purchase expensive foreign diagnostic equipment – a factor impeding the introduction of new patient examination methods. Immunotex Research and Production Company was established with a view to improving the diagnostics in district hospitals and municipal polyclinics through providing affordable and high-quality equipment. Today’s Immunotex Research and Production Company is a dynamically developing small innovation business. It has been helped on its feet by the Start Program implemented by the Foundation for Assistance to Small Innovation Enterprises. Immunotex won the Start Program in 2004, which enabled it to complete research and development under some of its fundamental projects and start production. The state support thus provided us an opportunity to reach a new level of manufacturing diagnostic systems. At present Immunotex manufactures 18 different diagnostic systems and is further diversifying the product range. Leading Russian hospitals performed clinical testing of the equipment, showing its considerable information value. It should be emphasized that Immunotex products can be used in a common laboratory of an average Russian healthcare institution and are compatible both with Russian and foreign appliances. First of all, Immunotex manufactured equipment for clinical microbiology laboratories, which are still being deployed in hospitals throughout Russia. Special attention was paid to urogenital infection diagnostics, a must in the present demographic situation. Second, enzyme immunoassay (EIA) systems were developed and put into production; such systems can be used for high-accuracy diagnostics of allergies and fungus diseases. Our small team is especially proud of our EIA kit for detection of specific food allergen immunoglobulins. Such a test system is vital for early diagnostics of the so-called allergic march of childhood. When sensitiveness to certain food allergens is found early, development of children’s and teenagers’ atopic dermatitis and bronchial asthma can be prevented. An original EIA diagnostic system has been developed that detects visceral mycosis, as well as dysbacteriosis and fungus allergy. The test system for early diagnostics of disseminated sclerosis, a severe disabling nervous disease, is under preparation to be launched into production. Early diagnostics will enable the patients to maintain their ability to work and high quality of life for a long time. The innovation activity of Immunotex Research and Production Company was highly estimated at different international expositions and trade shows. In particular, Immunotex has received awards from the Moscow International Innovation and Investment Salon and the High Technologies. Innovations. Investments International Exhibition in St. Petersburg. N E W E C O N O M Y : 1/14/09 8:51:35 PM INSTRUMENTS AND EQUIPMENT FOR SCIENTIFIC RESEARCH (ZAO PONI) C O N T AC T S : A DDR ESS: T Y P E O F AC T I V I T Y: MEDICAL APPLIANCES AND INSTRUMENTS HTTP://WWW.PONI.RU 9, UL. SHCHORSA, MYTISHCHI, MOSCOW REGION 141017 RUSSIA PHONE: +7 (495) 739 5933 PHONE/FAX: + 7 (495) 737 0026, 582 2836 E-MAIL: [email protected], [email protected] I Sergey Kharchenkov CEO Born in 1960, Kharchenkov graduated with honors from the Bauman Moscow Higher Technical School (where he majored in physical and power installations) in 1983. From 1982 till 1992, he was engaged in experimental research of thermal exchange in helium under refrigeration in the near-critical state. Completed postgraduate studies at the Academy of Sciences. In 1992, he founded and became the head of a company with a focus on designing and manufacturing instruments for research and development works. I N N O V A T I O N IPR_digest_eng.indb 189 nstruments and Equipment for Scientific Research (IESR, or PONI, as it is known by its Russian abbreviation) company was established in 1992 for the purpose of designing and manufacturing high-tech R&D tools and equipment. Its products are manufactured either as unique prototypes or in small batches. Leading staff members of the company have a long experience of scientific work at laboratories of the Academy of Sciences of the USSR, and have personally created a number of unique instruments for experimental research of various physical processes. Performing complex scientific and technology-related work for the Russian Academy of Sciences and for the new Russian industrial enterprises required from IESR team a high level of expertise in physics, mechanics, optics, and circuit engineering. Today, both the team and the production facilities have become large enough to start serial production. Since 1999, our team’s efforts have been focused on development and manufacture of medical equipment, mostly for x-ray diagnostics and for stationary biological protection from ionizing radiation. Products manufactured by IESR include a wide range of x-ray shielding equipment: anti-x-ray screens of various types, windows, doors, shutters, as well as stationary equipment for protection from gamma radiation and neutron radiation, such as automatic sliding and hinged doors (up to three metric tons or more) for radiation therapy wards of oncology centers. Thanks to its long experience in building radiation shielding equipment, the company can promptly create new designs adjusted not only to the radiation situation at a specific facility, but also to specific building designs and particular positions of megavoltage diagnostic and therapeutic equipment (up to 25 MeV). IESR team successfully works in the field of digital x-ray diagnostics. A research involving interaction of newest and traditional technologies has lead to designing and mass production of high-resolution digital cameras for fluorography examination (3.4 line pairs per millimeter) and for radiography and radioscopy (4.8 lp/mm). The company also manufactures stationary and mobile digital fluorography units. X-ray photo laboratory equipment includes a number of units for photochemical processing of x-ray images, x-ray viewing boxes of different types and sizes (including demonstrational ones), and monochromic semiconductor safelights for blue- and green-sensitive x-ray films. The company designs and makes airtight automatic rolling and hinged doors and automatic airlock chambers. Equipment of this category is used in order to meet air purity requirements in areas where especially high sterility is required, for example, in surgical wards of hospitals, pharmaceutical production facilities, microelectronics plants, etc. More than 100 product types made by the company are well known throughout Russia and CIS. The company’s logo can be found in hospitals and medical centers from St. Petersburg to Yuzhno-Sakhalinsk and from Murmansk to Mineralnye Vody. The company has over 300 partners selling its products. IESR team is facing many interesting research- and design-related challenges on which it will focus during upcoming years. We would be happy to expand our cooperation with medical institutions and industrial and trade companies in all parts of our country, and we are willing to do our best to help Russian healthcare workers to successfully achieve their noble goals. I N S I G H T I N T O R U S S I A 189 1/14/09 8:51:36 PM TRIMM MEDICINE INTERNATIONAL COMPANY T Y P E O F AC T I V I T Y: MEDICAL APPLIANCES AND INSTRUMENTS A DDR ESS: C O N T AC T S : HTTP://WWW.TRIMM.RU 15, UL. LOBACHIKA, MOSCOW 107113 RUSSIA PHONE: +7 (495) 661 4141 (MULTICHANNEL) E-MAIL: [email protected], T Alexander Matyushin President of Trimm Medicine Group, Member of the Russian Academy of Medical And Technical Sciences (RAMTN) Matyushin studied in the Moscow Aviation Institute (1985–1990). He received additional training in marketing in the Professional training School of the Ministry of Foreign Economic Relations of the Russian Federation. In 1990–1998 he acted as CEO, OOO TRIMM, and in 1998 he became the President of Trimm Medicine Group, a position he holds to this day. Matyushin is Chair of the Board of the Rusmedical Group NonCommercial Partnership for Promoting the Development of Healthcare and Medicine, Member of the Board of the 1000-Bed Hospital Non-Commercial Partnership. He was entered into the International Who’s Who book in 2006 and became member of the Russian Academy of Medical and Technical Sciences (RAMTN) in 2007. 190 IPR_digest_eng.indb 190 he medicine business is not a simple one in many aspects. It is one of the most dynamically developing commercial segments in the world. It is not a coincidence that virtually all transnational corporations pay close attention to this market segment, producing some kind of medical equipment. Established in 1991 as TOO Trimm Production Association, our company completed multiple governmental contracts. Aloka Co. Ltd, a company known for its strict requirements to quality and responsibility, knew what it did when it placed its orders for ultrasonic gel production at GosNIImedpolimer, which completed the task in cooperation with TOO Trimm. In 1995 Maersk Medical, a major Danish company, turned to then young but promising Trimm with an offer to promote their products on the Russian market. And they hit the mark. The result of our partnership is that today 40% of the entire Russian market of similar products is supplied by Maersk Medical. In 1998 Trimm Production Association formed a commercial company, Trimm Medicine, which quickly took the leading positions in the ranks of medical equipment suppliers to the Russian clinics and hospitals. Today’s OOO Trimm Medicine is an international medical trade and service company, a consultant in the medical business, and an investor in large-scale leasing operations for its long-standing partners. OOO Trimm Medicine is the exclusive representative of a number of companies in Russia, including F. Stephan GmbH (artificial pulmonary ventilation apparatus, narcosis equipment, portable oxygen concentrators and stations), AIROX (portable artificial pulmonary ventilation apparatus and bedside ventilation systems), WEYER GmbH (neonatal reanimation systems, radiant heating systems for the newborn and surgery blocks), MAICO GmbH (audiometric systems), Dantschke Medizintechnik GmbH (ENT equipment), BANDELIN Electronic GmbH (ultrasonic baths), and ZOLL Medical Corporation (defibrillators). OOO Trimm Medicine is an authorized distributor of UNOMEDICAL (medical expendables), HERRMANN Apparatebau GmbH (bowels monitoring systems), TERUMO Europe NV (infusion pumps, syringe pump), Micro Medical Ltd (spirometric systems), FUCUDA Denshl (cardiac and ultrasonic equipment), KCG Sterilisation GmbH (large sterilization, including central sterilization departments), TOSHIBA Medical System (ultrasonic equipment, X-ray equipment, tomographic scanners, NMR scanners, angiographic equipment), and SCHILLER AG (cardiac and functional equipment). We enjoy a broad sales geography. The regions accounting for the lion’s share of our medical equipment supplies and maintenance services are Moscow and the Moscow Region, Kursk Region, Belgorod Region, Bashkortostan, Murmansk Region, Rostov Region, and many, many others. All the employees of OOO Trimm Medicine are highly qualified experts in their field whose background includes internship in foreign clinics and education in technical training centers and engineering service centers, with the relevant certificates available. Our licenses enable OOO Trimm Medicine to perform all the operations needed for a turnkey hospital or clinic: design, construction, equipment supply, commissioning, and personnel training. N E W E C O N O M Y : 1/14/09 8:51:36 PM PH A R M AC E U T IC A L S IPR_digest_eng.indb 191 1/14/09 8:51:36 PM A DDR ESS: ARNEBIA T Y P E O F AC T I V I T Y: ZAO PHARMACEUTICALS HTTP://WWW.ARNEBIA.RU BUILDING 1, 6/28, UL. YUZHNOPORTOVAYA, MOSCOW 115193 RUSSIA C O N T AC T S : PHONE/FAX: +7 (495) 913 8497, 737 3260 E-MAIL: [email protected] T Sergey Rabinovich CEO The principal field in which the company works is distribution of complex homeopathic medicaments manufactured by Biologische Heilmittel Heel GmbH, Germany. According to the Pharmexpert marketing research center, ZAO Arnebia ranks among the top distributors of homeopathic medicaments in Russia. 192 IPR_digest_eng.indb 192 o date ZAO Arnebia has registered over 60 homeopathic medicaments used in different branches of medicine: from pediatrics to geriatrics, from neurology to surgery. A number of our medications, for example, the anti-inflammatory Traumel C and the hondroprotector Tsel T, became the leading homeopathic remedies in Russia. Many of these became virtual bestsellers on the Russian pharmaceutical market, enjoying a welldeserved popularity both with patients and with doctors and pharmacists, and are found in drugstores of any Russian town. The publishing activity of ZAO Arnebia is closely related with its pharmaceutical business. The Biologicheskaya Meditsina (Biological Medicine) periodical, published since 1995, is considered an authority in homeopathy and naturopathy in Russia. From 2000 on ZAO Arnebia has been publishing books on homeopathy, naturopathy, and other fields of medicine in partnership with the leading European medical publishing houses, such as Springer, Thieme, Hippokrates, and others, from Germany, Belgium, Italy, and the UK. Many of these books, especially on such techniques as mesotherapy or homeosyniatry, were republished, which testifies their importance for practicing doctors. Products representing other segments of the pharmaceutical market include probiotics Symbiolact Comp., SymbioVital, SymbioFem Plus, and Inuvit produced by SimbioPharm, a German leader in pre- and probiotic remedies and microbiological therapy. Arnebia’s another partner is Salus Haus, a leader in the segment of additives and remedies for Reformhaus, Central European health shops. Salus Haus’s product range includes natural juices, elixirs, balsams, and bioactive additives, a source of different microelements, vitamins and amino acids. The Molat energy cocktail from Dr. Grandel (Germany) is a perfect addition to this product list, an extra source of protein, vitamins, and minerals necessary for healthy nutrition. At the same time ZAO Arnebia presents cosmetic lines on the Russian market: these are Shoynear, a pharmaceutical line from Dr. Grandel, a German manufacturer of professional cosmetics; premium class spiruline-based SpiruSkin from Sanatur; the Extracta line, based on natural components, from Salus Haus, and a number of lines (including anti-age cosmetics) from Logona Group (Germany). Unsurpassed quality, efficiency and high patients’ tolerance to these cosmetics provide for their great prospects and future popularity in Russia. All the lines are certified as natural cosmetics by the German Association of Industry and Commerce; they were often named Cosmetics of the Year in Germany and other European countries, and highly appraised by consumer protection organizations, including the famous German Stiftung Warentest. Another group of products presented by ZAO Arnebia and enjoying success in Russia is bath additives from Varimed, Switzerland. Our extensive working experience, readiness to cooperation and innovations, and orientation both at customers and professionals place ZAO Arnebia among the most reliable and efficient partners in the Russian pharmaceutical business. N E W E C O N O M Y : 1/14/09 8:51:36 PM ASSOCIATION OF INTERNATIONAL PHARMACEUTICAL MANUFACTURERS (AIPM) A DDR ESS: T Y P E O F AC T I V I T Y: PHARMACEUTICALS HTTP://WWW.AIPM.ORG OFFICE 404, BLDG 2, 9, TREKHPRUDNY PER., MOSCOW 103001 RUSSIA C O N T AC T S : PHONE: +7 (495) 933 7040 T Vladimir Shipkov Executive Director I N N O V A T I O N IPR_digest_eng.indb 193 he foreign pharmaceutical industry is mostly represented in Russia by member companies of AIPM – Association of International Pharmaceutical Manufacturers. AIPM can considerably contribute to the solving of such humanistic tasks as raising the quality of life and life interval of Russian people, reducing mortality levels, increasing the birthrate, and, on the whole, building of a healthier socially oriented society up to the 21st-century economic development standards. Innovative medicines perform the mission of forming a completely new progressive philosophy of treating people’s health as a key value, creating a most efficient healthcare system, improving the methods of medical treatment and pharmaceutical development, and developing a civilized pharmaceutical market with adequate legislative regulation, transparent and predictable decisions, legal protection of intellectual property, high ethical business standards, stimulation of investment in health, further scientific research, etc. Development and manufacturing of innovative medicines requires colossal multifaceted intellectual, research, and human resources both from the state and from the pharmaceutical industry. Impressive results have been achieved recently owing to invention and commissioning of innovative medicines; quite a number of serious illnesses that posed a real threat to people’s health and even to their lives, can now be treated. Thus, state-of-the-art innovative medicines are rightfully considered a significant factor giving impetus to true health improvement for individual patients, for the population of whole countries, and for the entire humanity. Association of International Pharmaceutical Manufacturers has worked in Russia since 1994, representing the interests of international companies producing primarily innovative medicines; the member companies account for over 80% of world pharmaceutical production and more than 60% of the medicines supplied to Russia. The Association’s mission is to make the healthcare and medicine supply to Russia more efficient and to expand the range of state-of-the-art medicines available for the population of the Russian Federation. As of September 2008, the following companies were among AIPM members: Abbott, Alcon, Amgen, Astellas Pharma, AstraZeneca, Baxter, Bayer Schering Pharma, BerlinChemie, Boehringer Ingelheim, Boiron, Bristol – Myers Squibb, Dr. Falk Pharma, Ebewe, EGIS, Eli Lilly, Ferrosan, Fresenius Kabi, F. Hoffmann-La Roche, Gedeon Richter, GlaxoSmithKline CH, GlaxoSmithKline Pharma, Grunenthal, Ipsen, Janssen Pharmaceutica, Johnson&Johnson, Merck Sharp & Dohme, Merck-Serono, Nizhpharm – Stada, Novartis CH, Novartis Pharma, Novo Nordisk, Nycomed, Octapharma, Pfizer, Pierre Fabre, Pliva, Polpharma, Ranbaxy, ratiopharm, Reckitt Benckiser, Sandoz, Sanofi-Aventis, Sanofi-Pasteur, Schering-Plough, Servier, Solvay Pharma, Teva, UCB Pharma, Valeant, Wyeth, and Zambon. The member companies have many years of experience which can for sure be of use for the implementation of the state policy with a view to establishing up-todate pharmaceutical production facilities under world highest standards and improving the healthcare and medicine supply systems in the best interests of the Russian people. I N S I G H T I N T O R U S S I A 193 1/14/09 8:51:37 PM C O N T AC T S : A DDR ESS: EKOMIR T Y P E O F AC T I V I T Y: GROUP PHARMACEUTICALS HTTP://WWW.EKOMIR.RU 16, UL. BERZARINA, MOSCOW 123298 RUSSIA PHONE: +7 (495) 988 2170, 988 2180 FAX: +7 (495) 626 1223 E-MAIL: [email protected] E Sergey Leshkov CEO Leshkov was born in Kiev in 1970. He completed his secondary education in the Kiev Physics and Mathematics School No. 145, and later graduated from the Moscow Humanitarian University where he majored in psychology. He is the founder of Ekomir company. The National Committee of Public Awards awarded him the Order of Lomonosov. He is a winner of the Leader of Russia’s Economic Development Prize in the “Leader of the year 2006” category. 194 IPR_digest_eng.indb 194 komir is a modern, rapidly developing group of companies focusing on natural medicines as well as on equipment and technologies that preserve and enhance human health and quality of life. ZAO Ekomir Pharmaceutical Company specializes in development and marketing of modern medical drugs, effective nutraceutical substances (also known as biologically active dietary supplements, or BADS), and cosmeceuticals. In 2006 and 2007, the company was one of the ten world’s BADS manufacturers with the largest volumes of sales in Russian pharmacies (data provided by DSM Group). Thanks to cooperation with leading European and American manufacturers, the company is able to use standardized top-quality plant extracts and new-generation patented substances in its products. Manufacture of ready-made medicines (in dosage forms) have been certified as compliant with the ISO 9001:2000 quality management standard, and manufacture of medicinal agents is compliant with the GMP managing system which includes multi-stage quality control at all stages of the production line from the raw feedstock to the final product. In order to test efficiency of its products, the company subjects them to numerous clinical trials in the leading Russian clinical institutions. Two preparations developed by the company are now being officially registered as medical preparations. In the summer of 2007, Ekomir became the winner of the national Health Idea award in the Product Quality category (the Health Idea award is presented for achievements in health promotion and improvement of quality of life). The company’s staff members work in more than 26 Russian cities. Ekomir products are exported to Ukraine, Kazakhstan, Belarus, and the Baltic states. Negotiations are underway with extra-CIS countries. As a socially responsible company, Ekomir became one of co-funders of the National Union of Producers of BADSs and Health-Promoting and Disease-Preventing Foods. The Union is an association of the largest companies of that industry, and its goal is to create a more civilized and transparent market in close cooperation with governmental bodies that regulate the sector. OOO Ekomir Exports is the exclusive distributor of Fraxel laser systems (new-generation cosmetic laser systems) in Russia. The company is planning to import and distribute other brands of high-tech medical equipment. Ekomir has developed a line of professional cosmetics that are intended to be used in combination with aggressive cosmetic procedures. Agreements have been reached on supplying these products to Japan, South Korea, and the USA. OOO Ekomir Functional Foods focuses on studying the Russian market of functional foods. The company has registered and is marketing a line of functional beverages. The Ekomir group has a great scientific potential. It employs people with high academic degrees in medicine and pharmaceutics. Areas of interest of the company’s science department include use of nanotechnologies in medical preparations and cosmetics. In 2007, the company started marketing the Nanogrin line of cosmetics containing unique components that are manufactured with the help of nanotechnologies. N E W E C O N O M Y : 1/14/09 8:51:37 PM A DDR ESS: NATUR PRODUKT INTERNATIONAL T Y P E O F AC T I V I T Y: PHARMACEUTICALS HTTP://WWW.NATUR-PRODUKT.RU 37 LETTER A, UL. PROFESSORA POPOVA, ST. PETERSBURG 197022 RUSSIA C O N T AC T S : PHONE: +7 (812) 332 59 22 E-MAIL: [email protected] N Vladimir Polyakov CEO Polyakov holds a degree in law from the law faculty of the Chelyabinsk State University Flexible thinking, desire to always keep up with the latest trends, prompt reaction to everchanging market demand – all of these qualities are essential for a company that aims to achieve a long-term success in the pharmaceutical market. Only he who is always searching and developing can become a leader today. That is the law of our times. I N N O V A T I O N IPR_digest_eng.indb 195 atur Produkt produces the following five main groups of pharmaceutical products: non-prescription (mostly natural) medicines, generics drugs, biologically active dietary supplements (BADSs), diet food and food for diabetes patients, and functional food. The company produces 32 product lines, or over 250 individual products. Many of them are among the best in their respective segments. Natur Produkt is one of the ten largest Russian and international companies on the Russian BADS market. Most popular BAD products manufactured by Natur Produkt include the Naturino lozenges with natural juice and vitamins, the Vita Plant herbal teas from medicinal herbs, and the Terra Plant line of health-enhancing and disease preventing herbal products. One of the key components of the company’s development strategy is the ongoing expansion of its product mix. Natur Produkt is actively beefing up the product mix, regularly bringing to the market innovative preparations and improved versions of existing medicines. The company’s products are designed for people who prefer natural health-enhancing and life-quality-enhancing products. In 2007, the company started manufacturing four new products: the Naturetto glucose tablets with vitamins and minerals, the Novocept Forte line of zinc-containing sore-throat lozenges (there are no other products with similar properties in Russia), the Fitorelax natural sedatives, and the Sputnik line of condoms created with young people in mind. The company is planning to launch at least five new pharmaceutical products each year. In 2008, Natur Produkt for the first time entered the food market with a product designed for those who prefer healthy food: the Naturino fruit-and-nuts bars in which more than half of content is composed of fruit, berries, and nuts. The company is planning to actively expand this category of products, and is already preparing to market chewing candy with calcium and D3 vitamin, honey with therapeutic supplements, and more than 10 other products. Invariably high quality of all products of Natur Produkt is due to the fact that they are manufactured by plants located in the European Union. Each of the plants is compliant with the Good Manufacturing Practice standard, utilizes multi-stage quality-control procedures, and has all required certificates. As a result, the company’s products are successfully sold in Russia, CIS, the European Union, and East European countries. Another important factor (which is sometimes critical for the modern consumer) is the appearance of pharmaceutical goods. Ever-increasing competition is an integral part of the market of non-prescription pharmaceutics: consumers are offered more and more goods, many of which have similar therapeutic properties. And often it is a well-designed package that helps the consumer to make his or her mind by presenting the key data about strong and unique points of a product. Natur Produkt gives a lot of thought to this matter, striving to make sure that quality of packaging always matches the high quality of the company’s products. For its innovative activities, the company has been awarded by various prestigious diplomas and medals, including the award “For Special Achievements in Preventive and Social Medicine” and the award “For Contribution in the Nation’s Health Enhancement.” This is the most evident proof of the fact that Natur Produkt never stops its ongoing development and keeps abreast of the modern trends of the pharmaceutical market. I N S I G H T I N T O R U S S I A 195 1/14/09 8:51:38 PM A DDR ESS: UCB S.A. (MOSCOW BRANCH OFFICE) Alexander Voronovsky General Manager, Moscow Branch Office 196 IPR_digest_eng.indb 196 T Y P E O F AC T I V I T Y: PHARMACEUTICALS HTTP://WWW.UCB-GROUP.COM BUILDING 2, FLOOR 5, 10, UL. SHABOLOVKA, MOSCOW 119049 RUSSIA (KONKORD BUSINESS CENTER) C O N T AC T S : PHONE: +7 (495) 644 3322 FAX: +7 (495) 644 3329 UCB Pharma in the world: science, innovation and flexibility Scientific and technological advances have created a new opportunity to address severe diseases successfully. UCB is a global biopharma company focusing on six therapeutic areas – CNS (including epilepsy), respiratory illnesses and allergy, inflammation and immunology, oncology, cardiology, and angiology. Our world level infrastructure, many years of pharmaceutical manufacturing experience, rapid development and innovations, and research centers in Slough and Cambridge (UK), Braine-l’Alleud (Belgium), Atlanta, and Tokyo drive the company’s strategic goal: to become the next generation biopharma leader relying upon the unique combination of innovations, rational investment in development, and time-proven experience. UCB Pharma global team counts over 10,000 staff from 40 countries, including 1,200 scientists working in research organizations worldwide. The company’s total 2007 turnover amounted to EUR 3.6 billion. UCB Pharma in Russia The company first entered the Russian market in early 1990s with such products as Nootropil®, Atarax®, and Zyrtec®. These were distributed via a partner network, while the representatives of the company itself provided medical consulting support. Owing to this, the company was able to get our sales going throughout Russia. The Moscow Branch Office was opened in April 1994. On December 3, 2007, the Branch Office of UCB Pharma was named Company of the Year 2007 in the nomination “Implementation of Innovational Projects in Pharmaceuticals.” On October 14, 2007, the prize “Occupation: Life” was awarded for the 7th time in St. Petersburg; UCB Pharma was named a Laureate of the International Public Award in Medicine and Health Industry “For Accomplishments in Medico-Biological Problems.” Together with Schwarz Pharma AG (Germany) belonging to UCB Pharma, the Moscow Branch Office sales rose from the 65th place to the 34th place among the Russian pharmaceutical companies (according to the Pharmexpert marketing research center data as of 2006–2007). According to IMS (2007 data), UCB Pharma is a No. 1 world antihistamine leader. Products Principal products that were created by UCB Pharma and received wide popularity and acknowledgement are the following ones: Keppra® is indicated for the treatment of several types of epilepsy, a preparation with unique mechanism of action, an antiepilepsy remedy No. 1 in the US; Xyzal® is our latest anti-allergy medicine; Zyrtec® is a widely known antihistamine medicine; Nootropil® is the first pharmaceutical from the family of cognition enhancing medicines called nootropics; Atarax® is an anxiolytic medicine; Kardiket® and Effox® are intended for prolonged angina treatment; Isoket® spray is used for rapid relief of symptoms of angina; Isoket® solution is a medicine for acute cardiac condition relief; Vasaprostan® is used for severe obliterating leg illnesses; Vasoket® is a single-administration medicine for treating chronic venous insufficiency. – Keppra® (levetiracetam) is an anticonvulsive medicine well known to Russian neurologists. It was presented on the world pharmaceutical market in 1999; by early 2006 over N E W E C O N O M Y : 1/14/09 8:51:38 PM one million patients had taken Keppra for a year or more. Among new anti-epileptic medicines, Keppra is the only one featuring ideal pharmacokinetic parameters, a wide efficiency range, good tolerance profile, and cognitive function improvement. Keppra® is available as pills, intake solution, and an intravenous formulation. Keppra® is indicated in Russia as therapy for treatment of children from 4 years of age (with partial epilepsy), and as monotherapy for patients from 16 years of age. When the intravenous formulation is introduced into the Russian medical practice, the doctors here will have yet another opportunity to treat people with severe diseases. – Xyzal® (levocetirizine) is an innovative antihistamine for the symptomatic treatment of allergic rhinitis, produced at a state-of-the-art plant in Switzerland. Xyzal takes effect in as little as 12 minutes. Being an end metabolite of cetirizine, Xyzal blocks the receptors of the allergic inflammation to the maximum extent; besides, it is not metabolized in the liver almost at all, providing high safety. – Zyrtec®, a second-generation antihistamine, is used for symptomatic treatment of perennial and seasonal allergic rhinitis and allergic conjunctivitis. Zyrtec® is approved in over 100 countries for children and adults. – Nootropil® (piracetam), one of the company’s first products, is used for treatment of cognitive decline, vertigo of different genesis, children’s learning difficulties, including dyslexia, cerebrovascular illnesses, brain injuries, and abstinence syndrome. The special mechanism of action of Nootropil lies in its unique capability to restore the normal cell membrane fluidity, which ensures safety and enables treating children and aged people, the two most sensitive types of patients. – Atarax (hydroxyzine) is the company’s oldest product, one of the first to emerge on the anxiolytic market, used for treating of anxiety. It also has apparent antihistamine, antipruritic and antiemetic effects. With the efficiency similar to that of benzodiazepine anxiolytics, Atarax differs from them in that it does not cause drug dependence or withdrawal syndrome and features minimum drug interaction. – Vasaprostan (alprostadil) is the pharmaceutical name for prostaglandin E1 having multifactor influence on bloodstream and vascular wall functions. Vasaprostan is a real alternative to limb amputation for patients with critical ischemia. It is especially efficient in diabetic foot patients. – Vasoket (diosmin) is used in the treatment of venous disease. Diosmin is a well-known and widely studied flavonoid. The unique features of Vasoket are due to the high-quality raw materials and high-technology manufacturing. – Kardiket (isosorbide dinitrate) can be administered in a wide range of doses, making it possible to choose the dosage for each patient individually and change it if necessary. Kardiket is the leader on the market of oral nitrates. Other pharmaceutical products by UCB Pharma, now under clinical testing, are going to be produced. Once in the clinical practice, they will mark a real breakthrough in treating such severe diseases as rheumatoid arthritis, systemic lupus erythematosus, Crohn’s disease, and psoriasis, that is, illnesses that most often affect people’s social and physical interaction. I N N O V A T I O N IPR_digest_eng.indb 197 I N S I G H T I N T O R U S S I A 197 1/14/09 8:51:39 PM A DDR ESS: ZELENAYA DUBRAVA T Y P E O F AC T I V I T Y: ZAO PHARMACEUTICALS HTTP://WWW.MAZI.RU 151, UL. PROFESSIONALNAYA, DMITROV, MOSCOW REGION 141800 RUSSIA C O N T AC T S : PHONE: +7 (49622) 30 585, (495) 504 2550 E-MAIL: [email protected] T Elena Istranova Leading Researcher, PhD in Pharmaceutics ZAO Zelenaya Dubrava, a Russian pharmaceutical manufacturer, was established in 1999. It is expanding its production facilities (license No. 99-04-000071 of July 28, 2005) and puts new pharmaceuticals into production. The company mission is to produce high-quality medicines and parapharmaceutical preparations. The plant focuses on manufacturing traditional and innovational soft dosage forms and sublimated biological plates. Our highly efficient high-quality products in modern packaging enjoy popularity. 198 IPR_digest_eng.indb 198 he plant is designed in accordance with the current GMP process requirements. The equipment used enables producing compound preparations applying unique technologies. Warehouses of raw materials, packaging, and finished products are equipped with up-to-date shelving and loading machinery. The accredited analytical laboratory performs inspection of incoming materials and analyzes semi-products and finished products as to their compliance to the documentation requirements. But the company’s chief resource is its highly qualified staff committed to their work. The company management pursues a consistent policy of attracting fresh graduates, enabling them to realize their career aspirations. The team of production engineers continually develops and puts into production new technological solutions and preparations of all complexity levels. The high quality level of production and quality assurance are ensured on each stage of the technological process by qualified operating personnel. The Company has accumulated vast experience of custom pharmaceutical preparation. The high production mobility enables performing both large and small orders in accordance with the market needs. The company offers a full range of inexpensive services in contract manufacturing, from concept generation and obtaining the necessary permissions to the production itself. ZAO Zelenaya Dubrava is an ideal ground for implementation of most daring scientific projects. Russia’s leading scientists cooperate with the company, introducing unique technologies. The collagen project is a striking example. In the late 1960s, many nations throughout the world started researching the evidently promising collagen materials. In Russia, active research started in 1963. By the beginning of the program, there had been only two small publications on the attempts to use collagen in medicine. As a result of laborious research, first collagen medicines appeared in Russia, and their commercial production started in 1980. Today many medicines and medicinal products are made from collagen solutions, such as wound, sore and burn covering; local haemostatic means to stop bleeding; filling materials; plasters; biological prostheses and osteoplastic materials. Guided by many years of research and practical results of collagen medical applications, the Russian scientists from MMA Collagen Center created the MEDICAL COLLAGENE 3D series to be produced at the facilities of ZAO Zelenaya Dubrava. This series of native three-spiral collagen has a number of advantages over low-molecular hydrolysates. At present the collagen-related direction is developing rapidly in ZAO Zelenaya Dubrava. Next-generation wound-healing collagen coatings are put into production; dental biological plate production is being started. ZAO Zelenaya Dubrava invites to cooperate: – Researchers – to develop the manufacturing application of their developments. – Companies – to place their manufacturing contracts. – Fresh graduates – to realize their career aspirations. N E W E C O N O M Y : 1/14/09 8:51:39 PM SE RV IC E AC T I V I T I E S I NC I DE N TA L TO OI L A N D GA S E X T R AC T ION IPR_digest_eng.indb 199 1/14/09 8:51:40 PM GEOPHYSICAL DATA SYSTEMS OOO T Y P E O F AC T I V I T Y: SERVICE ACTIVITIES INCIDENTAL TO OIL AND GAS EXTRACTION A DDR ESS: C O N T AC T S : OFFICE E-302, PARK-PLACE, 113/1, LENINSKY PROSPEKT, MOSCOW 117198 RUSSIA PHONE: +7 (495) 234 2794 FAX: +7 (495) 956 5237 E-MAIL: [email protected] G Alexander Zhukov CEO D. Sc. in Engineering Zhukov graduated from the Lomonosov Moscow State University (geology division, geophysics department). He is Professor of Moscow State University and Academician of the International Academy of Mineral Resources. He made his career in the Naro-Fominsk Branch of VNIIGeophysics from a geophysical engineer to the Head of the Seismic Department. It was he who pioneered digital seismic recording systems in the industry; in 1972 he led the first field program with domestic SSTs-2 seismic recording station in the north of the Krasnoyarsk Region. One of proponents of vibroseis exploration in the USSR, he developed the first field processing systems and adaptive vibroseis techniques. He is an author of more than 60 R&D publications, five monographs and 24 inventions, member of Russian and American Geographical Societies, i.e. EAGO, EAGE and SEG. 200 IPR_digest_eng.indb 200 eophysical Data Systems was established in 1991 as a service company providing a wide range of geological and geophysical services to oil & gas companies from carrying out field programs to development of oil & gas reservoir models. The company services major industry producers like Gazprom, TNK-BP, RITEK, and some foreign holdings. Along with that, GDS positions itself as an innovation company focused on development and introduction of state-of-the-art technologies. The validity of such an approach is proved by large interest shown by both domestic and foreign companies to GDS designs, as well as by quite a significant geography of its business. Range of services First of all one should note CMP 2D/3D seismic exploration studies with priority given to seismic data processing and interpretation. This segment takes almost 60% of the Company’s total turnover. Among other services provided by Geophysical Data Systems supervising (Quality Control) of all field seismic operations, including timely in-field data processing in remote processing centers, can be named. A prominent place is taken by field studies with world best practices and equipment used, i.e. multiwave and nonlinear seismic exploration, offshore surveys with underwater telemetry modules, etc. The company is also engaged in supply and supporting geophysical processing systems for ground and off-shore seismic surveys, development of in-house algorithms, software and know-how for processing, archiving and storage of geophysical information. Today 3D seismic survey results provide geologists and geophysics with volumetric earth images with high in-depth and lateral resolution, but sometimes this is not enough for confident decision-making on perspective targets with commercial hydrocarbon reserves. The approach used by Geophysical Data Systems features interpretation of geophysical data based on a geological model, with sequence stratigraphy involved. The application of this technology implies sequential bio-stratigraphy layering and simulation of sedimentation and reservoir models reconciled with available geophysical, geological and log data. This approach ensures significant reliability and accuracy of prediction and estimation of hydrocarbon trap properties. Creative approach and unique equipment For the last decades the necessity to eliminate near-surface effects is one of the key problems preventing better accuracy and confidence of seismic survey data. This problem is especially acute in the West and East Siberia regions. West Siberia heterogeneity results from permafrost development, while East Siberia heterogeneity results from trappean magmatism. The Company’s specialists pay a lot of attention to solution of the problem and, besides theoretical studies, also develop and implement appropriate software (IST3MP complex of programs) aimed at elimination of near-surface effects. For a long time Geophysical Data Systems applied this technology in house, improving its competitiveness in the Customers’ eyes. But at the end the Company came to the conclusion that sales of this software to other servicing companies will not really affect its business. So today this unique patented technology is used not only in the Siberia N E W E C O N O M Y : 1/14/09 8:51:40 PM regions, but also in the Middle East and in the Central Asia as well, where near-surface heterogeneity is associated with sand hills and a mountainous territory. Complex interpretation with technologies provided by Geophysical Data Systems requires a group of specialists with various qualifications as geologists, geophysical engineers, petrographers, sedimentology specialists, etc., because by its nature any software is only a tool in hands of a well-trained specialist. The Company’s partners and domestic Customers which apply for Company’s services understand it very well. Russian specialists, especially those of the old school, are known for their creative data apprehension, ability to fall into work head over heels, and scrupulous study of acquired data. The cost of in-field services makes approximately 80% of all geophysical complex program including data processing and interpretation by powerful PCs. This factor implies the necessity of timely in-field supervising (QC) of field seismic operations and later on during data processing and interpretation. That’s why at any of our sites there are always supervisors equipped with necessary processing facilities. They perform daily QA/QC of seismic data, process the data in a real-time mode, and prepare documented summaries for the Customer. Today this approach has basically become a standard for any Customer. A difference between supervision service providers lies in their technologies and fair practice. Geophysical Data Systems developed a special SeisWin-QC software suite to control the quality of field seismic survey. As compared with other similar systems this suite demonstrates high efficiency and enables complex estimation of seismic wave field attributes. Moreover, it also allows processing huge amount of data, for instance, it is able to digest hundreds of gigabytes of field data within just a day. Future development trends Even large oil & gas companies sometimes experience problems with storage of large amount of data collected during the seismic field season. These data should be sorted, archived, duplicated, protected from failure and from data theft – all that consuming a lot of efforts and resources; therefore most companies decide to outsource the task. For the last two years Geophysical Data Systems has been actively promoting this trend and supporting it with large investments. It is very important that on the Customer’s request this information is delivered within one hour. This is a very promising service, and in the future it will become more and more popular. The Company has great expectations for new high-power Russian PCs. After all there is quite a number of geological and geophysical data processing and interpretation challenges which require processing of huge information arrays under very complex and time-consuming algorithms. Geophysical Data Systems recognizes practical benefits from hi-tech development and implementation and bases its future development plans on the utilization of stateof-the-art technologies. Innovation leads to success!!! I N N O V A T I O N IPR_digest_eng.indb 201 I N S I G H T I N T O R U S S I A 201 1/14/09 8:51:40 PM NEFTEGAZGEOFIZIKA OOO C O N T AC T S : T Y P E O F AC T I V I T Y: A DDR ESS: SERVICE ACTIVITIES INCIDENTAL TO OIL AND GAS EXTRACTION 5/25, UL. TERESHCHENKO, TVER 170033 RUSSIA PHONE: +7 (4822) 32 4380 FAX: +7 (4822) 58 7353 E-MAIL: OFFICE@ NEFTEGAZGEOFIZIKA.RU N Rafis Khamatdinov CEO Graduated from the department of physics and mathematics of the Bashkir State University (1969). He is Doctor of Sciences in engineering (1990), professor (1999). He started his career as a senior engineer in the All-Russia Research Institute of Geophysical Well Survey (VNIIGIS, Oktyabrsky, Bashkiria). Since 1994 he headed the All-Russia Research Institute of Geophysical Methods of Examination, Testing and Control of Exploratory Wells (VNIGIK, Tver) and AOOT NPP GERS. In 1995–2002 he was CEO of OAO NPTs Tvergeofizika. Since 2003 he has headed OOO Neftegazgeofizika. Khamatdinov is a laureate of the Prize of the Ministry of Geology of USSR For Contribution into the Scientific Progress in Geology (1988), of the Gubkin Prize (2002), of OAO Gazprom Prize (2003); he holds the titles of an Honored Oil Industry Worker (1987) and Honored Worker of the Fuel and Energy Sector (2001). 202 IPR_digest_eng.indb 202 eftegazgeofizika from the city of Tver is a national leader in terms of development, design, and commissioning of new development survey technologies. With over 35 years of professional experience, the experts of OOO Neftegazgeofizika implement large-scale projects providing a competitive edge to Russian service geophysical companies on the national market. Technologies have been implemented that enable efficient survey of prospecting boreholes and exploratory holes, cluster directional drilling holes and horizontal holes, control of technical status and productivity of the operated well stock, and estimation of the current status of hydrocarbon reserves. In order to implement these technologies, the company developed novel computer-controlled equipment, methodological support, and related software; production of such equipment has started. The Company has pioneered a number of high-tech borehole surveying instruments for oil & gas recovery, some of them without analogs in Russia. These include new types of spectral radioactive well logging equipment, a cross-dipole array acoustic logging tool, equipment for NMR tomography logging in strong magnetic fields, etc. A considerable part of the products (up to 40%) is exported to CIS countries, Vietnam, USA, and China. However, despite the fact that the modern market offers any opportunity for high-quality work to Russian service companies, there are certain problems hindering further development. Russia has no coordinated policy in the organization of R&D and service maintenance in geologic and geophysical research. Since 2000 R&D financing from the federal budget was practically suspended; at the same time many oil-producing companies got rid of their geophysical service companies as “redundant,” leaving them floundering on the free market. The economic weakness of Russian service companies and the low level of payment to Russian enterprises by oil-extracting companies dealt a heavy blow to them, stripping them of opportunities to open orders and finance development of new equipment and technologies. Another problem is lack of coordinated efforts aimed at a technological breakthrough on the part of Russian oil companies. The greater part of companies pays much attention to their in-house analytic centers and research institutes solving routine regional tasks, while economically weak research teams and manufacturers are left to develop new technologies as best as they can. We believe it necessary to: – Create the legal and financial prerequisites for the organization of Russian oil & gas servicing, with possible methods of data protection, quotas and participation of foreign companies set forth. – Create a state corporate system with public and private companies participating that will be capable of regulating R&D performance, equipment renovation, machine engineering facilities development, onshore and offshore services, data accumulation and protection, exports, and services abroad. Such a system could be financed from the federal budget and the budgets of oil and gas companies, as well as from the funds of the corporation participants, provided that taxation associated with innovation projects is reduced for them. N E W E C O N O M Y : 1/14/09 8:51:40 PM C O N T AC T S : A DDR ESS: NOVOMET GROUP T Y P E O F AC T I V I T Y: SERVICE ACTIVITIES INCIDENTAL TO OIL AND GAS EXTRACTION HTTP://WWW.NOVOMET.RU 395, SHOSSE KOSMONAVTOV, PERM 614065 RUSSIA PHONE: +7 (342) 296 2756, 296 2759, 296 2750 FAX: +7 (342) 296 2302 E-MAIL: [email protected] N Oleg Perelman CEO Winner of the Prize of the Russian Government. Winner of the 2008 Stroganov Prize For Outstanding Economic Achievements. I N N O V A T I O N IPR_digest_eng.indb 203 ovomet is one of the leaders in manufacturing oilfield equipment. Initially, in 1991 the Company was producing ESP components. In 2002 the Company commenced large-scale production of complete ESPs. 2007 was marked by the Company’s entry to the international markets – its first ESPs were exported to Indonesia and Sudan. The Company’s sales are growing steadily, and the share of innovative products in the overall annual sales is in excess of 20%. Innovations of Novomet are in demand for the world majors including Gazpromneft, LUKOIL, Shell, and Saudi Aramco. The achievements of ZAO Novomet-Perm include the following latest world-class innovations: – inclined rotors and mixed-flow compressors; – submersible multiphase pumps; – abrasion-resistant pumps; – abrasion-resistant gas separators; – downhole thyratron and high-temperature motors; – unique 95 mm submersible units; – software for choosing drilling rigs that match specific well requirements and assessing their reliability. All the innovations have been put into production and the above listed equipment is being manufactured in mass. In 2000 one of the Company’s innovations was awarded the Prize of the Russian Government. The Company employs 2 Doctors of Sciences (Engineering), 11 PhDs (Engineering) and 580 engineers, which amount to 19% of the Company employees. The Company has an Engineering & Technical Center, equipped with in-house designed R&D instruments. The Center operates 28 workbenches designed for studying hydrodynamic processes in multi-phase fluids, thermodynamic and electrodynamic processes occurring in the motors, tribotechnical and hydroabrasive treatment tests of various materials for the equipment components. The Company endeavors to upgrade both the machine pool, and know-how (laser prototyping, which accelerated production of the components of any complexity, ESP treatment with high-temperature compounds, painting, development of the new powdered materials). In summer 2007 the Company proved the conformity of its quality management with ISO 9001 and renewed its OHSAS 18000 and ISO 14000. The Company has implemented an ERP system. The Company strategy is focused on products which would match complex operational environment: complete submersible units with the lifting capacity of up to 3,500 m and flow rate of up to 6,000 cubic meters per day and reservoir pressure maintenance systems. Another prospective area of business is equipment service maintenance. In general the share of services in the overall business of the Company is as high as 25%. Today, Novomet is a modern rapidly developing enterprise with an advanced HR and social policy. It currently employs more than 3,000 people. I N S I G H T I N T O R U S S I A 203 1/14/09 8:51:41 PM C O N T AC T S : NPPGM GEOSEIS OOO T Y P E O F AC T I V I T Y: A DDR ESS: SERVICE ACTIVITIES INCIDENTAL TO OIL AND GAS EXTRACTION 55, UL. RESPUBLIKI, TYUMEN 625000 RUSSIA PHONE: + 7 (3452) 39 6197 FAX: + 7 (3452) 396183 E-MAIL: [email protected] ADVANCED IT TECHNOLOGIES IN OIL & GAS EXPLORATION Vladimir Igoshkin CEO PhD In Geology & Mineralogy. Awarded with: Order of the Badge of Honor, Medal of Mineral Exploration Merit. 204 IPR_digest_eng.indb 204 Main Company’s activities are: – Exploration project design; – Design and supervision of field geophysics programs; – Processing and interpretation of geophysical survey and seismic data; – Geological modeling and monitoring of hydrocarbon reserves; – Specialization in development, upgrading and structuring of local and regional geological and geophysical databases. The Company’s business geography covers West Siberia territory from the Urals to the Yenisey. Its main Customers are leading oil companies, i.e. Gazprom Neft, TNK-BP, etc. Development dynamics and new technologies This service company actively introduces most advanced technologies in processing and interpretation of geological & geophysical data. Successful completion of analytical jobs at the south of the Tyumen Region, at the banks of the Ob River, in Yamal, and in the north of the Krasnoyarsk Territory enabled the Company’s dynamic progress along with the expansion of its business activities and upgrade of its hardware and software facilities. Company’s specialists operate most advanced and reliable software from leading world and Russian programmers, such as Shlumberger, Paradigm Geophysical, HampsonRussel, OAO Central Geophysical Expedition (Moscow), and V.I. Shpilman Research and Analytical Center of Efficient Mineral Resource Usage. Applying new technologies, the Company’s specialists create 3D digital geological models of the field, which are prerequisites for any successful deposit development. Experience in operations at intensively developed fields helped to identify main components of a new technology for most efficient geological and geophysical support to exploration and drilling planning at multi-layer complex structures. Geoseis introduced a new concept of exploration predicting and monitoring, monitoring of hydrocarbon reserve flow, and hydrodynamics during exploration and development of Priobsky-type complex-formation fields on the basis of a continuously updated digital geological model. Its concept involves wide combination of CMP 2D-3D seismic data with deep exploration and operating log data. The model developed by our specialists led to multiple improvements of drilling programs and to quite significant results: today they have target-drilled more than 600 new operating wells within the licensed area. Plans and prospects GEOSEIS plans further improvements of its processing and geological & geophysical simulation technology. Monitoring geological models during field development should be supported with hydrodynamical models updated as well. In fact we are speaking about a permanent iterative process of learning new earth volumetric structure elements through building models continuously updated with new exploration data, with involvement of state-of-the-art ideas and best practice of estimating the spatial distribution of physical earth parameters. N E W E C O N O M Y : 1/14/09 8:51:41 PM PETR UNDERWATER ENGINEERING WORKS, ZAO T Y P E O F AC T I V I T Y: A DDR ESS: C O N T AC T S : SERVICE ACTIVITIES INCIDENTAL TO TRANSPORT VIA PIPELINES 2A, UL. OSTUZHEVA, VORONEZH 394042 RUSSIA PHONE/FAX: +7 (4732) 26 1519 E-MAIL: [email protected] P Vitaly Latartsev CEO Latartsev graduated from the Voronezh Polytechnic Institute in 1968, qualifying as electronic engineer. Since 1971 he practiced scuba diving and headed the Reef Diving Club (which existed till 1998). In 1980 he was trained in the All-Union Voronezh Diver School. From 1968 till 1979 he worked as an engineer (later, senior engineer) for Elektronika Production Association under the Ministry of Electronic Industry of USSR. From 1979 till 1991 Vitaly worked as a foreign relations manager at electronic companies. Since 1991 he headed the underwater engineering works branch of the Novator Production Association. He has worked at his current position since 1994. I N N O V A T I O N IPR_digest_eng.indb 205 etr Underwater Engineering Works has been functioning as it is since September 1994. The only activity it is involved in is underwater engineering works of all kinds, including submerged crossings of trunk pipelines. At different times of its history ZAO Petr serviced a lot of different customers, including OOO Mostransgaz, other branches of OAO Gazprom, OAO Transneft, AK Transnefteprodukt, branches of EMERCOM of Russia, hydrographic groups for the Black and Baltic Sea, energy companies, including nuclear power stations, chemical and manufacturing enterprises, etc. The cornerstone of the company’s technical policy is development and introduction of new materials and technologies, modern electronic and diagnostic instruments, computers, and other achievements of world science and industry into underwater engineering practices. PRINCIPAL LINES OF ACTIVITY OF ZAO PETR Survey and search on sea Sound material resources, proprietary search equipment with state-of-the-art navigation and search facilities, and many years of practical experience enabled Petr to complete a number of projects successfully. The company’s portfolio includes finding and recovery of a Hurricane fighter above the Polar Circle (2004), magnetic survey of the Nord Stream gas pipeline section adjacent to the starting point, near the town of Primorsk on the Gulf of Finland (December 2005), etc. Diagnostics of trunk pipeline submerged crossings Among the recent developments by ZAO Petr, the company is especially proud of a transversal differential gradiometer, which helps measure the depth of the pipeline (including pipelines constructed by controlled drilling) more precisely. It is a technology which has never before been applied in pipeline transport. Another major achievement of ZAO Petr is the technology of winter examination of submerged crossings from the surface of the ice. Technical supervision over submerged crossings construction In order to solve typical problems associated with submerged crossings construction, ZAO Petr has developed a fundamentally new technology of controlling trench parameters and pipe canal laying parameters, with sonar scanning used. This technology showed thrilling results when scraping underwater trenches. New practices of submerged crossings repair In 1997 Petr employees started developing a fundamentally new technology of bottom-protection and bank-protection works at submerged crossings. Financial support was granted by the Moscow Fund for Assistance to Development of Small Businesses Involved in Research and Development. In 1999 the company patented the method and the pattern of a flexible concrete mattress (FCM), or, in more official wording, UFPCM – a universal flexible protection concrete mattress (flooring), widely applied not only for protecting submerged crossings, but also for field facilities construction, strengthening roadbeds, etc. Another kind of maintenance ZAO Petr provides is underwater insulation repair, with petroleum jelly based TapeCoat repair modules used. ZAO Petr everyday practice also includes other kinds of maintenance and repair: pipeline embedding, caisson installation, etc. I N S I G H T I N T O R U S S I A 205 1/14/09 8:51:41 PM PROMPROEKTSTROY RESEARCH AND PRODUCTION COMPANY, OOO A DDR ESS: T Y P E O F AC T I V I T Y: SERVICE ACTIVITIES INCIDENTAL TO OIL AND GAS EXTRACTION HTTP://WWW.PPS.PERM.RU 7, UL. LINEYNAYA, POLAZNA, PERM TERRITORY 618703 RUSSIA C O N T AC T S : PHONE/FAX: +7 (34265) 92 411 E-MAIL: [email protected] P Vladimir Korovin Director The measuring unit is certified. The next innovation of OOO Promproektstroy Research and Production Company to be put into practice will be the technology of hydrocarbon recovery from tailing deposits. 206 IPR_digest_eng.indb 206 romproektstroy Research and Production Company has been working in oil servicing for more than 10 years. The Company invests its finance and its large creative potential into developing state-of-the-art technologies in the field. In 2008 OOO Promproektstroy started manufacturing a gas-oil ratio (GOR) measuring unit. The device was designed by OOO Promproektstroy inventor team at their own initiative. A number of original engineering solutions enabled the Company to create a device unparalleled in Russia and fully compliant with the appropriate guiding documents. Application and scope of use The device is designed to measure the GOR by sampling the gas-liquid mixture from oilfield pipelines or directly from the wellhead. The device can be used by companies involved in prospect, exploratory, and production well testing and survey at oil, gas and mineral water deposits. Development goal The goal of the development was to create a compact mobile measuring unit which would be able to measure the GOR in each well, in collecting points and at different stages of fluid conditioning. The measuring unit extracts a small sample of gas-liquid mixture and separates the gas and liquid components. Knowing the GOR for each well enables the operator to manage the fluid extraction process efficiently when the pressure falls below the saturation point. Strengths of the device Similar mobile measuring units from other Russian manufacturers (Asma-T, OZNa, etc.) are designed, above all, for measuring the extracted liquid discharge. Such units draw the entire fluid flow that passes the sampling point, and then return the flow back into the pipeline. This makes accurate GOR measurement impossible because of the following: – Separation pressure of the measuring unit will equal the pipeline pressure (a non-standard separation stage); part of the gas will inevitably be dissolved. In order to measure the correct GOR (in accordance with the document RD39-0147035-225-88), the dissolved gas must be taken into account, which is impossible for such measuring units. – Separator design does not fully guarantee absence of liquid drops in the measured gas flow, which prejudices the accuracy of gas flow meters (especially vortex meters). – There are certain circumstances (watery oil, high-viscosity oil, etc.) when gas stays in the foam and escapes through the oil line. In such cases gas meters become useless and the measured liquid flow is higher than the actual value. Using computational methods (measuring the gas flow after compressing it in the device separator) does not provide accurate results. The proposed GOR measuring unit has no such weaknesses as it was designed for particular measurement conditions, with the appropriate requirements observed and the need to measure the gas-oil ratio taken into account. N E W E C O N O M Y : 1/14/09 8:51:42 PM T Y P E O F AC T I V I T Y: RIALOG SERVICE ACTIVITIES INCIDENTAL TO OIL AND GAS EXTRACTION OOO A DDR ESS: C O N T AC T S : HTTP://WWW.GKPERESVET.RU 62, UL. ONEZHSKAYA, KRASNODAR 350059 RUSSIA PHONE: +7 (861) 210 9620 PHONE/FAX: +7 (861) 234 0369 E-MAIL: [email protected] I Viktor Ivanov CEO Ivanov entered the geological prospecting department of the Grozny Oil Institute, majoring in geophysical methods of deposit search and exploration, in 1967. After graduation from the Institute, he started working for the Caucasus Branch of the All-Union Oil-Field Geophysics Research Institute, in the newly formed radioactivity logging department. The department developed heatproof and pressure-proof standard radioactivity logging devices, providing geophysical enterprises with the essential standard equipment, and afterwards started developing devices for array neutron logging, density logging, and spectral logging. Ivanov obtained a PhD decree in 1987, with his thesis dedicated to neutron logging devices. Since 1991 he worked as the director of the Geophysical Research Institute (NIIGI) in Grozny. In 1996 Viktor established OOO RIALOG, becoming its CEO. The backbone of the RIALOG team was formed by the researchers who had worked in the NIIGI. I N N O V A T I O N IPR_digest_eng.indb 207 t is well-known that geophysical well survey in the USSR was most developed in the Caucasus, both in terms of its scientific and industrial results. The Grozny Geophysical Research Institute (NIIGI) was a leading manufacturer of heatproof and pressure-proof devices covering almost all the aspects of development survey. It was headed by an outstanding designer of geophysical instruments, D. Sc., Professor A.G. Barminsky (1937–1991). After the infamous events in Chechnya NIIGI ceased to exist, but its research and commercial potentials were preserved by OOO RIALOG, which marked its 10th anniversary in 2006. Since its foundation the company has increased its industrial and research resources; it was one of the first Russian companies in the field to use digital well logging. Today OOO RIALOG uses stateof-the-art technologies, components and materials. The software-driven LOGIS open-hole equipment includes 14 different instruments. All logging instruments can operate separately or in assemblies. They have a uniform standard diameter of 75 mm; two options with different thermal/pressure resistance are supplied: 120°C/100 MPa (15,000 psi) and 175°C/120 MPa (18,000 psi), with 220°C/170 MPa (25,000 psi) available as a custom option. A three-core geophysical cable with a length of up to 7,000 m is used. LOGIS digital equipment offers the following advantages: – The logging instrument kit is diverse enough to perform all the necessary open-hole well logging, both in production wells and prospect wells; – The tools are supplied together with metrological accessories and the necessary software and connected to widely used surface log recorders; – Assemblies of 4 or 5 instruments can be run during one up/down cycle, which makes it possible to complete all the necessary open-hole well logging in 3 cycles rather than in 6 to 10 cycles, reducing the well downtime; – Logging the physical properties of rocks (density, porosity, electrical resistance, etc.) enables the operator to assess the quality of the obtained materials on the spot and to interpret the log data quickly; – The small-diameter instruments (75 mm) can be widely used in slim hole wells, through the drilling tool, in sticky holes, in slanted or horizontal wells. The LOGIS-CONTROL digital equipment, developed in 2006, was designed to assess deposit technical conditions and control oil & gas deposit development. The equipment includes five logging instruments and the surface control unit. LOGIS-CONTROL may be used for well depths down to 7,000 m, at temperatures of up to 180°C and pressure up to 100 MPa (15,000 psi). RIALOG produces 200 to 250 digital well instruments per year. Our products are operated successfully on the island of Sakhalin, in Orenburg, Nizhnevartovsk, Nyagan, Usinsk, Krasnodar, Stavropol, as well as in Belarus, Turkmenistan, and Kazakhstan. High professional skills of our employees, their responsible attitude and good labor management enable us to create reliable up-to-date equipment and technologies, raising the logging quality and information value. We are ready to cooperate most extensively, providing solutions for geophysicists, geologists and businesses involved in hydrocarbon field development. RIALOG develops and manufactures unique well logging equipment. I N S I G H T I N T O R U S S I A 207 1/14/09 8:51:42 PM RITEK INNOVATION AND TECHNOLOGY CENTER, OOO A DDR ESS: T Y P E O F AC T I V I T Y: SERVICE ACTIVITIES INCIDENTAL TO OIL AND GAS EXTRACTION BUILDING 4, D. 21, PROSP. 60-LETIYA OKTYABRYA, MOSCOW 117036 RUSSIA C O N T AC T S : E-MAIL: [email protected] R Vladimir Pavlenko CEO Pavlenko graduated from Moscow Aviation Institute; he has a PhD degree. Pavlenko holds the titles of an Honorary Aircraft Constructor and Honorary Oil Industry Worker; he is decorated with the Order of Honor, medals For Labor Valor and In Memory of the 850th Anniversary of Moscow, and honorary signs: Engineering Glory of Russia (1st degree), 10th Anniversary of RITEK, and 15th Anniversary of RITEK; he is also a laureate of the N.K. Baybakov Prize. 208 IPR_digest_eng.indb 208 ITEK Innovation and Technology Center is an affiliate of the Russian oil company RITEK with the LUKOIL Group. The Company is located in Moscow. Its principal activities include: – Development and examination of brushless DC motor (BLDC) drives for oil equipment, as well as drive control tools. – Production of BLDC motor drives for oil equipment and drive control tools. – Servicing, maintenance and support. The Company counts 150 people, including 72% with university education and 28% general workers and employees. The lion’s share of them has many years of experience in aircraft construction and the oil industry. A number of employees have postgraduate academic degrees; they participated in multiple international conferences on oil & gas equipment and technologies, publishing their works on the subject in industry periodicals. OOO RITEK Innovation and Technology Center participates in the International Exhibition of Equipment and Technologies for Oil and Gas Industries (Neftegaz), Moscow, each year, and has a number of diplomas and medals. OOO RITEK Innovation and Technology Center is a member of the Russian Union of Industrialists and Entrepreneurs. The Company is equipped with up-to-date CAD software, general and specific equipment, monitoring aids and test benches. The test bench for testing brushless DC motors and drives developed by the Company is unparalleled in Russia, enabling us to develop new oil pump drives efficiently. Submersible pumps extract some 80% of all oil in Russia. We have equipped drives for such pumps with synchronous motors having permanent magnets in the rotor, a new word in the electric machinery, rather than with traditional asynchronous motors. Such a transition was enabled by the latest achievements in power and control microelectronics and software. Such drives enable the oil businesses to solve many technological and resource problems and considerably reduce power consumption (now amounting to some 7 billion kWh per year in the national oil extraction). That was why OAO LUKOIL started financing this development long ago, when BLDC prospects were still vague, and founded the Innovation and Technology Center within its structure in 2003. Skilled engineers with experience in aerospace equipment drives were invited to work in the Center. Approaches used in aircraft construction and the participation of LUKOIL oil equipment experts made it possible to create and put into operation world’s first high-performance BLDC drives for submersible oil pumps. To date, 650 wells with BLDC motor equipped pumps work in 22 regions of Russia. A low-speed engine for screw pumps was created based on BLDC motors (a similar asynchronous motor would be virtually impossible to create). RITEK low-speed engines are used at 150 wells in Russia, and their usage grows. A great number of foreign oil businesses and service companies show interest in such drives. RITEK has obtained an international quality certificate, opening the door for export contracts. Being of a versatile nature, the equipment developed by OOO RITEK Innovation and Technology Center can be used for creating new types of drives for machinery and equipment in different fields. N E W E C O N O M Y : 1/14/09 8:51:43 PM T Y P E O F AC T I V I T Y: SAMARA EOR & WO COMPANY EXTRACTION OF CRUDE PETROLEUM AND NATURAL GAS; SERVICE ACTIVITIES INCIDENTAL TO OIL AND GAS EXTRACTION OAO A DDR ESS: C O N T AC T S : HTTP://WWW.SCRW.COM 53A. UL. ANTONOVA-OVSEENKO, SAMARA 443090 RUSSIA PHONE: +7 (846) 279 0151 FAX: +7 (846) 979 8041 E-MAIL: [email protected] T Gennady Novikov General Director Novikov graduated from the Kuybyshev Polytechnic Institute (now Samara State Technical University) in oil & gas well drilling. His first position was assistant driller in the Pervomaysky Oil and Gas Deep-Hole Drilling Prospecting Expedition of Kharkovneftegazrazvedka Trust. In 2004 the Board of Directors of OAO Samara EOR & WO Company named him CEO and Chair of the Board. He has multiple awards from OAO Samara EOR and WO Company and its customers and an honorable mention from the Ministry of Fuel and Energy of Russia. I N N O V A T I O N IPR_digest_eng.indb 209 he department in charge of enhanced oil recovery and well workover (EOR & WO) was established in the Samara Region in 1985, with its main task to service the developing oil fields of Western Siberia. In 1993 it was restructured into a joint-stock company. The company sees its mission in the development of oil servicing market in Russia, including well drilling, maintenance and enhanced oil recovery. The strategy of the company is to keep a steady position among the leading Russian oil servicing companies and to ensure dynamical growth of the company in the oil servicing market segments that enjoy the greatest demand. OAO Samara EOR & WO Company ranks among the largest independent oil-servicing companies of modern Russia. It employs around 3,000 people from various areas and regions of Russia. The majority of the staff works in rotating crews. Operating in the Samara Region and Tyumen Region, the company services leading national oil and gas companies, including OAO Surgutneftegaz, OAO Gazpromneft-Noyabrskneftegaz, and OAO Rosneft. New technologies of enhanced oil recovery and well workover developed by OAO Samara EOR & WO Company helped produce over 1 million tons of extra oil from recovered wells per year. The company is continually expanding its business and its geography. One of the first service companies to start applying the side tracking technology, today OAO Samara EOR & WO Company is the leader among all the Russian independent service companies in terms of side-tracking (over 800 successful operations since 1998). Principal activities of OAO Samara EOR & WO Company include: – Side-tracking; – Water shutoff; – Elimination of downhole equipment accidents; – Hydraulic formation fracturing; – Bottomhole formation zone treatment to enhance oil recovery. OAO Samara EOR & WO Company works in close contact with the customer. Any technologies to be applied, as well as selection of equipment and materials, are first of all coordinated with the customer in order to choose the most efficient solution of the particular problem for the particular well. All the work done on the well is supervised by the customer and checked using computer simulation. At present the company has several large facilities in the regions of its presence, equipped with its own tools, oilfield vehicles, and materials. Its highly professional staff can complete a broad range of oil servicing operations without subcontractors involved, reducing the cost considerably and assuring better performance. The company keeps abreast of new technologies and materials emerging on the market. It has also developed and implemented a number of its own innovations which enjoy considerable demand on the oil servicing market. Many of our proprietary materials and technologies are patented. We hold to using state-of-the-art equipment (both imported and produced in Russia) for our operations. Much attention is paid to labor safety and environmental protection. All our operations and processes are supervised by the department of industrial safety and labor safety. I N S I G H T I N T O R U S S I A 209 1/14/09 8:51:43 PM SEVKAVGEOPROM RESEARCH AND PRODUCTION COMPANY, ZAO T Y P E O F AC T I V I T Y: SERVICE ACTIVITIES INCIDENTAL TO OIL AND GAS EXTRACTION A DDR ESS: C O N T AC T S : 4A, PER. SADOVY, ESSENTUKI, STAVROPOL TERRITORY 357600 RUSSIA FAX: +7 (87934) 74 215 E-MAIL: [email protected], [email protected] S Sergey Litvinov CEO Litvinov graduated from the Irkutsk Polytechnic Institute and has a PhD in economics. He is a full member of the Russian Academy of Natural Sciences and holds the title of an Honorary Prospector of Russia. 210 IPR_digest_eng.indb 210 evkavgeoprom Research and Production Company was established in the town of Essentuki, Stavropol Territory, in 2001. It is licensed for research and design work in applied problems of oil and gas geology. Sevkavgeoprom focuses on the following activities: diagnostics of potential oil-andgas presence in a certain district or in a particular sedimentary complex; development of exploration programs; analysis of geological survey results and correction of the data on the geology of certain districts or individual oil and gas deposits; estimation and re-estimation of hydrocarbon reserves; planning geological survey; monitoring subsurface resource management and environmental protection in the area of Caucasian Mineral Waters. Sevkavgeoprom is equipped with up-to-date computers and has an enormous geologic and geophysical knowledge base. That enables the Company to conduct research projects and design work at the highest possible quality level and within tight deadlines. The company’s human resource potential is enormous, due to highly qualified experts with many years of experience both in Russia and abroad. Our chief engineers have PhD degrees in geology, mineralogy, engineering and economics. The mission of ZAO Sevkavgeoprom Research and Production Company is to strengthen the hydrocarbon resource base, increase oil and gas extraction in principal regions of the Southern Federal District, and provide an unbiased estimation of the investment appeal of potential oil-and-gas bearing sites for prospecting and development. Principal activities of the company include: – Exploration (correction) of the geology of certain districts or individual oil and gas deposits. – Analysis of geological survey results and efficiency. – Planning geological survey. – Estimation of probable and recoverable reserves of oil and gas. – Reevaluation of hydrocarbon reserves in accordance with the new Classification of Reserves and Probable Resources of Oil and Gas. – Preparing geological data packages for licensing promising sites for exploration and production. – Geological support of regional and detailed geophysical works. – Geological substantiation of the location of key wells, stratigraphic wells and prospect wells. – Technical and economic assessment of the oil recovery factor. – Forming information and analysis systems of data characterizing all the range of geological features of oil-and-gas bearing sites and the degree of their exploration. – Developing current and mid-term prospecting and exploration programs. – Monitoring the environmental state of land in the Specially Protected Area of Caucasian Mineral Waters. The company’s competitive edge is, above all, the high quality of its services and ability to complete them within tight deadlines. N E W E C O N O M Y : 1/14/09 8:51:43 PM SIBINFORMGEO GROUP T Y P E O F AC T I V I T Y: SERVICE ACTIVITIES INCIDENTAL TO OIL AND GAS EXTRACTION A DDR ESS: C O N T AC T S : OFFICE 211, 72, UL. TAYMYRSKAYA, TYUMEN 625026 RUSSIA PHONE: +7 (3452) 59 3027 PHONE/FAX: +7 (3452) 24 3374 E-MAIL: [email protected] B Oleg Kozlov President, Sibinformgeo Group Ivan Nesterov Corresponding Member of The Russian Academy of Sciences, Laureate of the Lenin Prize And State Prize of USSR, Professor of the Tyumen Oil and Gas University I N N O V A T I O N IPR_digest_eng.indb 211 ased in Tyumen, SibinformGeo Group was established at the initiative of the two principal founders: OOO Sibinformgeo, founded in 1997 and OOO SibinformgeoCenter, founded in 2005. The Group sees its principal goals as preparing and forming informational resources and programs, prospect well analysis and development of oil and gas deposits for: – Federal and regional authorities. – Fuel and energy companies. Our companies have been working on the exploration of existing prospect wells drilled at the state’s expense and on the preparation of their technical passports for more than 10 years. The experience we have accrued suggests that not all the wells (even if “frozen” long ago) have to be abandoned: many of them can still be developed on a commercial basis. The cost of putting a “frozen” prospect well into operation again is 10 to 15 times lower than that of drilling a new well. This considered, we have prepared an offer (together with the researchers from the Tyumen Oil and Gas University headed by I. I. Nesterov, Corresponding Member of the Russian Academy of Sciences) to the Government of the Russian Federation, where we proposed that the temporarily abandoned prospect wells drilled at the state’s expense should be used as test grounds for developing and improving hydrocarbon search, exploration and development technologies. Our goal is to create and improve industrial technologies for exploration and development of oil and gas fields based on fundamental and applied research. This will help enhance the economic efficiency of using hydrocarbon reserves and contribute to preservation of the environment and replenishment of the subsoil resources. This goal is to be achieved through studying natural processes and their implementation in the following engineering technologies: – Oil and gas accumulation. – Well perfection coefficient growth. – Creation of artificial catchers and strong electromagnetic fields in the reservoirs to enable solid compounds and high-molecular oil components to transform into lower-molecular liquid and gaseous phase equilibriums using the spin energy of solid organic compounds. – Creation of a new theoretical base and technical facilities to lift the hydrocarbons to the surface, using the reservoir pressure and effects related to the separation of the solute gas from the liquid and condensate without the temperature and pressure falling. – Using the residual reservoir energy at the wellhead for electricity generation, oil and gas pre-transportation treatment, and creation of conditions and technical facilities conducive to preservation of the environment and replenishment of the subsoil resources. I N S I G H T I N T O R U S S I A 211 1/14/09 8:51:43 PM STROIGAZCONSULTING OOO T Y P E O F AC T I V I T Y: A DDR ESS: C O N T AC T S : SERVICE ACTIVITIES INCIDENTAL TO OIL AND GAS EXTRACTION; CONSTRUCTION HTTP://WWW.SGC.RU 23A, NAB. TARASA SHEVCHENKO, MOSCOW 121151 RUSSIA PHONE: +7 (495) 234 0217 FAX: +7 (495) 234 0219 E-MAIL: [email protected] S Ziyad Manasir President Ziyad Manasir, born in Jordan (Amman), graduated from the Azerbaijan Azizbekov Institute of Oil and Chemistry, qualifying as oil and gas chemical engineer, in 1990. His entire further life was bound to Russia. In 1994 he founded OOO Stroigazconsulting and has headed it ever since. In 2006 Ziyad Manasir was awarded an honorary diploma of the Ministry of Regional Development of the Russian Federation “for his large personal contribution to the development of construction and housing and communal services, many years of conscientious work and successful completion of production tasks.” 212 IPR_digest_eng.indb 212 troigazconsulting was founded in 1994. Since then, we have come a long way from a small construction company to a large holding with such customers as Gazprom, LUKOIL, and the Federal Road Agency of the Ministry of Transport of the Russian Federation. Today’s OOO Stroigazconsulting is a management company uniting 27 enterprises. Together they form the Stroigazconsulting Group, implementing projects in the following key activities: Construction of oil and gas facilities and public welfare infrastructure in the northern regions: – Construction of the Kharvutinskaya and Aneryakhinskaya sites of the Yamburgskoye gas condensate field, Pestsovaya site of the Urengoyskoye oil and gas condensate field, Nakhodkinskoye gas field, Zapolyarnoye oil and gas condensate field, Bovanenkovskoye oil and gas condensate field, and Kharasaveyskoye oil and gas condensate field. – Construction of the main compressor station at the Zapolyarnoye oil and gas condensate field and central production facilities (CPFs) Nos. 1 and 2 at the Urengoyskoye oil and gas condensate field. – Construction of the Kolyma federal highway. – Construction of administrative buildings, sports grounds, residential housing, accommodations for shift-workers, and hotels in cities and towns of the Far North. Construction, reconstruction, revamping and overhaul of trunk gas pipelines in the European part of Russia and gas network expansion in the regions of Russia under the program of OAO Gazprom: – Construction of the Bovanenkovo–Ukhta trunk gas pipeline, Gryazovets–Vyborg gas pipeline (the overland part of the Nord Stream), and a branch pipeline to Arkhangelsk and Severodvinsk. – Reconstruction of the branch pipeline to Nalchik, sections of the Mozdok–Tbilisi and North Caucasus–Transcaucasia pipelines, and connection of the wells of the Vostochno-Pribrezhnoye field. – Overhaul of the Komsomolskoye–Surgut–Chelyabinsk and Urengoy–Surgut– Chelyabinsk trunk gas pipelines. – Construction of gas network in the Ketchenery and Sarpinsky Districts of Kalmykia. The company management is positive that an efficient and adequate governance system, high-quality professional training of personnel, and making use of innovative methods and technologies are among the musts for successful development. Today Stroigazconsulting can perform all the construction cycle operations with high quality and within record-breaking deadlines. The total number of people working for the Stroigazconsulting Group enterprises is some 20,000 people. The company’s own fleet of trucks and heavy machinery exceeds 4,000 vehicles. Constant improvement of the governance system, high work quality, usage of new technologies and modern construction materials enable OOO Stroigazconsulting to maintain its stable position among the leaders of the Russian construction market. N E W E C O N O M Y : 1/14/09 8:51:44 PM A DDR ESS: TECHNOLOGY SERVICE T Y P E O F AC T I V I T Y: SERVICE ACTIVITIES INCIDENTAL TO OIL AND GAS EXTRACTION ZAO 16, 5 MKR., NEFTEYUGANSK, KHANTY-MANSIYSKY AUTONOMOUS DISTRICT — YUGRA 628301 RUSSIA C O N T AC T S : PHONE: +7 (3463) 23 2025 FAX: +7 (3463) 23 2074 E-MAIL: [email protected] T Ildar Yuldashev CEO At present major customers of ZAO Technology Service include: OOO RN-Yuganskneftegaz; OOO RN-Purneftegaz; OOO Gazpromneft-Khantos; OAO TNK-Nyagan; Schlumberger Logelco, Inc. (Panama); OOO Westor Overseas Holdings; RUP BELORUSNEFT in RF Production Association. I N N O V A T I O N IPR_digest_eng.indb 213 echnology Service was registered in Nefteyugansk on May 30, 1996 under the registration No. 234-r. The company’s activities include: – Development and introduction of cutting-edge bed stimulation technologies in order to enhance recovery and increase well output. – Elimination of scale, corrosion and other factors hindering oil extraction. – Preparation of well-killing liquids and killing of wells during their preparation to repair. – Vehicle transportation services. During the twelve years of its existence, ZAO Technology Service has accrued vast experience of enhancing recovery and intensifying oil production by injecting reagents and introducing other efficient technologies developed by leading Russian and foreign researchers. From the entire range of recovery enhancement, the company focuses on the tasks which meet the existing working environment and capabilities, providing quick payback under particular geographical, geological and technical conditions. Since 1996 the company has been servicing oil and gas extracting companies in the following fields: 1) Physicochemical methods of enhancing recovery: – leveling water injection front through treating injection wells using different flowdiverging technologies; – increasing intake capacity of injection wells without involving well maintenance and workover service teams, using different acid compositions adapted to the productive reservoirs of a particular deposit; – increasing the permeability of producing well bottom zones during well development, workover, and formation re-exposing; – eliminating microbial lesion of reservoirs and oil-field facilities. 2) Elimination of equipment operation problems: – elimination of oil extraction problems arising during operation of underground equipment of producing wells by using chemical reagents for removal of saline sediments and asphaltic-resinous paraffin deposits and their further prevention; – elimination of oil extraction problems during operation of surface communications and trunk pipelines. 3) Preparation of well-killing liquids and well preparation to repair by killing: – preparation of well-killing compositions based on traditional salts (NaCL, KCL, CaCL2) and killing of wells using them; – preparation of killing compositions and killing of wells having abnormally low reservoir pressures. Using blocking units based on micro emulsions, polysaccharide liquids, and microspar, with specific weight above 1.5 gram per cubic centimeter. For auxiliary facilities at remote oil fields the company constructs portacabins (both as workers’ accommodation and as processing facilities). I N S I G H T I N T O R U S S I A 213 1/14/09 8:51:44 PM A DDR ESS: TRANSKOR-K RESEARCH AND TECHNOLOGY CENTER T Y P E O F AC T I V I T Y: SERVICE ACTIVITIES INCIDENTAL TO TRANSPORT VIA PIPELINES HTTP://WWW.TRANSKOR.RU OFFICE 113, BUILDING 1, 23, UL. MATROSSKAYA TISHINA, MOSCOW 107076 RUSSIA C O N T AC T S : PHONE/FAX: +7 (495) 540 7293, 540 7294, 540 7295 E-MAIL: [email protected] T Svetlana Kamayeva General Director Having completed her studies in the high school with a golden medal, in 1977 Svetlana graduated cum laude from the Lomonosov Moscow State University. She worked as a research fellow, then as Deputy Director for the All-Russian Pipeline Construction Research Institute under the Ministry of Oil and Gas Construction, and afterwards returned to the Moscow State University as a professor. For 20 years she traveled in desert and sub-Arctic expeditions examining pipeline systems and developing new methods of technical diagnosis. She has 30+ publications, including 4 monographs, and 7 inventions. In 2004 Kamayeva defended her PhD thesis, and in 2007 she was nominated for the State Premium of Russia together with the team of MNPO Spektr. Kamayeva has headed OOO Transkor-K Research and Technology Center since the moment of its foundation in 2001. She is also the head of a number of affiliated companies, including 5 foreign partner companies. 214 IPR_digest_eng.indb 214 ranskor-K Research and Technology Center positions itself as an innovation leader, pioneering magnetic induction tomography (MIT), a unique technology of technical pipeline diagnosis. Environmental safety and power security of any nation depends on the reliable work of its pipeline systems. Ensuring such reliability is a complex engineering problem. Pipeline monitoring is not only a key activity within the pipeline servicing; it characterizes the nation’s technologic potential as a whole. OOO Transkor-K Research and Technology Center focuses on manufacturing a number of MIT instruments and introducing them into practical applications. For the 6 years of our existence we have proven the competitiveness of the Russian equipment, not only on the national scale, but also worldwide. Transkor-K equipment makes it possible to virtually look through the earth, determining the actual state of objects with any insulation types at the depth of down to 20 meters. The Center monitored gas-compressor station pipelines of OAO Gazprom, product pipelines of gas processing plants and oil refineries, ethylene pipelines, chemical factories, municipal utilities, airport buried pipelines, underwater pipelines, – in a word, pipelines in every field where traditional in-pipe examination is impossible. MIT demonstrated high probability of flaw location (at least 75%), making it possible to initiate preventive maintenance and avoid pipeline failures. Transkor-K experts examined over 12,000 km of pipelines in Uzbekistan, Belarus, Syria, Croatia, the UK, the US, Argentina, Mexico, Bolivia, Venezuela, Columbia, Saudi Arabia, Malaysia, and China. The Center established a number of foreign branches and representative offices. OOO Transkor-K Research and Technology Center is a certified expert organization of Rostekhnadzor (the Russian governmental agency organization for technical supervision), a member company of RONKTD (Russian Society for Nondestructive Examination and Technical Diagnosis) and Moscow Chamber of Trade and Industry. The Center is accredited by the Russian Ministry of Science and Technologies as a research organization; it is also MS ISO 9001:2000 certified. The Center’s inventions are patented in Russia. They received awards from the Geneva Invention Show, NDT conference in Barcelona (2002), and the Archimedes International Innovation Salon, Moscow (For the Best Russian Invention in Pipeline System Diagnosis) and diplomas from Moscow Mayor Luzhkov, the International Forum “High Technology of XXI,” the International Fair in Croatia (Zagreb, 2004), the Conference of the British Institute of Non-Destructive Testing (Torquay, UK, 2004), the International Exhibition “Russia, Germany’s Partner” (Hanover, 2005), and EUREKA World Exhibitions of Innovation, Research and New Technology in Brussels (2005 and 2006). We are ready to cooperate in the field of technical diagnosis and examination of buried pipelines and underwater pipelines for industrial safety (DN 56 to 3,000 mm). Our strong point is our ability to operate successfully where traditional in-pipe examination is impossible. A 100% metal check guarantees the high quality, with the need for special pre-check preparation or shutdown eliminated. N E W E C O N O M Y : 1/14/09 8:51:45 PM TYUMENPROMGEOPHYSIKA WEST-SIBERIAN CORPORATION, OAO T Y P E O F AC T I V I T Y: SERVICE ACTIVITIES INCIDENTAL TO OIL AND GAS EXTRACTION A DDR ESS: C O N T AC T S : HTTP://WWW.TPG.RU 9, UL. YUZHNAYA, MEGION, KHANTY-MANSIYSKY AUTONOMOUS DISTRICT – YUGRA 628681 RUSSIA PHONE/FAX: +7 (34663) 31487, +7 (34663) 33671 OPERATOR DESK: +7 (34663) 21609 E-MAIL: [email protected] W Tristan Melaniya CEO Vladimir Kazak Chair of the Board, Director for Business Development I N N O V A T I O N IPR_digest_eng.indb 215 est-Siberian Corporation Tyumenpromgeophysika is a leading Russian geophysical company offering a full range of geophysical services. The Company has 30 years of successful operations in the Khanty-Mansiysky and Yamalo-Nenetsky Autonomous Regions, Tyumen Region, East Siberia and the Republic of Kazakhstan. Our main business activities are: – Borehole surveys; – Engineering and telemetry support of well construction; – Geotechnical survey and mud logging during well construction; – Cement bond logging control; – Casing cementing control & casing testing; – Perforation; – Geophysical survey during well development & testing; – Geophysical survey during reservoir management control; – Processing, interpretation and general simulation of formations and fields combining all geophysical & logging data; – VSP survey. Future trends During the productive formation testing and design and drilling of horizontal boreholes the main target is to create a 3D geological and geophysical snap-off model which makes the basis for future evaluations and simulation. Application of a geological and geophysical model simulated with Petrel and Drilling Office special software ensures reliable 3D control of hole position and its conformity to original design; it also assures prediction and timely prevention of eventual hole-drilling problems; quality control over opened reservoir characteristics, as well as timely corrections to drilling directions and drilling practice. Developed Dynamic Modeling practices will allow to handle a much wider range of problems, targeting prediction of rated well productivities and planning of geotechnical activities, i.e. prediction of the economic feasibility of the well drilling and development. Tyumenpromgeophysika applies world-class tele-systems, consistently introducing new technologies and hardware thus extending its scope of services and tasks. To date the Company is operating with Russian BTS-172KS, imported GEOLINK, and in 2008 it will introduce SLIM PULSE telesystems, all in order to meet the increasing customers’ demands in full. One of the Company’s key priorities is open hole testing. Testing is carried out both with Russian equipment and with the Platform Express (PEX) modular unit. TPG performs induction logging, sonic logging, directional survey and caliper survey logging with Russian instrumentation as well as with imported extended-configuration PEX suite which can be delivered into horizontal holes by drilling tools. The quality management system of Tyumenpromgeophysika has been certified under GOST R ISO 9001-2001 and ISO 9001:2000 thus ensuring world-class quality of its geophysical services. I N S I G H T I N T O R U S S I A 215 1/14/09 8:51:45 PM IPR_digest_eng.indb 216 1/14/09 8:51:47 PM TIMBER. P U L P A N D PA P E R IPR_digest_eng.indb 217 1/14/09 8:51:47 PM A DDR ESS: KRONOSTAR OOO T Y P E O F AC T I V I T Y: WOOD PROCESSING AND WOOD PRODUCTS HTTP://WWW.KRONOSTAR.COM 4, UL. TSENTRALNAYA, POS. VETLUZHSKY, SHARYA, KOSTROMA REGION 157510 RUSSIA C O N T AC T S : PHONE: +7 (49449) 59 602, 59 608, 59 610 FAX: +7 (49449) 59 611, 59 612 E-MAIL: [email protected] K Lutz Pape CEO Pape has been working in the wooden board industry for more than 30 years; his track record includes work at plants located in Poland, Bulgaria, Czech Republic, Slovakia, United Kingdom, and Lithuania. 218 IPR_digest_eng.indb 218 ronostar is the largest investment project in Russian wood processing industry. The design of the Kronostar plant incorporated the long experience accumulated by Swiss Krono Group concern and its plants. Swiss Krono Group has eleven enterprises in eight countries: Switzerland, Germany, France, Poland, Hungary, Russia, Ukraine, and USA. Swiss Krono Group was one of the first multinational companies to announce its plans to create a large wood-processing plant in Russia. As a result, Kronostar company was established in 2002 in the town of Sharya, Kaluga Region. Today, Kronostar is one of the largest Russian manufacturers of wooden board. The plant produces plain and laminated MDF board and particle board as well as laminate flooring and wall panels. All Kronostar products have Russian conformity certificates, hygiene certificates, and fire safety certificates. The Premier brand of laminate flooring as well as laminated particle and MDF boards have been awarded the Golden Plaque of the All-Russian Brand (Third Millenium). Products of Kronostar meet the European quality and environmental safety requirements (E1 formaldehyde release class according to the European standards). The company’s management believes that manufacturing should be harmonized with nature, and should not harm the environment or people. So, in keeping with Swiss Krono Group traditions, Kronostar spares no efforts to reduce any effects that manufacturing may bear on the environment. Kronostar uses an integrated system for quality management, environmental management, and occupational health and safety management which is compliant with the ISO 9001:2000, ISO 14001:2004, and OHSAS 18001:2007 international standards. That has been confirmed by certificates issued by Det Norske Veritas (DNV), one of the most respectable certification bodies in Europe. The Kronostar plant utilizes biotreatment system for treating production waste water, as well as a treatment system for rainfall and drainage water. State of air, soil, and water is systematically monitored. The company is planning to construct a resin production unit to manufacture its own next-generation low-toxicity resins, which will result in further reduction of formaldehyde content in Kronostar products and in considerable reduction of any negative environmental effects. The European certificate of the Forest Stewardship Council (FSC) is an acknowledgement of the careful handling of natural resources by the company. Companies of the the Kronolesprom holding, which supply OOO Kronstar with raw wood, hold a group FSC certificate. (Kronolesprom has been established by OOO Kronstar to ensure an uninterrupted supply of feedstock to its production facilities). Owing to the company’s attention to environmental problems and its hard work in that area, Kronstar was able to make it to the list of winners of the contest named “Russia’s 100 best organizations. Environment and environmental management.” The company’s CEO Lutz Pape was awarded the Honorary Environmentalist of the Year 2007 plaque. N E W E C O N O M Y : 1/14/09 8:51:47 PM A DDR ESS: SOLIKAMSKBUMPROM T Y P E O F AC T I V I T Y: OAO PULP AND PAPER HTTP://WWW.SOLBUM.RU 21, UL. KOMMUNISTICHESKAYA, SOLIKAMSK, PERM TERRITORY 618548 RUSSIA C O N T AC T S : PHONE: +7 (34253) 64 663 FAX: +7 (34253) 48 130, 47 433 E-MAIL: [email protected] S Viktor Baranov President Baranov graduated from the Urals Forestry Institute. He is a deputy of the Perm Territory Legislative Assembly. He bears the title of an Honored Worker of Forestry and is decorated with the Order of Friendship. Viktor was named Best Business Leader twice, with the title of Best Manager of Russia awarded to him. He has been included into the Golden Human-Resource Reserve of the 21st Century Russia. I N N O V A T I O N IPR_digest_eng.indb 219 olikamskbumprom is one of the leaders of the national forestry sector. A largest regional pulp and paper manufacturer, it ranks among the top three Russian newsprint producers. OAO Solikamskbumprom is an up-to-date company, developing dynamically, with advanced process facilities. Its quality management system and environmental management system are ISO 9001:2000 and ISO 14001:2004 certified. The plant manufactures high-quality newsprint with high optical, mechanical, and structural characteristics, suitable for both black-and-white and full-color printing on any high-speed printing equipment. Both Russian and foreign publishing houses use Solikamsk paper exported in over 40 countries worldwide. OAO Solikamskbumprom manufactures up to 0.5 million tons of newsprint per year. Such a result was achieved due to the successful long-term refurbishment program, targeting, above all, the quality improvement and stable economic development. The Solikamskbumprom development program contributes to more efficient usage of forest resources and forestry development in the Perm Territory and the entire Russia. Our newsprint won recognition and popularity among European and world customers. The company accounts for over 20% of the national newsprint output. Some 53% of the output is sold in Russia, the rest is exported both to CIS and extra-CIS countries. The company has its own logging facilities. A number of Russian forestry companies located in the northern districts of the Territory are affiliated with OAO Solikamskbumprom. The company expands timber felling, using state-of-the-art logging equipment. The forest resources are used in accordance with the internationally acknowledged principles of responsible forest management. OAO Solikamskbumprom was the first in Russia to produce FsC-certified newsprint. Along with its policy of large investment into technical refurbishment and renovation, the company management pays great attention to employees’ life quality, their health and professional development. Large funds are invested into public welfare projects. Moreover, OAO Solikamskbumprom is involved into charity and support of the social infrastructure in the region, with projects in education, healthcare, child recreation, sports, and culture. Special emphasis is placed in the restoration of Orthodox churches and monasteries. Multiple Russian and foreign awards witness our success: Crystal Nike, Golden Standard, Russian National Olympus, a golden medal for Impeccable Business Reputation from the Russian-Swiss Business Club, Russian Business Leader in Forestry 2005, and many others. Our stable output growth and competent management ensure the company’s consistent development and support its impeccable business reputation. I N S I G H T I N T O R U S S I A 219 1/14/09 8:51:48 PM TABLE OF CONTENTS N E W E C O N O M Y: I N N O VA T I O N I N S I G H T I N T O R U S S I A Sergey Mironov 13 Topical Problems of Russia’s Innovational Development Boris Gryzlov 16 Innovations and the Industrial Policy Khuseyn Chechenov 20 Forming an Innovation System: Reality and Prospects Valery Chereshnev 26 Problems of Legal Support of the State Scientific, Technical, and Innovation Policy Andrey Klepach 32 Concept of the Long-Term Socio-Economic Development of the Russian Federation through 2020 and the Development of the National Innovation System Stanislav Naumov 37 State Policy in Scientific, Technical, and Innovation Activity of the Industry Yury Sentyurin 41 Forming the System of Legal Support of Innovational Development of the Russian Economy Andrey Lisitsyn-Svetlanov 45 Legal Problems of Development of Innovation Relations of Russia Today Ekaterina Popova 50 The Role of the Russian Academy of Sciences in the Innovation System of the Russian Federation Sergey Aldoshin, Evgeny Kablov, Vladimir Potapov 59 Involvement of the Russian Academy of Sciences (in its Capacity of a Cornerstone of the State-Owned Scientific Sector) in Innovation-Based Development of the Russian Economy Levan Mindeli 65 Problems of Financing Scientific Research Mikhail Prokhorov 70 Innovation-Based Development of Russia: What Needs to Be Done? Elena Dyakova 75 Civil Society and Transition to the E-Government 220 IPR_digest_eng.indb 220 N E W E C O N O M Y : 1/14/09 8:51:48 PM Vladimir Matyukhin 83 Implementing Urgent Tasks and Innovational Solutions for IT Development in Russia as the New Economy is Being Built Evgeny Petrosyan 91 The Role of Standardization and Management in Russia’s Innovational Development Valentin Zavadnikov 95 Problems of State and Industry Management of the Post-Reform Energy Sector Gennadiy Shmal 101 Problems and Paths of Innovation-Based Development of Russian Oil and Gas Industry and Applicable Laws Alexander Gintsburg 105 On Development of High Technologies in Biomedicine Andrey Petrushin 111 Innovational Special Economic Zones I N N O VA T I O N S I N B U S I N E S S : C A T A L O G O F C O M P A N I E S I N N O V A T I O N IPR_digest_eng.indb 221 AELITA-SERVICE 126 EDIP 127 SISTEMA-SAROV 128 EKONIVA GROUP 130 MAY COMPANY 131 INNOVATION TRADE POWER COMPANY (OOO ITEK) 134 INTERENERGOSERVIS 135 MASTERFIBRE-ALLIANCE 136 NEATEH STROY 137 PERESVET GROUP 138 SFERA-N 139 SILIKON 140 METTEM TECHNOLOGIES 142 NAFTAGAZPOSTAVKA 143 PRESS-TORF 144 I N S I G H T I N T O R U S S I A 221 1/14/09 8:51:48 PM 222 IPR_digest_eng.indb 222 BOLID 146 EMK 148 IRE-POLUS 149 KOSMOS 150 ORION 151 POWER STATION SIMULATORS 152 MAPPING SURVEYING BUREAU 154 PERM TERRITORIAL CENTER OF STATE MONITORING 155 SPETSGEOLOGORAZVEDKA 156 MALAVIT 158 LABORATORY NIZAR 159 ACADEMY OF BEAUTY AND HEALTH 160 AKELA-N 161 CENTER OF CLINICAL NEUROLOGY 162 CENTER OF INFRASTRUCTURAL PROJECTS, AEROSCAN 164 AR TEKHNOLOGICAL RESEARCH 168 COMCOR (AKADO TELECOM) 169 COMLINK TELECOM 170 DENCOM 171 GEYSER 172 MICROM 173 NATIONAL RADIO-TECHNICAL BUREAU 174 SAMARA OPTICAL CABLE COMPANY 175 CRANE SERVICE PLUS 178 DOROGOBUZHKOTLOMASH 179 ILMA TECHNOLOGY 180 LINARES 181 RUSINNOVACIA 182 SIBSELMASH 183 V. S. GRIZODUBOVA FLIGHT TESTS AND PRODUCTION (LIIP) 184 N E W E C O N O M Y : 1/14/09 8:51:48 PM I N N O V A T I O N IPR_digest_eng.indb 223 IMMUNOTEX 188 INSTRUMENTS AND EQUIPMENT FOR SCIENTIFIC RESEARCH (ZAO PONI) 189 TRIMM MEDICINE 190 ARNEBIA 192 ASSOCIATION OF INTERNATIONAL PHARMACEUTICAL MANUFACTURERS (AIPM) 193 EKOMIR 194 NATUR PRODUKT INTERNATIONAL 195 UCB S.A. 196 ZELENAYA DUBRAVA 198 GEOPHYSICAL DATA SYSTEMS 200 NEFTEGAZGEOFIZIKA 202 NOVOMET 203 NPPGM GEOSEIS 204 PETR 205 PROMPROEKTSTROY 206 RIALOG 207 RITEK 208 SAMARA EOR & WO COMPANY 209 SEVKAVGEOPROM 210 SIBINFORMGEO GROUP 211 STROIGAZCONSULTING 212 TECHNOLOGY SERVICE 213 TRANSKOR-K 214 TYUMENPROMGEOPHYSIKA 215 KRONOSTAR 218 SOLIKAMSKBUMPROM 219 I N S I G H T I N T O R U S S I A 223 1/14/09 8:51:48 PM The publication NEW ECONOMY: INNOVATION INSIGHT INTO RUSSIA was registered by the Federal Service for Supervision in the Field of Mass Media, Communications, and Protection of Cultural Heritage on December 14, 2007. Mass media registration certificate PI No. FS77-30662. Page design, computer-aided design makeup, preprint by Т. Anadenkova, A. Tchurakov Technical support by E. Buber Picture scanning and processing by O. Tsuprikov Offset print Publisher: OOO Center of Strategic Partnership 19, ul. Novy Arbat, Moscow 127025 Russia Printed and bound by OOO Liga-Print, Moscow, Russia IPR_digest_eng.indb 224 1/14/09 8:51:48 PM