The report, "Yaroslavl Roadmap 10-15-20: 10 Years to Implement, 15 Steps to Take, 20 Pitfalls to Avoid—International Experience and the Path Forward for Russian Innovation Policy

1. Yaroslavl Roadmap 10-15-20
Presentation by
Daniel Satinsky
Partner, Russia Innovation Collaborative
www.russiainnovation.com
dsatinsky@russiainnovation.com
MGIMO
September 14, 2010

2. Preparation of Yaroslavl Roadmap
• Sponsor New York Academy of Sciences (www.nyas.org)
• Prepared for Global Policy Forum in Yaroslavl.
• Methodology of Yaroslavl Roadmap

3. Goal of Yaroslavl Roadmap
• Goal
• Structure of Report
• Name

4. General Conclusions
• Government is critical actor in creating innovation
economy.
• Different countries had different paths, but all
require strong science, entrepreneurs and
integration in world markets.
• Constructing an innovation economy is a process
requiring long-term commitment. It is not achieving
a one-time goal.
• Government policies are national, but development
of innovation is local.

5. Difference between Modernization
and Innovation
• Modernization is the utilization of best available
technology and techniques of management.
• Innovation is a new way of doing things or a
disruptive technology.
• Modernization is a very broad process spanning the
economy, government and society.
• Innovation is usually initiated by individuals or small
groups, not be large institutions – government or
business.

6. Innovation Ecosystems
Academic Excellence
Innovation Ecosystem
Venture
Capital
Thriving
knowledge
based
sectors
Tech transfer and commercialization
Serial
Entrepreneurs
Public and Seed
Funding, grants and
loans
Innovation Ecosystems
Innovation Ecosystems are the foundations that
support all knowledge-based activity:
Government
/ Policy

7. Russian Tech Strengths
• Strong intellectual resources in basic science
and mathematics.
• Sector strengths in space, atomic energy and
weapons.
• Little or no spillover into domestic market
from technology in areas of sector strength
through spinoffs or startup businesses.

8. Institutions
• Some of the institutional pieces of an
innovation ecosystem have been constructed,
i.e. Government funds like Rusnano and RVC;
tech parks, incubators and SEZs; university
commercialization offices; Skolkovo
Foundation, etc.
• All recent and still developing. Not yet a
system, but separate institutions and with
significant gaps.

9. Key Indicator of “Gaps”
• Investors commonly state that there are no
projects in which they can invest in Russia.
• This really means that there are few projects
that exist in the form and scale to allow for
investment.
• Points to a gap in the innovation system
commonly referred to as the “valley of death.”

10. Valley of Death
• Time it takes to move from a good idea to a
product that is proven and that has a
demonstrated market demand, usually
expressed in a coherent business plan.
• Requires proof of concept, refinement,
adjustment, testing, etc.
• However long a period of time this takes,
entrepreneurs need support and money to
live through the valley of death.

11. Support for Entrepreneurship
• Initial funding – family, friends and fools.
• Secondary funding – angel investors and
venture capitalists.
• Professional support – knowledgeable
lawyers, accountants, marketing specialists.
• Entrepreneurial community – serial
entrepreneurs and mentors.
• All are lacking or in short supply in Russia!

12. Culture of Entrepreneurship
• Innovation ecosystem is a set of relationships
between entrepreneurs and institutions, not a
place, not a set of laws and not a set of
institutions.
• Critical to its proper functioning is that there is
a culture of entrepreneurship that is valued in
society – acceptance of risk and failure, trust
between entrepreneurs and institutions,
success stories of reward for hard work.

13. Summary
• Must be long-term government commitment that is accepted
by society.
• Must continue to support basic science and education.
• Must both integrate into international markets and boost
demand for innovation in domestic market.
• Accept regional differences and look for sectors and regions
where Russia has competitive advantage to become leader,
not rapid follower.
• Government (Federal, Regional and Local) at initial stage must
compensate for existing gaps in innovation system.
• The culture of entrepreneurship needs support and
development.

14. Conclusion
• Repeat that purpose of Yaroslavl Roadmap is not to lecture,
but to promote real discussion through showing comparisons
and concrete proposals.
• The fate of Russian efforts to diversify the economy and to
become an innovation economy is in the hands of Russians,
particularly your generation.
• As such, I look forward to your questions, comments and
criticisms.
Daniel Satinsky, Partner
Russia Innovation Collaborative
dsatinsky@russiainnovation.com