1. Skolkovo Innovation
Center
by Irem M, Jeremy G, Jonathan L

2. Clusters Considered
Krakow Technology Park
Skolkovo Innovation Center
Singapore Asset/Wealth
Management Cluster

3. Video
http://vimeo.com/36998580

4. Agenda
• What is Skolkovo Innovation Center (SIC)?
• Economic & Political Impacts
• The Future of SIC

5. What is SIC?
by Jonathan Loo

6. The Cluster Principle
‘Eco-system for innovative companies’
Primary objective: coordinating all activity in
a certain direction
Interconnectivity between the university, large
companies, new initiatives/startups support

8. Skolkovo Innovation Center

9. Strategic Development

10. Residents at SIC
20-30% acceptance rate
Benefits: Resident Status & Grant
→ Skolkovo Foundation, Rusnano,
Rostelecom, Russian Venture Company, ITFY
→ Research institutes SOU and SIT

11. Sub-Clusters at SIC

12. Why Russia?
100 billionaires
8th largest economy in the world
Largest internet/mobile market in Europe
Capital investments from both Domestic/
international firms abroad
Dedicated human capital

13. Economic & Political
Impacts
by Irem Marasligil

14. Economic & Political Impact
•
•
Promote technology transfer from around the world
Stimulate innovation and entrepreneurship in Russia
The Skolkovo Foundation hopes that, ultimately, the new center will help
modernize Russia’s economy, transforming it from an economy
based on natural resources (oil and gas) to one based on
innovation and scientific development.

15. Economic & Political Impact
Skolkovo was set up as an innovation playground with its own laws,
customs and immigration rules and other regulations
•
•
achieve quick wins in terms of establishing new technology companies and
developing a number of new technologies in Skolkovo itself
develop and test a business environment that could later be expanded out
to the rest of the country

16. Economic & Political Impact

17. The Institute
The Massachusetts Institute of Technology has
entered into a three year agreement to develop
the new graduate university
Plans to enroll 1,800 graduate students
Sent an initial class of 21 students for a year of
study abroad

18. The Institute
•
Legislation requiring state enterprises to set aside a percentage of their
revenue for The Skolkovo Institute of Science and Technology (SKTech),
depending on the profitability of its industrial sector
Plan → energy sector - 5%
Realization → only JCJ Russian Railways contributed 1%

19. Investments
Skolkovo is making selected investments in foreign technology companies
⇒ Palo Alto– based firm Jelastic which has created a cloud platform for Java
applications
⇒ received US$1 million in funding from Skolkovo and would establish a
secondary office there to develop security features enabling governments
and corporations to use the platform

20. Economic Impact
•
•
•
•
running nearly 1,000 startups
has created 12,000 highly skilled jobs
o each job equals ‘10’ ordinary jobs
o contribution to Putin’s program to create 25 million Russian jobs by
2020
25% of Russian patents came from Skolkovo
first eight months of 2013, more than $43.1 million was invested in Skolkovo
startups

21. The Future of SIC
by Jeremy Gan

22. Political Turmoil
Vladimir Putin
Dimitry Medvedev

23. Controversies

24. Irregularities
• “Out of control and extravagant” spendings of
•
government funds - $3.9 billion
17 grants for a sum of $113 million distributed
without any expert review
o Members of grant commision, including foundation
president, found benefiting from lax grants issuing

25. West vs East Influence
• Skolkovo is Western-oriented innovation center
o Partnership with MIT
o Active recruitment of staff, students, and companies from
Europe and North America
• But…
o Should Skolkovo be turning to the East to maximize
Russian trade and economic cooperation with Asia
instead?

26. Long or Short Term
Solution?
• “Potemkin village” or Catalyst For Change?
• Weak laws, heavy taxation, fickle government
•
support
Tax break and “Startup Visa” a joke
o Too short-lived (lasting only 5 - 7 years)
o Russian law would intervene again after

27. Made In Russia?
• Most Startups are NOT incorporated in Russia
o Registered in other countries with more business and
investor friendly corporate law structure
• Cyprus
o Proximity
o Superior intellectual property protection
o Long-term adhesion to those laws

28. To Be Considered A
Success...
• Create and strengthen a functioning “system of
innovation”
o Public and private sector interact, exchange knowledge,
and learn from technologies
• Encourage the creation of start-ups
o Act as specialised suppliers for other firms nationally and
globally

29. Cont.
• Innovation city MUST avoid predators in the
Russian state
o Come clean from corrupt officials who make large
individual gains at the expense of public money

30. Challenges Faced
• Birth of successful global tech companies
• Make $$$ < Spend $$$
• Turn ideas into profitable solution
• Trust from decision makers
o Russian politicians, in general, are distrustful of
innovations they don’t understand

31. Distant Future

32. Questions?