Innovation development of Russian economic

Trends and challenges in the development of innovation entrepreneurship in Russia

The subject of my report is ‘Trends and challenges in the development of innovation entrepreneurship in Russia’. To begin with, I would like to say that innovative entrepreneurship is becoming the basis of economic growth in the highly developed world. It is the source of jobs and high living standards for individuals, as well as great benefits for society in the form of technical progress and economic development.

Today more than 79% of enterprises implement new innovation in order to extend the variety of their products and to get the segment of market. The main purpose of innovation active enterprises is to reduce expenses of production. In this connection a strict structure of innovation process exists and it based on:

• researching of new ideas and its valuation
• researching of necessary sources;
• patenting and approval;
• development of new methods in production;
• marketing;
• adoption;
• and as a result getting cash income and personal satisfaction of achieved results;

As for Russian entrepreneurship, the introduction of new technologies goes too slow. For example, only 10% of industrial enterprises in Russia have innovative activity and introduce high-tech industries. Unfortunately, Russia is an outsider in innovation activities of industry.

  Russian innovations are not definitely fixed structures so that there are some problems, which decelerate the adoption of new technologies in modern production. I suggest you to have a closer look on some difficulties:

• first of all, it is the risk of originality. It means that the investment in "disruptive technologies" is a very risky in terms of receiving desired results, ie really interesting new technology or product. Investments in basic science are particularly risky, therefore they usually concerns for a transfer competence of the state. However, investment in original technology is the most interesting, but only when a possibility of their practical application really exists and when the market is ready to accept products related to high technology.
• furthermore, it is the risk of technological inadequacy. There is a fundamental difference between technology as a product of intellectual activity and technology as the object of investment. Technology becomes attractive for investments, when it will be demanded by the market. When a developer announces that his technology is unique, a natural question is maybe this technology is generally not needed if anyone in the world did not work .in this area
• the next problem is the risk of intractability of projects. It is a well-known fact that, well conceived and originality of the project, skills and team spirit are equally important components, which are necessary for successful implementation of the investment project. In Russia, for example, and other countries these components are in a certain conflict with each other, because the professional qualities that necessary for the development of original technology are very different. A balanced mix of different specialists in the same team is quite rare phenomenon. The personal motivation of developers is highly important in the project. Commercial successes on the market, creating a highly profitable company largely correlate with the investor’s objectives. And aspiration for seeing developer’s idea completely realized at any cost and proving his uniqueness may come into conflict with the interests of investors under certain conditions.

There are some ways to solve these problems and improve the efficiency of the large innovative companies. They are:

• the possibility of large-scale using of innovation;
• high initial costs in the production of innovative products;
• using complex technical systems, conducting long-term test procedures;
• testing, licensing and certification of product innovation;

In Russia the government tries to solve problems. So that the government has already:

• created a number of institutions to support industry in business, and innovation entrepreneur;
• developed the Federal Target Program ‘Research and development on priority directions of scientific-technological complex of Russia for 2007-2012’;
• organized the new special economic zones, open industrial parks and numerous business incubators that promotes the formation of new technology clusters;
• solved a number of issues to ensure legal organizational forms of venture funds;

I’ve analyzed the level of innovation technology in different companies and have made up the rating of innovative entrepreneurs in Russia.  To my mind, the successful business is business that allows extracting a cash income as a result of creation a production and using an innovation product. In that connection I’ve arranged Russian entrepreneurs in the next sequence:

The results of my research show that the most innovation sphere in Russia is computer technologies, and the most backward one is science and light industry. However, it is important to improve situation with the latest branches. One of the effective ways to do it is to attract young people for studying and creating their own enterprise. In that case, the decision to create a great business school was admitted. I mean ‘Skolkovo’. It is one of the highest priority innovative projects in the country. The Russian Silicon Valley (Innograd) is becoming the centre of the scientific thought development – not only of Russian one – but in the foreign countries as well.

In conclusion I’d like to say that in recent years the emphasis in the selection of development goals is moving in the right direction. Thus, in the "Concept of Socio-Economic Development of the Russian Federation until 2020" the strategic goal defined Russia's entry to the socio-economic development of the highly industrialized countries, including access to welfare standards that correspond with the developed countries of the world. And I personally believe in the successful future of innovative entrepreneurship of our country!