Developing the Innovation Infrastructures in Saint-Petersburg Committee for Economic Development, Industrial Policy & Trade Brussels, October 2007

The City of Growing Economy The city has demonstrated the increasing economical growth in recent years: 10 20 30 bln US$ 2004 2005 2006 20,0 24,8 30,2 GRP + 51% 1 4 5 bln US$ 2004 2005 2006 0,9 1,4 5,3 Foreign Investments + 489% 2 3 Credit Ratings Standar& Poor's Fitch Moody’s ВВ+ positive ВВB- stable Вaa2 Key Industries – 13,8% for electrical & electronic equipment

Saint-Petersburg – Innovative City 25,2% of citizens have higher education 100 state and private universities, 428 800 of students (9,3% of population), 79 colleges more than 70 000 specialists graduate each year, incl. about 10 000 in high-tech & IT industries more than 300 science and research institutions, 2 900 smaller innovative companies 127 000 small business companies, 32,4% of workforce Technopark of St. Petersburg

! ! ! ! Key elements About 10% of Russia’s science potential 11 ITC, SEZ, Naukograd, venture fund, business-incubator, IT-park Elements of innovation infrastructure Leading scientific & educational centre of Russia, intellectual centre Competitive branches of Saint-Petersburg economy Geopolitical location ! ! Hi-tech branches of the city economy, 230 large & medium sized enterprises, more than 2000 small Saint-Petersburg is situated near EC capitals, sea port, domestic & international airport

Internet and Telecommunications Technologies in St. Petersburg (ITC) One of the most attractive sites for software development projects; Active Russian and foreign companies IT communities; High qualified and creative personnel; Modern telecommunication channels. Foreign hi-tech companies in Saint-Petersburg

The innovative products share in total amount (products per sector, 2005 (in %)) 1 – Processing 2 – Textile and Sewing 3 – Cellulose and Paper Industry, Publishing and Printing 4 – Machinery and Equipment 5 – Electrical Equipment, Electronic and Optical Equipment 6 – Means of Transportation and Equipment Source: Territorial Office of the Federal Service for State Statistics in St. Petersburg and Leningrad Region.

SEZ innovation-economic type in Russia in Saint-Petersburg in Zelenograd administrative area of Moscow in Dubna (Moscow region) in Tomsk (Tomsk region) Types of SEZ innovation- economic Ports Saint-Petersburg Moscow & Moscow region industrial- production Perm Tourism & recreation Belgorod Tjumen Ufa Tomsk Cheliabinsk Krasnoyarsk Omsk Krasnodar Vladivostok

SEZ @ Noydorf Отделение «Нойдорф». Расположено в Петродворцовом районе Санкт-Петербурга. Площадь – 18 га. Планируется создание 5 000 рабочих мест. Подъездные пути: автомобильные дороги общего пользования. Регистрация и размещение резидентов ОЭЗ в отделении «Нойдорф» проводится в 2006-2007 гг.

SEZ @ Novo-Orlovskiy Отделение «Ново-Орловское». Расположено в Приморском районе Санкт-Петербурга. Площадь территории – 112 га. Планируется создание 20 000 рабочих мест. Подъездные пути: автомобильные дороги общего пользования. Регистрация и размещение резидентов ОЭЗ в отделении «Ново-Орловское» планируется в 2007-2009 г.г. по мере создания соответствующей инфраструктуры.

IT – parks in Russia Saint-Petersburg

Saint-Petersburg scientific & technological park in high-tech (IT-park)

Purposes of the IT-park The purposes of IT-park of St. Petersburg are: carrying out scientific, research, development, informational projects and programs; implementing the results of R&D programs into manufacturing; marketing of knowledge-based products and technologies; providing informational, consultative and expert services in the telecom area; organizing special informational and educational programs and courses. The main purposes of the technopark are supposed to be: - carrying out science, research, development, information projects and programs - Implementing the results of R&D programs into manufacturing - mArketing knowledge-based products and technologies - providing informational, consultative and expert services in the telecom area - orginising special informational and educational programs and courses Technopark of St. Petersburg

Main Figures of the IT-park: total area of the premises – over 500 000 sqm, including: university campus – 100 000 sqm business incubator – 20 000 sqm offices for rent – 200 000 sqm offices of the partners – 100 000 sqm total amount of the investments – over 500 mln USD schedule of the development: planning & design – 2007-2008 making agreements with investors and tenants – the end of 2007 construction I phase – 2008-2009 construction II & III phase – 2008-2012 Speaking about the main figures, the total area of the premises to be constructed will exceed Four Hundred Thousand square meters. The estimated total of the investments is going to exceed Five Hundred million dollars. As I said before some part of these investments (about Thirty per cent) will be provided by the federal and local governments, and the rest is supposed to be financed by private investors. Now we have started a planning and preliminary design phase of the project. We are planning to complete this phase by the end of the year and then we will be ready to define particular conditions of participating in the project. At the same time we will make concrete proposals to the parties interested – investors, tenants, suppliers, operators etc. After that the project is supposed to roll out in three phases starting with the campus, business incubator and other premises of the technopark, and further construction of the residential premises and public amenities. Technopark of St. Petersburg

Location of the IT-park The IT-park has excellent accessibility: 65,5 ha of a green field in the eastern part of the city 30 minutes drive to the international airport, 15 minutes drive to the city centre, adjacent to an underground station next to the State University of Telecommunications To develop the project, an extensive area of almost Sixty Fife hectares was allocated in the eastern part of the city providing excellent access to the site. It’s easily connected to the Ring Automobile Road ensuring fast ways to the international airport and the other districts of the city. Access by public transport is ensured by an underground station located at the nearest corner. Technopark of St. Petersburg

Elements of the IT-park The IT-park will consist of the following elements: cultural & leisure centre hotel recreational area conference-centre offices for rent residential premises office premises of the partners of the Technopark business incubator fitness-centre & stadium university campus Technopark of St. Petersburg

State Support of the Project An active support from the federal government provides the project with the start-up financing: federal program ‘Electronic Russia’ for developing the infrastructure of telecommunications; federal program ‘Developing Technoparks in the sphere of high technology in Russian Federation’; 30 bln US$ are allocated to be invested within 10 years into the telecom industry; 162 mln US$ of state investments are allocated for this particular project within three years. Technopark of St. Petersburg

IT-Park In the Future

Technological Innovation Centers in Saint-Petersburg CJSC “Innovations of Leningrad Institutes and Enterprises” Center of the Regional Fund for Scientific and Technical Development of Saint-Petersburg Fund “TVN” GOI (State Optical Institute) named after S.I.Vavilov City Coordination Center “New Materials and Technologies” Technopark of LTA Technological Innovation Centers (TICs) are a link between science and manufacturing, and between developers of high-tech products and investors. TVN Fund TIC TIC of the St. Petersburg Regional Fund for Scientific and Technological Development TIC of St. Petersburg State University of Information Technology, Mechanics and Optics TIC of St. Petersburg’s Plekhanov Institute of Mining (Network Center for Shared Use of Unique Equipment) TIC for full-cycle processing and recycling of industrial and solid household waste (Mekhanobr-Technika Research & Manufacturing) Municipal Coordinating Center for Promoting Innovation in Science and Education at St. Petersburg State Polytechnic University Innovations by Leningrad Institutes and Companies (ILIC), TIC of St. Petersburg State University of Electric Engineering (LETI) ARTES, Northwest Regional Innovation Center for High Technology, TIC of the Electrophysics Institute of the Russian Academy of Sciences TIC of St. Petersburg State University of Technology and Design, www.innov.sutd.ru. Technopark, TIC of St. Petersburg State Academy of the Timber Industry Innovation Support Center, TIC of the Ioffe Institute of Physics and Technology, Russian Academy of Sciences. “Aerokosmicheskiy” “High Technologies in Medicine” “Baltiyskiy” “Artes”

Higher School of Management Time of implementation 2010 г.

The objects of innovation infrastructure in Saint-Petersburg Foundation for Support of Venture Investments in Small Business Enterprises Business - incubator for small in- novative enterprises IT Park at the University of Telecom- munications ITC – innovation-technological centres SEZ – special economic zone Naukograd – research area

Major Infrastructure Projects Underway in Saint-Petersburg «Orlovsky Tunnel» Project timeline: 2005–2010 «Sea Passenger Terminal» Project timeline: 2004-2009 «Elevated Express Railway» Project timeline: 2005–2010 «Western Meridian Speedway» Project timeline: 2005–2011 Major infrastructure projects are designed to improve St. Petersburg in many ways, most notably as an international transport juncture and logistics hub. From a list of bids prepared by St. Petersburg, the Russian government has selected a number of major projects to be implemented in 2007-2010 under the auspices of the Investment Fund for the Russian Federation – a body established specifically to facilitate public/private partnership in the financing of two of the city’s crucial road construction initiatives: the Western Meridian Speedway (WMS) and Orlovsky Tunnel under the Neva. The government has pledged RUR42.4 billion out of its Investment Fund to the projects before 2010, when both are expected to go into commercial operation, RUR13.1 billion of which to be disbursed to the WMS project, and RUR4.7 billion to the Orlovsky Tunnel in 2007. According to the St. Petersburg Statistics Committee, 99.9 million tons of goods were shipped in St. Petersburg by all transport modes except rail from January through December 2006, up 4.9% from 2005 year on year. Cargo flows via St. Petersburg’s main Merchant Seaport have increased more than 30% in 2002-2006.

Thank You For Your Attention! Mikhail Eshchenko The Head of Innovation System Development Department 16, Voznesenskiy Av., Tel./fax: +7 (812) 331 54 91 St. Petersburg, m.eshchenko@cedipt.spb.ru 190000 Russia www.cedipt.spb.ru Summarizing my report, I would like once again to confirm that the City of St. Petersburg is interested in developing investment opportunities in the area. We are open to constructive dialogue and mutually beneficial cooperation. Let me wish all participants and guests of this event every success and productive work. Thank you for your attention. We will always be happy to see you in St. Petersburg.