S KOLKOVO I NNOVATION C ENTER N OV 19, 2011

W HY S KOLKOVO ? 2 Time Technology maturity / market acceptance Basic Research Applied Research Entrepreneurs Early Late Mid Private Equity IPOs Large Corporates Commoditization of Technology VC Normal Technology Life Cycle

W HY S KOLKOVO ? 3 Time Technology maturity / market acceptance The gap: Research not linked to market Little early-stage financing or services Result: weak commercialization Basic Research Applied Research Entrepreneurs Early Late Mid Private Equity IPOs Large Corporates Commoditization of Technology VC Current Russian Situation

4 + A FEW MORE GAPS Practices of sponsored research Culture of entrepreneurship Institutional environment R&D infrastructure > Low productivity + brain drain

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6 Key figures: 400 hectares residents total employed professional jobs Pedestrian-oriented master plan Sustainable design, LEED certified 2014 completion date (phase 1)

S PECIAL ECONOMIC REGIME No VAT or profit tax for 10 years 7 Refund of customs duties and VAT on imported equipment 14% unified social tax rate (vs. normal 34%) Own customs service; simplified migration law

5 THEMATIC AREAS = R U MODERNIZATION PRIORITIES 8 Energy: efficiency, saving, new energy technologies IT: software, engineering, devices Biomed: biotech, drugs, devices Space: telecom, navigation, imaging, life systems Nuclear: medicine, energy, materials

9 University+ Startups Corporate R&D centers VC funds Moscow School of Management K EY ELEMENTS OF S KOLKOVO ECOSYSTEM

T ECHNOPARK SUPPORTING STARTUPS External venture funds Technopark Other Universities Skolkovo Funds Skolkovo Institute 10 Spin-off center Coaching & training Clusters Market assistance Infrastructure Corporate services Funding

C ORPORATE PARTNERS 11 International companies Russian companies

T HE ROLE OF CORPORATE PARTNERS 12 1.Create and operate R&D centers in Skolkovo 2.Evaluate Skolkovo’s pipeline of promising technologies & advise on strategy 3.Co-invest in promising Skolkovo start-ups 4.Offer early commercialization opportunities to Skolkovo startups 5.Fund research at SkTech

S KOLKOVO I NSTITUTE OF S CIENCE AND T ECHNOLOGY 13 World’s first graduate university to fully-integrate research, education, innovation and entrepreneurship 1200 graduate students and 200 faculty by programs, 15 multi-university research centers Source of expertise in Skolkovo Source of high-caliber talent Strategic partner:

S KOLKOVO I NSTITUTE : NEGOTIATIONS 14 MIT faculty Ru academics Ru management and legal Government 1.Role of faculty in the US 2.Distribution of faculty time (1/3 spent pitching) 3.Need of a model 4.Services contract, quantity v quality bureaucratic control 5.Gap between capacity to deliver and capacity to assimilate 6.Quality v speed (political logic) 7.Interdisciplinarity; complex collaborations Cultural bias? Trust Pride Distance to power How do we deal with it in Skolkovo? …

15 E NGINEERING SYSTEM : S KOLKOVO E NVIRONMENT / C ULTURE

S KOLKOVO E NVIRONMENT / C ULTURE 16 Innovation ecosystems: success factors and mechanisms. Engineering systems Architecture > infrastructure > institutions > institutes > governance :: frameworks – life is in between Experience, attractiveness Communities Behaviours: types and efficiency/effectiveness Qualities of the ecosystem Mindset Culture Values Dynamics Equilibrium

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T HE SOLUTION ? 18 Time Technology maturity / market acceptance Basic Research Applied Research Entrepreneurs EarlyLateMid Large Corporates Commoditization of Technology VC Skolkovo Institute Innovation Center 5 clusters Technopark Key partners City Infrastructure Venture Capital Close the gap with tools for efficient commercialization Skolkovo “Ecosystem”

M ISSION 19 Develop human capital through world- class research and education Diversify and grow Russia’s economy through innovation and entrepreneurship Integrate Russia into global networks of technology and knowledge exchange Skolkovo is a strategic development initiative to:

G UIDING PRINCIPLES Open, transparent, and fair: essential to attract world-class talent, institutions and businesses Maximum private sector participation 20 Physical and virtual layers Self-sustaining over time International standards

W HAT S KOLKOVO IS, WHAT S KOLKOVO IS NOT 21 We provide financial grants We are non-profit We finance and support R&D and early-stage companies We are a platform for international collaboration in R&D and technology transfer We support and finance both Russian and international innovation We are not an investment fund; we do not invest, take equity stakes or board seats We don’t finance production or advanced commercial activity We are not a sales agent We are not limited to Russian technology; our mandate is to enhance 2-way tech transfer

S KOLKOVO E NVIRONMENT / C ULTURE : OPEN QUESTIONS 22 Mixed communities v compartmentalized Open to external audiences v closed

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