EURECA Conference: University of Nizhnij Novogorod n.a. Lobachevksij The Research University as Center of Regional Economic Cluster? Lessons from the EURECA Pilot ( ) Dr. Dan E. Davidson American Councils for International Education November 28, 2012

EURECA and International Innovation: ITMO, UNN; UMCP, Purdue, UCLA EURECA is the only US-Russia Partnership of its kind that facilitates university research initiatives tied to the promotion of commercialization of IP and the broader support of entrepreneurship activities on university campuses. It role is recognized by both governments. Partners have rated it highly! Throughout their evolution and integration within global networks, national innovation systems incorporate lessons from international experience, but retain country-specific features, which may become sources of competitive advantage, or disadvantage. EURECA seeks to maximize those competitive advantages while reducing the disadvantages. EURECA was publicly recognized on October 29, 2012, by the Russia-US Bilateral Presidential Commission, Innovation Working Group, co-chaired by L. Surkov and R. Hormats, as a potentially high value model for supporting Russia’s 14 recognized regional economic clusters through bilateral cooperation through linkages with US universities

Why universities and international innovation? The past year in review in the U.S.* In 2011 alone: US universities and research institutes absorbed $61.4 b in R & D investments, about $40b of which was federal, the remainder from industry, including global corporations like Intel, IBM, Microsoft. In 2011, university-based start-ups remaining active at the end of the fiscal year increased by 7% over 2010 level to The number of licenses executed were up by 14% to 4,899; options executed increased by 7% to Total royalties earned by 150 leading research universities: $1.8 b. Number of new products created: 591 Number of new job created by start-ups in 2011: 25,000 FTE. *AUTM Report (9-2012)

The need for international standards in innovation management The integrity of the global economy depends on the existence of generally recognized standards of accounting and auditing. International standards are no less essential for the management of innovation processes: recognition, disclosure, transfer and protection of IP; established and transparent methods of dealing with conflict of interest are central; Patent, license, protection of all stakeholder rights and interests (including researcher), if innovation is to survive. There should be mechanisms for exchanging information and best practices among innovation managers and policy makers; flow of informed feedback about the efficacy of existing laws regarding IP protection and related matters.

Earmarked programs to promote university-based R & D Federal Law 217, 218, 219 (industry matching) Funding of the 29 National Research Universities and of substantial innovation support infrastructure Funding of the 9 Federal Comprehensive Universities Global Scholars Program (40 high-level annual for 5 years and up to $5m each) Global Education Program ( graduate students) May 7 Presidential Decree increasing annual commitment to R & D to 1.77 of total GDP Designation by MinEconomDev of 14 regional economic clusters for dedicated economic support.

Project EURECA: Bi-National Approach to Enhancing R & D in two countries 1.Strengthen institutionalization of best practices through discussion and adaptation of best practices in IP management, technology transfer, and university- industry relations. 2.Open up new markets for US and Russian IP commercialization, for developers and investors alike. 3.Encourage new trans-national collaborations in related areas to broaden cooperation networks, understand related technology platforms, improve competitive edge, amplify effects of existing products. 4.Improve quality of education and graduate students and young researchers through participation in R & D 5.Support joint research, publications, idea circulation.

Novgorod – Maryland Biomedical Corridor: Pre-Conditions and Products with a High Potential for Commercialization: novel biomarkers/genetic tools 1.Readiness of the two sides to look objectively and critically at current and emerging research products in light of industry forecasting, 2.A sober assessment of sources of relevant competition in the market; 3.Availability of international incubators; 4.Role of mentors (catalysts, not stakeholders, not ‘inside’) to ensure continued attention to client needs; 5.Underlying entrepreneurial mindset among students, faculty, administrators in the institution 6.“Right” relationship with local industry, local government, investors; 7.Ability to manage the commercialization process itself, once launched.

Thank you! 