1. The background for Federal program of RIS development in the Russian Federation

2. INSTITUTE OF REGIONAL INNOVATION SYSTEMS Institute of Regional Innovation Systems (IRIS) is an independent nonprofit organization, which promotes the development of the national innovation system by way of developing the regional innovation systems in the subjects of the Russian Federation.

3. The main issues of the presentation 1.Regional approach to the innovation systems development (international experience). 2.Analysis of the innovation sphere development in Russia. 3.Strategic initiative for designing the Federal program of regional innovation systems development in the constituent entities of the Russian Federation. 4.The suggested model of the regional innovation systems arrangement in the subjects of the Russian Federation.

4. Regional innovation systems: international experience of development

5. Special features of the modern innovation systems (international experience)  In recent years the possibility of coordinating the innovation processes on the national level has been shrinking away. It is stemming from the fact that the transnational corporations are breaking up the value chains in order to locate them in the places possessing local advantages. Thus a region is becoming a natural economic zone in the age of globalization.  In spite of the fact that the state has lost the opportunity to coordinate the technological changes in “top-down” direction it still plays a big role in the innovation process as its catalyzer. It supports the research and innovation activity, acts as a mediator of different interests, organizes the dialogue between different participants of the future inventions and initiates new research works. Alongside with the changing role of the state we can observe a gradual transformation of the national policy into regional policy.

6. Special features of the modern innovation systems (international experience)  We should take into consideration two major tendencies in the geographical aspect: the first one is that the innovation processes are becoming more transnational; the second, regional innovation networks are beginning to appear. In this respect regional governments should adapt the companies’ globalization strategies thus providing the supporting conditions for innovation systems development and establishing special organizations and institutes. Therefore the competitive advantages of the regions can be created on purpose.  The altered economic conditions caused the changes in the technological and innovation policy. The policy of direct innovations is changed to the policy of innovative capacity, which is focused on establishing supporting organizations, clusters and network structures.

7. Objectives and tasks of the national and regional systems development Objective:  Formation of a national innovation system (NIS) by means of creating a regional innovation systems network (RIS); developing the mechanisms of regional systems coordination.  Improving the competitive ability and capitalization of the regions in the domestic and world markets, attracting new residents and resources for further development of the high technology business. Tasks:  Developing the effective management infrastructure of the regional intelligence and innovation potential.  The infrastructure will determine: what projects shall be considered significant, who and how will perform their expert examination, the means and participants of the projects capitalization, ways and instruments of investment.

8. Regional innovation system

9. Analysis of the innovation sphere development in Russia

10. The analysis of the legislative acts and programs from 34 Russian regions makes it possible to point out the following groups of functions of the regional innovation systems development. FunctionNumber of regions performing the function Formation of innovation development zones27 Creation of a favorable innovation climate20 Innovation activity staff support5 Innovation infrastructure development13 Promotion of high technology products in the markets9 Information support of innovation activity4 Innovation networks development2 Intellectual business-services sector development1 International and interregional cooperation2 Direct financing of the innovation activity27 Analysis of the programs of regional innovation sphere development in Russia

11. The directions for the development of innovation sphere most often chosen by regional authorities:  Formation of innovation development zones.  Staff support of the innovation activity in the industrial sphere.  Innovation infrastructure development.  Creation of a favorable innovation climate.  Regional innovation sphere development and sensitivity of industry to innovations.  Promotion of high technology products in the markets.  Informational support of the industrial innovation development. Analysis of the programs of regional innovation sphere development in Russia

12. General disadvantages of the regional programs  Most of regional managers and civil servants lack a system approach to innovation strategies. They also lack the necessary level of knowledge of up-to-date innovative processes and methods of management.  The innovation development strategy is lacking, that is why the programs that are being designed do not take effect.  Most regions lack the mechanisms of integration of regional and national systems and including RIS into international networks.  In many regions the RF programs of innovation development do not have any regular pattern. Some key aspects of the interaction between small innovation business, scientific and educational institutes and large industrial corporations are left beyond the scope of the programs.  There is a need in a unified organizational basis providing for the regional innovation strategy development and development of RIS as a holistic system.

13. The developers of the regional innovation programs have to face the following system problems:  Lack of true indicators estimating the efficiency of a regional innovation program, based on the government statistics data (lack of legal framework).  Incompleteness of the legal base of innovation activity, in particular lack of clear definitions (criteria) of an innovation product, innovation project and high technology branch formalized in legislation.  Indistinct split of federal and regional functions in the innovation sphere.  Lack of federal structures (instruments) providing for a long-term technological planning.  Lack of a regional innovation system model adaptable for Russian conditions.  Lack of clear information of the national innovation system and international standards of its development. General disadvantages of the regional programs

14. Resume 1.In response to these problems we need a (program/systematic) federal support of the regions, which intend to develop their regional innovation systems. 2.A federal program (federal law) in the sphere of development and implementation of the regional innovation systems in the RF subjects could be designed for this purpose.

15. Strategic initiative for The Federal program of the regional innovation systems development in the RF subjects

16. Objectives and tasks of the program of RIS development in Russia Objective:  To design a number of organizational and financial models and instruments of formation and development of the regional innovation systems in the RF subjects. Tasks:  To facilitate the process of the regional innovation systems development in the RF subjects.  To bring a regional innovation system into line with the national innovation strategy and to include a region into international innovation networks in accordance with the international standards.  To boost Russia’s capitalization and competitive ability by means of boosting the capitalization and competitive ability of the regions.  To facilitate the transformation to the economy of knowledge.

17.  Defining the processing chains within the region.  Finding the missing links in the processing chains.  Designing the methodology (strategy) of attracting the companies promoting the development of a certain processing chain in a region.  Developing the infrastructure necessary for the effective formation of the clusters.  Developing the mechanisms and regional programs of support and development of the high technology branches (including creation of new branches and modernization of the already existing ones). Objectives and tasks of the program of RIS development in Russia Secondary tasks of the program:

18. Contents of the Federal program of RIS development in Russia 1.Regional innovation policy development. 2.Design of a system of instruments for performing the monitoring of technological trends of a region. 3.Design of a basic model of a regional center of expertise as a principle element of industrial growth formation and management. 4.Clusters development methods. 5.Coordination of a federal industrial policy and a regional innovation system. 6.The program of formation of a national innovation system based on regional innovation systems; mechanisms of regional systems interaction. 7.Coordination of the program with tax policy, customs and other matters.

19. The results of implementation of the program in the RF regions 1.A regional government will prepare a strategic plan of diversification of economy, which will include a strategy of industrial clusters development and a policy of the most profitable investments. 2.1-3 industrial clusters will be mobilized and focused upon making the first steps in creating competitive advantage of the region. 3.Generation and preparation of the projects of modernization in the mobilized industrial clusters, which will lead to GRP growth and increase in employment of the population in the region. 4.Making reference to a certain region in the international marketability report at the World Economic Forum. 5.Delivering trainings for managers and heads of industrial enterprises.

20. Organizational model of the regional innovation systems in the subjects of the Russian Federation

21. Functions of the federal agencies of innovation development FunctionsType of activity Informational Benchmarking Foresight Distribution of effective methods National strategy development Initiative Legislative control National programs Consulting Formulation of regulative documents for (regional) innovation systems development Expertise Trainings for the developers of regional policies Supportive Financial support Tax benefits Purchasing policy Establishing state institutes Coordinating and intermediary Creation of interregional and national discussion platforms Transregional exchange and co-developing Monitoring Assessing programs development

22. Split of innovation functions to system levels Innovation functionsNational levelRegional level Political perspective (concept) developmentPerspective on the national levelAdapted to the regional specific features Benchmarking (comparison)International benchmarkingSpecific regional benchmarking ForesightNational foresightRegional foresight Technological assessment (due diligence)General technological assessmentRegional technological due diligence Regulation (adjustment) and consolidation of knowledge infrastructure General infrastructureSpecialized infrastructure, regional demand for knowledge Educational systemGeneral educational strategyFormation of specific regional skills and competence Legal regulationState legal system Standardization processesNational standards Purchasing policyNational demandSpecific regional demand FinancingState financial systemRegional venture capital Innovation networks developmentNational and transnational networksRegional networks and cooperation Intellectual business-services development (consulting) GeneralSatisfying a specific regional demand Small and medium business developmentNational programsRegional support and networks development Organizational changes and use of up-to-date information technologies National programsDirect contact with companies Management of human capital assetsNational programsDirect contact with companies Consumers supportNational programsDirect contact with companies

23. RIS organization chart

24. Interaction between the innovation activity participants

25. In the circumstances concerned a holistic approach to RIS development becomes especially important. The tasks of prime importance at this stage are: 1.Regional innovation development strategy design. 2.Creation of a unified organizational basis for the strategy design management and further development of RIS. Besides, it is important to lay foundation to the key instruments providing for estimation of an innovation system efficiency and monitoring of external environment (benchmarking, technologies assessment, technological outlook).

26. Key instruments of RIS development in the RF subjects  Innovation pattern of the region (defining the centers of key competence among the regional industrial, educational and research institutes on the regional, national and international levels).  Identification of the factors hindering the innovation development of the companies in the region (identifying the problems characteristic of the high technology production plants and developing the mechanisms to solve them).  Identification of the most probable trends of the future development of high technology production branches (regional foresight).  Creation of the regional centers of expertise (production branch condition monitoring, creation of an experts base in the sphere of industrial expertise, establishing partnership among the innovation processes participants).  Development of the support mechanisms of the intellectual business- services market (consulting, engineering companies) in the region.  Making-up a registry of innovation companies, developing a system of criteria of a company’s belonging to an innovative type and developing a system of stats factors characterizing their activity.

27. Stages of federal support of the regional innovation systems development 1.RIS development (the system of innovation potential management in the region):  Organizational base for RIS development control.  Regional innovation strategy development and a system of RIS monitoring.  Instruments of long-term planning and day-to-day RIS management. 2.Monitoring of the innovation strategy realization. 3.Benchmarking of the regional development, other regions and foreign RIS and, subsequently, correction of the program in order to improve the competitive ability (total regional capitalization) of the region by means of strengthening the innovative constituent of the regional development up to the world standard.

28. Stages of RIS development 1.Creation of an organizational base for RIS development control. 2.Analysis of the current state and potential of the existing regional innovation system: Current state analysis:  Defining the key competence of the region.  SWOT-analysis: on the regional, production branch and company level.  Structure analysis of the institutes (organizations) included in RIS (finding the missing links of the RIS structure).  Analysis of the companies rendering the intellectual business-services (consulting and so on). 1.RIS system of management.  Establishing the Board.  Legal support of the Board activity. 2.Developing the instruments (system of monitoring) supporting the effective self-communication of an innovation system and monitoring of external environment (benchmarking, technologies assessment, technological outlook). 3.Development of regulatory and legal framework providing for efficient interaction between the RIS subjects. 4.The design of the strategic RIS development plan.  Development of the system of RIS financing. 5.Creation of the system of supporting institutes:  Centers of expertise.  Venture funds.  Mediator-companies (mediators between science, developers and manufacturers and so on).  The companies rendering intellectual business-services.  Other missing links of the RIS structure.

29. The project is prepared by INSTITUTE OF REGIONAL INNOVATION SYSTEMS Vilensky st., 4 191014, Saint Petersburg, Russia + 7 921 577 55 02 + 7 812 272 26 80 PR@innosys.spb.ru www.innosys.spb.ru