1. Russia on the high-tech markets Prospects and challenges

2. GOALS :  To enquire basic knowledge about Russia’s positions on the key high-technology markets  To analyze and to understand main features of improving country positions on the high- technology markets  To formulate personal opinion on the future collaboration of Russia with developed and developing countries

3. Classification of manufacturing industries by R&D intensity High technology (>5% R&D intensity ) aircraft and spacecraft; pharmaceuticals; office, accounting and computing equipment;radio, television and communications equipment; medical, precision and optical instruments Medium-high technology (1.5-5% R&D intensity ) electrical machinery and apparatus not elsewhere classified; motor vehicles, trailers technology and semi-trailers; chemicals excluding pharmaceuticals; railroad equipment and transportequipment not elsewhere classified; machinery and equipment not elsewhere classified Medium-low technology (0.7-1.5% R&D intensity ) coke, refined petroleum products and nuclear fuel; rubber and plastic products; other technology non-metallic mineral products; building and repair of ships and boats; basic metals; fabricated metal products, except machinery and equipment Low technology (<0.7% R&D intensity ) manufacturing, not elsewhere classified, and recycling; wood, pulp, paper, paper products, printing and publishing; food products, beverages and tobacco; textiles, textile products, leather and footwear

4. The key markets where Russia has strong positions Space and satellite markets Weapons market Information technology market Nuclear technology market Nanotechnology market

5. The Structure of the Russian Satellite Industry

6. Russia …..is the world leader in Launch Industry (launch services) … has 15% of the world Satellite Manufacturing ….total contract value of the aerospace sales and modernization contracts in 2006 was about $6 billion, according to the Russian air and space agency

7. Russia is the leader of the world arms trade

9. The main sectors in Russia’s defence industry today are: – Network-based command and control systems, – Telecommunications systems, including electronic counter- countermeasures, – Combat aircraft; manned and unmanned, – Aircraft engines, – Command and control systems for land, marine and air applications, – Systems for exercise and training, – Telecommunications war systems; passive and active, – Signal adaptation (e.g. camouflage systems); UV, VIS, NIR, TIR and radar,

10. Russia Major Trading Partners in trade in Arms in 2000-2005 India 33,5% China 24% Iran 6,4 % Algeria 4% Vietnam 3% United Arab Emirates 2% Kazakhstan 1,9% Yemen 1,8%, Greece 1,6%

11. Russia IT Market structure in 2006 500 companies total market size of $3 billion IT's share of Russian overall exports has gone from 0.3% to more than 5% in the last two years an average annual growth is of 15 %, higher than Indian features Russia share of the world IT market is 1-1,2 %

12. IT market growth in 2006-2007

13. IT Market structure

14. IT Services Trade, $ mln.

15. The example of on of the Leading companies with a successful strategy on European market – Luxoft the Russian market size for exported IT services approached $500 million in 2004 and is growing at a rate of 25 % per year. Luxoft has operations in Russia, USA, the United Kingdom, Ukraine Russia’s premier software outsourcing provider in the Offshore 100 rank share on the Russian IT Outsourcing Market in 2004 was at 5%. generates over 25% of the aggregate revenue of the 10 largest Russian software development services exporters Clients Areva, Boeing, Dell, IBM, Thomson, Citibank, Deutsche Bank, Caterpillar, U.S. Department of Energy; Services Integrated IT Services, Client Engagement Framework, Development Centers Number of employers 100 in 2000 and 1 000 in 2004

16. Russia in the Nuclear Power Engineering Construction Services construction under long-term contracts with former partners of the Soviet Union major Partners are China, Iran the increase of the demand will depend on developing and emerging countries The main competitors are EU member states and USA participation in the international projects on science and technological cooperation with USA, Britain, France, Germany, Italy, Japan

17. Russia in the ITER project ITER is a joint international R&d project that aims to demonstrate the scientific and technical feasibility of fusion power will be constructed in Europe, at Cadarache in the South of France The construction costs are estimated at five billion Euro over 10 years, and another five billion Euros are foreseen for the 20-year operation period.

18. Russia in the ITER project: participating parties

19. ITER COST SHARING Europe 45.45% Russian Federation 9.09% the USA 9.09% China 9.09%, Japan 9.09%, Korea 9.09%,

20. The future development will depend on Innovation system reform Intellectual property right protection system WTO membership Penetration of IT and Telecommunication hardware and services development of Education system

21. Fields of Direct and Indirect Government Support small R&D and innovating organisations; innovation and venture funds; scientific parks, innovation technology incubators and business incubators, etc.; consulting and engineering organisations, as well as organisations rendering applied services in the field of humanities (sociology, law, economics, ecology, etc.); science towns and technopolises.

22. Innovation System Infrastructure in Russia Techno parks (in the first place for start-up projects) Innovation-technological centers (oriented on small and medium enterprises that have successfully passed the start-up form) Technology tranfer centers (commercialisation of innovations) Information centers Personnel development Finance and investment regulation

23. Innovation and Technological Centers in Russia

24. Venture Innovation Foundation is the key element of future development The Fund has encountered the following tasks: Implementing a complex of measures to develop a system of direct venture investment in technological business, including small and medium-sized innovating firms; Supporting Russian innovating enterprises developing products and technologies in the framework of priority areas and being at initial stages of development.

25. Russian researchers employed abroad 2/3 of all Russian researchers employed abroad are in the United States (29%), Germany (19%), France (7%); the United Kingdom (5%), Japan (4%), Sweden (3%)