Strategy 2020: New Outlines of Russian Innovation Policy

The paper presents the outcomes of the expert group “The transition from fostering innovation to innovation-based growth” on adjusting the Strategy for socio-economic development of Russia up to 2020. Panel experts have undertaken a detailed analysis of the state of art of the Russian innovation sphere and proposed recommendations on the choice of strategic priorities for state policy, as well as specific regulatory tools that can be implemented in the near future. Among the key challenges identified are: the increasing Russian dependence on foreign markets, the growing socio-economic risks, difficulties with adequate responding to the rapidly changing global trends, significant gaps between the main actors of the innovation system, sufficient lack of access to new technologies and innovations for different social groups. The most significant positive trends include: the introduction of new regulatory tools, the gradual expansion of the actors players in the innovation sector and, the growth of public R&D funding. The experts propose three possible scenarios: the inertial scenario implies low rates of economic growth while preserving the dependence of the economy on extractive industries; the progressive scenario presumes the accelerated integration into global processes and transition to post-industrial model and the moderate scenario which has the highest probability of realization. The implementation of a scenario depends on political choices made in the context of bifurcation in areas such as legislation, regulation, science, and many others. For example, in education there is a need to choose between “soft” adaptation of existing educational programs to meet the changing needs of the economy and greater emphasis on the development of specific professional skills. The paper formulates the basic directions of a prospective innovation policy: shifting from focusing on support for individual innovative projects that meet tight technology priorities to fostering mass innovation in all sectors of the economy, including low-tech ones; sectoral differentiation of the priorities, criteria, policy instruments, balanced support for innovation in high- and low-tech sectors, the rejection of a rigid hierarchy in the governance in favor of decentralization, empowerment of regions, development institutions, business associations and other entities with more power; support for network cooperation at all levels, focusing on an output-oriented approach to decision making, ensuring the balance of thematic and functional priority policies in order to eliminate possible failures in the innovation cycle. The authors put emphasis on the social effects of innovation policy, the need for supporting the creative class as well as the training of entrepreneurs, managers and professionals for the innovation sector and the economy as a whole. Note: Downloadable document is in Russian.