Funding R&D Activities in Russia and Abroad

Funding R&D activities in Russia and

abroad

Russian-French Seminar, Moscow, January, 20-25th,

2014

Julien Vercueil, INALCO, CEMI-EHESS (Paris)


2014

J. Vercueil, INALCO, CEMI-EHESS (Paris)

1. INPUTS AND OUTPUTS OF R&D ACTIVITIES

Russia: R&D resources

0

20

40

60

80

100

120

140

160

180

200

0

20000

40000

60000

80000

100000

120000

140000

160000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

1. Gross Expenditures in the R&D sector (GERD),

2000-2011 GERD, constant prices (millions of 2000 RUR)

GERD per employee in the R&D sector (thousands of 2000 RUR)

0

100

200

300

400

500

600

700

800

900

1000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Tho

usa

nds

2. Number of employees in the R&D sector, 2000-2011

researchers

technicians

auxiliary

other personnel


2014

Source : author’s elaboration based on Rosstat, 2012



2014

Source : « 2014 Global R&D Funding Forecast ». Battelle, December 2013

World’s R&D Expenses

RUSSIA



2014

Source : « 2014 Global R&D Funding Forecast ». Battelle, December 2013


Comparing distributions of R&D expenses accross countries

Compared results : domestic patent applications


2014


Source : author’s elaboration based on World Development Indicators

1,0

10,0

100,0

1000,0

10000,0

Patents applications by residents and non-residents per 1 million habitants in selected countries, 1991-2011 (logarithmic scale)

Korea, Rep.

Japan

United States

Germany

Russian Federation

China

France

Brazil

India

Compared results : high tech exports


2014


Source : author’s elaboration based World Development Indicators, 2013

0,00%

5,00%

10,00%

15,00%

20,00%

25,00%

30,00%

2005 2006 2007 2008 2009 2010 2011

1. Share of high-tech exports in total exports for selected countries, 2005-2011

China

Korea, Rep.

Japan

France

Germany

United States

India

Brazil

Russian Federation

0,00%

2,00%

4,00%

6,00%

8,00%

10,00%

12,00%

14,00%

1996

19

97

1998

19

99

2000

20

01

2002

20

03

2004

20

05

2006

20

07

2008

20

09

2010

20

11

2. High-Tech Export Intensity relative to GDP for selected countries, 1996-2011

Korea, Rep.

China

Germany

France

Japan

United States

India

Brazil

Russian Federation


2014

2. HOW TO FUND R&D ACTIVITIES ?

(focusing on start-ups)



2014

SEED START-UP EARLY

GROWTH EXPANSION

INNOVATION PROCESS AND FINANCING SCHEMES :

Concept but no product.

Working on a prototype

Prototype exists. Technical tests

under way

Product is ready. Testing the demand

Product available on the market

Basic research

Applied research Development

Source : author’s elaboration based on Osawa and Myiazaki, 2006


Ne

t C

ash

flo

ws

time « Valley of death »

Initial funding : « 3F » : family, friends & fools


2014

SEED START-UP EARLY

GROWTH EXPANSION

INNOVATION PROCESS AND FINANCING SCHEMES :

Concept but no product.

Working on a prototype

Prototype exists. Technical tests

under way

Product is ready. Testing the demand

Product available on the market

Potential Externalities

maximum decreasing

Grants High

relevancy Decreasing relevancy

Venture Capital

High relevancy Decreasing relevancy

Bank Funding

Weak relevancy Increasing relevancy

Uncertainty

maximum decreasing

Basic research

Applied research Development

Source : author’s elaboration

Weak relevancy


Levels and means of public involvement in R&D support

J. Vercueil, INALCO, CEMI-EHESS (Paris) Russian-French Seminar, Moscow, January, 20-25th,

2014

Levels of public action

Institutional framework

Infrastruc-tures

Public agencies

Public funding

Central level

Local levels

- IPR laws

- Incentives to spin-offs

- Tax system

- Incentives to localization

- Technolo-gical special zones

- University and PRI incubators

- Agencies supporting research projects

- Venture funds

Idem

- Grants - Low-rate loans

- Venture capital

Idem


Venture capital investment, %GDP, 2012

Source : OECD S&T Database, 2013

0,00

0,05

0,10

0,15

0,20

0,25

0,30

0,35

0,40

% Breakdown not available Later stage Early stage

0,000 0,005 0,010 0,015 0,020 0,025 0,030 0,035

Magnified


2014


Public financing of first stages of high-tech SME development : four examples


2014


SBIR (United States)

2,5 years

Phase1 : feasibility studies Phase 2 : commercialisation Process

Open competition - 14% applicants eligible for phase 1 - 60% projects eligible for phase 2

Commercialisation Australia

2 to 3 years

1. « Skills & Knowledge » : up to 45000 US$ 2. « Experienced executives » : up to 300000 US$ 3. « Proof of concept » : 45 to 220000 US$ 4. « Early stage commercialisation » : 50000 to 1,7 Mns US$

Open competition 1 : 80/20 financing 2 : 50/50 3 : 50/50 4 : 50/50

Program & Country

Maximum duration

Stages Conditions & Selectivity

EXIST (Germany)

3 years

Phase 1. Proof of technological feasibility : up to 60000 € Phase 2. Prototype realisation : up to 150000 €.

Open competititon Phase 2 : coverage of 75% of costs

START (Russia)

3 years

Year 1. up to 40000 US$ / convincing investors Year 2. technological and industrial development Year 3. commercial development

Open competition Year 1 : 26 % applicants eligible Year 2 : 25/30 % eligible (if 50/50 with private investors) Year 3 : 70 % eligible (if first sales)


Спасибо за

внимание


2014

Funding R&D Activities in Russia and Abroad

Documents

Transcript of Funding R&D Activities in Russia and Abroad