In your opinion, what Russian peculiar features should be heeded in order to launch an innovative economy?

Today in the world nobody will argue that Russia has a huge potential: probably there is no other country as Russia, where such high concentration of scientists and such number of valuable ideas and inventions can be observed. The question is how to practically apply this potential within such great spaces and different from each other regions.

Currently, in Russia, where the innovative way of development is chosen and such projects as Skolkovo, RUSNANO, RVC, SEZ and technological clusters are launched, main actions are still performed on a governmental and mainly on a federal level.

Earlier it was an essential step to get the process on the road, however now it’s necessary to move to the level of practical implementation of such policy and to determine regional projects of Russia innovative development.

An own suitable model of development, which takes into consideration Russian history, mindset and business environment, is required to build an effective innovative ecosystem in Russia.

Centering on existing universities, state structures and industry base there is no need to build an innovation model from the ground up. Having analyzed the world experience in building such models, we have an opportunity to establish highly modern and acceptable for Russian reality model.

Today, which requirements does the innovation market specify for its participants?

Modern pace of development and quick innovation market changes involve a flexible and fast-moving development model, which is able to adapt and promptly react on competition and global economic changes. We should take into consideration that every country and region is characterized by its own ecosystem and development dynamics.

For instance, the USA — currently two models are most known: Silicon Valley and Boston Route 128 technological cluster. Although both regions have similar to Triple Helix model bases of development and mutual understanding — strong universities, state assistance on a regional level and a business environment, Silicon Valley success and leadership are incontestable. It is explained by specific formed culture of entrepreneurship and by the decentralized model. Strict and closed ecosystem of Boston appeared to be noncompetitive in a quickstepping world of innovations and commercialization, whereas Silicon Valley turned to be decentralized, flexible and open ecosystem.

I’m sure that Russia should not go an American way. Moreover, Silicon Valley experience was unable to copy as in any country of the world, so in other states of America.

Why is Israel experience interesting for Russia and what are the key features of Israel innovative model?

Israel is one of the world innovation centers, which along with Silicon Valley, is characterized by an open and developed ecosystem. Simultaneously, its contrast is a special entrepreneurship culture. Israel is called ‘a Start-up Nation’ and it’s hardly surprising: it is the second in number of start-ups, trailing only the USA. Such is the case with the number of technological companies on NASDAQ, American technological exchange market: Israel occupies the second place after the USA, having the number of technological companies higher than the number of such companies in Europe, China and India, all put together.

20 years were required in order the country to turn from agricultural one to one of the world innovation leaders. In the middle of 80-s government decided to move to innovations, but the main leap happened after 1992 – actually, no more than 10 years needed.

Unique Israel experience can be of high interest for Russia owing to both minset and language affinity (more than 1 million Israel inhabitants (about 20% of population) speak Russian). Mindsets of Russian and Israeli are closer to each other than, for example, a mindset of Russian and American. Finally, it’s worth bearing in mind that a jerk in Israel innovation policy was achieved also due to specialists-immigrants from former USSR contribution, mass influx of whom took place exactly at the beginning of 90-s.

Israel is called ‘a Start-up Nation’. Why does such characteristic exist?

A tacit methodology of start-up building and effective implementation of new technologies was worked out in Israel. As of today, there about 4,000 start-ups in the country. We can say that Israel created a ‘Plant of Innovations’, a very attractive model for international innovative business, which intrigues, makes pay attention, come, invest and adopt Israel experience. The majority of large companies such as Intel, IBM, Motorola, Microsoft, Google and many others have already opened their offices and missions here, and what is the most important — R&D  centers. In many cases such centers were established on the basis of bought up Israel start-ups. I think that Israel innovative model suits Russia: it could become a point of departure for a qualitative leap.

Resting on many years experience in high-tech and innovation world, gained in Silicon Valley, Israel, Europe and within last years in Russia, I would like to share with my view on Russian innovation prospects. During my business trip in Tomsk I shared experience with Russian colleagues and tried to formulate factors for international market entering and foreign investments generation. First and foremost it is: clear business model, transparency and openness and (let it seem odd) business ethics up to basic politeness, helpfulness, efficient responses on requests.

What kind of professionals is required to launch innovative economy?

I also highlighted in an interview to MIT Entrepreneurship Review: “Although there hundreds of precious ideas and the ability of Russian innovators to be ideal CTO (chief technology officers), Russian business hasn’t still mastered the skills of management will allow implementing an idea in a successful enterprise according to international standards and even making it attractive for local investors. Unfortunately, people used to generate ideas but not to develop them. Nowadays, a lack of business professionals, able to serve as a kind of ‘bridge’ in communication with foreign investors, has been accentuated within the context of Skolkovo project.”

As I see it, as soon as in Russia one turns from something on mind to something in kind, wide-known obvious problems appear, which do not contribute to the country’s investment appeal. First of all it is minset, to be precise — its peculiar feature: Russian people have initially incredulous and reticent views. Reticence and concealment are amazing: sometimes I feel that people are simply afraid of their ideas being stolen.

Is a problem of investment involvement crucial for Russian start-ups?

I would like to help an entrepreneur believe in long-term success. When he is planning to involve definite amount of investment and we are starting to clarify, for what such sum is required? – It appears, that the author is going to work out some kind of appliance prototype, to rent premises and equipment, to pay wage to his workers and himself. “And what is the next step? How to enter the market?”, I ask. “Then we’ll see!” – the answer follows…Foreign investor should see a clear business plan with development stages and possible revenue prospects. Moreover, it’s necessary to know the answers and investor’s questions and to understand, that your answers are essential for him in the process of decision making.

Russian companies and entrepreneurs today, to my mind, tragically lack experience in competent business plan development, professional lawyer assistance, consulting – all the components which are crucial in forming a portfolio of business documents and protecting intellectual property of the company.

What are the main goals for Russia in field of innovative development, what should be got over?

Once Russian colleagues asked me: “In your opinion, what do we lack?” As an answer I wrote a simple word in big letters: Smile! Openness, even amiability, confidence and the most important – exactly that ‘smile’ to the foreign business, experience and as a result — investments, that’s what we lack today. We don’t need decades to learn business dealing with foreign partners: tried-and-true mentor programs or professional consultations, work effectively. Within 1−2 years the situation in each region or company can be dramatically changed.

Russia has all the prerequisites to become a progressive innovative state. The only thing we need here is to build an entrepreneur culture and inherent to innovation system attributes, acceptable for both foreign and Russian investors.