Russia's high tech center
Russia is finalizing plans to launch an "InnovationCenter" near Moscow. The government has selected a large farmland in the village of Skokolo, and has set aside a large amount of fund to create a “Silicon valley” type where thousands of software engineers will be able to create their own companies to compete with India, China and the U.S. The Russian Nobel physicist Zhores Alferov has been named as the project's advisor. The project was announced early this year by Russian president Dmitry Medvedev and will be financed by a $340 million government fund.
To promote the idea and to get foreign investments, Vladislav Surkov, a director in the office of the president take a group of foreign business people to visit the site and discuss the best way to achieve the “Innovation center” goals. The first is to create an areas promoting more startup companies built on innovations flowing from existing Russian top universities. The second is to create a research university to train more scientists in information technology and biotechnology where they can access to laboratory facilities, supercomputers to develop technologies that could be launched within new startups. Of course, foreign investors are encouraged to invest in this area too.
Mr. Surkov said: “The overall goal is to commercialize technologies in energy, biomedicine, information technology, telecommunications, and nuclear engineering and to move Russia's economy away from its dependence on oil and natural gas. We recognize that the best way to improve our economy and create more jobs is to focus on two of the most promising areas: software and biotechnology. We have so many talents because our education system is one of the best but we need to provide an environment where these talents can be utilized."
The question among many Russian is: “Could it work? In an interview with foreign newspapers, a software developer named Anatole said: “We have been building technology parks all over Russia but we have a lot of empty buildings. We have a lot of constructions but no business. The concept of building technology parks and wait for business to come is not a good policy. We have made few construction companies rich but not our people. To compete in a global market and create jobs, we need a different approach than just building technology parks.”
A business owner added: “The government need to decide what kind of operating and business model to pursue. I think the most important is to make sure that Russia's legal system will support the new business. There are plenty of talents with great ideas in Russia but there are also so many barriers to being an entrepreneur. Our legal system is not well understood and enforced. One day you can do this, the next day you cannot and it is illegal. No one would start a company then find out that it is illegal. We also have so many issues with corruptions. If we do not address them now then we would never become a “Silicon valley” like the U.S. We do not even become something like “Bangalore” or “Shanghai” if we do not change.”
A software entrepreneur said that he already lost faith in this kind of “New Business” because unless Russia can prove to investors that their company and assets are protected in the courts, and that investors will not face significant taxes or restrictions in financing their companies. He said: “To compete in global business we need new thinking, new idea, new laws, and strong government supports. Today the government say that they support us but the laws are still the same, the officers are still the same, and they all operate from the old thinking of control and restrict private business. Unless it changes, nothing will happen.”
A visiting investor also told the newspapers: “It is impressive that Russia now recognized the important of information technology and biotechnology. They have many best and brightest people. Their education systems are very good. Now, they also have a center to start companies and create jobs but unfortunately their thinking has not changed. People are still waiting for direction from the top. No one would do anything unless they receive clear order from their boss. No one want to do anything on their own. No one would take risks, and that is counter to entrepreneurship. When people would not take initiative on their own, when they are not willing to take risk, everything will be stagnated and nothing will happen.”
Vladislav Surkov, the director in the president office did not agree with this negative comments. He said: “We already make a lot of progress in the area of information technology. Russia already has many successful companies, including Kaspersky Lab, maker of antivirus software; the search engine Yandex; and social networks Vkontakte.Ru and Odnoklassniki.Ru. We are moving fast to create more companies now.”
Eugene Kaspersky, the founder and CEO of Kaspersky Lab, who is an advisor to President Medvedev also told the foreign investors that Moscow has many advantages such as the best educational institutions, many skilled people which are the foundation of high tech industry. The only it need is an environment where these people can use their intellectual to create companies and jobs. What they need is some investment from both government and private investors. On the other hand, he admits that the weather in Moscow can be pretty bad, and living costs are very high.
Mr. Surkov disagreed: “Russia is known for the long and cold winters but it is cold in Boston and New York too. The business there is thriving so I do not see any problem of not investing in Russia because of the weather. We are trying to do it right. We are not trying to line up people and tell them what to do. We are working hard to let these talented people do their own thing. Our government are trying to reach out to the scientific community and let them know that we want to help them as much as we could."
Sources
- Blogs of Prof. John Vu, Carnegie Mellon University
