Also participating were Oleg Fomichyov, State Secretary – Deputy Minister of Economic Development and Chairman of the Open Innovations Programme Committee, and Igor Agamirzyan, Director General and Chairman of the Board of the Russian Venture Company.
Transcript:
Igor Agamirzyan (moderator): Good evening, colleagues. I would like to welcome all those who are present today. You have been invited here to hear about the Second Moscow International Open Innovations Forum for Innovation Development and the Open Innovations Expo which will be held in Moscow in two weeks. Here to join us are Deputy Prime Minister and Chairman of the Forum Organising Committee Arkady Dvorkovich and State Secretary – Deputy Minister of Economic Development and Chairman of the Open Innovations Programme Committee Oleg Fomichyov. This is the second time this event has been held. In 2012, various development institutes organised the first forum at the order of the Government and it was a success. This year we are holding it again, now for the second time. Mr Dvorkovich, please tell us about the main idea of the forum.
Arkady Dvorkovich: Good evening. This year the Open Innovations Forum will be held from October 31 to November 1. Let me remind you that last year’s forum was the largest event of its kind in Russia and one of the biggest events in the world involving innovations and new trends and major developments in the field of innovation. Last year the forum’s business programme comprised over 150 events involving 5,000 delegates, 700 speakers, 40 countries and 40 Russian regions. This year, I think, the numbers will be even greater. And while this year’s forum will be a continuation of the previous year’s, it will also have certain unique features.
So what are these features? First of all, the forum is becoming more official. This year the official speakers of the main plenary session will be three prime-ministers: Russian Prime Minister Dmitry Medvedev, Finnish Prime Minister Jyrki Katainen and French Prime Minister Jean-Marc Ayrault. This makes the forum stand out from all similar events.
Secondly, the forum now has a serious intellectual producer and partner that is involved in all issues related to the content of the forum, its structure and programme. This is MIT, Massachusetts Institute of Technology, that, as you know, is helping to create the new university in Skolkovo – Skoltech. And, again, all major ideas and work with speakers have been carried out in close cooperation with MIT.
Special MIT studies that review major innovation trends in 2013 will be presented at the forum and will serve as a starting point for discussions at the event.
The forum will include a platform for communication and the necessary infrastructure for meetings. The event’s centerpiece is the Open Innovations Expo, featuring six main sections, including energy and energy efficiency, transport and transport infrastructure, new materials, medicine, nanotechnology, and composites in new materials. If I’ve left anything out, Mr Fomichyov (Oleg Fomichyov, Deputy Minister of Economic Development) will correct me.
The main theme of the first day is what in English is called ‘game changers’ or those people, companies or technologies that change the rules of the game and create a new reality in the global economy and technology. Another major event at the forum is a meeting of corporate technical directors. This is a novelty, which is not specifically related to innovation. Such meetings are usually held at different kinds of forums.
I recently attended a forum in Kyoto, Japan, which also featured a similar meeting. But here in Russia, this is probably the first major meeting of this kind. I would also like to mention the Generation S contest, a young innovators’ competition, which will hopefully serve as a launching pad for many of them in their innovation related activities.
In addition, since Russia presided at this year’s G20 meeting we decided that it would be appropriate to try to agree on a common format for further action. We are planning to discuss this innovation partnership theme with our key strategic partners in the BRICS and other G20 nations.
The forum will be attended by representatives from the world’s major innovative companies, scientists, and people who study major innovation trends. We look forward to a very interesting dialogue that will contribute to the formation of a shared vision for innovation development in the coming years. The forum is being held for the second time and hopefully will become a tradition. Thank you.
Oleg Fomichyov: I would like to clarify the forum’s structure and specifically how we have broken down the programme into two days. The programme has been logically divided between the first and second day by the themes addressed. The first day will feature issues primarily related to the institutional aspects of innovation development.
This includes everything related to policy making, including institutions that contribute to innovation development, research and development, science, education, entrepreneurship, which is the driving force of any innovation process, corporations, the organization of research and development in corporations, capital for innovative business, venture financing, and similar issues.
The second day’s agenda will be entirely dedicated to specific technological issues. The discussions will focus on several themes that are traditionally addressed in analytical work. The MIT Tehnology Review, which is an intellectual producer, reviews the new technological trends in these areas, which partly overlap with the themes of the exhibition, as mentioned by Mr Dvorkovich.
These include biomedicine and pharmacology, medical technology, the digital economy, the mobile world, the new map of global energy, a new era of Advanced production, nanotechnology, Smart City, and consumer products.
These sectors feature the most active interaction of innovators and users that’s aimed at the development and marketing of new technology and products.
Last year we saw very high attendance of foreign speakers; this year’s foreign attendance is even more representative I think, meaning that, in addition to leading experts in innovation, such as Dr. Peter Diamandis, the founder and chairman of X PRIZE Foundation… Last year, unfortunately, we couldn’t bring him here because he was engaged elsewhere during the dates, but this year he has confirmed his attendance. But in addition to this, we’ll have the vice-presidents for innovation from major technology companies including AstraZeneca, Honda, Corning and other high-tech companies, which determine the future of high-tech around the world, not only in Europe or the United States.
Other events related to the forum have already become a tradition. We think they are also important. I am mainly referring to the youth programme supported by the Moscow government, which provides young people – students of Russia’s leading universities, such as Moscow University, Bauman Technology University, Kazan University, Yekaterinburg University – opportunities to meet forum participants. The key forum speakers are involved in this programme, giving lectures and workshops, to provide young people with some hands-on experience, the chance to ask questions of the so-called game-changers, something the conference is all about.
Another event is a panel discussion with representatives from the regions. This year nearly half of all the regions are taking part in the event; about the same as last year. Some of them – about 30 – will have their own regional displays at the exhibition. The regional panel comprises 10-20 regional governors who will actively discuss the problems of innovation-based development: what factors determine the region’s innovational competitiveness, how the region should position itself on international markets, and other such issues. These discussions are among the key events during the forum.
That’s about all, I think. If you have any questions – I hope you do – please go ahead.
Arkady Dvorkovich: Please, may I correct something – it’s about the six thematic blocks at the exhibition. There are two more in addition to those I mentioned – IT and innovational infrastructure – just to be accurate. Also, the youth programme will also include a meeting of the international group, 100 Innovators, which selects 50 of the most promising innovative projects annually from Russia and 50 more from other countries. We hope that the Prime Minister, who will participate in the forum, will also meet with this group. The first international conference Composites without Borders will also take place as part of the forum.
Igor Agamirzyan: In the modern world, innovation has become the biggest opportunity for economic development as well as the biggest challenge for many countries. Mr Fomichev, what do you think the forum can do to promote development? Why is it so important for the Economic Development Ministry?
Oleg Fomichev: We’ve been discussing two things ever since we began working out the forum’s theme, agenda and organisation. The first is Russia’s contribution to the global discussion of innovation-based development – this global discussion is underway. Just like many economic issues, there is a certain difference of opinion between the wealthier and more developed nations (where innovation capacity is concentrated as well as the bulk of intellectual property which helps them further augment their technological edge) and emerging countries with transitional economies, whose positions are obviously weaker.
The discussion centers on whether innovation should serve as a bridge between the developed and the developing economies as part of a global innovation partnership – a partnership in development, prodding emerging countries toward growth, toward the level that the developed countries have already gained.
The second thing, naturally, is what this forum can give Russia. This is our key objective. First, Russia is beginning to participate as one of the major global players in shaping the global innovation agenda. Second, we are promoting ourselves in a pragmatic business manner, promoting our startups, our technology, our ideas and the smart money we have already made in the form of high-tech investments abroad.
In this respect, we are well aware that our future economic development depends of how successful our technology projects are. We spoke about this before – the Government, and Mr Dvorkovich, and Mr Medvedev too. We have no other option but innovation-based development, because Russia’s commodity-based economy grows at 1.5%-2%, so growth should predominantly come from technology development. In this sense, this forum, which I see as a kind of link, or Russia’s step toward integration into the global innovation community, is a highly important part of our innovation-based development and consequently, our future economic development.
Arkady Dvorkovich: I would like to add something, taking over where Mr Fomichev left off.
We indeed see no other sustainable growth option under today’s conditions besides an innovation-based economic model. Therefore, it is very important to state this, to show not only what we are doing and how we are doing it – although these things are certainly important – but also how we can present what we are doing to the world. These three aspects – what, how, and how it looks – are what our success depends on.
When we started addressing modernisation programmes and innovation projects, industry leaders, including major companies and people, became increasingly more interested in us step by step, month by month. In this sense, we have become a much more open country, and this provides us with an extra incentive, this makes an extra contribution to the development of Russia. Therefore we will continue to act precisely this way. Moreover, the forum, in terms of its pragmatic aspects, is a good platform for discussions. The innovation sphere has its own characteristics, and people dealing with various disciplines and areas should always meet and talk to each other. New ideas and new projects are created on this basis. This forum is conceived as a flagship event and as a concluding event after an entire year of work. Consequently, people have something to share, and I believe that some new concepts will emerge.
Igor Agamirzyan: What do you personally expect from the 2013 forum? What obvious result would you like to see?
Arkady Dvorkovich: An obvious result is new projects, the involvement of new companies, as well as greater interest in these ideas and projects at the traditional innovation platforms in Moscow, Novosibirsk, Kazan and Tomsk, as well as in other regions. We need to expedite the nationwide innovation process. This is the only opportunity to seriously boost economic growth. And, as I see it, these events expedite this process (I am counting on this very much). This includes the interest of regions, the interest of companies and that of individuals.
Question: Innovations are very important and useful, but they probably do not help the economy very quickly. We know that Russian economic growth is subsiding. And the World Bank estimates that the crisis here, in Russia, will last longer than, for example, in OECD countries, India or even the European Union. Mr Dvorkovich, how serious would you say the economic situation is here, in Russia, and what measures are needed in order to speed up economic growth?
Arkady Dvorkovich: There is no magic wand, and no magic measures can immediately speed up and sustain economic development.
Of course, we can always throw all the money into the furnace and obtain some immediate effect, but this would cause an even more substantial recession later, and the desired result will not be achieved. Therefore we are acting cautiously. We have some reserves, and we will use them in order to implement major investment projects and also to support small and medium-sized businesses. Over a few months, this combination of factors may increase economic growth to some extent. But I repeat that, as far as long-term prospects are concerned, we believe that there is simply no alternative but to ensure modernisation on the basis of cutting-edge science and technological achievements. This is the only way to attain high and sustained economic growth rates, without fearing competition, by taking an active part in competition, by using all competition instruments, like those being used by other countries in accordance with World Trade Organisation regulations, and without fearing the restructuring of old sectors and old companies and enterprises. On the contrary, we have to do this while creating new and cost-effective jobs. This is the main strategic long-term path.
As for short-term prospects, I repeat, we will provide the maximum possible investment incentives at the level of major companies, as well as for small and medium-sized businesses.
Question: I have a question to the organisers of the forum and exhibition. It primarily concerns scientific magazines and publishers that issue academic literature. It is common knowledge that innovation is impossible without scientific ideas. These ideas will be represented at the forum. The authors of scientific articles are bound to take the floor as well.
So this is the question – what have the organisers done to present such magazines and publishers at the exhibition? Nothing was done last year because the rent was too high for any publishing house. A publisher does not need much – just one or two square metres to put up a proper stand in order to present companies dealing with academic literature. So what will be done and will anything be done at all?
Oleg Fomichyov: At this point I’m just ready to promise that we’ll attentively review this question because Mr Dvorkovich and I are primarily involved with the forum and the exhibition’s programme rather than their organisation. The forum has an executive committee and there is a fund that deals with all organisational issues, including the exhibition. We’ll discuss your question with them. I see two issues here. The first concerns the information partnership and it is effective. The forum is covered by profile publishers and all of the major Russian media involved in carrying information about innovation are represented as information partners.
As for the broad range of publishers that issue academic literature and nonfiction, their participation has not yet been discussed. Let’s consider this our homework and think it over.
Arkady Dvorkovich: Yes, I agree. This is the first time I have heard about it. At any rate, I haven’t received any requests from publishers. I don’t know whether they made such requests and to whom. If you send us such information, we’ll see what can be done. Maybe at this stage you should contact your other partners. We are meeting in RIA Novosti and maybe this agency could help you with floor space. Maybe you should address the Polytechnic Museum that is actively involved in these educational activities. We should give it some thought. The primary thing is to have interesting stands. They should not be dull as sometimes happens. I have attended many similar exhibitions and sometimes you don’t even want to approach some stands because they don’t look good, but others are truly interesting. We understand the problem. Let’s listen to the next question.
Question: Will there be special events in the forum’s Moscow programme this year?
Arkady Dvorkovich: Are you referring to the youth programme?
Question: Not really. I’m talking in general. I know about the youth programme.
Arkady Dvorkovich: But all of these events will take place in Moscow, although I think Crocus Expo, which will host the main forum, is in the Moscow Region. The events will take place in several universities, such as Moscow State University and Bauman Technical University. For the most part, they will be attended by the participants in the youth programme and the main speakers. We’ve already told you about the major elements of the programme and let me repeat that the main segment will take place in Crocus Expo. I don’t quite understand what you are asking about.
Question: As far as I know, these events will be organised directly by the Moscow Government. There will be roundtables, plenary meetings and speeches, but will this forum differ from last year’s in any regard?
Oleg Fomichyov: The Moscow Government is a co-organiser of the forum on a par with our development institutions. In this capacity, it is responsible for several parts of the forum, including Smart City, which is also held every year. These are new, innovative solutions for the city not only in such traditional areas as IT or the housing and utilities sector but also in construction plans, navigation systems, comfortable life in general and innovative strategy of urban development. In other words, the Moscow Government is in charge of everything related to Smart City. In addition, all of its main departments are taking an active part in the work of the forum and its key, profile ministers will be involved in our programme. Moscow is very active in this respect.
Igor Agamirzyan: I’d like to add that after all this is the Moscow International Forum of Innovative Development. It is even abbreviated as MIFID.
Oleg Fomichyov: If you have a more specific question, you are welcome to ask because Moscow is represented on a very broad scale and is very active.
Igor Agamirzyan: Any questions? Yes, go ahead please.
Question: Good afternoon. I’m Leonid Shorokhov from the National Union of Public Associations of Disabled People. I’m an independent journalist. I have the following question – what technology and innovations will Russia suggest for improving the life of people with disabilities and older generations? Is there any information about this, maybe from the previous forum? It would be interesting to hear what is being done in this respect. Will technology experts take part in the forum? Thank you.
Igor Agamirzyan: Who are you addressing the question to? Please, be more specific.
Question: I think Mr Dvorkovich can answer it.
Arkady Dvorkovich: Presentations of devices for disabled people take place at all of our forums and exhibitions. We specifically ask companies (when Skolkovo is involved, and several other partners) to display such devices by all means because we consider it a serious subject. We can put all of these developments on a separate list to be seen as part of the forum. Such developments exist, but they have not been shown as a separate subject. Practically all of our partners have them.
Question: Is this Russian technology?
Arkady Dvorkovich: Yes, this is Russian technology. Absolutely correct. We’ll put it on a separate list.
Oleg Fomichyov: I’d like to add that the exhibition is divided into technological areas, such as nanotechnology, medical and bio-medical technology and IT and each of these areas has developments for this category of people. Because the exhibition is structured by technology principle rather than its application, it is difficult to single them out, but as Mr Dvorkovich said…
Arkady Dvorkovich: Every area has such developments – IT, medicine or Smart City.
Oleg Fomichyov: This is a fair question. Maybe we should take these developments from each technical area and bring them together.
Igor Agamirzyan: I’d like to add that the issue of technological innovations that can make life easier and more comfortable for people with disabilities is extremely important, popular and much-in-demand all over the world. We are also interested in this. I’m referring, in part, to the Social Insurance Fund.
Question: I see a list of the top 20 speakers and they are all foreigners. There is not a single Russian among them. Don’t we have any clever people who can come up with solid ideas? By the way, the Moscow State Technical University (which was not named in honour of Bauman at the time) was represented at the global exhibition in Paris in 1867. MIT stole the entire programme of the Russian institute -- its academic plans, research work, everything. Let them thank us for this.
The question is where our people are. Why isn’t a single one there? These guys come from the countries that organised the crisis. Do they want to get us involved, or not? I think that it is pointless to award a Nobel Prize for economics.
Arkady Dvorkovich: I always thought that in asking questions, clever people treat other clever people with respect. I haven’t felt that this time around. Can I ask you to remain descent despite such emotions?
Russian participants prevail at the forum and will be key speakers at many panel discussions and sections. We have serious, interesting developments to discuss and our scientists are highly competent. All domestic innovation centres and companies will be represented at the forum. We have much to show and be proud of, but we must also learn from others. It’s a two-way street.
Nobody thanks anyone in a competitive world. All firms, including innovative firms, are fighting a tough struggle for survival. We will take part in this as well. I’m sure that we’ll have the world’s most advanced developments. I hope that we’ll have a proper discussion at the forum. All countries are to blame for the crisis. So don’t point a finger at any country because every country contributed.
Igor Agamirzyan: Mr Dvorkovich, I’d like to add that a modern economy is based not only on competition but also on cooperation and international added value and production chains. Dozens of countries are taking part in the production of the overwhelming majority of technological products. One of the forum’s tasks is to help Russia occupy a better place in global added value chains. This is exactly why the participation of successful international entrepreneurs and ideologists of innovation is so natural. You are welcome to ask more questions. Go ahead, please.
Question: Europe is drawing up international standards on innovative management. For some reason, the standardisation issues have not been raised at the forum or during the preparations for it. What is Russia doing in terms of innovative technology and management standardisation? Are we taking part in drafting international standards?
Oleg Fomichyov: We do, as far as I know. Our specialists are involved in all of the working groups of the International Organisation for Standardisation (ISO). Everything that concerns standardisation is closely supervised by Rosstandart, the Federal Standardisation Service. I’m referring to all of the Russian standards that were adopted as GOST R (state certification system) and new ones that will be elaborated for the Common Economic Space. All international standards are developed by the ISO and we are bound to follow them. Russia has been more active in elaborating standards in the past few years. According to Rosstandart, we have already tailored about 70%-80% of our standards to ISO standard, and we continue this work. If you are a professional in this field and work for a relevant magazine, you should know better than I about what is being done in this area.
Remark: In innovative management…
Oleg Fomichyov: Let me say it again. The technology of work in the ISO is the same for all standards. Russian specialists are taking part in the elaboration of all standards. The subsequent introduction of standards in production is a separate, complicated and important issue. We have not even introduced the ISO 9000 (management quality) in many places, to say nothing of the standard for innovative activities, where we lag even further behind.
Igor Agamirzyan: I’d like to add that despite this our top educational and research institutions pay much attention to this issue. I’m referring to the management chair at the Higher School of Economics, and the Russian Presidential Academy of National Economy and Public Administration. Innovative management standards are still in the process of elaboration and have not been fixed once and for all.
Question: I’d like to ask a question about the co-organisers of the forum – who are they and what is their main contribution to the events from October 31 to November 2?
Igor Agamirzyan: I can answer this question. These are primarily development institutes of the Russian Federation – Rosnano, Vnesheconombank, the Russian Venture Company and the Moscow Government. The National Association of Innovative Regions and the Fund for Assistance for Small Scientific and Technical Companies are active in this work. To sum up, these are all of our development institutes plus the Moscow Government.
The idea of the forum came about two years ago when practically all development institutes started organising and producing something in their respective fields. At one point, they decided that it would be better to organise a large-scale, federal undertaking. Of course, we want it to be global rather than federal because such a venue does not yet exist anywhere in the world. Meanwhile, this forum (Moscow International Forum for Innovative Development) can already compare with the largest global economic forums. The participation of heads of state is fairly rare for global venues and Mr Dvorkovich said this year that three prime ministers will directly participate in the forum.
This is why the decision was made to pool the efforts of all development institutes to establish the forum and raise it to the international level. We are naturally focusing the attention on Russia (Russian innovation, companies, technology and proposals), but we should also consider all issues in a profound international context, so that the forum becomes a global venue.
Oleg Fomichyov: I can add that Mr Agamirzyan is too modest. In addition to development institutes, all co-organisers are active in this work. I’ve already mentioned that we have two agencies – the Programme Committee and the Executive Committee – during each forum. In both, each co-organiser conducts its part of the work. Say, in the Programme Committee every co-organiser is responsible for some track in the forum programme – for elaborating agendas for panel discussions and inviting speakers in cooperation with the Executive Committee and the Technical Support Fund. So, each co-organiser is in charge of key panels and responsible for holding them. To sum up, our co-organisers not only invested their brains and money into launching this project, but are still taking an active part in all of its activities.
Igor Agamirzyan: I can confirm that at least the Russian Venture Company is putting in a lot of intellectual and material efforts to this end. We’ve been active in this project for the past half year. We have a working group representing all departments that discusses preparations on a weekly basis. I’m sure that other development institutes are doing the same.
Question: I have a question for Mr Dvorkovich. It is common knowledge that Russia is an energy superpower. This is obvious and this is what it is known for. Last December, Mr Medvedev issued instructions to establish a ministry of renewable resources. What has been done in this respect? Obviously, raw fish is not better than crude oil. Is something being done to make an innovation package for the processing industry? Will it be made?
And the second part of the question. Since there are inscriptions like “producer”, this is a kind of theatre, and Stanislavsky used to say that in the theatre the main question is whether one believes in what is happening. What share of the GDP is required for young people to believe that innovation is worth going for?
Arkady Dvorkovich: As per the instructions that you mentioned, they concerned reviewing the expediency of this move rather than establishing a ministry. Later on, it was considered inexpedient. This is the first point.
Now, the second point. The raw material industries that are playing a major role in the Russian economy can and should be prime movers of innovation. Their demand may trigger more innovation. We are already gradually moving there. Our oil industry is using the latest innovative methods of geological prospecting and production on the shelf and other areas. Innovation is also used to protect the environment by minimising the impact of production and processing mineral resources. The same applies to other resources, be they forests, fish, or anything else.
Programmes on innovative development exist in all key spheres that the Government is responsible for and we are paying great attention to them. These programmes include general measures regarding infrastructure that concern everyone. There are also branch priorities that are part of state programmes in specific areas, such as transport, individual industries or agriculture. The Ministry of Economic Development keeps a close eye on these programmes to ensure their consistent implementation.
As for whether to believe this, it depends on the person. I think that in the past few years since we started dealing with innovation, tens of thousands of people have believed in them. They are carrying out innovative projects with the support of universities, companies and government agencies. This is a new direction of development, something we did not have a few years ago. We had a traditional system and it still exists. It is developing on the basis of the Russian Academy of Sciences and other institutions. But now we have a completely new one that is already producing results.
Igor Agamirzyan: I’d like to add a few words. The share of the innovative sector in the Russian economy is really growing. If I remember correctly, the Russian Association of Electronic Communications estimates the Internet-dependent segment of the Russian economy at over 4% of the GDP. This figure is quite meaningful. Half of all venture investment is made in this sector. This is generated not only by the demand of large companies, but also by consumer demand because this sector serves the consumer market.
Question: I have a brief question for Mr Dvorkovich. We have already spoken about the expectations for the forum. I’d like to know whether some major deals are expected at or after the forum as usually occurs at large economic forums.
Arkady Dvorkovich: Usually there is no advance information about major deals, so we are in for surprises. When the forum approaches, we’ll receive information from companies interested in signing agreements or concrete contracts. This usually happens… All the more so when the forum is attended by foreign delegations, guests and prime ministers… Usually, different agreements are drafted for such forums and I’m sure that we’ll strike deals with Finnish and French companies, although no precise information has been released as of yet.
