Mikhail KAYKOVPresidentRailway Constructors Union

Vienna, 16/03/2012

Innovative development of Russian economy: construction

sector

1

2

Innovative economy and standardization

Innovative economy (knowledge economy, intellectual economy) — type of economy, based on the flow of innovation, constant improvement of technology, manufacturing and export of high technology products.

INFORMATION EXCHANGE

STANDARD

STANDARD

STANDARD

STADARDIZATION:- The engine for implementation and innovation development- Element in ensuring global projects

- Provides the development of innovative management - Tool to reduce costs etc.

BUSINESS

3

Russian and Europe: level of economic development

First levelNew technologies in textile industry, the use of water power

Second levelRapid development of transport (railways, steam shipping), the occurrence of mechanical production in all sectors on the basis of steam engine

Third levelUse electricity in industrial production, the development of heavy engineering and electrical industry through the use of rolled steel, new discoveries in chemistry. Implemented radio, telegraph, cars

FOURTH LEVELEnergy development with the use petroleum and petroleum products, gas, communications, new synthetic materials. The era of mass production of cars, tractors, airplanes, various types of weapons and goods. Computers and software, radar

FIFTH LEVELAchievements in microelectronics, computer science, biotechnology, genetic engineering, new types of energy, materials, space exploration, satellite communication etc.

SIXTH LEVEL (2015-2020)Biotechnology, nanotechnology, investing in people, new level of education system, new environmental management (high environmental technology), robotics, artificial intelligence, flexible systems of “unmanned” manufacturing, laser technology… smart electricity network … new types of transport (heavy, speed, range, low cost), the combined transport systems, production of construction materials with predetermined properties, manor urbanization “tissue” type, design and management of the future, the use of hydrogen as a clean energy source

Technological levels

Russia legs behind developed regions in 2 technological

levels

The Framework Programmes for Research and Technological Development(FP1… FP8)

European technological platforms

4

BASIC STAKEHOLDERS of ETP

Development and implementation of

key technologies to respond economic

and social challenges

Elaboration of all-European approach and

strategic plan for development and

realization of these technologies

Enlargement of private investments in

research by bringing research to industry к

and improvement of markets for innovative

production

Political objectives of

ETP-

-

-

5

Quality of life

Materials

Processes, information& communication technologies

Construction R&D Innovation Roadmap for a positive living

environment for Society

Within the 7 th. Framework ProgramPRINCIPAL MISSION:

- To improve competitiveness of the construction sector- To satisfy social needs and ecological challenges

7 principal directions

26 Domestic Technical Platforms

over 230 organization

s

European constructiontechnology platform (ECTP)

ECTP ambition

6

To develop Innovative Buildings and Infrastructures to construct Europe’s future

To innovate by research and integration of inputs from other

sectors through appropriate tools (such as

PPPs) in FP8(2014-2020, budget plan 80 billion euro)

INITIATIVES OF ЕСТР

1. E2B «Energy Efficient Buildings»

2. reFINE «Future Infrastructures in Europe»

7

Е2В «Energy Efficient Buildings»

A major world-wide challenge Buildings = major potential for

energy/carbon savings today more than 40 % of energy

consumption and around 30 % of GHG emissions

Road Map Retrofit the existing building stock Develop future positive energy

buildings/districts Integrate new technologies (including RE

technologies) Innovation by research

Recovery Plan EeB PPP call 2010 : strong involvement of industry and SMEs (24%) from the whole value chain (ECTP/E2BA : >230 Members)

Construction sector ready to collaborate towards an “ideal house” for PPPs in FP8

8

reFINE «Future Infrastructures in Europe»

Challenges Existing infrastructures are getting

old/obsolete Roads (see winter 2010) Water supply systems (leakage, water

quality)… Mobility of people, goods distribution, flows

(water, electricity, gas) To keep cost of infrastructures socially

acceptable To adapt infrastructures to new

requirements : sustainability, availability and cost of energy, ageing society, climate change

Priorities and research needs Infrastructures for a sustainable urban

mobility Infrastructures for a sustainable competitive

economy Greening infrastructure networks Towards smart and resilient infrastructures Infrastructures of an inclusive society

9

Innovative development in Russia: main difficulties

The Government still plans to shift from rent-economic system to the economy, generating new knowledge and solutions

Successful

realization

Infrastructure

projects

Administrative barriersAdministrative barriers

Legislative baseLegislative base

Technical barriersTechnical barriers

CorruptionCorruption

othersothers……

Financial problemsFinancial problems

At the same time State course of modernization and innovation development of economy has not changed

10

Innovative development in Russia: main difficulties

11

Innovative development in Russia: example of imperfection of legislative base

Poor quality of technical regulations

The complexity of technical regulations implementation in practice

Inability of scientific and technical progress

The development period of 17 primary technical regulations is thwarted

By some experts the costs of reform is over 5.3 billion rubles. And this is without taking into account the EU funds (more than 5 million Euros) allocated under TACIS program «The convergence of technical regulation, certification and accreditation systems between Russia and EU»

Over the entire period of the FL-184 have been made 10 amendments

Russian model of inconsistency in practice the EU (no notified bodies, building regulations are mandatory for the application status)

Absence of statutory requirements on general product safety

Absence of state regulation of building materials’ safety

Imperfection of number of legal norms (non-state project exercising, not updated the list of high-risk, technically complicated and unique objects, the complexity of ownership registration of commissioned buildings, lack of automation of administrative procedures, etc)

12

Innovative development in Russia:some of technical barriers

Terminology The failure to take the

international and European norms of

technical regulation Absence of unified state

program of production development of

construction materials Certification of imported

equipment Pricing and budget

normalization

13

Innovative development in Russia :corruption

Lands conversation for the construction of one category to another, coupled with defects of urban planning and zoning Obtaining a building permit Project exercising State control and supervision of construction Laws on placing orders for supplies, works and services for state and municipal need (Federal law N94, Federal Contract System) Dependence of project on the particular bureaucrat

14

Russia’s competitive advantages

High scientific and educative potency, generally accepted large scientific & educational centers measurable technological supply

Vast internal market Financing of public projects

to support high technologies

15

Government activity to support innovations

Russia is on the way  to establish national innovative system through such tools as engineering platforms, science cities,

technology parks, etc.

SKOLKOVO – is a strategic development initiative, elaborated for:

Diversification & growth of Russian economy via innovations & business; Full integration of Russian scientific & engineering capabilities to global economy; Development of human resources via international research & educative projects; Creation of internationally competitive high-tech enterprises.

16

SKOLKOVO: WHAT DOIS IT SUGGEST?

To fill the gaps in technological area

The goal of SKOLKOVO is to fill the gaps

by means of effective capitalization

17

Clusters of SKOLKOVO

Cluster of energy-efficient technologies(Support of innovative & breakthrough technologies , aimed to reduce energy consumption

by manufacturing business, housing services and utilities, city ground environment. Includes over 80 enterprises)

Cluster of nuclear technologies(Elaboration of new products for energy markets, development of new materials and

complicated engineering & technological systems. Includes over 20 enterprises)

Cluster of biomedical technologies(Support & development of innovations in the field of biomedical

technologies. Includes over 20 enterprises)

Cluster of space technologies and telecommunications

(Touch upon various areas of activity – from space tourism to systems of satellite navigation. Includes over 20 enterprises)

Cluster of information technologies(Development of strategies in the field of information

technologies — from search engines to cloud computing. Includes over100 enterprises)

18

SKOLKOVO IN FIGURES

5 352 mil. RUR

5 352 mil. RUR

Creation of innovative environment, financing of projects of members of innovative center “SKOLKOVO” and foundation of centers of applied research (44 innovative projects in 2011)

5 352 mil. RUR

Approved subventions for the companies-members of innovative center “SKOLKOVO” for the year of 2012

Confirmation of obligations for co-financing of the activity of the members of “SKOLKOVO” by Russian and international venture capital funds

5 352 mil. RUR

Customs representative for the companies-participants in the activity of “SKOLKOVO”

19

Research and development in SKOLKOVO

14 HQ in research & development 17025 mil. RUR – overall budget

1900 mil. RUR– volume of corporate venture investments

1740 mil. RUR – total of grants Fanatical support for 30 start-up companies

Technological cluster of Sberbank & Data processing center International space center High technology center of continuous medical education

Headquartersin Research & Development

Corporate venture

funds

Co-investing in start-upprojects

Co-investing in research & educative

environment

March 1, 2012 Federal Property Management Agency has altered some 50 companies, controlling or blocking stake of which is a State property, of need to allocate before September 1 “not less than 1%” of their innovation budget to finance the SKOLKOVO institute of Science and Technology (Skolkovotech).

20

CONCLUSION

December 8, 2011 The Russian government has approved the INNOVATIVE STRATEGY OF THE

RUSSIAN FEDERATION TO 2020

OBJECTIVES1. Development of human resources in science, education, technology and innovations; 2. Improving of business activity in innovations and acceleration of appearance of new innovative companies; 3. The widest possible implementation of modern innovative technologies to activities of the Government; 4. Assistance to well-balanced and stable growth of the sector of research and development; 5. Provision of transparency of national innovation system and economy, as well as the integration of Russia into global process of creation and implementation of innovations; 6. Enhancement of realization and implementation of innovation policy undertaken by public authorities of Russian Federation and municipal entities.

Framework program of European Commission

OBJECTIVE – Is to create science & technological foundation for the accelerated economic development of the united Europe, the growth of its competitiveness in the world, to boost the employment, to bring EU to the level of the most scientifically and technologically advanced states and to build a common European Research Area (ERA).

THE OBJECTIVES ARE FULLY CORRELATED

21

NEED FOR INTERACTION AND INTEGRATIONOF EUROPEAN AND RUSSIAN INITIATIVES

ON INNOVATION DEVELOPMENT

Commercial exchange between EU & Russia

Russia’s accession to WTO: for Russia means the need to fulfill all obligations, in particular for the removal of technical barriers to trade

22

PROPOSAL

Participation of Russian organizations in the activity of AETR Implementation of AETR initiatives on the platform of

SKOLKOVOFederal law “on Innovation center “Skolkovo”

Article 13. Features of technical regulation in the Center…2. In regard to products and/or process related to requirements to these products … used within the Center, instead of separate safety requirements contained in technical regulations, conditions, standards, rules… may be applied technical regulations and requirements, contained in technical rules or relevant documents of member states of the Customs Union within EurAsian Economic Community or member states of Organization for Economic Cooperation and Development.

3. Decision to use within the Center (Skolkovo) regulations or requirements stated in part 2 is the domain of managing company…

The use of experience of European technology platform, which shows the effectiveness ofReduction in funding for research projects conducted by our European colleaguesDevelopment of scientific and technical cooperation between Russia and EUOvercoming the significant technical barriers

Economic effect

Mikhail KAYKOVPresident of Railway Constructors Union

www.sszd.ru

23

Тel.: +7(495)956-29-38E-mail: info@sszd.ruBld. 8B, Mozhayskiy val street, Moscow, 121151, Russia

THANK YOU FOR YOUR ATTENTION