Russia on the high- Russia on the high- tech markets tech markets Prospects and challenges
GOALSGOALS::
To enquire basic knowledge about Russia’s positions on the key high-technology markets
To analyze and to understand main features of improving country positions on the high-technology markets
To formulate personal opinion on the future collaboration of Russia with developed and developing countries
Classification of manufacturing industries by Classification of manufacturing industries by R&D intensityR&D intensity
High technology (>5% R&D intensity )aircraft and spacecraft; pharmaceuticals; office, accounting and computing equipment;radio, television and communications equipment; medical, precision and optical instruments
Medium-high technology (1.5-5% R&D intensity )electrical machinery and apparatus not elsewhere classified; motor vehicles, trailers technology and semi-trailers; chemicals excluding pharmaceuticals; railroad equipment and transportequipment not elsewhere classified; machinery and equipment not elsewhere classified
Medium-low technology (0.7-1.5% R&D intensity )coke, refined petroleum products and nuclear fuel; rubber and plastic products; other technology non-metallic mineral products; building and repair of ships and boats; basic metals; fabricated metal products, except machinery and equipment
Low technology (<0.7% R&D intensity )manufacturing, not elsewhere classified, and recycling; wood, pulp, paper, paper products, printing and publishing; food products, beverages and tobacco; textiles, textile products, leather and footwear
The key markets where Russia has The key markets where Russia has strong positionsstrong positions
Space and satellite marketsWeapons marketInformation technology marketNuclear technology marketNanotechnology market
RussiaRussia…..is the world leader in Launch Industry
(launch services)… has 15% of the world Satellite
Manufacturing ….total contract value of the aerospace sales
and modernization contracts in 2006 was about $6 billion, according to the Russian air and space agency
The main sectors in The main sectors in RussiaRussia’s defence ’s defence industry today are:industry today are:
– Network-based command and control systems, – Telecommunications systems, including electronic
counter- countermeasures, – Combat aircraft; manned and unmanned, – Aircraft engines, – Command and control systems for land, marine and air
applications, – Systems for exercise and training, – Telecommunications war systems; passive and active, – Signal adaptation (e.g. camouflage systems); UV, VIS,
NIR, TIR and radar,
Russia Major Trading Partners in Russia Major Trading Partners in trade in Arms in 2000-2005trade in Arms in 2000-2005
India 33,5% China 24% Iran 6,4 % Algeria 4% Vietnam 3% United Arab Emirates 2% Kazakhstan 1,9% Yemen 1,8%, Greece 1,6%
Russia IT Market structure in Russia IT Market structure in 20062006
500 companies total market size of $3 billion IT's share of Russian overall exports has gone
from 0.3% to more than 5% in the last two years an average annual growth is of 15 %, higher than
Indian features Russia share of the world IT market is 1-1,2 %
IT market growth in 2006-2007IT market growth in 2006-2007
4,6
1
4,9 4,2
21
4,7
1,3
4,7 4,2
21
0
5
10
15
20
25
world Japan USA Europe Russia
%
2006
2007
IT Market structureIT Market structure The World IT Market
software9%
IT services58%
computer equipment
33%
computer equipment
software
IT services
IT market in Russia
computer equipment
60%
software15%
IT services25%
IT Services Trade, $ mln.IT Services Trade, $ mln.
0
100
200
300
400
500
600
2001 2002 2003 2004
export
import
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
2005 2010
Russia
India
The example of on of the Leading companies with a The example of on of the Leading companies with a successful strategy on European market – successful strategy on European market –
LuxoftLuxoft
the Russian market size for exported IT services approached $500 million in 2004 and is growing at a rate of 25 % per year.
Luxoft has operations in Russia, USA, the United Kingdom, Ukraine Russia’s premier software outsourcing provider in the Offshore 100 rank share on the Russian IT Outsourcing Market in 2004 was at 5%. generates over 25% of the aggregate revenue of the 10 largest Russian
software development services exporters
Clients Areva, Boeing, Dell, IBM, Thomson, Citibank, Deutsche Bank, Caterpillar, U.S. Department of Energy;
Services Integrated IT Services, Client Engagement Framework,Development Centers
Number of employers 100 in 2000 and 1 000 in 2004
Russia in the Nuclear Power Russia in the Nuclear Power Engineering Construction ServicesEngineering Construction Services
construction under long-term contracts with former partners of the Soviet Union
major Partners are China, Iran the increase of the demand will depend on
developing and emerging countries The main competitors are EU member states and
USA participation in the international projects on
science and technological cooperation with USA, Britain, France, Germany, Italy, Japan
Russia in the ITER projectRussia in the ITER project
ITER is a joint international R&d project that aims to demonstrate the scientific and technical feasibility of fusion power
will be constructed in Europe, at Cadarache in the South of France
The construction costs are estimated at five billion Euro over 10 years, and another five billion Euros are foreseen for the 20-year operation period.
ITER COST SHARINGITER COST SHARING
Europe 45.45% Russian Federation 9.09% the USA 9.09%China 9.09%, Japan 9.09%, Korea 9.09%,
The future development will The future development will depend ondepend on
Innovation system reformIntellectual property right protection systemWTO membershipPenetration of IT and Telecommunication
hardware and servicesdevelopment of Education system
Fields of Direct and Indirect Fields of Direct and Indirect GGovernment overnment SSupportupport
small R&D and innovating organisations; innovation and venture funds; scientific parks, innovation technology incubators and
business incubators, etc.; consulting and engineering organisations, as well as
organisations rendering applied services in the field of humanities (sociology, law, economics, ecology, etc.);
science towns and technopolises.
Innovation System Innovation System Infrastructure in RussiaInfrastructure in Russia
Techno parks (in the first place for start-up projects)
Innovation-technological centers (oriented on small and medium enterprises that have successfully passed the start-up form)
Technology tranfer centers (commercialisation of innovations)
Information centersPersonnel developmentFinance and investment regulation
Innovation and Technological Centers Innovation and Technological Centers in Russiain Russia
0
10
20
30
40
50
60
70
1990 1995 2000 2004
number of centers
Venture Innovation FoundationVenture Innovation Foundation is the is the
key element of future developmentkey element of future development The Fund has encountered the following tasks:
• Implementing a complex of measures to develop a system of direct venture investment in technological business, including small and medium-sized innovating firms;
• Supporting Russian innovating enterprises developing products and technologies in the framework of priority areas and being at initial stages of development.