The Russia Innovation Collaborative

Connecting Russia to US Innovation Clusters

Presented to The American Chamber of Commerce in Russia

13 July 2010Cynthia Bouthot, Partner

cbouthot@russiainnovation.com

Russia is currently undertaking a program of modernization of its economy, with a particular focus on fostering technological innovation.

Despite the strength of intellectual resources and very strong basic science, Russia has not been successful at developing clusters of

innovation.

Massachusetts is one of the world-leading clusters of innovation. It has a well-developed public-private relationships that contributes to the

success of the innovation ecosystem.

The focus of the Russia Innovation Collaborative is to connect key institutions and stakeholders in Russia with those in Massachusetts and throughout the US with the goal of increasing economic wealth

Russia Innovation Collaborative: Our Mission

The Russia Innovation Collaborative: Background

• The Russia Innovation Collaborative (RIC) are experienced trade and investment professionals that promote, develop and integrate companies and technologies into the US and European markets. Specific areas of expertise include:

– cultivating technologies and early stage companies coming out of the scientific-technical ecosystems

– designing programs to nurture and support innovation and accelerate the migration of ideas from the lab to practical commercial application

– connecting innovation ecosystems

• We are located in one of the leading world centers of entrepreneurship and innovation in Boston/Cambridge and have ties with Silicon Valley and New York, as well as Europe

Growing U.S.-Russia Tech Ties Concentrated in CA and MA

• In July 2009, Presidents Obama and Medvedev meet in Moscow and decide to re-start not only political relations, but economic ties.

• In 2009, contacts between Russian and MA organizations, incl. MIT, began to outline areas for practical cooperation. Rusnano develops close cooperation with MIT for training and discusses joint projects.

• Jan. 2010 Russian Government delegation, led by First Vice Prime Minister visits MIT. Russian Government decides to initiate so-called Skolkovo Project, sometimes referred to as “Russian Silicon Valley.”

• Feb. 2010 US State Dept takes “RusTechDel” delegation made of 10 West Coast CEO’s and Execs (incl. eBay, CISCO, Twitter, …) to Moscow and Novosibirsk.

• March 2010 - Russian delegation in Cambridge/Boston.– Cooperation agreement signed with Novosibirsk hi-tech park and Russia Innovation

Collaborative– Russian sponsorship for MassChallenge.org - business plan competition – Negotiations begun with MIT to become involved in Skolkovo Project

Tech Ties Continue to Grow

• April 2010 – Massachusetts Senate invites Pres. Medvedev to come to MA

• May 2010, Delegation of 20 prominent venture capitalists to Moscow (VC Trip), supported by State Dept.

• June 2010, Skolkovo Board of Directors announced - 6 Russians, 6 foreigners, incl. 3 Americans.

• June 2010, Pres. Medvedev visits Silicon Valley– Several high-profile agreements signed.– President Medvedev decides to open Skolkovo project office. – Agreement between MIT and Skolkovo Foundation to explore wide ranging

cooperation in education, research and entrepreneurship signed.

The US and Russia: New Possibilities

Russia – US: Complementary Strengths

• Russia’s 5 technological priorities match US core competencies:– Biotech and life sciences– Cleantech - new energy sources– IT and supercomputing– Space and telecom– Nuclear technologies

• Russia can become resource for manufacturing facilities, R&D personnel, scientific advances to be commercialized, clinical trials– MA can host Russian corp. offices, tech holding companies, provide training

to entrepreneurs and financing of new companies.

• Russia’s domestic market, especially for new energy and biotech projects with underlying layer in nanotechnologies, is very promising

• SUCCESSFUL IMPLEMENTATION of NEW IDEAS that CREATE VALUE

• Innovation is strongly linked to R&D (R&D accounts for nearly half of U.S. economic growth, with an ROI of 30%)

• But Innovation is more than just R&D. Innovation encompasses: – new products,– new processes, and – new ways of engaging the customer and creating quality

• Innovation is fundamentally about applying new ideas in organizations, not just about creating those ideas.

Innovation:Some Common DefinitionsWhat is Innovation?

Innovation Ecosystems

Academic Excellence

Innovation Ecosystem

Venture Capital

Thriving knowledge based sectors

Tech transfer and commercializationSerial

Entrepreneurs

Public and Seed Funding, grants and

loans

Innovation Ecosystems

Innovation Ecosystems are the foundations that support all knowledge-based activity:

Government / Policy

Why Innovation Matters

• Buildings

• Incubators

• Tech Parks

• Tech Transfer and Commercialization Offices

• Groups of Scientists

• A University

• Clusters of Businesses

ECOSYSTEMS are NOT:

What are Innovation Ecosystems?

Why Connect Innovation Ecosystems?

• Prosperity depends upon the productivity with which the Russian economy uses labor and capital to produce goods and services.

• Sustained economic growth will require continued innovation at all levels of the economy, especially as we enter a new era when the workforce will be increasing more slowly.

• Innovation infuses the economy with growth-incubating new ideas, new products and services, and new technologies.

• Productivity rises because of innovation.

Pittsburgh - Manchester

We build the bridge between ecosystems!

Pittsburgh, PA

Manchester UK

Our Experience Linking Two Innovation Ecosystems:

Our Experience Linking Two Innovation Ecosystems:

Pittsburgh, PAPittsburgh was named in 1758 by General John Forbes in honor of British Statesman Sir William Pitt

From Steel to High Tech and Life Science: the birthplace of the polio vaccine and the multiple organ transplant

• The University of Pittsburgh Medical Center is an $8 billion global health enterprise, integrating 20 hospitals, more than 400 outpatient sites, a major insurance division, and an international and commercial unit

• The McGowan Institute for Regenerative Medicine serves as a single base of operations for leading scientists and clinical faculty to develop tissue engineering, cellular therapies, biosurgery and artificial and biohybrid organ devices.

• Centers like the Pittsburgh Life Sciences Greenhouse, Innovation Works, The Technology Collaborative and the Pittsburgh Technology Council help entrepreneurs bring innovations to the marketplace

• Strong BABC

Manchester UKNamed in AD 79 for Roman fort and settlement Mamucium

From Textile Manufacturing and cotton production (Cottonopolis and Warehouse Cit) to the first industrialized city to professional services, life science industries, creative, cultural and media, manufacturing and communications.

• The largest Cancer Research Centre in Europe - The Christie NHS Foundation Trust

• The largest Cardiovascular and Renal Clinical Research Networks in the UK

• The largest European Centre dedicated to the Ageing and Health (Newcastle)

• MIMIT – Manchester Integrating Medicine and Innovative Technologies

• Manchester Academic Health Science Centre (MAHSC) - partnership between six NHS organizations and the University of Manchester

• University of Manchester Incubator Company: A growing portfolio of incubators, covering both the Bioscience and IT/Hi-Tech sectors

• NHS Technology Adoption Centre – Marg Parton as CEO

Our Experience Linking Two Innovation Ecosystems:

Our Access to Clusters

Healthcare, Devices,

and Diagnostics

Healthcare, Devices,

and Diagnostics

Consumer and Food Products

Consumer and Food Products

Biotech and Personalized Medicine

Biotech and Personalized Medicine

Energy, Renewable

s and Cleantech

Energy, Renewable

s and Cleantech

Space Technologies

Nano and Materials

Space Technologies

Nano and Materials

ICT, Digital and

Creative Media

ICT, Digital and

Creative Media

Russia Innovation

Collaborative

Russia Innovation

Collaborative

The Russia Innovation Collaborative has experience in and access to a wide variety of sectors:

Russia – US: Practical Next Steps

• Create a series of public events to raise awareness of US innovation ecosystem model in Russia and vice versa

• Sponsor a series of trips for East Coast entrepreneurs to Russia– Sept. 23-25 to Novosibirsk and – Sept. 28-30 to S.-Petersburg

• Expand on existing relationship with Academpark by developing formal cooperation agreements with key innovation centers or institutions in Russia, i.e. Skolkovo Foundation, regional tech parks, industry associations.

• Bring a delegation of Russian Companies and Policy Makers to Boston in Spring 2011 for intensive innovation and entrepreneurial policy program.

Example Program

Example Program

The Russia Innovation Collaborative has the experience and desire to

link Innovation Ecosystems in the US

with the Emerging Innovation Ecosystems

in Russia.

In Conclusion: