STANDARDIZATION OF INNOVATIONS IN RUSSIA

Mikhail M. Komarov, Dmitry A. Kabanov NATIONAL RESEARCH UNIVERSITY HIGHER SCHOOL OF ECONOMICS, MOSCOW

In terms of actual tendency of innovations being the driven part of the world economy development it is necessary to describe the situation with innovations and standardization in Russia. The article is describing Russian innovations eco-system, regulations in innovations and standardization of innovations. Main standardization bodies and challenges in standardization are briefly described. Possible ideas for the development of innovations system in Russia are proposed.

ussia is chosen as a subject of this article not only due to the fact that it is one of the most attractive countries for doing business, investing and innovating [Ernst & Young, Makarov, V. et al.] but also due to its being a place where both authors live and work, primarily with startups, disruptive businesses and

venture capital. Apart from that it’s important to note that Russia’s innovative ecosystem development is highly contributed by standardization that is a key factor supporting competition, innovation and international cooperation [Resolution #266-p of the Government of the Russian Federation, Resolution #1762-p of the Government of the Russian Federation]. Standardization plays one of the leading roles in the forming of conditions that allow fostering innovative products, processes and organizations operating in such fields as nanotechnology, energy efficiency and alternative sources of energy together with resource rationalization and ICT [Resolution #1762-p of the Government of the Russian Federation]. Thus, this article provides a look at Russia through the lens of standardization of innovations and covers the state of standardization in Russia; existing standardization bodies; challenges faced by Russia in standardization; role of innovations in fading out the challenges; identification of the factors that need to be modified in order to strengthen the structure; the proposed framework, venture capital and the member communities; benefits obtained by Russia in the recent years due to standardization and proposed hike in benefits once the existing challenges are resolved.

A. The state of standardization in Russia

Russia’s Nation Standards Strategy [Resolution #266-p of the Government of the Russian Federation] marked the 81st anniversary of state administration of standardization in Russia in 2005 and the 92th anniversary was celebrated by the new 2012’s Strategy. The Russian standards system has been serving the state’s interests as it is financed exclusively by the state with the aim of providing a passage to the balance of interests of administrative bodies, businesses, public organizations and consumers [Resolution #1762-p of the Government of the Russian Federation].

One of the cornerstones supporting the passage is the combination of innovations and regulatory frameworks that is supposed to be nurtured in the Center for Standardization in Innovation that is to be established in Russia. The Agreement on cooperation in standardization of innovative products and the establishment of the Center signed by the Chairman of the Board of JSC RUSNANO Anatoly Chubais, the President of Skolkovo Viktor Vekselberg, the head of the Federal Agency on Technical Regulation and Metrology Grigory Elkin is a unique way of putting innovation standardization into practice supported by a group of experts in order to coordinate the innovation friendly regulatory framework that is set to appear in the nearest future [Nikishenkov, O.].

Speaking of the latest highlights in standardization, it’s important to note active international and regional cooperation in the field of Standardization under the condition of Russia membership in WTO as reported by Grigory Elkin, Head of the Rosstandart, on the corresponding press conference in RIA "Novosti" on December 20, 2012. In addition the first Conference on Equivalence of Technical Regulations and Standards was held in Moscow on December 5-6, 2012 with the support of the Russian Federation National Standardization Body – Rosstandart, and Russian Ministry of Economical Development. Apart from that Dr. Petrosyan, Deputy leader of Rosstandart, made a report at the international congress devoted to innovation development of economy On April, 12, 2012 where he covered current problems of companies management amid the crisis, necessity of ISO international standards use in the field of production and services as efficient anti-crisis instrument, support of innovation projects, Russian enterprises, model of their sustainable development, etc. [The Federal Agency on Technical Regulating and Metrology of the Russian Federation].

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Moreover we see the rise of attention to investment liberalization, understanding of the importance of building trust and enhancing the transparency of cooperation, highlighting the necessity of reducing technical barriers to trade and emphasizing the role of information exchange. These points are discussed through active cooperation with the Sub-Committee on Standards and Conformance (SCSC), established in 1994 to help reduce the negative effects that differing standards and conformance arrangements have on trade and investment flows in the Asia-Pacific region, as it held its first meeting in 2012 in Moscow in February and the second meeting was in Kazan in May [Sub-Committee on Standards and Conformance, APEC].

Russia’s WTO accession as reported by coordinators of the EU-Russia partnership for modernization to the EU-Russia summit in December 2011 marked various achievements in cooperation between European and Russian standardization bodies; space cooperation; establishment of contacts between industry-led European and Russian technology platforms and in the fight against corruption [ForModernisation.com].

Speaking of practical examples appearing in innovative businesses it’s interesting to see major ICT cooperation between Yandex, Russia’s leading search engine, Google, Yahoo! and Bing in developing standard HTML tags to improve search results and user experience [Starkell, N.]. In addition, we should note the rise in the level of attention to other innovative niches, for example, standardization of nanotechnologies in Russia, the necessity of implementation of standardization programs, international standardization involvement, networking with experts in national standardization activities and goal-oriented training of personnel [APEC, Standardization of Nanotechnologies in Russia].

B. The existing standardization bodies within Russia

In general, the organizational structure of the standardization system is based on the international practice. The Federal Agency for Technical Regulation and Metrology is the national standards body. Technical committees on standardization work on standardization plans, develop and examine standards. Federal executive power, research organizations, self-regulatory organizations, public unions of entrepreneurs and consumers constitute those committees. In addition, there is place for scientific research on standardization as well [Resolution #266-p of the Government of the Russian Federation].

Federal Agency on Technical Regulation and Metrology went from being restructured and renamed as Gosstandart and then Rostekhregulirovaniye to the short name Rosstandart. Apart from working out the strategy Rosstandart continues its sponsorship and funding of the development of GOST R standards, the national standards of the Russian Federation and represent the Russian Federation to international and regional standards organizations (ISO, IEC, EASC, etc.) [Federal Agency on Technical Regulation and Metrology, official website].

Main Rosstandart’s objectives are the following [Federal Agency on Technical Regulation and Metrology, main objectives]: • · realization of functions of the national standards body; • · ensuring of uniformity of measurements; • · accreditation of certification bodies and test laboratories; • · supervision of technical regulations and obligatory requirements of standards; • · maintenance of the corresponding federal information corpus; • · Federal system of products codification for the federal state needs; • · registration of damnification cases as a result of violation of requirements; • · organization of corresponding contests and prizes; • · rendering state services in the sphere of standardization.

C. Challenges faced by Russia in standardization

Generally all the current challenges faced by Russia in standardization are connected with the transitive period of reformation in the field of technical regulation. Low effectiveness of standards is mainly caused by the absence of its synchronization with the actual results of scientific and technical progress together with low controllability of technical committees secretariats. At it was noted above harmonization with international standards is in the works in order to remove technical barriers to trade and reflect in a proper measure the interests of Russia including promoting modernization, innovation and improving productivity [Resolution #266-p of the Government of the Russian Federation, Resolution #1762-p of the Government of the Russian Federation, Conclusion of the Russian-Austrian standardization summit at Austrian Standards in Vienna].

In addition, the fact that medium-sized companies can’t often get through the complex jungle of standardization and technical regulations mark the need for their pro-active role in developing standards. Though the change is in the making it seems to be a long and drawn-out process – most of Russian standards are still state standards, and participation of the interested parties is considered to be urgently necessary [Russian Center for SME]. This very problem often leads to the situation when even innovative and very promising

projects in the Russian automotive sector are challenged with the following implementation of the serial production when stable results and quality are rarely guaranteed [Swiss Business Hub Russia].

D. Role of innovations in fading out the challenges

According to IRT Recommendations to the EU-Russia Summit highlighting Russia’s expected GDP growth of 3.8% it seems like a viable idea to establish the common EU-Russia technology market where a wide-scale technological cooperation can form the basis for development and implementation of a practical roadmap for establishing the common EU-Russia technology market given the support of the EU authorities and Russian government and relying on existing EU programs supporting innovation (like FP7 and Horizon 2020) as well as opportunities provided by the Enterprise Europe Network and Knowledge and Innovation Communities [The EU-Russia Roundtable].

Innovative businesses are the ones that should fix this underrepresentation of trade and industry in the process of standardization in its current form that hampers innovation rather than stimulating it as a benchmark to fix knowledge on the current “state-of-the-art” [Boender, J. et al.].

E. Identification of the factors that need to be modified in order to strengthen the

structure Apart from presented above, there’s some reasoning for what should be modified in order to strengthen the structure of innovations. Despite relatively recent transfer from planned to market economy, cultural barriers for starting independent businesses, relatively young telecommunication platform and the lack of specialists Russia’s transition to innovative way of development is inevitable and moreover requires standardization as one of the main components of infrastructure of innovations constituting of financial institutions, venture funds and innovation centers as well. These components will need benefits system for participants of technologies transfer; interest-free loans and tax benefits; improved coordination between ministries; increased volumes of state and private investment into R&D; stimulated purchasing of high-tech products; improved educational system and professional communities [Khvatova, T.].

All these are deeply connected and basically fostered by standardization of innovations with the backward dependency from listed components as ones that allow standards definition alongside with the government as already noted above.

One of the recent attempts of providing all the listed conditions is Skolkovo – Russia’s largest tech hub nearing completion in the outskirts of Moscow that has already attracted some of Russian and international tech giants, research institutions and funds despite the criticism that may cause government innovation policies to be reshaped [Skolkovo Board, East West Digital News].

F. The proposed framework, venture capital and the member communities

As it was noted above the existing framework needs to be enhanced by setting up the balance between the government and real innovative businesses in determining the way standardization of innovations should be directed in. This will require not only tech clusters and major venture capital that have already been playing an important role in this framework but communities and cultural direction on a smaller scale. This part of the framework is currently supported by the Russian Union of Industrialists and Entrepreneurs (RSPP) that plays a crucial role in the current efforts to reform technical regulations making it possible for companies to get a tax deduction for the costs incurred in connection with their involvement in standardization [Conclusion of the Russian-Austrian standardization summit at Austrian Standards in Vienna].

In addition, it’s important to raise the level of awareness of how standards can aid to reduce costs and stimulate innovation by holding public events and seminars as the ones held by the IRT that has carried out a number of seminars devoted to the various sectors of innovative activity and local seminars held by Russian technoparks on standardization issues [Boender, J. et al., ForModernisation.com, Innovative technopark “IDEA”]. Moreover, given the rise of Web 2.0 and Web 3.0 it’s necessary to highlight the importance of professional social networks as a resource for innovation [Maltseva, S.].

Thus, having the opportunity to hear more experts, professionals, businesses and institutions that understand the importance and the true meaning of standardization it is possible to putting innovation standardization into practice as agreed on establishing the Center for Standardization in Innovation in Russia [Nikishenkov, O.].

G. Benefits obtained by Russia in the recent years due to standardization

Russia has kept its strong positions in many areas of fundamental science, developed system of R&D institutes and strategies as for standardization as well as for innovations that makes it possible for Russia to speak with the modern world on the same language of standards, access the opportunities provided by WTO

[ForModernisation.com] and gradually solve the existing challenges going from high tech clusters [Skolkovo Board, East West Digital News] to standardization in innovation [Nikishenkov, O.].

H. Conclusions

Once the existing challenges are mostly resolved it’s possible to see the real and full assistance, through standards, to interpenetration of technologies, knowledge and experiences providing the growth of innovative markets. Thus, the opportunity of stepping away from raw materials export dependent growth on to the new model of innovation-based economic growth [RUSNANO] that makes it possible for the Russian Federation to reach a position of one of the economically- leading countries in the modern world.

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