Moscow innovation ecosystem and state

support of venture capital market

Alexey Komissarov

Head, Department of Science, Industrial Policy and Entrepreneurship of the City of Moscow

CURRENT ECONOMIC SITUATION IN MOSCOW

Territory of «old» Moscow 1090 sq. km

Territory of «new» Moscow with inclusion of 1600 sq. km

is about 2700 sq. km

Permanent population 11,5 mln. people

Daily population is about

15 mln. people.

Population of annexable territory is 250 th. people

or 2% current Moscow population

Moscow budget as of 2012:

revenues 1 460 RUR bln (~ $50 bln)

costs 1 710 RUR bln (~ $57 bln)

Moscow GRP as of 2011 9 RUR trln ($300 bln) - ~ 19% Russia GDP

For comparison: New York budget $66 bln New York GRP $1,2 trln

- ~ 8% USA GDP

MOSCOW INNOVATION POTENTIAL

Moscow potential 268 higher education institutions 50.4 th people academic staff 97 engineering bureaus 241.2 th people involved in R&D Weaknesses 97th ranking of 100 cities due to the level of

innovation system competitiveness Reduction of scientific institutions and people

involved in scientific activities Low level of R&D results commercialization and

investors activity on seed stage Strengths 4th ranking among largest cities due to number of

graduates and universities Largest market of high-tech products in Russia Developed and attractive social infrastructure

Troitsk

Zelenograd

Skolkovo

KurchatovInstitute

MSU

MSTU

MAI

MISiSTIR

Moskvich

MIPT

MIFI

TechnoparkSlava

TechnoparkStrogino

MPEIRVK

TMZ

ZiL

REGIONAL INNOVATION ECOSYSTEM

11 Business-

incubators

19 technoparks

26

Fablabs

6

Centers of technology

transfer

1

Territory of innovation

development

10

Development agencies

20 VC funds

MOSCOW INNOVATION INFRASTRUCTURE

Territory of innovation development Moskvich

Technopark Slava

Technopark Strogino

Business incubator Zelenograd

Special economic zone Zelenograd

SPECIAL ECONOMIC ZONE “ZELENOGRAD”

SEZ Zelenograd specializes in: • microelectronics • energy-saving technologies • biotechnologies • information and communication technologies • other kinds of high-tech research and production business

Investors in 2012 Q1: 36 companies

Investments: $ 4,00 bln. Declared private investments $ 573 mln. Federal Government investment $ 156 mln. Moscow investments into SEZ $ 417 mln. Moscow investment into Zelenograd

MOSCOW CENTER FOR INNOVATION DEVELOPMENT – KEY INITIATIVE IN 2012

GOALS

FOCUS

Increase of number of people involved in innovation activity

Growth of innovation products share in regional gross product

Increase of innovation infrastructure efficiency

Promotion of Moscow as a leading innovation center

INDIVIDUAL COMPANY INFRASTRUCTURE CITY

Center principles are aligned with “Strategy of Russian Federation innovation development till 2020” State primarily fixes “market failures” Priorities of innovation development are defined in cooperation with business and science Distribution of budget funds and result evaluation are maximally transparent Efficiency and effectiveness are evaluated according to international standards

TOOLS PORTFOLIO OF THE CENTER

Information sharing and matching

Development of human capital

Support of innovation companies

Development of innovation infrastructure

Development of Moscow as innovation city

Innovation portal One-stop shop for services in innovation field

Organization of joint programs with development institutes

Educational programs in innovation field

Organization of internships abroad

Popularization of innovation activity

Co-financing of projects on seed stage

Co-financing of innovation infrastructure projects

Development of subordinate business incubators and technoparks

Services for innovation business development

Regional and international promotion of Moscow

Support in realization of city procurement of innovation products

Competitions in ideas for innovation development in Moscow

Co-financing of costs for IPO on IIM MICEX

GOALS OF GOVERNMENT IN STIMULATING THE VENTURE CAPITAL MARKET

Accelerate a process of VC and business angels emergence

Foster active domestic VC market

Create conditions for cross-border investments

GOVERNMENT SUPPORT OF BUSINESS ANGELS AND VC

Implement public-private co-investment schemes

Develop institute of ombudsman

Link policy to Market of Innovations and Investments of MICEX and IPOboard

Cooperate with Russian Venture Company and other key development agencies

Subsidy pre-finance appraisals and evaluations/ due-diligence

Support creation of business angels networks

Create customs point for innovation products

MILESTONES IN 2012

Launch of Moscow Seed Fund

Conclusion of Agreement between Moscow Government and Russian Venture Company

Launch of Center for innovation development programs