INTERNATIONAL

BEST PRACTICES IN

INNOVATION

MANAGEMENT

PRESENTATION AT SKOLKOVO

BUSINESS SCHOOL

NOVEMBER 2011

STEVEN GEIGER, COO, SKOLKOVO FOUNDATION

SOME BACKGROUND ON SKOLKOVO

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• Diversify and grow Russia’s economy

through innovation and entrepreneurship

• Develop human capital through world-

class research and education

• Fully-integrate Russian technology

into the global economy

• Create globally-competitive

knowledge-based companies

Skolkovo is a strategic development initiative to:

SKOLKOVO’S RECIPE FOR INNOVATION

Open, transparent, and fair: essential to

attract world-class talent, institutions and

businesses

Maximum private sector participation

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Physical and virtual layers

Self-sustaining over time

International standards

WHAT’S THE PROBLEM IN RUSSIA?

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Time

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Basic

Research

Applied

Research

Entrepreneurs

Ea

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La

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Mid

Private

Equity

IPOs

Large Corporates

Commoditization of

Technology

VC

Normal Technology Life Cycle

WHAT’S THE PROBLEM IN RUSSIA?

5 Time

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The “Gap”:

• Research not linked to market

• Little early-stage financing or services

• Result: weak commercialization

Basic

Research

Applied

Research

Entrepreneurs

Ea

rly

La

te

Mid

Private

Equity

IPOs

Large Corporates

Commoditization of

Technology

VC

Current Russian Situation

WHAT’S THE SOLUTION?

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Basic

Research

Applied

Research

Entrepreneurs

Ea

rly

La

te

Mid

Large Corporates

Commoditization of

Technology

VC

Skolkovo Institute

Innovation Center

• 5 clusters

• Technopark

• Key partners

City Infrastructure

Virtual Skolkovo

Close this gap with tools for innovation and commercialization

Skolkovo “Ecosystem”

LET’S SEE HOW THESE DRIVE INNOVATION

1. THE INSTITUTE

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SKOLKOVO INSTITUTE OF SCIENCE & TECHNOLOGY

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World’s first graduate

university to fully-

integrate research,

education, innovation

and entrepreneurship

• Core of Skolkovo ecosystem

• Source of high-caliber talent

• 1200 graduate students and 300

faculty/post-docs by 2018

• 5 programs, 15 research centers

(each with 3-4 labs)

Strategic partner:

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UNIQUE PLATFORM FOR GLOBAL COLLABORATION

Energy Program

Research Centers SIST MIT

Russian & international institutions

IT Program

Biomed Program

Space Program

Nuclear Program

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SO HOW DOES THIS DRIVE INNOVATION IN RUSSIA?

1. World-class R&D

2. Open platform = fresh ideas

3. Program-based = cross-disciplinary innovation

4. CEI ensures innovation is in the organization’s DNA

5. Contract research: new for Russia, change corporate

mentality

2. THE INNOVATION

CENTER

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INNOVATION CENTER

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Key partners

Technopark

5

technology

clusters

5 TECHNOLOGY CLUSTERS

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Energy: efficiency, saving, new energy technology

IT: software, engineering, devices

Biomed: biotech, drugs, devices

Space: telecoms, navigation,

imaging, life systems

Nuclear: medicine, energy,

materials

Reflecting 5

modernization

priorities of the

Russian

government

HOW DO CLUSTERS DRIVE INNOVATION?

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1. Find innovative startups

2. Pair with international experts

3. Challenge strategy

4. Provide VC interface

5. Conduct international roadshows, force companies

to measure themselves against the best

TECHNOPARK

Technopark

Skolkovo funds

Skolkovo

Institute

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Startups &

Spin-offs

Incubation

Clusters

Market

assistance

Infrastructure

Corporate

services

Funding

Other universities

External VCs

HOW DOES TECHNOPARK DRIVE INNOVATION?

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1. “Nurtures” startups & spinoffs

2. Collaborative environment

3. Services (IP management, international access)

4. Interface with VCs and SIST

5. Turnover management = create sense of urgency

KEY PARTNERS

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International companies Russian companies

HOW DO KEY PARTNERS DRIVE INNOVATION?

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1. Create and operate R&D centers in Skolkovo

2. Bring best international practices in R&D and

commercialization

3. Co-invest in promising Skolkovo start-ups

4. Provide early commercialization opportunities for

Skolkovo startups

5. Fund research at SIST

SOME PERSONAL EXPERIENCE DRIVING OTHER WORLD-CLASS INNOVATION

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Challenge:

Turn a tiny country (400,000 citizens) with few scientific or

technological resources into a world leader in innovative

“green” technologies

Results achieved: (2006-2010)

• Dominant investor in “green” technology ($15 billion)

• World’s first zero-carbon city under construction

• Awarded UN Headquarters for Renewable Energy

• World’s largest offshore wind farm (London Array)

• World’s largest CSP plant (Shams 1)

• World’s first 24-hour solar power plant (Gemasolar)

SOME PERSONAL EXPERIENCE DRIVING OTHER WORLD-CLASS INNOVATION

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Masdar PV

August 2008

December 2008

August 2009

• Required simultaneously innovating the technology and the

production process

• Speed was critical: 12 months from groundbreak to first production

• Intensely international: American supplier, European management,

Middle East financing, German R&D, global market

Case study of Masdar PV: innovative thin-film photovoltaics

LESSONS LEARNED

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• Innovation is intensive global collaboration

• Incremental innovation vs. step-change: which are you,

does your industry accommodate, is your time-to-

market realistic?

• Excessive attempts to limit risk inherently limit chances

of success

• There is no alternative to innovation, learn to live with it

THANK YOU

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For more information, please contact:

Steven Geiger

COO

sgeiger@corp-i-gorod.com

Or visit our website:

www.i-gorod.com