Russia Cannot Innovate, Doomed to Fail

Vladimir Terletsky writing on Rus Business News:

Russia will be unable to become an innovation-driven country in the near term, as, despite its tremendous area, there is no demand for innovative developments. Large companies prefer to purchase off-the-shelf technologies in other countries; talented scientists, in their turn, leave Russia, finding no comfort in living and working at home. Experts see monopolists as the main hindrance to progress, as being the closest to government money. The “RusBusinessNews” columnist is sure that only transnational corporations can make them move; however, the authorities show no haste to allow them access to the Russian market.

Experts state that there are interesting projects and money in Russia, but something is amiss with innovation-based business. The reasons that are given are very different. Dietrich Möller, president of Siemens AG in Russia and Central Asia, thinks that the country has a large gap between science and business, thus making it difficult to turn knowledge into money. Alexander Galitsky, managing partner of Almaz Capital Partners, sees the reason in damaged education. During the Soviet time, core departments at universities and institutes formed industry-related research institutions. Graduates worked at these institutions and developed new technologies. Today, there are no industry-related institutions and no core departments. The expert believes that innovations passed into hands of leading enterprises that should regenerate core departments and provide conditions for applied research.

In the meantime, Oleg Sienko, General Director of the Uralvagonzavod Research and Production Corporation, OJSC, warns that no fast results should be expected. The defense industry has been dormant for 15 years, being enthralled by illusions that enterprises were going to be blessed with golden showers. Within that time the American military and industrial complex was able to earn sizeable money, having commercialized its military know-how such as GPS.

Russia is still without a law that would govern the conversion-related issues, though its urgency was emphasized by the government back in 2005. Today, research cannot be recovered by “pushing the switch button”: there used to be science without demand, now there is demand without science. The corporation managed to retain some research capacity, but it needs money to do research. The money is tight, as there are no orders from the Russian military. O. Sienko does not feel that the country has embarked on the course of fundamental development. In fact, the process has not even started: Any modernization needs intelligent people, but they cannot be born in one day.
Alexander Galitsky also thinks that the establishment of the innovation market takes time and effort. In the expert’s opinion, the quantum laboratory that was opened in Skolkovo will be able to have some practical effect in about ten years. It will be useful if by that time at least 50 venture capitalists would strike roots in this special economic zone. The main thing is that talented people should want to self-actualize in Russia, which means that they should feel comfortable here. However, comfort is somewhat problematic.

The research known as the Barometer for Russian Innovative Development has found out that 80% of entrepreneurs and scientists do not trust the government due to absent fair competition and existing corruption among officials. Excessive inspections, endless procedures for approvals, prohibitive regulations make adoption of innovations extremely difficult. Bulat Stolyarov, General Director of the IRP Group, asserts that the business community says: “We do not need Skolkovo – you should improve the environment”.
Dmitry Pumpyansky, Chairman of the Board of Directors at the Pipe Metallurgical Company, OJSC, thinks that it is not enough to change the business climate – the revolution must penetrate into the mind of Russian scientists.

The latter are still more concerned about offering ideas that are not economically feasible rather than products. Business measures the innovative product relying on the integrated group of factors: the price – turnaround time – economic impact. Based on the received results, investors decide which innovative product – domestic or foreign – they should choose for their investment. D. Pumpyansky decided to buy an induction motor drive for the electric locomotive from Siemens. The billionaire is sure that there will be no innovations in Russia until the government uses incentives to modernize the industry, making environmental and manufacturing standards more stringent.
Dietrich Möller pointed out that today’s Russian ruling class should learn to think forward within a long range: The officials who got used to selling oil are not able to understand how six years can be spent on manufacturing of a new turbine, while waiting for another six years until the invested funds are paid back.

They are also unable to comprehend the fact that innovations are not a single-handed endeavor in the present day economy and cannot be stored for future use – the fact that applies to the fullest extent to military technologies. Therefore, the advice given by Siemens’ top-manager is that cooperation should be maintained with different partners – including competitors.
Alexander Shokhin, president of the Russian Union of Industrialists and Entrepreneurs, believes that doors should be opened for small and large foreign companies not only in the sector of high technology, but also in the sector of raw materials. In his opinion, transnational corporations will wake up Gazprom and increase its demand for new technologies. The government of Vladimir Putin pursues the totally contrary policy: State-owned companies have exceptional privileges on the market as compared to private businesses. This contributes to further inefficiency of the Russian economy.

Experts assume that society face the problem of damaged communication relationships: The authorities are not interested in communication with the business community, while the business community has no desire to communicate with the authorities. The government puts all its enthusiasm into its projects related to the 2014 Winter Olympic Games and the 2018 World Cup that will take place in Russia. All these ambitious projects do not create any demand for cutting-edge technologies. On the other hand, they were not meant for this: The application of such sizeable budgetary fund can be compared only with the earnings received from Russian oil sales to other countries.
As a result, according to Anna Belova, Deputy General Director of SUEK, OJSC, business people realized that the main process in Russia is distribution rather than creation. She is sure that if the consciousness of the most active part of the population does not change in the foreseeable future, all ideas and resources will be useless in attempts to develop innovation-driven economy in the country. This economy will be of no need for anybody.


47 responses to “Russia Cannot Innovate, Doomed to Fail

  1. Manfred Steifschwanz

    Ergo: The more insignificant, helpless, and powerless Russia supposedly becomes, the more noises the LR sages make about the Russian menace. Typical of the mindless and clueless petty bourgeoisie in general. Forever dumbed-down, self-opinioned, and delusional.

    • The USSR was also an economic basket case, which ultimately collapsed into rubble. But before doing so, the USSR cost the lives of millions and millions of people and threatened the globe with thermonuclear holocaust. Russia is run by a proud relic of the Soviet past, a KGB spy who is directly confronting the West and has just announced a massive new increase in military spending.

      You are an illiterate goat, oblivious of facts, and your comments contain absolutely no research or substance. For YOU, of all people, to mention being mindless and clueless is the height of irony!

      • You’re responding to a troll. To trolling. Don’t you realise?

        • Perhaps its the troll who doesn’t realize his trolling a post written BY A RUSSIAN.

          • OK.

            Trolling is trying to get a rise out of someone. Forcing them to respond to you, either through wise-crackery, posting incorrect information, asking blatantly stupid questions, or other foolishness. However, trolling statements are never true or are ever meant to be construed as such. Nearly all trolled statements are meant to be funny to some people, so it does have some social/entertainment value.

            “Trolling” isn’t simply “harmful statements”. Intentionally insulting/libelous statements are “flaming”.

            Just as bad as trolling is “Feeding the Trolls”. This is when people say stuff that they know will prompt someone to respond with a trolled reply and/or replying to comments that are blatantly from a troll. This is especially true when a troll first makes his comment/reply, and (usually many) people respond, either trying to correct the troll, or express anger at the statement. At that point, the trolling was successful and has been fed. When encouraged by success and feeding, trolls often return.

            • Well, then Bogdone, Andrew, Mccusa, Manfred, as well as various Johns and Stans are in this category. Your statements, I guess are not trolling but no one appears to be reading them, and few people talk to you. This whole blog is a nest of trolls then.

              • Ah comrade Monsewer Absolute Trash – WRONG as usual and so full of your own B/S!

                You of all comrade trash spinners would know what a roll is, purely from personal experience. The ‘daddy’ troll of all time!!!

          • Manfred Steifschwanz

            Millions this, millions that. Western supremacists seem to be hell-bent not only on non-stop lying and boasting, but — as the absurdities are phrased verbatim — also on urging that Russia mustn’t kill at home but accept the inalienable rights of violently insane Westerners to spread misery, famine, and war just about everywhere, courtesy of “The international community”.

            Sorry, folks. Nowadays, Western Democracy doesn’t inspire anybody except die-hard petty bourgeois dullards such as yourselves.

            • ‘Swedish’ russian baboon says ‘millions this, millions that’. For the first time, dearie, I agree with you 100%, russian lives ARE TOTALLY WORTHLESS, russians can be and will be, in the nearest future [2012], slaughtered by fellow russian barbarians; in the gulags and interrogations centers e.g., Lubianka – millions this, millions that’ with total impunity, just to keep their ‘russian/soviet empire’ alive. And what an ’empire’ it is; starving russians saved by the Bush 1 in the 90ties, with the famous Bush chickens – just the unwanted food from the USA saved millions of starving russian beggars, great ‘successes’ of Kursk, Bulava, dog food for non-existant russian army, total corruption and the pathetic attempts to play a global power – inspirational indeed…

              • Manfred Steifschwanz

                Tы страшно скучный и неумный, старый болтун.

                • You’re saying the Soviet regime didn’t murder millions? Do tell!

                  • Manfred Steifschwanz

                    If it did, what’s YOUR problem???

                    • No wrong Manfreddo LimpDick, wrong as usual. You are just proving beyond a reasonable point of doubt that you are just a communist indoctrinated LIAR!!

                      Do tell!!

                    • Boredan: Whenever I contemplate the typically mindless, clueless, and mentally unstable — “discreet charm” allegedly — garbage of which there is such a generous supply in Western populations and their accompanying psychobabble about Stalin and the USSR, I think the most appropriate response amounts to the following:

                      Stalin was great for the USSR, and the Stalin era would have been even more formidable had he been 10 times harsher against Westerners as compared to the Soviets. Western imperialism deliberately kills off more people — outside the West, at that — in a frigging decade’s time than what the most psychotic Western imbeciles are accusing Stalin to have finished off in 30 years’ time AT HOME. Hitler was the supreme Western imbecile of the last century. Keep up the good work, Boredan & LR team. You’ve got no brains to lose.

                    • I always knew that you were sick in the head, you poor excuse for a ‘Swedish’ russian baboon. But this latest B/S article of your hysteria only cements that view.

                      You need a head shrink bad, comrade russian baboon!!! Either that or immediately go back to taking your prescribed psychiatric tablets.

                  • Manfred Steifschwanz

                    Haha, it’s REALLY “the discreet charm of the bourgeoisie” running rampant over here at LR’s. How can you be so sure only Russians pay homage to Joseph Stalin? And why shouldn’t Russians be allowed to kill at home (at least!) when Westerners kill just about everywhere? Breivik in Norway is a promising sign Westerners are gradually losing respect for their own knit and kin. Way to go!

  2. Sorry for off-topic guys.
    I’ve just found what bible says about Putin:
    Let his days be few; [and] let another take his office. (Psalm 109:8)
    Couldn’t resist to share it :-)
    P. s.
    Manfred, take some aspirin.

  3. Shweinshwanz ; no matter what identity you try to assume in order to hide your real origin ( that of a true moscovite troll ) , you always
    betray yourself by saying something that clearly leaves no doubt as to your real identity . I can fully understand why you want to deny
    your moscovite origin ( after all , who would willingly admit to being
    a backward moscvin ) , as long as you understand that you are fooling NO ONE by claiming to be Swedish ! Kep trying comrade
    katsap ! By the way there is no use trying to call Bohdan names and
    trying to ridicule him ; he has more brains in his little finger , than
    you will ever aquire in your whole pitiful life . So , my middle finger salute to you !

    • Manfred Steifschwanz

      Du gamla, du fria
      Du smällfeta ko
      Du lever på chips och Coca Cola

      Maksym: Tänk på avståndet mellan pung och ollon när du suger av (berömt ordspråk i Stockholms undre värld).

      Din tillgivne,


  4. Russia can not innovate. Ahem. Has to stick to meager jobs like export construction of Nuclear plants (largest share in that market belongs to Russia). Or merely ferrying astronauts to ISS (as shuttles are scrapped).
    Poor stupid Russia.

    • Oh, by all means, let us agree that compared to Africa Russia is very innovative. But is that the company Russia wishes to keep?

      • Manfred Steifschwanz

        Neither Africa, nor Russia could ever compete with the LR team and its hangers-on in the field that really matters to ‘advanced civilization’: Parasitic, wasteful daydreaming.

        Breivik was quite correct: Westerners ARE, for the most part, really disgusting.

        • Thanks for confirming that Russians admire Breivik, so the fact that the feeling is mutual should not be surprising! Would you like to exterminate us, Heil Hitler?

          • Manfred Steifschwanz

            Can’t you read, you drooling imbecile apes?!? I re-iterate:

            >> Breivik in Norway is a promising sign Westerners are gradually losing respect for their own knit and kin. Way to go! >>

            Hopefully, to him I’m the exception that proves the rule.

          • Of course, he would be delighted to see us all killed. He said so many a time on this blog. Honestly, the man must be mentally ill — he is the only one who supports a serial killer here. I don’t know how else to interpret his statement that Breivik was quite correct. I guess all those Norwegian teenage boys and girls who are now dead are those Westerners who are “really disgusting” as he put it

            • RV,

              You really care way too much for what some anonymous guy writes on the Internet. Be it just a troll (for some reason or another), or an actual but irrelevant sociopath, it equally doesn’t matter.

            • Actually there were victims from several countries, including some very poor ones.

              • Manfred Steifschwanz

                Maybe, but that’s not the point as far as Western supremacists are concerned. Breivik failed to mind the predominant complexion, social status, and culture among his victims. He thought he could do at home what NATO does abroad 24/7. Silly fool, this Norwegian.

      • Hm, in that terms (nuclear plants) only China is more innovative then Russia, as it is only one who builds more reactors… wait, some of them are constructed by russians.

        Let’s see

        Russia builds 11 reactors for itself, and some more abroad.
        USA only builds 1 new reactor.
        China builds 27 and is leader, no surprise here.

        US has recently closed Shuttle program, replacement is due to come. But not this year, and not next … until then, US astronauts need russian to get to ISS and back.

        Successor to Hubble has been canceled recently, due to lack of funding.
        Russia has launched a new ‘Radioastron’ space observatory less then month ago.

        So who is retarded?

          • Well, it is. Because it requires a lot of effort in nuclear physics, material science, robotics et.c.
            Modern reactors are very sophisticated to ensure safety (Its better to invest into safety, then into fallout cleaning). After one well known event Russian standards in the nuclear safety are probably most paranoid.

            Anyway, choice is between nuclear energy and fossil fuels. ‘Green’ energy is unrealistic. Germany has Nordstream and guaranteed supply of gas, if they wouldn’t reconsider, they’ll switch to gas. It seems to be more of politics then economy matters, green loonies are particularly strong in Germany

            • Sophisticated and “made in Russia” are mutually exclusive Auriga

              • Yeah, space and nuclear physics are such simplistic areas.

                • Russia, that master of space technology, has to this day never once landed a man on the moon.

                  Russia’s mastery of nuclear technology is best appreciated in the city of Chelyabinsk, perhaps the most irradiated and dangerous place to live on this planet.

                  Russia’s overall mastery of technology (medical, etc.) is well observed from the fact that it does not rank in the top 125 nations of the world for life expectancy.

                  • Life expectancy depends heavily on drinking habits. Almost no relation to medical tech, though, I agree, thats where (healthcare and pharmaceutics) modern Russia sux completely.

                    Moon was a more of PR project. Not being first – no reason to be there at all, robots would do better. Anyway, USSR was first to launch sputnik and first to launch man. Lost moon race. So 2:1.

                    Modern nuclear technologies are way cleaner then they were in the 60-70th. As to the learning of the lessons of nuclear disasters, average age of Russian reactors is 19, US – 30. Fukushima reactor was of US design. USSR built Armenian nuclear plant survived earthquake of greater magnitude then recent one in Japan.

            • “Russian safety standards” is an oxymoron, especially since it is well known a bribe will very often fix everything there.

              For example (2010):

              Russian economic power is in rising, mostly because of Russian energy dominance. But still, based on World Bank report, traffic accidents cost Russia €22,5 billion, with road death rate about 24.6 deaths per 100,000 population (14.7 in the US, 10 in France, 6 in Sweden). According to World Bank report, dominate factors contributing to road traffic is speeding, unsafe vehicles, poor driver behavior and weak road safety management, but also widespread practice to pay bribes to instructors in order to skip driving school to obtain drivers’ licenses, according to car-accidents.

              Same for the (lack of) air travel safety, total disregard for civilian life and property even inside their own borders, etc. About power plants, remember this dam disaster in 2009 was due to neglect. And so I would never trust the Russians to build a “safe nuclear power plant”.

              (Chinese, they don’t care much, look how much they have ecologically devastated their own country, and this ruthless and irresponsible policy still continues, now in search for a quick buck.)

              • Russian safety standards in nuclear area. Traffic incidents is different thing.
                Example of similar logical mistake: NASA astronauts are fat, because it is well known that US suffers very high percent of people excessive weight.

                As to bribes to bypass driving exams … it is not only laziness and lack of responsibility. Guys are corrupt and would make sure you fail 4-5 attempts, regardless of how good your driving skills are. Each attempt takes full day. Thats a lot for a busy person.

          • Ironically, right now Obama seems to recognize mistake of ignoring nuclear energy.
            I’m sure Germans would reconsider too, after elections. They only promised to shut down reactors in the future. Still 10 years to change their mind yet again.


  5. Manfreddo, LimpDick

    When? if ever when will you stop judging the normal smart and sane bloggers on this excellent BLOGG!!!by your own self? Big gross mistake on your part, but then what’s new, as you yourself are a brainless communist so full of your own self important propaganda SH*T that it’s unbelievably nauseating in itself just to read your sick trash.

    Face the fact that you are an imbecile of a communist indoctrinated wasted space. Where nothing, but nothing will change that fact, as the damage to your grey matter, albeit not much of it left, is far too permanent. One only just has to look at your incoherent ramblings replies – where you think every is stupider then you are – to understand that you are numerous marbles short of sanity!

    Your real niche in this life, would have been serving in the NKVD, questioning all those old babushkas, little children and all those like minded “enemies of the peoples’ of the murderous USSR” that needed to be exterminated as ‘enemies/traitors of the communist “paradise” that was Stalin’s USSR. I bet that sounds good? Aye comrade?

    I also bet you’d like to exterminate me too, Aye comrade Chekist?

    Heil Hitler? to you as well.

    • Oops!
      The word “every” in the penultimate line of the third paragraph should read ‘everyone’.

    • Manfred Steifschwanz

      Boredan, mon amour: Western Culture suits Westerners best; no doubt about it. And it’s high past time that peoples in love with Western imperialism eventually make substantial, ahem, “sacrifices” for it, right?

    • I think with you Bohdan, the Swedish psycho should have a problem. As an Australian you are a disgusting Westerner and so are amenable to extermination. However, you are an ethnic Ukrainian, and I don’t know if that would classify you as somebody other than a Westerner. I am not sure how he considers Ukrainians. So, there is a possibility you can be reprieved. Do pray a lot.

      With me, no hope. An American Jew, you know. The worst possible combination, where the West meets Zionism. Got to stop now so as not to risk making him even more bloodthirsty.

  6. Russian utilitarian thinking bear fruits mainly in the military sphear and in the process of the competition with some Western product.So the T34`s and Kalashnikov`s have grown. The cultural development is the child of the contradiction. The idea of the contradiction is the product of the truth searching.No truth-no contradiction-no development,just the Kalashnikov.

    • The kalashinikovs design is is simple and it works. It is not the best weapon for long range engagements, your best suited to cut off the front sight post and open up on the enemy.

  7. Sucker.

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