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Authors: Alexander Rybas, Doctor of Science (Economics)
Anna Rybas, Economist
There can be no doubt that today's Russia, de-
spite its major scientific and technological
achievements and vast experience of industrial
development, can be considered a developing
country. But neither can there be any doubt that
the same industrial experience of Russia and its
contribution to world science and technology,
which are no less significant than those of devel-
oped countries, mean that Russia is intensively building a knowledge economy.
Russia's movement toward an innovation economy is an official policy decreed by the Strategy
for Innovative Development of the Russian Federation 2020 (Strategy 2020), which asserts di-
rectly that innovation economy is the only way to achieve high living standards for Russia's pop-
ulation and ensure a stable geopolitical role for the country as one of the global leaders. In a
recent comprehensive study, leading U.S. industrial experts and academics argue that "research
in science and engineering is integral to America's health, security, and economic strength."
The same path of technological development is followed by some other developing countries,
primarily Russia's BRICS partners - Brazil, China, India, and South Africa, - which see techno-
logical innovation as an important source of competitiveness.
In our view, the main reason why innovation initiatives cut little ice in many developing countries
is that reformers focus on familiar innovation factors themselves while it is the optimum inter-
action of such factors that can transform an industrialized economy into a knowledge economy.
The interpenetration of science and technology and development of breakthrough technologies
is impossible without basic research, while a favorable institutional environment is needed for
the application of innovations in manufacturing, the service sector, government, and national
security systems. The formal part of the institutional environment is mainly comprised of law,
state regulation, human capital development mechanisms, and risk management systems. Its in-
formal part essentially consists of cultural milieus, traditions, and basic ethical and economic
values.
Clearly, on its own, an individual corporate innovation infrastructure cannot achieve top positions
for Russia in international competition - this will only be possible if there is an efficient national
innovation system.
Ways of Building an Innovation Economy in Developing Coun-
tries