In the context of global competition in innovation, Russia faces serious challenges in the development of its innovation cycle. The country's investment in research and development (R&D) is only 1.1% of gross domestic product (GDP), which is significantly lower than that of leading countries such as South Korea, where the figure reaches 4.8%. In Russia, most R&D funding is provided by the state, while in developed economies private companies are the main source of capital.

This situation emphasises the need to revise approaches to investment and infrastructure development at all stages of the innovation cycle. Universities play an important role in this process and should become key players in creating and supporting the innovation ecosystem.

Innovation cycle and related infrastructure

The innovation cycle can be divided into several key stages, each requiring specialised infrastructure.

At the basic research stage, university departments and laboratories play an important role in generating scientific publications that form the basis for further research.

In applied science, collaborative use and technology transfer centres that help translate scientific ideas into patents are critical.

R&D projects need prototyping and engineering centres, while startups need technoparks, business incubators and accelerators for successful implementation and growth. In Russia, venture capital investors mainly focus on mature companies, which limits opportunities for early-stage startups.

The current situation in the global context shows that countries such as Japan and China have succeeded in various stages of the innovation cycle owing to developed infrastructure and support from private investors.

Russia is underinvested in R&D compared to leading countries. In 2020, 1.1% of GDP was allocated to R&D, which is significantly lower compared to the US, Japan, and South Korea. Public funds account for the bulk of R&D investment (68%), significantly higher than in other countries where the corporate sector plays a major role. This leads to a dependent innovation ecosystem where the role of universities becomes even more important.

Investment by stages of the innovation cycle in Russia and key challenges

The innovation cycle in Russia faces a number of challenges at the stages of implementation of developments in the real economy. The final stage - the introduction and commercialisation of R&D results - remains the weakest. Russian startups have difficulties in attracting venture capital investment at early stages, which limits their growth opportunities.

Role of universities in entrepreneurship in Russia

Universities in Russia play an important role in shaping the business environment, but their contribution to the innovation cycle remains insufficient. Despite the existence of business incubators and accelerators in universities, their impact on the early stages of startups is limited. Most of the innovation infrastructure in Russia is state-supported, while in developed countries the role of the market and private companies is more prominent.

There is a growing interest in entrepreneurship among students in Russia: 17% of them are already involved in business projects, and two thirds of students are part of business environment. However, many of them do not receive the necessary education in entrepreneurship: 63% of students have not taken relevant courses, which is significantly higher than in other countries.

The model of business incubators and accelerators that is popular abroad can help students turn their ideas into successful projects. Business incubators provide support at all stages of startup development, while accelerators offer mentoring and funding.

Increasing the number of business courses and developing appropriate infrastructure at universities can significantly boost student engagement in entrepreneurship.

Case studies on the impact of infrastructure on startups

The study shows that the emergence of business incubators and technology transfer centres in universities contributes to the growth of startups and the commercialisation of scientific developments.

Basic research

The opening of a new laboratory at Novosibirsk State University (NSU) has led to a significant increase in publications, which emphasises the importance of modern scientific infrastructure for increasing scientific activity.

Applied research

At Samara State Medical University (SSMU), a new shared-use centre has increased research volume by 50%, improving access to necessary equipment and contributing to an increase in the quality of scientific research.

Research and development projects

At Ural Federal University (UFU), the technology transfer centre helped to successfully commercialise all patents, demonstrating the effectiveness of such centres in translating scientific developments into commercial products.

Introduction and growth of startups

Incubators at universities, such as those at the Industrial University of Tyumen and Moscow Institute of Physics and Technology, have demonstrated successful support for startups, funding projects and attracting a large number of applications.

Study of business incubators in the top 100 universities in Russia

As part of the study of business incubators in the top 100 Russian universities identified by the RAEX-100 ranking for 2021, the infrastructure for supporting innovative projects up to the seed startup stage was assessed. The aim was to identify the availability and quality of startup support at universities and assess their readiness to realise innovative ideas.

In general, the study shows that although many universities have business incubators, their capacity and infrastructure to support startups needs significant improvement. 60% of universities in the top 100 of the RAEX ranking have business incubators, but only half of them offer a full range of services. Training remains the most popular service, which emphasises the need for further development of infrastructure to support startups and their entry into the market.

Conclusion

To summarise, universities in Russia play an important role in the innovation cycle, but their contribution is limited due to insufficient infrastructure and funding. Despite a growing number of laboratories and business incubators, Russia lags behind the leaders in R&D investment, where private funding predominates. Universities have set up many business incubators, but only half of them provide the full range of necessary services.

Read more in our study.