2002-2006 is driven by the need to develop

In the absence of software support in the fielddevelopment of science and innovation a likely scenariodevelopment of events will consist in maintainingavailable public sectorresearch and public education, indevelopment of the science sector concentrated inlimited number of large Russian andtransnational corporations to a smallsize, in creating a network of small businesses,serving medium-sized businesses and satisfyingtheir demand for small innovative projects.

V. Possible solutions to the problem, assessmentbenefits and risks arising from variousoptions for solving the problem

Possible solutions to problemsin the development of science and innovationthe following are considered:

evolutionary option, in the implementation of whichdirect application of measures andmechanisms used in the implementationfederal target scientific and technicalprogram “” Research and development onpriority areas of development of science andequipment “” for 2002-2006 while maintaining proportionsresource support for program activities.The advantages of this option areelaboration of support mechanisms,existing control system, decreasemanagement costs and the most noticeable effect inmedium-term, and the risks are fallingefficiency, crowding out private investment,preservation of the circle of active subjectsinnovation processes, exhaustiontechnological potential, narrowing the base forlong-term development;

investment option, upon implementationwhich is the formation of centersexcellence and development of scientific and technologicalbase. The advantages of this option aredevelopment of scientific and technological potential forlong-term development, increasingattractiveness of scientific activity foryoung professionals, formationinstitutional framework for research anddevelopments, implementation of certain breakthroughdirections of scientific and technological development, andrisks – incorrect choice of directionsinvestments, irrationality of the composition of purchasedtechnological complexes, freezinginvested funds, inefficiencyuse of new equipment;

partner option, in the implementation of whichmechanisms are being developedpublic-private partnership,attracting new investors, private business toparticipation in the Program, combined with strengthening theirrole in making and making decisions.The advantages of this option areexpanding the circle of innovatively activecompanies, growth of off-budget co-financing,strengthening the coordination of ongoing research anddevelopments, rationality of the choice of directionsresearch, and risks – “dilution”technological development priorities, displacementongoing research and development toshort term, growth in management costsProgram;

complex option, which is based onadvantages of these options and reducesrisks in their implementation. This option is givenpreference.

Vi. Terms and stages of solving the problemprogram-targeted method

It is proposed to implement the Programin 2007-2012 in two stages.

At the first stage (2007-2009) it is plannedaccelerated formation of a reserve forcommercialization of technology throughworks in priority thematic areasPrograms in accordance with the List of Criticaltechnologies of the Russian Federation, approvedThe President of the Russian Federation; working offmechanisms to attract additional resourcesfor the implementation of priority areastechnological development throughco-financing large studies anddevelopment of companies. On this basis, there should beensured an increase in co-financing of activities forblocks “Technology Development” and”Technology Commercialization” expansionnumber of participants in the implementation of softwaremeasures to improve the conditions of theircompetitive selection and efficiency improvementuse of management infrastructurePrograms for the benefit of companiesinterested in placing orders forResearch and development.

At the second stage (2010-2012),developing an institutional framework forlong-term sustainable development effectiveinnovation system through the formation anddevelopment of the infrastructure of this system based onintensification of investments in the development of instrumentationbases of competitive scientific organizations andhigher educational institutions, which implies the exitto a qualitatively new level of technologicalopportunities to implement breakthroughdirections of scientific and technical development;use of the formed at the first stagegroundwork for technology commercialization and growtheconomic effect; building sustainableextrabudgetary innovation support mechanisms.

Vii. Suggestions on the goals and objectives of the Program,target indicators and indicators that allowevaluate the progress of the Program implementation by years

The main goal of the Program is to develop andrealization of scientific and technical potentialOf the Russian Federation in accordance withPriority areas for the development of science,technologies and equipment in the Russian Federation.

Within the framework of the complex option, twoscenarios for the implementation of the Program, which are similar inthe composition of tasks and measures to solve them, but significantlydiffer in the intensity of activities fora number of areas, necessary resources andexpected results in solving individual problems.

The first scenario of a complex option (hereinafter -first scenario) involves lower costs andmainly aimed at solving the problemaccelerated formationscientific and technological potential, onencouraging companies to innovate andincreased extrabudgetary fundingresearch in priority areas.

The second scenario of the complex option (hereinafter -second scenario) requires more resources, but whenthis provides significant progress insolving problems such as the formationcompetitive research sector anddevelopment, developmentindustrial and technological innovationinfrastructure, attraction to scientificactivities of young professionals.

Indicators and targets to enablecontrol the solution of problems, as well as the finalresults of the Program implementation withinthe first and second scenarios are presented in Appendix N 1.

VIII. Proposals for volumes and sourcesfinancing the Program

As part of the implementation of the first scenarioforesees accelerated growth in spending onimplementation of technology development projects,at the same time, the costs of the activities of the block”Technology Development” “will be more than 50percent of the amount of financing of the Program forfederal budget account. Overall volumefinancing of the Program will amount to about 195 billion.rubles (in prices of the respective years), includingat the expense of the federal budget – 134.36 billion.rubles.

As part of the implementation of the second scenarioanticipated growth of capitalinvestments in new construction, expansion,reconstruction and technical re-equipmentcompetitive scientific organizations, withthis capital investments under the Program will amount toabout 28 percent of its funding forfederal budget account. Overall volumefinancing of the Program will amount to about 260 billion.rubles (in prices of the respective years), includingat the expense of the federal budget – 193.1 billion.rubles.

Funding volumes for each of the scenariosare presented in Appendix No. 2.

Significant (about 1.5 times at the initialstage) increase in fundingresearch anddevelopment work at the expense of fundsfederal budget versus federaltargeted scientific and technical program”” Research and development by prioritydirections of development of science and technology “” on2002-2006 is driven by the need to developnew generation technologies that requireimplementation, including procurement of advancedexpensive equipment, directionsignificant share of the Program funds forimplementation of innovative projectsstate significance, which correspondsFundamentals of the policy of the Russian Federation in the fielddevelopment of science and technology for the period up to 2010and further perspective.

Estimated implementation costsprogram activities under the first andthe second scenarios are given in Appendices 3 and 4, respectively.

Sources of funding for the Program are givenin Appendix No. 5.

IX. Preliminary estimate of the expectedefficiency and effectiveness of the proposedoptions for solving the problem

According to forecast estimates, by 2012, the implementation ofactivities foreseen in the Programwill ensure the achievement of the followingpositive effects.

Over the entire period of 1984 movie explained the Program implementation, the contribution toincrease in gross domestic productdue to the increased level of commercializationtechnologies and increased outputhigh-tech products will be 0.12 – 0.15percentage point to the level of 2006.

The expected contribution is significant from the pointview of increasing the diversification of the structureeconomy towards high-techproducts and allows you to lay the foundation forfurther growth driven by innovation.

Increase in the share of internal costs forresearch and development in gross domesticproduct will be up to 1.82 percent for the firstscenario and up to 1.83 percent – under the second scenarioimplementation of the Program. Expected effectsare significant enough compared toevolutionary development option, in whichshare of internal research costs anddevelopments in gross domestic product by 2012year will be only 1.7 percent.

One of the significant indicators of implementationThe program will be the growth of extrabudgetary funds,directed to research and development.Attraction of private sources of financingwill allow to orient the performed scientificresearch and development for market needs,will provide an increase in the level of commercializationresults of scientific and technical activities andgrowth in the capitalization of high-techcompanies, which will be reflected depending onimplementation of the first or second scenario inan increase in the share of extrabudgetary funds by 2012in internal research costs anddevelopment up to 48.38 percent and 48.53 percentrespectively.

The implementation of the Program will contribute todecrease in the share of the primary sector in the economycountries, improving the structure of exports bygrowth in the share of high-tech products andincreasing the share of high-techproducts of Russia on the world market. Whenimplementation of the first scenario sharehigh-tech products in export by 2012year will reach 10.21 percent, and in the caseimplementation of the second scenario – 10.25 percent.

In the case of the implementation of the first scenario, the specificthe weight of innovatively active companies inindustry will increase by 2012 to 18.57percent, and in the case of the second scenario- up to 18.72 percent, whereas with evolutionarydevelopment option, this indicator would beonly about 15 percent.

One of the significant effects of the implementationThe program should become the creation of objectsinnovative infrastructure designedensure the development and strengthening of ties andmutually beneficial cooperation between science,education and production, as well as withinsecond scenario – quality updatematerial and technical base of science.

In the social sphere and in education, there will beincreased demand for skilledscientific and technical personnel, their improvementage structure, rising income levelsworkers in the scientific and technical sphere, preservationjobs in this area, preventing outflowtalented part of scientific and technical personnel inother countries, preservation and development of the systemtraining qualifiedscientific and technical personnel, expansionopportunities for professional self-realizationyouth.

According to estimates, if the firstscenario by 2012 will be created about 37-40 thousand.new jobs for highly skilledworkers, and in the case of the implementation of the secondscenario, this figure will be 41-45 thousand newwork places.

X. Proposals for Federal Participationthe executive responsible forformation and implementation of the Program

Responsible for the formation and implementationPrograms are the Ministry of Education andScience of the Russian Federation, FederalAgency for Science and Innovation and Federaleducation agency.

XI. Proposals for government customers andProgram developers

Ministry of Education and Science of the RussianFederation is a government customer -coordinator of the Program. Federal agencyfor Science and Innovation and the Federal Agency foreducation are publiccustomers of the Program, and MoscowState University named afterM.V. Lomonosov – the state customerState capital programsattachments. The developers of the Program areMinistry of Education and Science of the RussianFederation and Federal Agency for Science andinnovation.

Financing of construction and reconstructionobjects of state scientific centers,included in the Program, is carried out inestablished order through the mainadministrators of budgetary funds, to the jurisdictionof which the indicated objects are assigned.

XII. Proposals for the main directionsfinancing, timing and stages of implementationPrograms

The need for resource provision of the Programcalculated based on the assessment of softwareactivities in the areas of financing andtasks by year.

To ensure the effect of implementationprogram activities include:

increase in expenses for block activities”Technology Development” “to direct, beforein total, for the implementation of complex projects. INthe current volume of expenditures for this blockdoes not allow to ensure the performance of work onmost directions in accordance withThe list of critical technologies of the RussianFederation, which leads to the exhaustion of the base forformation of new large projects fortechnology commercialization;

reduction in the first stage of expenses foractivities of the block “” Commercializationtechnologies “”. Starting from the second stage, there will beconditions have been created to expand supporttechnology commercialization projects asobtaining results in a wider rangecomplex projects;

involvement in the implementation of projectsteachers, graduate students and students, as wellleading scientific schools within the block “Generationknowledge “”. It is necessary to stimulate the flowyoung cadres in science, promote the developmentthe most viable and effectivesubdivisions of scientific organizations, creativecollectives;

growth of expenses under the Program within the block”” Infrastructure of the innovation system “especially at the second stage of the Program. It is necessarysubstantial information support andupdating the instrument base of organizations,focused on breakthrough directionstechnological development. Without such projectsit is impossible to provide the prerequisites for the transition fromtrade in knowledge to trade in technology,preserve and expand the share of Russia in the worldhigh technology market.

The most important principle of the Program implementationis to maximize the attraction of extrabudgetaryfinancial resources to carry out thoseactivities of the Program that may havecommercial focus.

Funding proposalsPrograms for 2007-2012 at the expense of fundsfederal budget and other sources arepredictive nature and are subject to annualclarification in the prescribed manner whenformation of federal budget projects,federal targeted investment programfor the corresponding year, taking into account the annualclarification of the list and scope of softwareactivities, timing and stages of their implementation inaccording to the results achieved.