Unclaimed Innovations Are not Innovations

Even a materialized innovative idea does not become an innovation in the absence of a consumer. In today’s Russia such product can be an ideal tool for budget “skimming”, or – which happens far less frequently – it can turn into an innovation abroad.

 

Innovations can only emerge in the conditions of a developing economy based on acute competition between the manufacturers of goods and services.

 

An innovator is not an inventor, nor a man of science and technology, an innovator is a business man [1,2].

 

The concept of innovation is interpreted in the Oxford Dictionary [3] as any new approach to the development, manufacturing or sales of products resulting in the company gaining a competitive advantage.

 

In this context the question arises, can we talk about an innovation where there is no competitive environment? What is then the sense to require innovative solutions from scientists and specialists?

 

The country needs serious reforms that can stimulate the creation of a favorable environment for the development of domestic industrial and postindustrial businesses, an environment in which innovations will turn out to be in demand and finally there will be an opportunity for implementing our national innovative capacity.

 

[1] V.P.Vaschenko "From implementation" to "awareness” and "coercion": about innovations and their derivatives", Materials of RIEP (Regional Infrastructure of Electronic Government), 2009.

[2] J. Schumpeter, "The Theory of Economic Development: Inquiry into Profits, Capital, Credit, Interest and Business Cycle", Cambridge, 1934.

[3] Business: The Oxford Defining Dictionary. M.: Progress - Academy RSTU (Russian State University of Technology), 1995.

 

Going Away to Come Back

Russia lacks a market of advanced consumer electronics due to a number of factors, including local investors disinterest in high CAPEX projects and a long payback period.

 

As a result, Russian developers and manufacturers of radio electronics turned their attention to the rapidly growing economies of Southeast Asian states where the production and consumption of high-technology products increase.

 

This fact, along with Government support through the specially established Russian Export Center (REC) https://www.exportcenter.ru, raise interest to the incorporation of joint ventures (JV) with Russian participation in these regions.

 

Such ventures can become centers for turning promising Russian R&D solutions into innovations, i.e., ensuring their demand in markets worldwide.

 

The optimum cooperation variant is to include Russian R&D solutions in the highly demanded final products of local manufacturers.

 

If the ownership of the technologies and developments remains with Russian companies, these solutions can become a significant item of Russian export and stimulate the development of domestic radio electronics.

 

In turn, JV products can come to the Russian market and challenge the renowned foreign suppliers in a competitive battle.