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Us en Us Government Gbe03244usen

Us en Us Government Gbe03244usen

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Published by Raj Mansuri

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Published by: Raj Mansuri on Jan 22, 2013
Copyright:Attribution Non-commercial


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IBM Global Business Services
Strategy and Change
Execuive Repr
Russia’s productivity imperative
 Leveraging technology and innovationto drive growth
IBM Institute for Business Value
IBM Institute for Business Value
IBM Global Business Services, through the IBM Institute or Business Value, developsact-based strategic insights or senior executives around critical public and privatesector issues. This executive brie is based on an in-depth study by the Institute’sresearch team. It is part o an ongoing commitment by IBM Global Business Services toprovide analysis and viewpoints that help companies realize business value. You may contact the authors or send an e-mail to iibv@us.ibm.com or more inormation.
has set ambitious productivity and innovation goals as part o itsstrategic Concept 2020 plan. To achieve them, however, the country needs to addresstwo key areas: technology and innovation. A number o actors, including inadequatetechnological inrastructure and a weak regulatory environment, are restricting thepotential or technology and innovation to drive Russia’s productivity growth. Thereare specic actions companies and the government can take now to improve thelikelihood that Russia will meet – and perhaps even exceed – its productivity andinnovation targets.
 As part o its strategic Concept 2020 plan, the Russian govern-ment has set a goal to more than double its annual productivity growth, as well as to drive technological innovation.
Toachieve these interrelated strategic goals, Russia needs to pay special attention to the crucial areas o technology andinnovation, especially in its largest companies within key sectors, which have the greatest impact on productivity. Technology is a major driver o productivity, as it enablestransormation o business processes and applications andimproves organizational eectiveness. Innovation, which otenleads to the creation o new products and services, theimprovement o existing oerings or the creation o new business models, is also a key contributor to productivity growth. Technology and innovation also reinorce each other,thus enabling urther positive impact on productivity.Currently, the productivity improvements that can be derivedrom technology and innovation are not ully leveraged by either Russian companies or the Russian government. To drive productivity growth, Russian companies need toimprove their technology adoption and use, as well as theirinnovation perormance. Use o the Internet and online publicservices by Russian businesses lags that o global leaders, andRussian companies have not yet tapped the potential o technology to improve business processes. One o the reasonsor the low levels o technology use is the inability o Russiancompanies to absorb new technology, as well as relatively weak technical skills. Russian companies also lag global leaders ininnovation inputs and outputs – the determinants o overallinnovation perormance. Russia’s poor innovation input isrefected in relatively low expenditure on research anddevelopment (R&D). In addition, Russia perorms well below Organisation or Economic Co-operation and Development (OECD) averages on innovation output measures such aspatents and number o scientic articles published.
By Susanne Dirks and Mary Keeling 

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