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 inrastructure and a weak regulatory environment, are restricting thepotential or technology and innovation to drive Russia’s productivity growth. Thereare specic 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 enablestransormation o business processes and applications andimproves organizational eectiveness. Innovation, which otenleads to the creation o new products and services, theimprovement o existing oerings or the creation o new business models, is also a key contributor to productivity growth. Technology and innovation also reinorce each other,thus enabling urther positive impact on productivity.Currently, the productivity improvements that can be derivedrom 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 perormance. 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 reasonsor 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 perormance. Russia’s poor innovation input isrefected in relatively low expenditure on research anddevelopment (R&D). In addition, Russia perorms well below Organisation or Economic Co-operation and Development (OECD) averages on innovation output measures such aspatents and number o scientic articles published.
By Susanne Dirks and Mary Keeling