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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
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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.
 
Introduction
Russia
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.
 
Introduction
 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.
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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.
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By Susanne Dirks and Mary Keeling 

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