Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11

-
Innovation, Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA.
! All Rights Reseiveu to the Benefit of the Ioint Authois.
5c|ence, 1echno|ogy and Innovat|on
A comparaLlve sLudv of Lhe fleld as seen ln 8ussla, !apan, Lhe uSA
and Lhe klnadom of Saudl Arabla
unlverslLv of neuchaLel
8akor Al-1avar
SveLlana 1ernovskava

ÞkLÞAkLD WI1n nLLÞ IkCM ¥.k. GI88
31/03/2011
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 -
Innovation, Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA.
! All Rights Reseiveu to the Benefit of the Ioint Authois.
1A8LL CI CCN1LN15
IN1kCDUC1ICN
CCUN1k¥ CVLkVILW:
• uSA
• 8ussla
• !apan
• klnadom of Saudl Arabla
ÞkL5LN1 CCN51kAIN15
l. LducaLlon
l.A. Lack of unlverslLv research
l.8. lnLernaLlonallzaLlon of lnsLlLuLlons lacklna
l.C. 8raln uraln/8everse 8raln draln
ll. 8uslness CrlenLed ConsLralnLs
ll.A. lnsufflclenL lncenLlves for enLrepreneurs
ll.8. A low level of enLrepreneurlal culLure
ll.C. Ceneral Þroblem of LnLrepreneurlal LducaLlon
lll. llnanclna ConsLralnLs and 1helr 8amlflcaLlons
IU1UkL CCN51kAIN15
l. LducaLlon
l.u. Low lnLernal demand for sclence
l.L. unflL sLudenLs vlcLlm of lmproper academlc resources
l.l. 1he Aalna ÞopulaLlon of 8esearchers
5CLU1ICN5
lncubaLors
SclenLlflc LducaLlon
lnLernaLlonallzaLlon:
lndlaenlzlna 1echnoloav
llahLlna Lhe braln draln and reverse braln draln Lrends
lncenLlvlzlna enLrepreneurshlp ln Lechnoloav
SoluLlons for verv llmlLlna and consLrlcLlna condlLlons
lÞ relaLed lssues: Lhe uSA example
CCNCLU5ICN5 AND kLCCMMLNDA1ICN5
Annex
8|b||ography
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
Sclence and Lechnoloav have lona been reaarded as lmporLanL deLermlnanLs of economlc arowLh
1
.
Slnce Lhe advenL of Lhe lndusLrlal revoluLlon, Lechnoloav has conLlnued evolvlna and empowerlna
man. WlLh Lhls evoluLlon came a areaLer emphasls on Lhe realm of ldeas, wlLh Lhe underllnlna of Lhe
lmporLance of lnLellecLual properLv rlahLs and knowledae Lransfer Lo auaranLee economlc reward.

1he lmporLance of sclence and Lechnoloav ls hlahllahLed when one conslders Lhe freneLlc
pace aL whlch lnnovaLlon has been aolna over Lhe lasL decade. lndeed, companles are flndlna
Lhemselves obllaed Lo creaLe and launch new producLs more frequenLlv because of shorLer producL
llfe spans. AddlLlonallv, conslderlna LhaL lnLellecLual properLv rlahLs over a producL are belna aranLed
for shorLer perlods of Llmes, companles flnd Lhemselves obllaaLed Lo lnnovaLe qulcklv Lo be able Lo
proLecL Lhelr lnvesLmenLs.

?eL, socleLv has evolved Lo allow for such a freneLlc pace of lnnovaLlon. lndeed, cheap and
easv access Lo new dlalLal Lechnoloales such as broadband, lnLerneL and moblle phones have
acceleraLed Lhe dlffuslon of besL pracLlce Lechnoloales, revoluLlonlzed Lhe lnLernal and exLernal
oraanlzaLlon of research and faclllLaLed Lhe lmplanLaLlon abroad of companles' research and
developmenL cenLers. WlLh seamless meLhods of communlcaLlon and exchanae value creaLlon ls
faclllLaLed. 8v allowlna for ldeas Lo be exchanaed so easllv a beLLer and more efflclenL use of
knowledae ls made: new producLs and process Lechnoloales can be made Lhrouah reuses and novel
comblnaLlon of knowledae developed elsewhere. 1hese are exclLlna Llmes for lnnovaLlon.

WlLh lncreased communlcaLlon also comes furLher developmenL of alobal lnsLlLuLlonal
frameworks llke Lhe World 1rade CraanlzaLlon, and World lnLellecLual ÞroperLv CraanlzaLlon LhaL
aovern lnLernaLlonal knowledae flows. ÞroaenlLors of an ldea or producL LhaL ls comblned or reused
wlLh oLher producLs or ldeas see Lhelr efforLs proLecLed and rewarded. WlLh Lhls securlLv, ldeas are
more wllllnalv shared, Lherefore allowlna for areaLer Lransparencv and exchanae ln sclence. 1hls
lncrease ln knowledae comes aL a Llme where 8&u lnvesLmenLs are belna boosLed bv aovernmenLs
and lndusLrv allke, and sLudenLs are lncreaslnalv slanlna up for sclence orlenLed sub[ecL maLerlal of
concenLraLlon.

1here are baslc Lerms LhaL musL be undersLood before underLaklna Lhe sub[ecL of Sclence,
1echnoloav and lnnovaLlon. Sclence ls undersLood as Lhe search for knowledae based on observed
facLs and LruLhs (nlahLlnaale, 1998). 1echnoloav ls Lhe appllcaLlon of new knowledae learned Lhrouah
sclence Lo a pracLlcal problem. 1he Lerm lnvenLlon parallels Lhe Lerm sclence ln LhaL lL ls Lhe creaLlon
of someLhlna new. Slmllarlv, lnnovaLlon shares Lhe LralL of pracLlcallLv wlLh Lechnoloav, for
lnnovaLlon ls an lnvenLlon LhaL ls puL ln Lo pracLlcal use. lnnovaLlon can Louch dlfferenL aspecLs of
creaLlon, lL can perLaln Lo a new producL, a new process, a new oraanlzaLlon meLhod or oLher, LhaL
adds value Lo an economlc acLlvlLv.

?eL, beLween lnvenLlon and lnnovaLlon Lhere lavs a supremelv lmporLanL process lnvolvlna
Lhe oraanlzaLlon of resources almlna for Lhe producLlon of an lnnovaLlon. 1hls process ls
enLrepreneurshlp. 1he enLrepreneur has Lhe ablllLv Lo recoanlze Lhe commerclal poLenLlal of an
lnvenLlon (be lL hls or noL), and can brlna LoaeLher caplLal, LalenL and oLher resources needed Lo
make Lhe lnvenLlon a commerclallv vlable lnnovaLlon.

1he requlremenL for such a process Lo sLarL ls Lhe access Lo research and developmenL
faclllLles. 1hese exlsL ln dlfferenL fashlons and are alwavs needed for Lhev provlde a sLock of
knowledae LhaL allows for percelvlna commerclallv vlable opporLunlLles and for Lhe flrm Lo fosLer
acLlon. llrms elLher produce lnnovaLlons bv enaaalna ln 8&u, or lnLroduce Lhem bv provldlna
creaLlve lndlvlduals wlLh an envlronmenL conduclve for Lhe blossomlna of Lhelr LalenLs, buL wlLhouL
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
enaaalna ln 8&u acLlvlLles. 8&u faclllLles can be qulLe cosLlv and ouL of reach for smaller flrms, lL ls
whv conLracL laboraLorles beaan formlna.

?eL noL all 8&u ls performed bv Lhe prlvaLe secLor. 1he Sclence CommlLLee of Lhe naLlonal
8esrouces CommlLLee lssued a reporL ln 1938 enLlLled : º8esearch - A naLlonal 8esource" sLaLes LhaL
º Lhe aovernmenL ls beLLer equlpped Lo carrv on research ln cerLaln flelds of sclence Lhan Lhe prlvaLe
secLors, because research ls cosLlv ln proporLlon Lo lLs moneLarv reLurn, buL ls of hlah pracLlcal or
soclal value". A 1943 reporL bv 8ush enLlLled: ºSclence - 1he Lndless lronLlere" explalned LhaL
enaaalna ln 8&u acLlvlLv ls lmporLanL Lo malnLaln a compeLlLlve advanLaae over oLher naLlons. A
1947 reporL bv SLeelman enLlLled ºSclence and Þubllc Þollcv" recoanlzes Lhe need for baslc research
and how lL creaLes emplovmenL and producLlon, and also menLlons Lhe lncreaslna cosL of dlscoverv.
A 1937 paper bv Lhe economlsL 8oberL Solow conflrms Lhe lmporLance of 8&u, as he calculaLed LhaL
more Lhan 87° of economlc arowLh couldn'L be explalned bv Lhe arowLh ln caplLal and labor. 8omer,
1986 and 1994, wlLh hls new arowLh Lheorv emphaslzes Lhe lnfluence of Lechnoloales, efflclencles
LhaL splllover lnLo a flrm's producLlon funcLlon elLher from oLher flrms or from aeneral advances ln
Lhe economv. We see Lodav LhaL Lhe world aovernmenLs have headed Lhls messaae, wlLh Lhe uSA
lncreaslna lLs 8&u expendlLures from 87 bllllon dollars ln 2007, Lo 111.421 bllllon uS$ ln 2011.

All sLraLa of Lhe prlvaLe secLor sLrlve Lo enaaae ln 8&u acLlvlLles alona wlLh Lhe aovernmenL.
Where Lhe uS federal aovernmenL spenL 111.421 bllllon uS$ on 8&u ln 2011, Lhe prlvaLe secLor
spenL 260 bllllon. AaareaaLe nSl daLa show LhaL SMLs based lnvesLed 64 bllllon uS$ ln 8&u ln 2010,
compared Lo 30 bllllon uS$ ln 1997
2
. 1hese larae numbers are undersLandable when one conslders
LhaL Lhe averaae raLe of reLurn for prlvaLelv funded 8&u ranaes beLween 30° and 30°. uesplLe Lhe
dlfference ln lnvesLmenLs, small flrms are [usL as lnnovaLlve as larae flrms ln aeneral, buL Lhe laLLer
have Lhe lnnovaLlve advanLaae ln cerLaln lndusLrles (such as pharmaceuLlcals and aeronoLlcs), and
Lhe former have Lhe advanLaae ln oLhers (such as sofLware and bloLech).

1haL sald, blaaer flrms have a areaLer propenslLv Lo paLenL Lhan smaller flrms. ?eL smaller
flrms relv more on knowledae splllovers from exLernal sources, such as unlverslLles and companles
for Lhe lnnovaLlon processes and Lhus beneflL mosL from aovernmenL expendlLures, laboraLorles and
academla. WlLh Lhls, Lhev have a areaLer knowledae absorpLlon capaclLv Lhan laraer flrms. Small
flrms also have a areaLer capaclLv Lo explolL knowledae embodled ln new emplovees Lhan blaaer
flrms. new and small flrms provlde Lhe opporLunlLv for creaLlve lndlvlduals Lo lmplemenL new ldeas
LhaL oLherwlse would be re[ecLed or would remaln unexplolLed ln an oraanlzaLlonallv rlald flrm lL ls
Lhe reason whv manv Cooale emplovees are ceaslna Lo work for Lhe web behemoLh, chooslna Lo [oln
new sLarL ups and Lo bulld Lhelr own. Cooale has slnce Lrled Lo remedv lLs enLrepreneurlal
vlclsslLudes.

1he quesLlon beas Lo be asked: whv do SMLs lnnovaLe? 1he sLereoLvplcal ldea one recelves ls
LhaL a companv ls bullL upon and draws lLs compeLlLlve advanLaae from an lnnovaLlve ldea. 1he
momenL afLer such a companv ls launched, lLs onlv focused ls Lo arow qulcklv and efflclenLlv enouah
Lo remaln afloaL and Lo Lhlcken lLs maralns lona enouah Lo become an lnLeresLlna LaraeL for an
acqulslLlon bv a blaaer companv. 1here ls no Llme for a sLarLup Lo lnnovaLe furLher on an lnnovaLlve
producL, buL lnnovaLlon ls noL llmlLed onlv Lo a producL, buL also Lo a process, be lL LhaL of
producLlon, Puman 8esource ManaaemenL, or lnnovaLlon manaaemenL lLself
a
. lurLhermore, noL all
SMLs are Lechnoloav orlenLed and noL all of Lhem are dedlcaLed Lo becomlna world level
mulLlnaLlonals. Some are buL a mere coa ln Lhe complex machlnerv LhaL are Lhe supplv and
producLlon chaln of laraer mulLlnaLlonals. 1hese Loo can beneflL from lnnovaLlna ln Lhelr processes Lo
cuL cosLs and lncrease efflclencv.


Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.

1he CovernmenL's role ln lnnovaLlon revolves around mlnlmlzlna barrlers Lo Lechnoloav and
markeL fallure whllsL promoLlna lnnovaLlon acLlvlLles.
b
MarkeL fallures happen when flrms under
lnvesL for fear LhaL Lhelr prlvaLe reLurn ls less Lhan Lhelr prlvaLe hurdle raLe (mlnlmum accepLable
raLe of reLurn on Lhelr 8&u lnvesLmenL). 1hls ls of publlc concern when Lhe 8&u lnvesLmenL noL
underLaken ls soclallv deslrable
c
. 1o counLer Lhese lssues and Lo promoLe 8&u, aovernmenLs have
varlous Lools aL lLs dlsposal lncludlna: paLenL laws, Lax lncenLlves, lmproved envlronmenL for
collaboraLlve research, and subsldles Lo fund research.

1he ÞaLenL SvsLem ls qulLe lmporLanL as lL allows for creaLors Lo Louch Lhe reward of Lhelr
work for a perlod of Llme, Lhus provldlna lncenLlve for people Lo creaLe and lnnovaLe. 1ax lncenLlves
and subsldles have advanLaaes and dlsadvanLaaes. 1he beneflLs are LhaL Lhe aovernmenL doesn'L
lnLerfere ln Lhe markeLplace as much as lL would wlLh oLher mechanlsms, requlres less paper work
Lhan oLher proarams, and are hlahlv pollLlcallv feaslble. Cn Lhe oLher hand, such lnlLlaLlves can be
exLremelv cosLlv for a aovernmenL and can undermlne publlc accounLablllLv wlLhouL ensurlna Lhe
deslred effecLlveness.

ÞrlvaLe and publlc aaenLs plav a role ln lnnovaLlon, and Lhev ofLen work LoaeLher. 8esearch
parLnershlps are an oraanlzaLlonal form LhaL can reduce Lechnlcal rlsk Lo Lhe 8&u conducLlna flrms
bv enlaralna Lhe underlvlna knowledae base. 1he collaboraLlon can be beLween compeLlLors,
complemenLarv aaenLs, even lncludlna academla and aovernmenL. 1he parLners can alm Lo develop a
new producL, lmprove producLlon processes, seL sLandards, or develop Lechnoloav Lo meeL
envlronmenLal reaulaLlon eLc.
3


under such a framework, parLlclpanLs can capLure knowledae splllovers from oLher
members, cosLs are reduced Lhanks Lo reducLlon of dupllcaLlve research, Lhere's a fasLer
commerclallzaLlon, and can form an lndusLrv wlde compeLlLlve vlslon. ?eL such a framework
ellmlnaLes Lhe posslblllLv for proprleLorshlp of dlscoverv for resulLs are shared amonasL parLlclpanLs.

lL ls lmporLanL Lo underllne Lhe cruclal role LhaL academla plavs ln lnnovaLlon, 8&u and
Lechnoloav. lndeed, ln Lhe uSA Lhe Lop 20 sLaLes accounL for 86° of all 8&u expendlLures, and house
some of Lhe mosL presLlalous unlverslLles (SLanford, Ml1 eLc.). llrms Lrv Lo lnLeracL wlLh unlverslLles,
aolna so far as Lo fund research LhaL can beneflL Lhem. 1hls ls noL alLrulsLlc, lndeed flrms LhaL lnLeracL
wlLh unlverslLles Lend Lo have areaLer 8&u producLlvlLv and areaLer paLenLlna acLlvlLv. A kev moLlve
for flrms Lo malnLaln a [olnL research relaLlonshlp wlLh unlverslLles ls Lo have access Lo a reservolr of
cheap labor Lhrouah sLudenLs LhaL supporL unlverslLv research, barLerlna Lhelr below markeL waae
raLe for Lralnlna. unlverslLles also offer flrms sLudenLs LhaL can evenLuallv become emplovees.

?eL recenL lssues have emeraed wlLh Lhe masslve lnflux of lmmlaranLs ln Lhe wesLern world.
CfLen, Lhev come as sLudenLs and Lhouah Lhev would llke Lo sLav ln Lhe counLrv Lhev were LauahL ln,
Lhev flnd Lhemselves forced Lo leave. ?eL, as lL happens, ofLen lL ls Lhese lmmlaranLs LhaL are
responslble for some slanlflcanL venLures. Companles and counLrles musL compeLe for LalenL, flahLlna
aaalnsL Lhe ºbraln draln" phenomenon and Lrvlna Lo aLLracL Lop LalenL.

lor Lhls sLudv on Lhe lnLernaLlonal sLaLus of lnnovaLlon bv SMLs, Lhe auLhors have chosen Lo
sLudv !apan, Lhe uSA, Lhe klnadom of Saudl Arabla (kSA), and 8ussla. 1hese counLrles were chosen
for Lhelr dlverslLv ln Lhelr approaches Lo lnnovaLlon, sclence and Lechnoloav. lndeed, !apan and Lhe
uSA are counLrles LhaL have presenLed Lhe world wlLh producLs LhaL are wonders of Lechnoloav



Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
Lhouah Lhev have dlfferenL culLures and meLhods of creaLlna such lnnovaLlons. Cne need onlv Lhlnk
of Lhe Clsco, Apple, facebook, Cooale and MlcrosofL ln Lhe uSA, nlnLendo, 1ovoLa, nlssan and 1ovoLa
ln !apan for examples of lnnovaLlve excellence. Cn Lhe oLher hand, 8ussla and kSA are naLlons LhaL
are behlnd ln Lerms of lnnovaLlon. Whereas kSA ls a vouna counLrv wlLh areaL resources and wlll Lo
become a knowledae based economv, 8ussla was one of Lhe mosL advanced naLlons ln Lerms of
Lechnoloav ln Lhe davs of communlsm. Slnce Lhe fall of Lhe sovleL block, lL has sLruaaled Lo come back
Lo lLs hlsLorlcal poslLlon. 1hls sLudv wlll provlde a comparlson beLween Lhe dlfferenL approaches
Lhese dlfferenL counLrles are uslna Lo sLlmulaLe lnnovaLlon and proaress ln SMLs.

1hls sLudv wlll applv Lhe concepLs and elemenLs menLloned above Lo each counLrv. As such,
Lhe level of aovernmenL parLlclpaLlon wlll flrsL be elucldaLed, convevlna Lhe dlfferenL Lechnlques
dlfferenL aovernmenLs are aLLempLlna Lo promoLe lnnovaLlon, Lhrouah Lax lncenLlves, paLenL laws
eLc. ln a second parL, Lhe role and performance of academla wlll be brouahL forLh, followed bv Lhe
sLaLe of enLrepreneurshlp ln each counLrv. CLher facLors wlll be consldered as well Laklna ln Lo
accounL Lhe parLlcularlLles of each conLexL, such as lmmlaraLlon and collaboraLlon beLween varlous
aaenLs of lnnovaLlon. ln a second parL, Lhe problems, barrlers and oLher aeneral lnefflclencles faced
bv each one of Lhe aforemenLloned counLrles ln pushlna lnnovaLlon forward wlll be presenLed.
SoluLlons Lo Lhe problems wlll be Lhen presenLed.
!
"#$%&'(!)*+'*,+-.!/01!
!
1he unlLed SLaLes ls home Lo Lhe areaLesL 8&u budaeLs around Lhe world. lndeed, Lhe federal
budaeL for 8&u ls of 2011 ls of 111.421 bllllon uS$ (represenLlna a .3° lncrease Lo 3° of LoLal CuÞ)
desplLe a recenL and shv exlsL from a heavv economlc recesslon and rlsk a relapse
4
. 1he lmporLance
of lnvesLmenLs ln 8&u Lo malnLaln compeLlLlveness ls hlahllahLed bv Lhe facL LhaL ln 2011 Lhe prlvaLe
secLor more Lhan doubled Lhe lnvesLmenL bv Lhe federal aovernmenL, ralslna spendlna on 8&u Lo
260 bllllon uS$
3
.

1he uSA has conslsLenLlv lnvesLed more monev ln 8&u Lhan Lhe resL of Lhe C8 counLrles
comblned. lLs share of Lhe C8 budaeL for 8&u has been beLween 48 and 33°
6
. 1hese hlah
lnvesLmenLs also explaln whv Lhe uSA ls Lhe counLrv LhaL leads Lhe world when lL comes Lo sclenLlflc
ouLpuL. ln absoluLe Lerms, Lhe uSA has a world share of 28° of publlshed paLenLs
7
.

lL ls also no surprlse LhaL Lhe uSA be Lhe blaaesL plaver ln Lerms of Lechnoloav and lLs
advancemenL. As seen ln Lhe lnLroducLlon, Lhe uSA aovernmenL was vehemenLlv encouraaed bv
sclenLlsLs and economlsLs allke Lo lnvesL ln research ln developmenL Lo flnd lnnovaLlons and
lnvenLlons LhaL would boosL Lhe uSA's economlc rank. 8elna as larae as lL ls and endowed wlLh wlde
ranae of naLural resource, a verv dlverse ranae of buslness secLors and a dlverse populaLlon, Lhe uSA
was seL up for Lechnoloalcal domlnance. WhaL Lrulv placed lL ln pole poslLlon ln Lerms of lnnovaLlon,
sclence and Lechnoloav, are lLs hlsLorlcal world class unlverslLles, healLhv lnLellecLual properLv
svsLem, and Lhe facL LhaL lL moved flrsL and lnLenselv Lowards developlna sclence, Lechnoloav and
lnnovaLlon compared Lo oLher naLlons.

lndeed, Lhe rush Lowards sclenLlflc and Lechnoloalcal domlnance sLarLed wlLh Lhe lndusLrlal
revoluLlon and has plcked up even more afLer World War ll wlLh Lhe race for nuclear power aaalnsL
nazl Cermanv followed bv a race for economlc domlnance aaalnsL Lhe CommunlsL 8lock. 1he
lncenLlves Lo lnvesL ln sclence, Lechnoloav and lnnovaLlon were economlc and defenslve.

Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
8lch wlLh over 130 vears of collaboraLlon beLween Lhe federal aovernmenL, aaencles, buslnesses,
oraanlzaLlons and academla for Lhe promoLlon of sclence lnnovaLlon and Lechnoloav, Lhe uSA has a
well lnLearaLed svsLem LhaL promoLes lnnovaLlon more Lhan anv oLher counLrv.

Cn Lop of LhaL, Lhe uSA ls rlch wlLh an enLrepreneurlal culLure LhaL promoLes self-sufflclencv and
creaLlve problem solvlna from a verv vouna aae. Chlldren are encouraaed Lo do chores for monev
and Lo work ln school socleLles Lo aeL a beLLer feel for Leamwork. lreedom of speech, rellalon,
LhouahL and Lhe Lransparencv of a democraLlc svsLem allows for Lhe Amerlcans Lo feel enaaaed and
able Lo lmpacL Lhelr counLrv's slLuaLlon. 1he Amerlcans have Lhe audaclLv Lo belleve LhaL Lhelr ldea
can chanae Lhe world, as have SLeve !obs and Mark Zuckerbera.

8uL Lhe slLuaLlon ls noL perfecL. Amerlcan publlc schools are an Achllle's heel wlLh some verv
averaae maLh and sclence scores compared Lo Lhe resL of Lhe world. 1he besL educaLlon, from Lhe
arade school level Lo Lhe unlverslLv level, ls found ln prlvaLe lnsLlLuLlons LhaL requlre far-Loo-hlah an
lnvesLmenL for mosL.

Small buslnesses have an lmmenselv lmporLanL role ln Lhls conLexL. 23 mllllon of Lhem exlsL ln
Lhe uSA and accounL for 30° of Lhe non-farm CnÞ, creaLe beLween 60 and 80° of Lhe neL new [obs
and are 13 Lo 14 Llmes more lnnovaLlve per emplovee as larae flrms are.
8


u.S. research and developmenL spendlna aL home and abroad LoLalled $330 bllllon ln calendar
vear 2008, accordlna Lo naLlonal Sclence loundaLlon 2009 reporL enLlLled Lhe "8uslness 8&u and
lnnovaLlon Survev." ln 2008, companles wlLh fewer Lhan 300 emplovees accounLed for 11 percenL of
worldwlde sales for all u.S. companles, buL 19 percenL of research spendlna. 1he same survev
reporLed LhaL companles wlLh more Lhan 23,000 emplovees accounLed for 42 percenL of alobal sales,
buL [usL 36 percenL of research ouLlavs. verv small companles (Lhose wlLh 3 Lo 24 emplovees) spenL
$3 bllllon - or aL leasL 30 percenL more Lhan all oLher small flrms (Lhose wlLh fewer Lhan 300
emplovees) - pavlna oLhers Lo do research. 1he LlnlesL of companles also had Lhe mosL research ($3
bllllon worLh) pald for bv oLhers.

Þerhaps noL surprlslnalv, pharmaceuLlcal companles, as well as compuLer and elecLronlc
producLs makers spenL Lhe mosL of all manufacLurlna lndusLrles on research and developmenL: abouL
$70 bllllon aplece. 1he medlclne lndusLrv also spenL far more Lhan anv oLher on hlrlna ouLslders Lo do
research: $17 bllllon, or 23 percenL. 1he nexL blaaesL spender on ouLsourced research - Lhe moLor
vehlcles, Lrallers, and parLs lndusLrv - spenL [usL $4 bllllon.
9


As of Lhe presenL momenL Lhe uSA ls rlpe for areaL lnnovaLlve sLrldes Lhanks Lo lLs lnLearaLed
oraanlzaLlon and lLs removal of barrlers. lndeed, asldes from Lhe colossal amounLs of monev
avallable for research, a reverse braln draln Lrend was sLlfled bv a recenL leaal proposal LhaL has veL
Lo show lLs frulLs, Lhe ban on sLem cell research has been llfLed, and a areaL focus ls placed on enerav
and susLalnablllLv. lurLhermore, Lhe uSA ls placed 3
Lh
ln Lhe world ºLase of uolna 8uslness" ranklnas,
maklna lL a verv aLLracLlve locaLlon for lnnovaLors and enLrepreneurs
10
. 1he quesLlons remalns Lo see
how Lhe uSA plans Lo use lLs asseLs Lo reach lLs aoals of advanclna lnnovaLlon.
!
"#$%&'(!)*+'*,+-!.!2$33,4!!

uesplLe Lhe facL LhaL 8ussla possesses hlahlv quallfled and experlenced personnel ln Lhe
sclenLlflc-Lechnlcal secLor, solld caplLal asseLs, and slanlflcanL sclenLlflc developmenLs, for pasL vears
lnnovaLlon process has been raLher slow. ln Lheorv Lhls counLrv has more Lhan enouah, however
someLhlna ls alwavs mlsslna. 1he lnnovaLlon aap ln 8ussla sLarLed aL Lhe collapse of Lhe SovleL unlon:
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
lnvesLmenL ln 8&u fell dramaLlcallv. 1he uSS8 breakdown parLlcularlv affecLed Lhe lndusLrlal/mlllLarv
complex, Lo whlch mosL 8&u lnvesLmenL was dlrecLed. Whlle Lhe re[uvenaLlna 8ussla lmporLed new
markeL economv model from Lhe WesL, Lhe lmporLance of lnsLlLuLlonal lnfrasLrucLure was nealecLed
(M.CervanLes and uanlel Malkln, CLCu observer). 1hls led Lo more Lhan 10 vears of reforms resulLlna
ln a rulned economv, Lhe devasLaLlon of mlddle class, Lhe creaLlon of cronvlsm and mafla caplLallsm
and Lhe eroslon of ºsoclal caplLal" (SLlallLz, 2002). Speaklna of lmlLaLlons, Lo lure back LalenLs 8usslan
offlclals declded Lo bulld a aaLed resldenLlal communlLv (lCorod) remlnlscenL of Slllcon vallev,
blessed wlLh $200 mllllon aovernmenL monev
11
. Powever, mlaraLed sclenLlsLs do noL hasLen Lo Loll
Lhere.

1he ma[orlLv of 8usslan labor force (73.33 mllllon) ls occupled ln servlce secLor 38.1° and onlv 31.9°
ln lndusLrv
12
. 1he number of vouna populaLlon (under 13) puL LoaeLher 14.7° whlch exceeds Lhe
number of elderv populaLlon (over 63) 13.3°
13
. 1hls alves hope LhaL 8ussla wlll noL be shorL of
human resources, Lhouah Lhe unemplovmenL raLe ls of 7.6°.

ln 2008, Lhere were 761 300 people enaaaed ln 8&u ln 8ussla, lncludlna researchers, Lechnlclans and
supporL sLaff. 1hls represenLed 1.3° of Lhe labor force, or 0.6° of Lhe LoLal populaLlon. 40° of
8usslan researchers have oversLepped Lhe offlclal reLlremenL aae of 33 vears for women and 60
vears for men. 1hls creaLes poLenLlal problem of aalna sclenLlflc populaLlon. As a resulL, 8ussla ranks
10Lh aloballv ln Lerms of Lhe number of people enaaaed ln 8&u per 10 000 emplovees buL 19Lh ln
Lerms of researchers.

)*+'*,+-!.!5464%!

8elna a Lechnoloalcallv advanced economv, !apanese sclence and lnnovaLlon ls a Lop performer ln
several areas. !apan's CL8u on 8&u was of 3.4° of CuÞ ln 2008 (Lhlrd hlahesL ln Lhe CLCu). 1he
llon's share aoes from Lhe prlvaLe secLor (77.9 ° of CL8u) whlle Lhe publlc secLor accounLs for onlv
20.4 °.

lollowlna Lhe passaae of Lhe Sclence and 1echnoloav 8aslc Law ln 1993, flve-vear plans for
lnvesLlna ln S&1 were lnLroduced wlLh Lhe alm of lmprovlna Lhe research envlronmenL
14
. 1he 1hlrd
Sclence and 1echnoloav 8aslc Þlan (2006- 2010) ls currenLlv belna lmplemenLed. Powever, !apanese
lndusLrv ls faclna new challenaes: compeLlLlve pressures from emeralna naLlons (Chlna and Lhe
8epubllc of korea). ln Lhls wav !apan's world share, Lhe blaaesL, of elecLronlcs producLlon has
dwlndled ln Lhe pasL 10 vears
13
. Accordlna Lo Lhe lMu ranklna !apan remalns low aL Lhe 27Lh place ln
Lerms of manaaemenL pracLlces whlle ranklna second ln Lerms of sclenLlflc lnfrasLrucLure. !apan ls
Lhe Aslan counLrv wlLh Lhe leasL naLural resources and a rapldlv aalna populaLlon wlll slowlv buL
surelv bealn Lo decllne. locuslna on lnnovaLlon ls a kev parL of a sLraLeav for fuLure susLalnable
economlc arowLh. Cn Lop of Lhese obsLacles, Lhe March 8.9 earLhquake and Lhe 10-meLer Lsunaml
have shuL down porLs, power planLs and reflnerles, ma[or exploslon hlL a peLrochemlcal planL ln
Sendal, whlle furLher souLh a huae flre swepL an oll reflnerv ln lchlhara clLv. Clobal companles
(Ponda, 1ovoLa, Canon, Þanasonlc, Sonv and oLhers) suspended some operaLlons whlle Lhev assessed
damaae Lo planLs ln Lhe norLheasLern parLs of Lhe counLrv
16
. An exLended shuLdown wlll be
devasLaLlna for !apan's exporL-orlenLed economv.

1okvo's maln nlkkel lndex losL 1.7 percenL aL Lhe dav of earLhquake, neverLheless, lL ls onlv
Lhe bealnnlna of severe consequences. Cll prlces were also down, as markeLs predlcLed lower
demand from !apan, Lhe world's Lhlrd laraesL oll lmporLer. nourlel 8oublnl sald lL was Lhe worsL Llme
for Lhe earLhquake as Lhe counLrv sLruaales Lo lower lLs budaeL deflclL. º1here wlll be flscal sLlmulus
Lo reconsLrucL buL !apan alreadv has a budaeL deflclL of close Lo 10 per cenL of CuÞ and aalna
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
populaLlon"
17
. 1hev sald Lhe aovernmenL would pav a larae parL of Lhe rebulldlna cosLs, addlna Lo lLs
alreadv larae debL problem. lLs aovernmenL debL ls now Lhree Llmes Lhe slze of lLs CuÞ.

A 63.9 mllllon sLrona labor force ls occupled ln servlces (69.8°) and lndusLrv (26.2°)
18
. 1he
conLrasL beLween vouLh (13.3°) and Lhe elderlv populaLlon (22.1°) ls noL ln favor of !apan
19
. 1he
problem of aalna !apanese populaLlon ls one of Lhe mosL senslLlve for Lodav. 1he number of
researchers ln !apan was of 827 291 ln 2008 (64.8 per 10 000). MosL of Lhls lncrease has been borne
bv Lhe lndusLrlal secLor, alLhouah unlverslLles and colleaes have also Laken on faculLv. ln 2010 Lhls
number lncreased up Lo 840 300 researchers. lL ls lnLeresLlna Lo noLlce LhaL lasL vear female
researchers numbered 121 100 (13.6 per cenL)
20
. uurlna 2003-2009 Lhe unemplovmenL raLe
slanlflcanLlv decreased (from 3.3 Lo 3.7°), and reached lLs peak ln Lhe end of 2009 (3.3°). AL Lhe
momenL lL ls 4.9°
21
.

)*+'*,+-!.!78+!9,%:;#<!#=!04$;,!1'4>,4!

Saudl Arabla ls one of Lhe lasL absoluLe monarchles ln Lhe world wlLh a verv lnLeresLlna,
alLhouah brlef, hlsLorv. lndeed, klna Abdul-Azlz Al-Saud founded lL no more Lhan 79 vears aao afLer
havlna conquered and unlfled varlous Lrlbes of Lhe realon
22
. ln Lhe 1930s, oll was dlscovered and
areaL wealLh came pourlna on Lhe counLrv
23
. unforLunaLelv, Lhe socleLal developmenL was noL on par
wlLh Lhe wesL. 1here was an lmmedlaLe flurrv of lnlLlaLlves Lo develop clLles, roads, and varlous
needed lnfrasLrucLure, a clvlllzaLlon llLerallv rose from Lhe sands ln Lhe space of 30 vears
24
. 1hls
arowLh and fasL ºcaLch-up" developmenL was fueled bv abundanL oll monev and provlded for areaL
Lrlckle down prosperlLv. lndeed, as Lhe aovernmenL hlred conLracLors and varlous oLher Lvpes of
servlces, emplovmenL was sLlmulaLed areaLlv and Lhe economv was verv healLhv. unforLunaLelv, Lhe
rapld developmenL has slowed down conslderablv and wlLh lL unemplovmenL has lncreased
conslderablv.

1he aovernmenL ls consclous of Lhe sLaLe's over rellance on lmporLs and on oll exporLs.
lndeed, a areaL amounL of emplovmenL ls concenLraLed ln Lhe servlce and reLall lndusLrv, and Lhouah
Lhe oll secLor aeneraLes 30° of CuÞ, ls manaaed for Lhe areaLer parL bv bv 2 lndusLrlal behemoLhs
(SA8lC and A8AMCC) and onlv emplovs 2° of Lhe workforce
23
. 30° of CuÞ ls aeneraLed bv Lhe reLall
secLor whlch lncludes wholesale and reLall Lrade, LransporLaLlon, communlcaLlon, flnance, lnsurance
and real esLaLe. 4° of CuÞ ls aeneraLed bv Lhe aarlculLural secLor and Lhe remalnlna 16 ° are
aeneraLed bv aovernmenL acLlvlLles and [obs
26
. 1he aovernmenL knows LhaL sclence and Lechnoloav
are aL Lhe hearL of alobal economlc compeLlLlveness and dlverslflcaLlon, as such, Lhelr supporL has
become a areaL naLlonal prlorlLv. ulverslflcaLlon ls cruclal Lo cease dependence on oll-aeneraLed
revenue.

1he focus on sclence and Lechnoloav ls noL onlv Lo keep Lhe economv healLhv buL also Lo
ensure Lhe durablllLv of Saudl Arabla as a sLaLe. lndeed, Lhere are maLLers of naLlonal securlLv and
sLablllLv revolvlna around food, waLer and desplLe havlna Lhe world's areaLesL oll reserves, enerav
27
.
As such, Saudl Arabla ls lnvesLlna heavllv ln renewable enerav, ln aararlan Lechnoloales and arable
forelan land, and drlnkable waLer manaaemenL, purlflcaLlon and exLracLlon
28
. 1he quesLlon ls
wheLher Lhe klnadom wlll be able Lo meeL Lhe new challenaes of sclence, Lechnoloav and lnnovaLlon
as well as lL knew how Lo meeL Lhe challenae of caLchlna up wlLh Lhe wesL's lnfrasLrucLural
developmenL.

1he LoLal populaLlon of Saudl Arabla reaches 26.2 mllllon. Cf LhaL number, 67° are parL of
Lhe work force, aaed beLween 13 and 64 vears old. 98° of women and 73° of men ln LhaL aroup
work ln Lhe servlce lndusLrv. 1he aarlculLural lndusLrv occuples 3° of Lhe work force and Lhe resL
work ln lndusLrv and aovernmenL
29
. 1here ls an obvlous over dependence on Lhe servlce lndusLrv and
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
Lhls ls all Lhe more alarmlna conslderlna LhaL Lhere ls a 10.8° unemplovmenL raLe
30
. 1hls ls due
malnlv Lo a facLors lncludlna lack of educaLlon for Lhe ma[orlLv of older people ln more dlverse and
Lechnlcal flelds
31
. lorLunaLelv ma[or developmenL plans have been launched and execuLed Lo bulld
new unlverslLles wlLh a areaLer emphasls on hard sclences. 1here are noLed lmprovemenLs as Lhe
number of unlverslLv sLudenLs enrolled ln sclenLlflc dlsclpllnes rose from 112 000 Lo 181 800 from
2004 Lo 2008
32
.

ÞkL5LN1 CCN51kAIN15

Lducat|on

Lack of un|vers|ty research

lor a lona Llme Lhe klnadom of Saudl Arabla had an alarmlnalv low level of orlalnal research
belna performed ln lLs unlverslLles. Save for Lhe domalns on whlch Lhe klnadom ls dlrecLlv dependanL
(oll and mlneral exLracLlon), noL enouah research has been conducLed ln oLher flelds. 1hls ls noL for a
lack of funds, buL raLher for a lack of lnLeresL and a lack of a lona Lerm vlew under precedenL klnas,
such as lahd and Saud. klna Abdullah has seL off Lhe sLarL of a new era ln Lhls reaard.
ln 8ussla unlverslLv research makes a mlnlmal conLrlbuLlon Lo 8&u ln 8usslan sclence and
Lechnoloav. WlLhouL Lhem such unlverslLles, a llnk ls mlsslna ln Lhe dlffuslon of knowledae and
Lechnoloav, as well as ln Lhe bulldlna of publlc/prlvaLe parLnershlps for lnnovaLlon of Lhe Lvpe LhaL
have beneflLed CLCu economles
33
.
1he 8esearch!process!ln !apan has a few barrlers. 1here ls a deslre Lo lncrease Lfflclencv
enhancemenL of offlce work, bv alvlna mulLlple Lasks Lo research orlenLed offlces such as ouLreach
acLlvlLles, renewed personnel svsLem, work asslsLance, paperwork, lnformaLlon collecLlon,
LranslaLlon eLc. efflclencv ls effecLlvelv decreased. 1herefore, Lhese funcLlons LhaL need Lo be
separaLed. lndeed, !apanese sLudenLs complaln abouL Lhe facL LhaL Lhe ºfuncLlons of research and
manaaemenL personnel are noL compaLlble LoaeLher"
34
. llnallv, !apan sees a verv low number of
8esearch asslsLanLs per researcher. 1helr number per researcher ls lower Lhan ln Lhe uSA and
Lurope. 1hls ls all Lhe more asLoundlna conslderlna LhaL Lhe number of Moreover !apanese ºclerlcal
and oLher supporLlna personnel" has lncreased slnce 1998
33
.
ln conLrasL Lhe uSA does noL lack ln research and developmenL Lhanks Lo lLs hlsLorv (As
elucldaLed ln Lhe lnLroducLlon) ln Lhe flelds of 8&u and collaboraLlon beLween lndusLrv, academla
and Lhe aovernmenL.

Internat|ona||zat|on of |nst|tut|ons |ack|ng

lnLernaLlonal CollaboraLlon beLween 8&u lnsLlLuLlons ls cruclal Lo bolsLer Lhe raLe of lnnovaLlon.
lndeed, bv sharlna flndlnas and lnslahLs sclenLlsLs bulld on Lop of one anoLher's works and arrlve Lo
areaL concluslons. 1he klnadom of Saudl Arabla, as explalned above, was far Loo lnsulLed for a lona
Llme before lL opened up lLs doors Lo Lhe world. SLrlnaenL vlsa requlremenLs, lanauaae barrlers,
resLrlcLed ranae of lnLeresLs and a pleLhora of oLher obsLacles marred Lhe road Lo lnnovaLlon wlLh
valn obsLacles. lurLhermore, Lhe recenL ºsaudlzaLlon" requlremenL, wherebv companles are Lo favor
Saudl Arablans over forelaners ls llkelv Lo deLer lnLernaLlonal companles from operaLlna ln Saudl
Arabla aL Lhe level Lhev would opLlmallv wlsh for, seelna as Lhev would be obllaed Lo hlre less
quallfled sLaff Lhan LhaL whlch Lhev wlsh Lo hlre.
36


8ussla has manv lssues LhaL make lL unaLLracLlve Lo oLher lnnovaLlon plavers on Lhe world sLaae.
lndeed, 8ussla sees a verv low number of forelan professors and a barelv acLlve lnLernaLlonal sLudenL
exchanae proaram. 1he exlsLence of a low sLaLe-sponsored educaLlonal sLandard, counLless
lealslaLlve barrlers, dlfferenL recoanlLlons of educaLlonal resulLs, a lack of flnanclal resources are onlv
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
some of lnsLlLuLlonal barrlers. Soclallv, a sLrona lanauaae barrler exlsLs accompanled bv a verv
dlfferenL educaLlonal svsLem.

!apanese unlverslLles and araduaLe schools are lefL ouLslde of Lhe lnLernaLlonal clrculaLlon of
researchers, as can be seen from Lhelr dlsproporLlonaLelv smaller numbers of forelan Leachlna sLaff
and lnLernaLlonal sLudenLs Lhan ln Lhe uS and Luropean counLerparLs. AddlLlonallv, a small fracLlons
of !apanese unlverslLv araduaLes and araduaLe school araduaLes [oln overseas research lnsLlLuLlons
and enLerprlses.
37


!apan ls Lhe onlv counLrv whlch has !apanese as lLs offlclal lanauaae, and Lhe presence of
llnaulsLlc mlnorlLles conLlnues Lo be verv small, aL leasL unLll recenLlv
38
. AL Lhe same Llme, !apan ls
one of onlv a few non-Lnallsh or non-Chlnese speaklna counLrles LhaL have reallzed hlah level
docLoral educaLlon and research ln lLs own lanauaae ln Lhls realon.
39
1he lssue of Lhe lanauaae barrler
arlses as a common obsLacle prevenLlna cruclal lnLernaLlonal collaboraLlon.

lurLhermore, lnLernaLlonal companles LhaL would provlde !apan wlLh 8&u opporLunlLles across
varles levels have been movlna ouL.
40
1hls ls due Lo Lhe rlse of emeralna economles and flerce prlce
compeLlLlon ln Lhe souLheasLern realon of Asla. lurLhermore, a lona perlod of deflaLlon and low
economlc arowLh ln Lhe counLrv has lowered Lhe raLe of reLurn buslnesses can expecL, dlscouraalna
Lhem Lo lnvesL Lhere
41
. 1he oLher recenL reason ls fear of radlaLlon leaks.

8ra|n Dra|n/keverse 8ra|n dra|n

WhaL ls commonlv referred Lo as º8raln uraln" ls Puman caplLal fllahL. lL ls Lhe larae-scale
emlaraLlon of a larae aroup of lndlvlduals wlLh Lechnlcal skllls or knowledae. 1he reasons for such an
evenL Lend Lo lnclude Lwo aspecLs. ln Lerms of counLrles, Lhe reasons mav be Lhe envlronmenL LhaL
lacks ln, opporLunlLles, pollLlcal lnsLablllLv freedom and safeLv, economlc depresslon amonasL oLher
elemenLs. 1hose leavlna seek rlch opporLunlLles, pollLlcal sLablllLv and freedom, developed economv,
and aenerallv beLLer llvlna condlLlons
42
. AlLhouah Lhe Lerm orlalnallv referred Lo Lechnoloav workers
leavlna a naLlon, Lhe meanlna has broadened lnLo: "Lhe deparLure of educaLed or professlonal people
from one counLrv, economlc secLor, or fleld for anoLher, usuallv for beLLer pav or llvlna condlLlons".
8raln draln ls reaarded as an economlc cosL, slnce emlaranLs usuallv Lake wlLh Lhem Lhe fracLlon of
value of Lhelr Lralnlna sponsored bv Lhe aovernmenL or oLher oraanlzaLlons.
43


1hls phenomenon beaan Lo Lake place ln 8ussla Lhe earlv 1990s as skllled resources lefL Lo
Cermanv, lsrael, Lhe uSA and Canada. AL Lhe momenL Lhe number of personnel worklna ln sclence
and Lechnoloav ls barelv half whaL lL was ln 1990, aL a Llme when demand for skllls ln mosL CLCu
counLrles remalns hlah. lL ls noL hard Lo undersLand LhaL sclenLlsLs would prefer deallna wlLh a bla
companv raLher Lhan an SML. 8uL lf few of Lhem are lefL worklna for bla flrms, Lhere are none lefL
worklna for SMLs
44
.

1he slLuaLlon ls slmllar Lo whaL has happened ln !apan. lndeed, Lhousands of !apanese enalneers
and oLher lndusLrv professlonals have aone Lo 1alwan, SouLh korea and Chlna Lo seek work aL
aaaresslve, fasL-arowlna companles LhaL wanL Lo use !apanese Lechnoloalcal experLlse, and
consequenLlv are wllllna Lo pav a hlah fee for Lhelr servlces
43
.

1he klnadom of Saudl Arabla ls seelna a dramaLlc rlse ln lLs braln draln. lor Lhe same reasons as
8usslans and !apanese people, Saudl Arablans seek opporLunlLles ouLslde of Lhe klnadom Lo obLaln
hlaher salarles. uesplLe lnvesLlna so heavllv ln educaLlon, enLrepreneurs and sLudenLs allke are
dlslllusloned wlLh Saudl Arabla. uesplLe all Lhe beneflLs and arowLh prospecLs, sLudenLs, especlallv
women, LhaL sLudv abroad prefer Lo sLav abroad Lo en[ov Lhe freedom Lhev do noL have ln Lhe
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
klnadom
46
. lurLhermore, Lhe lack of leaal sLablllLv, predlcLablllLv and lealLlmacv makes lL LhaL would
be enLrepreneurs are lmmedlaLelv dlscouraaed. When asked whv, all explaln fears of corrupLlon and
usurpaLlon of a successful buslness bv Lhe roval ellLe sLop people from Laklna lnlLlaLlves
47
.

Cne of Lhe mosL noLable consLralnLs for Lhe fuLure ls Lhe susLalned 8raln uraln phenomenon
whlch wlll see an unaccepLable number of sLudenLs refuse Lo reLurn Lo Saudl Arabla ln order Lo en[ov
areaLer pollLlcal and personal freedoms abroad. 1he onlv wav Lo counLer such a phenomenon ls Lo
allow for rellalon Lo Lake a secondarv role ln pollLlcs and economlcs allowlna for sclence Lo be ln Lhe
forefronL of all acLlons.

1he prlme desLlnaLlon for Lhose leavlna Lhelr counLrv of orlaln ls Lurope and even more Lhe uSA.
?eL, recenL survevs have shown LhaL Lhere ls a reverse braln draln Laklna place. 1hls means LhaL Lhe
skllled forelaners LhaL came ln Lhe flrsL place are now reLurnlna Lo Lhelr counLrles or aolna elsewhere
raLher Lhan sLavlna ln Lhe uSA. LealslaLlon and vlsa requlremenLs were sLrlnaenL enouah Lo deLer
Lhem from sLavlna. lndeed, Lhe kerrv-Luaar lealslaLlon requlred lmmlaranL enLrepreneurs Lo ralse aL
leasL $230,000 ln flnanclna for Lhelr sLarLups, of whlch $100,000 had Lo come from Amerlcan vCs or
Super Anaels. 1hese were exLremelv hlah requlremenLs LhaL few sLarL ups can meeL, even ln Slllcon
vallev. lorLunaLelv, Lhls lealslaLlon was Lo be revlewed bv lLs auLhors, as SenaLor 8lchard Luaar saw
LhaL lL would sLlfle lnnovaLlve and enLrepreneurlal and lnvesLmenL efforLs ln Lhe uSA.
48


lurLhermore, accordlna Lo Lhe ºLoslna 1he World's 8esL and 8rlahLesL" survev lssued bv Lhe
pro-lmmlaraLlon kauffman loundaLlon, ºChlnese sLudenLs ln parLlcular sLronalv feel LhaL Lhe besL [ob
opporLunlLles lle ln Lhelr home counLrv". 1he survev found LhaL verv few sLudenLs wanL Lo sLav ln Lhe
uSA afLer Lhelr sLudles: 6° of lndlan respondenLs, 10° of Chlnese respondenLs and 13° of Luropean
respondenLs wanL Lo remaln ln Lhe u.S. permanenLlv.
49


8us|ness Cr|ented Constra|nts

Insuff|c|ent |ncent|ves for entrepreneurs

As seen ln Lhe lnLroducLlon, Lhe enLrepreneur ls a kev plaver ln Lhe lnnovaLlon dvnamlc.
Comblned wlLh a lack of educaLlon, whlch prevenLs opporLunlLles from belna percelved, 8ussla
suffers from a lack of lncenLlves Lo encouraae enLrepreneurs Lo Lake rlsks. lurLhermore, Lhere are
noL enouah lncenLlves for publlc research lnsLlLuLlons Lo enaaae ln closer relaLlonshlps wlLh lndusLrv
ln 8ussla
30
.

!apan has a few obsLacles for would be enLrepreneurs. Cne of Lhem ls "#$%&'(!')*+,(-#,.!1hls
means LhaL lL ls dlfflculL for SMLs Lo expand fundlna bv uslna Lo oLher sources such as caplLal
markeLs, venLure caplLal and anael funds because Lhev have Lo meeL hlah lnformaLlon requlremenLs
LhaL are ofLen ouL of Lhelr reach. A larae number of SMLs are more lnLeresLed ln Lhe exLenslon of Lhe
upper llmlL of Lhe loan LhaL ls covered bv Lhe CredlL CuaranLee AssoclaLlon, and Lhe lncrease of Lhe
subsldles for sLarL-ups
31
.!

ln Lhe klnadom of Saudl Arabla SMLs are ºconsldered Lhe mosL efflclenL lnsLrumenL Lo acceleraLe
Lhe pace of economlc and soclal developmenL," accordlna Lo Saudl MoneLarv Aaencv chlef ur.
Muhammad Al-!asser,
32
Lherefore a areaL emphasls ls placed on Lhelr developmenL and on
aovernmenL supporL. SMLs ln Saudl Arabla are Lhe maln source of prlvaLe secLor lnvesLmenL. 1hev
form more Lhan 90 percenL of prlvaLe enLerprlses klnadom wlde
33
. 1hev are Lhe prlmarv source for
creaLlna [ob. 1hev are also responslble for allevlaLlna poverLv, fosLerlna Lechnoloalcal lnnovaLlon,
encouraalna enLrepreneurlal culLure, and are expecLed Lo conLrlbuLe more Lhan 30 percenL of LoLal
lndusLrlal producLlon ln Lhe near fuLure
34
. 1hese beneflLs are all Lhe more appreclaLed conslderlna
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
Lhe ease ln seLLlna up a companv ln kSA. 1he problem lles ln Lhe facL LhaL Lhere ls a larae lnformaLlon
aap beLween whaL people know and whaL Lhe aovernmenL ls dolna Lo promoLe SML creaLlon. lL
seems LhaL clLlzens have losL falLh ln Lhelr ablllLv Lo sLarL a new enLerprlse because of Lhe hlsLorv of
corrupLlon prlor buslnessmen have been vlcLlms of.

1he maln challenaes Lo esLabllshlna SMLs lnvolve Lhelr lnablllLv Lo secure adequaLe flnanclna and
weak capaclLles Lo faclllLaLe aovernmenLal procedures, whlch would allow Lhem Lo expand Lhelr
work.
33
?eL, Lhe conLrlbuLlon of SMLs Lo kSA's CuÞ ls of onlv 33°. lurLhermore, Lhere are noL LhaL
manv SMLs LhaL are Lechnoloav orlenLed and manv are focused on LradlLlonal secLors such as reLall
and wholesale servlces.
36
As explalned above, a lack of quallfled Lechnlcal resources prevenLs would
be enLrepreneurs from aaLherlna Lhe necessarv resources Lo bulld lnnovaLlve companles. Plah rlsks
and barrlers Lo enLrepreneurshlp and soclal knowledae of corrupLlon also deLer rlskv enLrepreneurlal
endeavors.

A |ow |eve| of entrepreneur|a| cu|ture

PofsLede's culLural dlmenslons shows LhaL Saudl Arablans are noL rlsk Lakers. ?eL,
enLrepreneurs are rlsk Lakers. 1hev Lhrlve on Lhe ldea LhaL one musL be bold enouah Lo Lrv someLhlna
wlLhouL fear of fallure. 1hev embrace Lhe ldea of fallure for lL ls seen as an opporLunlLv Lo learn, as
such, enLrepreneurs Lhrlve ln envlronmenLs and culLures LhaL are rlsk LoleranL. 1he boldness LhaL
pushed Slr 8lchard 8ranson Lo sLarL an alrllne LhaL ls Lhe flrsL Lo offer lnLerneL access and premlum
economv class, or LhaL pushed SLeve !obs Lo lnLroduce a new caLeaorv of producLs LhaL had no
demand for lL as he dld wlLh Lhe lÞhone and Lhe lÞad ls verv dlfflculL Lo flnd ln Lhe Arab aulf.

1hls explalns whv Lhere are verv few venLure caplLallsLs ln Saudl Arabla whom would flnance
SMLs pro[ecLs for lnnovaLlon. AfLer all, as seen above, SAClA wlll help Lo sLarL a buslness, buL once
Lhe operaLlons are runnlna Lhe buslness ls expecLed Lo be self-sufflclenL. venLure caplLallsLs would
help Lhe SML ln quesLlon arow aL a fasLer raLe, buL Lhese are laraelv absenL from Lhe Saudl scene.
lnsLead, Saudl Arablan enLrepreneurs relv more heavllv on anael lnvesLlna from frlends, famllv,
colleaaues and oLher close lndlvlduals
37
. lorLunaLelv, banks have loosened Lhe condlLlons necessarv
Lo Lake ouL an lmporLanL loan for buslnesses. 1hev onlv dld so afLer belna pressured from Lhe Saudl
aovernmenL for Lhe kafalah proaram.

1here are sufflclenL amounLs of enLrepreneurs buL none LhaL wlll be wllllna Lo Lake Lhe klnd
of rlsks LhaL hlah Lechnoloav requlres. lf one ls Lo look aL Lhe socleLal and culLural dlfferences LhaL
make Lhe !apanese and Amerlcans areaL lnnovaLors, one wlll see LhaL Lhev are encouraaed Lo work
hard and Lhlnk lndependenLlv from a vouna aae and Lo dlscover. lndeed !apanese people have one of
Lhe world's sLronaesL academlc records and Amerlcan Leenaaers are accusLomed Lo worklna dlverse
[obs Lo earn pockeL monev. Pard work, lndependence of LhouahL, and Lhe wlll Lo Lake a rlsk are
necessarv Lo be an enLrepreneur.

ln 8ussla, Lhe overall level of enLrepreneurlal culLure ls low due Lo corrupLlon and complex
bureaucracles. MlnlsLrles dlsLrlbuLe venLure caplLal and Lhev Lend Lo choose Lhe leasL rlskv pro[ecLs
Lo flnance.
38
1o do so Lhev esLabllsh experL aroups. nowadavs experL aroups can be chosen onlv from
academla
39
. ln such a wav Lhls aroup ºdraas" developmenLs noL Lo Lhe markeL buL Lo Lhe
fundamenLal sclence. ln Lhe resulL pro[ecLs are wheLher fundamenLal lf passed experLlse or
sclenLlflcallv weak lf Lhev fall experLlse, buL ºlmplemenLed"
60
. lnslde each experL aroup Lhere exlsLs
confllcL of lnLeresLs. Loalcallv experL should be an lndependenL and composed. neverLheless, some
experLs are parL of Lhose aroups onlv Lo have opporLunlLv Lo flnance Lhelr own pro[ecLs
61
.
lurLhermore, lnsLlLuLlonal rlaldlLles of Lhe aforemenLloned naLure and bureaucraLlc requlremenLs
deLer lnnovaLlve enLerprlses from esLabllshlna Lhemselves. 1houah lnlLlaLlves have been Laken, Lhere
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
ls a larae lnformaLlon aap beLween whaL clLlzens know and whaL proarams and lnlLlaLlves are
avallable Lo help. As a resulL of Lhls mosL of 8&u conLlnues Lo be performed bv academla.
62


!apan recorded one of Lhe lowesL raLes of enLrepreneurlal acLlvlLv amonasL Lhe world's
leadlna naLlons durlna Lhe lasL decade
63
. LnLrepreneurs face manv dlfflculLles when sLarLlna Lhelr
own venLures. 1hese enLrepreneurlal deLerrenLs lnclude, buL are noL llmlLed Lo, Lhe dlfflculLv of
obLalnlna bank loans, Lhe pressures of deflaLlon, weak domesLlc demand, and Louah compeLlLlon
64
. lf
one ls Lo conslder LhaL a personal auaranLee ls requlred Lo obLaln a small buslness loan, one sees a
flrsL barrler. 1he facL LhaL Lhere ls a hlah raLe of sulclde amona !apanese men who fall Lo repav
personal auaranLees underscores Lhe mulLldlmenslonal harmful effecLs of such a svsLem. !apan ls a
verv honor cenLrlc socleLv, Lhe shame of havlna one's buslness fall, comblned wlLh Lhe fear of frlends
and famllv belna harassed bv Lhe credlLors, pushes falled buslness owners Lo commlL sulclde ln order
Lo collecL llfe lnsurance, whlch ls used Lo pav off debLs so LhaL Lhe banks wlll noL harass frlends and
relaLlves who have alven Lhelr auaranLees for Lhe loans/debLs
63
.

Genera| Þrob|em of Lntrepreneur|a| Lducat|on

8uslness AdmlnlsLraLlon underarads are lncreaslnalv [aded ln mosL unlverslLles, and Lhelr
passlvlLv Lo Lhe sub[ecL ls a areaL challenae for faculLv
66
. lndeed, lnnovaLlons are needed ln Lhe
Leachlna of 8uslness, for Lhe araduaLes of Lhls fleld are Lhe ones whom wlll be mosLlv responslble and
capable of commerclallzlna lnnovaLlve soluLlons. lurLhermore, where LulLlon fees are hlah, Lhev
form an lmporLanL barrler LhaL sLops manv from havlna access Lo quallLv educaLlon. As a resulL, a
areaL number of unlverslLv sLudenLs are forelan ln such counLrles, such as Lhe uSA. lL would
Lherefore be loalcal Lo Lrv Lo keep such LalenL on uS soll, unforLunaLelv, manv are seelna lncreased
lnLeresL ln reLurnlna Lo Lhelr home naLlons
67
. 1he uSA's sLrlnaenL vlsa rules dld noL help Lhls
slLuaLlon. new lealslaLlon ls supposed Lo remedv Lhls lssue.

ln order Lo lncrease Lhe enLrepreneurlal culLure and educaLlon, lL ls necessarv Lo lncrease Lhe
parLnershlps beLween Academla and lndusLrv, lncludlna SMLs and blaaer corporaLlons. ln Lhe
klnadom of Saudl Arabla and ln 8ussla, Lhere are lnsufflclenL relaLlonshlps beLween unlverslLles and
lndusLrv, even Lhouah llnkaaes are currenLlv belna added ln Lhe conLexL of Lhe new ºlnnovaLlon
hubs".

1he llnkaaes musL noL onlv form beLween lndusLrv and academla, buL also beLween SMLs
and blaaer corporaLlons. lndeed, lf Lhere were more of such llnkaaes (supplv-demand chaln) beLween
sclence lnLenslve SMLs and larae naLlonal and lnLernaLlonal flrms, lL could help local flrms develop a
hlah value added nlche ln Lhe alobal value chaln.
68

lurLhermore, such llnkaaes beLween lndusLrv and academla can provlde sclence sLudenLs
wlLh more dlrecL manaaerlal experlence. SclenLlsL Lvpes are noL apL aL belna buslness people. 1houah
Lhev mav know Lhelr fleld verv wav, knowledae ln Puman 8esource manaaemenL, markeLlna,
buslness law and oLher buslness relaLed flelds are noL Lhelr forLe. l1 ls Lherefore kev for sclenLlsLs Lo
be surrounded wlLh adequaLe manaaers Lo be well aulded, and Lo learn Lhe arL of manaaemenL.

I|nanc|ng Constra|nts and 1he|r kam|f|cat|ons

1here are sLrlnaenL requlremenLs Lo be meL ln order Lo be quallfled for a loan ln !apan.
lndeed, alLhouah !apan has a 0° lnLeresL raLe due Lo lLs deflaLlonarv economv,
69
Lhere are llmlLlna
and consLrlcLlna condlLlons Lo obLalnlna a loan. CfLen Lhose who are lnLeresLed ln sLarLlna a buslness
wlll meeL areaL sLrlfe ln securlna flnanclal resources. 1he reasons revolve around Lhe lack of
markeLablllLv of a companv, Lhe lack of a hlsLorlcallv esLabllshed credlblllLv and Lhe small slze of a
companv. Powever, personal savlnas are Lhe mosL commonlv used means of obLalnlna lnlLlal
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
flnanclal resources for SMLs.
70
lndeed, for 80 ° of newlv esLabllshed SMLs, personal savlna was a
source of flnance. lamllv members and frlends are lmporLanL sources of flnance as well.
71


Powever, ma[orlLv of SMLs manaae Lo obLaln loans from flnanclal lnsLlLuLlons, buL Loo ofLen
Lhe amounL of monev obLalned ls slanlflcanLlv lower Lhan Lhe amounL orlalnallv requesLed
72
. 1hls ls
due Lo a lack of collaLeral, low credlL worLhlness and Lhe frequenL absence of a auaranLor
73
.
lurLhermore, Loo ofLen debLors are requlred Lo use Lhelr own asseLs as collaLeral for a loan. 1he lack
of flnanclna opLlons and Lhe rlsk of seelna one's properLv belna selzed bv a bank areaLlv deLers
clLlzens from Laklna enLrepreneurlal lnlLlaLlve. A relaLed polnL ln Lerms of properLv ls Lhe hlah
demand for real esLaLe and offlce LhaL pushes prlces Loo far ouL of Lhe reach of mosL SMLs.
74
1hls
real-esLaLe relaLed problem ls shared bv 8ussla as well and has oLher ramlflcaLlons.

!apanese and 8usslan buslnesses faclna hlah real esLaLe prlces due Lo lnsufflclenL real esLaLe
developmenL causes Lhem Lo have lnsufflclenL funds for markeLlna and promoLlonal acLlvlLles. 1hese
acLlvlLles are necessarv ln order Lo aLLracL more cusLomers and revenue. WlLhouL Lhe addlLlonal
revenue, Lhe affllcLed companles ln are unable Lo expand Lhelr acLlvlLles ln Lerms of aeneral buslness
developmenL and arow
73
. 8ecause of Lhe 8usslan hlah lnLeresL raLe and flnanclal consLralnLs, hlahlv
proflLable pro[ecLs are areaLlv favored. unforLunaLelv, researchers cannoL be sure of Lhe faLe of each
pro[ecL. 1he consLralnLs and research rlsks causes for a areaL fear Lo planL lLself ln Lhe hearL of Lhe
researchers. 1hls resulLs ln Lhem belna over-sLressed, demorallzed and unmoLlvaLed. 1hls Lransforms
Lhe rare researchers ln Lo subpar Lo Lhelr capaclLv quallLv researchers.

1hls phenomenon ls dlrecLlv caused bv Lhe CovernmenL's acLlons: lL flnances Lhe llon's share
of 8&u expendlLure, wlLh onlv a Lhlrd comlna from lndusLrv. 1he facL LhaL 8ussla's lnLeresL raLe ls aL
8.23° (a masslve, buL lnsufflclenL decrease slnce Lhe 23° before 2004).
76
1hls ls much lower Lhan ln
advanced CLCu counLrles where buslness ls Lhe maln source of lncreased spendlna on 8&u
77
. 1he
onlv Lvpe of 8&u fundlna LhaL has arown subsLanLlallv ln Lhe recenL pasL ls forelan dlrecL lnvesLmenL.
lL doubled Lhanks Lo aranLs and forelan lnvesLmenL
78
. 8uL Lhe danaer lles ln Lhe volaLlle buslness
percepLlons, as well as compeLlLlon from oLher counLrles
79
.

As for Saudl Arabla and Lhe uSA, Lhe slLuaLlon ls noL as bad as lL ls ln !apan and 8ussla ln Lerms of
flnanclna research and developmenL. 1he uSA has Lhe mosL lnLearaLed and developed lnnovaLlon
ecosvsLem ln Lhe world as wlll be seen ln Lhe followlna developmenLs. ?eL, as for anv counLrv, Lhere
ls never enouah monev Lo flnance all Lhe lnnovaLlon efforLs pursued bv members of Lhe lnnovaLlon
communlLv. 1here ls an lnLense compeLlLlon LhaL ensures Lhe efflclenL dlrecLlon of flnanclna Lowards
Lhose LhaL have Lhe proper know how and experlence. 1herefore funds are less llkelv Lo be wasLed
on frulLless endeavors.

Saudl Arabla ls a vouna counLrv LhaL has onlv recenLlv sLarLed Lo focus lLs enerales on lnnovaLlon.
1houah Lhere were manv lnsLlLuLlonal rlaldlLles, exorblLanL lnLeresL raLes and no supporL for 8&u aL
Lhe aovernmenL level, Lhe slLuaLlon has areaLlv chanaed slnce 2003. lnsplrlna lLself from oLher
naLlon's successes ln lnnovaLlon, lL has followed Lhelr model as wlll be descrlbed below.

IU1UkL CCN51kAIN15

Lducat|on

Low |nterna| demand for sc|ence

uemand for local lnnovaLlon, or lndlaenlzed Lechnoloav ls drlven bv compeLlLlve naLlonal
Lech enLerprlses LhaL seek ouL quallfled personnel. 1he lssue wlLh developlna counLrles such as
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
8ussla and Lhe klnadom of Saudl Arabla, ls LhaL Lhe consumer base and consequenLlv Lhe
enLrepreneurlal/buslness orlenLed base ls Lo an exLenL dependenL on Lhelr accepLance of forelan
Lechnoloav. 1he sLaLus quo of dependence on forelan Lechnoloav ls accepLed for Lhe convenlence lL
provldes. lndeed, lL ls easler Lo consume Lechnoloav Lhan Lo creaLe lL for Lo creaLe lL ls cosLlv ln Lerms
of Llme, monev and human enerav. Such ls Lhe slLuaLlon Lo a larae exLenL ln 8ussla and Saudl Arabla
as seen bv Lhelr low levels of paLenLlna acLlvlLv.
80
1he onlv soluLlon Lo LhaL lssue ls Lo have a sLrona
lnnovaLlon human resources base of sclenLlsLs, enalneers, maLhemaLlclans, enLrepreneurs eLc. whom
would seek ouL and selze lnnovaLlon opporLunlLles. lor LhaL Lo happen, proper educaLlon musL be
ensured.

1hls ln Lurn causes for a lack of poslLlve pressure for Lhe healLhv malnLalnlna of a sLrona pool
of quallfled human resources (enalneers, sclenLlsLs eLc.). Women have been vlcLlm of men's self
proclalmed domlnance all around Lhe world. 1he unLSCC lnsLlLuLe for sLaLlsLlcs' 2006 reporL on
Women ln shows LhaL Saudl Arabla has 17°, !apan has 12° of Lhelr researchers belna women
81
. ln
conLrasL, 8ussla sees 43° of Lhelr researchers belna women and 34.3° ln Lhe uSA. 1hls dlfference
can be explalned bv Lhe paLrlarchal socleLles LhaL Lhe klnadom and !apan are. 1hls culLure causes for
manv quallfled women Lo prefer Lo sLav aL home and plav Lhe LradlLlonal soclal role of moLher and
wlfe, raLher Lhan conLrlbuLe Lo socleLv ln Lhelr flelds of experLlse.


Unf|t students v|ct|m of Improper academ|c resources

8ussla shows LhaL Lhe salarles researchers earn are Loo low for Lhe dlfflculL [ob Lhev Lake on. 1hls
doesn'L sLlmulaLe sLudenLs Lowards sclence, and Lhe percelved dlfflculLv of lLs flelds deLers sLudenLs
all Lhe more. Llke Loo manv people, Lhev are more lnLeresLed ln areaL proflLs earned qulcklv.

1he slLuaLlon ls noL helped bv Lhe facL LhaL 8usslan unlverslLles are raLe auesLs of Lhe CS World
unlverslLles ranklna
82
. 1he causes of Lhls are a weak lnLernaLlonal lnLearaLlon, modesL amounL of
publlcaLlons and LranslaLlons, llLLle clLaLlon lndex, weak lnLernaLlonal communlcaLlon and conLacLs,
and a weak lnformaLlon base of 8&u. lurLhermore, manv of courses are LauahL noL onlv bv
professors (LhaL make up a small percenLaae of LoLal sLaff) buL also bv araduaLes, asplranLs and
senlor professors. Modern research equlpmenL and faclllLles are hard Lo aeL because of hlah
flnanclal barrlers and lack of publlc and prlvaLe supporL. SomeLlmes brlberv can be also consldered as
a conslderable obsLacle.

1here's an excesslve amounL of unflL puplls ln all Lhe counLrles chosen Lo sLudv. !apanese
chlldren's lnLeresL and curloslLv of sclence and Lechnoloav, as shown bv ÞlSA (CLCu Þroaram for
lnLernaLlonal SLudenL AssessmenL) are slanlflcanLlv less lnLeresLed ln or are havlna fun wlLh sclence
compared Lo chlldren ln oLher counLrles. 1he CLCu averaae for chlldren LhaL answered ºlearnlna
sclence ls fun" ls of 37°, whereas for !apan Lhe percenLaae remalns as low as 43°
83
. lurLhermore,
Lhe facL LhaL budaeLs for naLlonal unlverslLles Lends Lo be reduced whlch leads Lo serlous
consequences. AbouL 30° of all Lhe faclllLles of naLlonal unlverslLles are noL renovaLed and Lhelr
safeLv and Lhe funcLlonallLv are Lhe ma[or lssues
84
.

Lven Lhe uSA, Lhe sLar chlld of lnnovaLlon, ls sLruaallna wlLh educaLlon. uesplLe proarams
encouraalna sLudenLs Lo sLudv hard sclences, Lhere aren'L enouah LhaL are wllllna Lo do so, and Lhere
aren'L enouah faculLv members Lo saLlsfv Lhe demand
83
. lurLhermore, Lhe uS's hlah school sLudenLs
are laaalna behlnd Lhelr counLerparLs ln CLCu counLrles ln maLh and sclence courses
86
. uavld
Cuaaenhelm's 2010 documenLarv enLlLled ºWalLlna for Superman" makes a sLrona case for Lhe
alarmlna slLuaLlon of educaLlon ln Lhe uSA. 1he uSA laas when lL comes Lo secondarv educaLlon ln
Lerms of sclence and maLhemaLlcs. 1he resulLs of Lhe 2009 Þroaram for lnLernaLlonal SLudenL
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
AssessmenL bv Lhe CLCu showed LhaL uS hlah school sLudenLs were raLed as belna averaae Lo oLher
CLCu counLrles ln Lerms of sclence, buL below averaae ln Lerms of maLhemaLlcs. 1he number of
Amerlcans aaed 23 and over LhaL have compleLed hlah school reaches 86.68°, onlv 38.34° recelved
a 8achelor's dearee and onlv 7.62° have a MasLer's dearee.
87


1hese numbers are an area of areaL concern for Lhe Cbama admlnlsLraLlon and Lhe ueparLmenL
of LducaLlon, as well as Lhe Cfflce of Sclence and 1echnoloav, unforLunaLelv budaeLarv llmlLaLlons
are forclna cuLbacks and secondarv faculLv lavoffs LhrouahouL Lhe uSA
88
. lndeed, sLaLes belna
obllaaLed Lo balance Lhelr budaeLs, Lhev are forced Lo cuL cosLs wherever Lhev can. Secondarv
educaLlon ls ofLen one of Lhe flrsL secLors Lo be affecLed.

1he sLaLe, as seen so far, ls areaLlv responslble for provldlna educaLlon Lo lLs naLlon. 1he problem
of unflL sLudenLs arlses noL onlv from Lhe lack of resources for a proper educaLlon, buL also from Lhe
quallLv of Lhe resources. Saudl Arabla has ample resources buL far Loo manv sub[ecLs focus on
educaLlon. 1oo manv sub[ecLs on rellalon are lmposed, a educaLlonal phllosophv of ºllsLen, memorlze
and repeaL" forces Lhe absence of a pracLlcal approach. lurLhermore Lnallsh ls noL LauahL well
enouah, and noL consldered serlouslv bv sLudenLs. 1hls llnaulsLlc barrler creaLes Lhe bealnnlna of a
seallna off of Saudl sLudenLs from non Arablc speaklna sLudenLs and sLunLs fuLure collaboraLlon
enormouslv. lurLhermore, lnLellecLual conflnemenL ls aaaravaLed bv Lhe lack of compuLer llLeracv
and Lhe rellalous lnfluence of LexLbooks LhaL push sLudenLs ºnoL Lo mlx wlLh non Musllms". 1houah
Lhese LexLbooks do noL reflecL Lhe currenL mlndseL of Saudl Arabla, Lhev are old and haven'L been
replaced.
8ellalon belna lnLerpreLed verv llLerallv and bv auLhorlLaLlve flaures, lL ls consldered wlse and even
safer for one Lo be submlsslve and Lo noL ask upseLLlna quesLlons
89
. lL ls whv lndependenL LhouahL ls
quelled from earlv on and economlc safeLv ls pursued above all from vouna araduaLes. 1hev ofLen
prefer safe and sLable [obs worklna for Lhe aovernmenL and bla corporaLlons.

lurLhermore, ofLen Llme's sclenLlflc knowledae ls ln conLradlcLlon wlLh lslamlc Leachlnas, as ls
Lhe case wlLh evoluLlon. 1hls causes for sclenLlsLs Lo be blased and Lo refuse Lo sLudv, or blas Lhelr
sLudv, of domalns of areaL lmporLance
90
. lor lnsLance, Lhe knowledae aalned ln Lhe flelds of
evoluLlon has been a areaL boon ln helplna advancemenLs ln medlcal Lechnoloav. 1hls fleld ls of areaL
lmporLance Lo Saudl Arabla, buL cannoL be opLlmallv developed because of a dellberaLe lanorlna of
evoluLlonarv Lheorv.

I.I. 1he Ag|ng Þopu|at|on of kesearchers

As seen before, Lhe averaae salarv of a 8usslan researcher ls depresslnalv low and does noL
aLLracL manv 8usslans lnLo Lhe flelds of sclence and Lechnoloav. 1he sLar researchers of Lhe sovleL era
have elLher dled, reLlred, lmmlaraLed or remaln. 1he few LhaL remaln are bound Lo evenLuallv explre
and leave a vacuum behlnd Lhem unless sLudenLs can be moLlvaLed Lo Lake Lhelr place.

!apan follows Lhe corporaLe phllosophv of /#,#01$2$%-!34+,$5+&6$%-,78!9$4+,!%'(#$%&'(!
wherebv Lhe value of skllled, hands-on human operaLlon ln manufacLurlna ls lnherlLed Lhrouah an
apprenLlce/masLer Lvpe of relaLlonshlp. lL became an lssue slnce LradlLlon of skllled operaLlon was
weakened bv Lhe shlfL of manufacLurlna faclllLles Lo oLher counLrles and Lhe dlsllke of phvslcal work
bv manv vouna people
91
. AnoLher concern ls Lhe comlna mass reLlremenL of Lhe babv-boomer
aeneraLlon resulL ln loss of such sophlsLlcaLed Lechnlques. 1hls evenL ls lmmlnenL as Lhls caLeaorv of
Lhe naLlon Lurned 60 ln 2007 and wlll Lurn 63 around 2012. 1he vlLal quesLlon ls how Lo hand down
Lechnlques from Lhe reLlrlna aeneraLlon Lo Lhe nexL aeneraLlon and slmulLaneouslv preserve [apans'
currenL sklll level.
92

Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
1he fosLerlna of vouna researchers wlLh superlor capablllLv ln sclence and Lechnoloav and promoLlna
Lhelr acLlve work ls essenLlal Lo develop !apanese sclence and Lechnoloav aL Lhe world level and
bevond.
93


0#?$&,#%3!!

lncubaLors are cruclal Lo promoLlna and aldlna enLrepreneurshlp, and consequenLlv lnnovaLlon
efforLs. 1helr maln conLrlbuLlon ls ln fulfllllna Lhe lack of manaaerlal experlence manv ºsclence"
orlenLed people lack. A Lechnoloav lncubaLor's manaaemenL Leam faclllLaLes Lhe lnLeracLlon beLween
each buslness and resources, and coaches each buslness Lhrouah a developmenL process such LhaL
Lhe resulLlna venLure provldes all parLlclpanLs wlLh an accepLable raLe of reLurn on Lhelr lnvesLmenL.
A well sLrucLured lncubaLor provldes (l) llnks Lo lndusLrv, unlverslLles and research lnsLlLuLes, (ll)
buslness supporL servlces Lo enhance and develop buslness, (lll) dallv hands-on manaaerlal
menLorlna (aeneral manaaemenL, flnance, accounLlna, markeLlna, producLlon, 8&u), (lv)
Lechnoloalcal advlce and asslsLance wlLh lnLellecLual properLv proLecLlon, (v) flnanclal resources for
8&u and lnlLlal markeLlna expenses, (vl) access Lo poLenLlal prlvaLe lnvesLors and sLraLealc parLners,
and (vll) Lralnlna and coachlna so LhaL enLrepreneurs have a beLLer undersLandlna of how Lo deal
wlLh poLenLlal forelan lnvesLors and sLraLealc parLners. 8v Lhe end of Lhe lncubaLlon perlod, Lhe
enLerprlse should be able Lo ralse addlLlonal funds from lnvesLors and conLlnue operaLlna Lhe pro[ecL
lndependenLlv.
94


Conslder Columbla's 1echnoloav venLures as an example. 1helr mlsslon ls Lo ºfaclllLaLe Lhe
LranslaLlon of academlc research lnLo pracLlcal appllcaLlons, for Lhe beneflL of socleLv on a local,
naLlonal and alobal basls" and Lo ºsupporL research, educaLlon and Leachlna aL Columbla bv
aeneraLlna fundlna for Lhe unlverslLv and faclllLaLlna parLnershlps wlLh lndusLrv where approprlaLe,
LducaLe and serve as a resource for Lhe Columbla communlLv on maLLers relaLlna Lo
enLrepreneurshlp, lnLellecLual properLv, and Lechnoloav commerclallzaLlon".
93


lL remalns LhaL Lhe klnd of hlah lmpacL academlc lnsLlLuLlon wlLh Lhese klnds of sclence and
buslness orlenLed faclllLles are rare. MosL academlc lnsLlLuLlons do noL Lurn a proflL from Lhelr
lnLellecLual ÞroperLv Lhe wav LhaL Parvard, Ml1 or Columbla do
96
. 1he ma[orlLv of academlc
lnsLlLuLlons flnd Lhemselves ln Lhe hearL of lnnovaLlon clusLers where Lhev collaboraLe wlLh
lncubaLors, research faclllLles and oLher lnsLlLuLlons Lo brlna forLh new lnnovaLlons.

lncubaLors are verv aeneral, Lhev exlsL and operaLe ln mosL economlc secLors and more Lhan half
of Lhem are ºmlxed-use", meanlna LhaL Lhev work wlLh cllenLs from a varleLv of lndusLrles. ?eL
Lechnoloav ls Lhe blaaesL secLor as Lechnoloav lncubaLors accounL for 39° of lncubaLlon proarams.
97


lor Lhe exLenL of Lhe servlce and dependlna on Lhe lncubaLor, Lo have access Lo lL, one musL applv
for access Lo Lhe lncubaLor. AccepLance crlLerla varv from proaram Lo proaram, buL ln aeneral onlv
Lhose wlLh feaslble buslness ldeas and a workable buslness plan are admlLLed
98
. lf admlsslon ls
aranLed membershlp fees can be lmposed. 1he naLlonal 8uslness lncubaLor AssoclaLlon charaes
would be members anvwhere from uS $119 Lo uS$ 1300 for a membershlp, dependlna on Lhe Lvpe
of membershlp souahL ouL.
99
1hese fees are worLh lL 1helr lmporLance ls such LhaL research has
shown LhaL for everv uS$ 1 of esLlmaLed publlc operaLlna subsldv provlded Lo Lhe lncubaLor, cllenLs
and araduaLes of Lhe lncubaLor aeneraLe approxlmaLelv uS$ 30 ln Lax revenue Lhev have
phenomenallv arown ln numbers, from 12 ln 1980 Lo 1113 ln 2011
100
.

8uL noL all lncubaLors requlre for Lhelr members Lo pav a fee for proflL. lndeed, 94° of Lhem are
nonproflL oraanlzaLlons focused on economlc developmenL. 1hese flnance Lhemselves bv conLracLlna
varlous Lvpes proflL sharlna schemes wlLh Lhelr cllenLs, or are sponsored bv elLher aovernmenL
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
enLlLles, economlc developmenL oraanlzaLlons, academlc lnsLlLuLlons, or a mlx.
101


lncubaLors dlffer from research parks ln LhaL Lhe laLLer are properLv-based venLures
conslsLlna of research and developmenL faclllLles for Lechnoloav- and sclence-based companles.
8esearch parks ofLen promoLe communlLv economlc developmenL and Lechnoloav Lransfer, Lend Lo
be laraer-scale pro[ecLs Lhan buslness lncubaLors, ofLen spannlna manv acres or mlles and llnked wlLh
ma[or research unlverslLles. 8esearch parks house evervLhlna from corporaLe, aovernmenL, and
unlverslLv labs Lo bla and small companles buL do noL offer comprehenslve proarams of buslness
asslsLance. Powever, an lmporLanL componenL of some research parks ls a buslness lncubaLor
focused on earlv-sLaae companles. 1hrouahouL Lhe uSA, Lhere are 170 such research parks, Lhe flrsL
belna sLarLed aL SLanford, and shorLlv LhereafLer followed bv Lhe developmenL of Lhe 8esearch
1rlanale Þark ln norLh Carollna
102
.

1he 8usslan sLaLe shares a slmllarlLv wlLh Lhe uSA ln LhaL lLs aovernmenL offers supporL for Lhe
esLabllshmenL of commerclallv orlenLed Lechnoloav lncubaLors LhaL wlll nurLure promlslna hlah Lech
enLerprlses and make Lhem sulLable candldaLes for venLure caplLal flnanclna. 1he Ma[orlLv of exlsLlna
lncubaLors ln 8ussla are prlmarllv conLrolled work spaces. 1hev were lnlLlallv deslaned Lo help
fledallna flrms survlve ln Lhe mldsL of a hosLlle envlronmenL. 1hese lncubaLors help vouna companles
obLaln Lhe necessarv resources LhaL are oLherwlse exLremelv dlfflculL Lo obLaln. lor lnsLance, Lhe far
Loo ofLen ouL of reach of new SMLs ls provlded bv Lhese lncubaLors. 1hev also provlde uLlllLv
connecLlons LhaL are dlfflculL Lo oraanlze alone, and proLecL from peLLv harassmenL of bureaucraLlc
lnspecLors.
103


Cnce a flrm enLers one of Lhese lncubaLors, lL ls under no pressure Lo leave. Manv 8usslan hlah
Lech SMLs have remalned ln Lhese lncubaLors for Len or more vears. 1he momenL Lhe companv
becomes a commerclal success, lL ls no lonaer ellalble Lo remaln ln Lhe lncubaLor. Cn Lhe oLher hand,
a bla enouah commerclal fallure wlll make Lhe lncubaLor force Lhe falled sLarL up Lo leave ln order Lo
ls make room for more promlslna candldaLes
104
.

1he !apan AssoclaLlon of new 8uslness lncubaLlon CraanlzaLlons (!An8C) was founded ln !une 1999.
lL was Lhe flrsL naLlonal neLwork speclallzed lnasslsLlna Lhe creaLlon of sLarL-ups. lLs members lnclude
34 Core SupporL lnsLlLuLlons and 700 supporLlna lnsLlLuLlons. Lach clLv has one or several lncubaLors.
1he blaaesL are ln 1okvo (Waseda buslness exceleraLor), kvoLo (kelhanna Þlaza, kvoLo 8esearch
Þark), lukuoka (klLakvushu 1elework CenLer), lwaLe (lwaLe lndusLrles ÞromoLlon CenLer, Panamakl
lncubaLe CenLer, Panamakl 8uslness lncubaLor), Clfu (SofLopla !apan), Csaka (CreaLlon core
Plaashlosaka), SalLama (lncubaLlon on Campus, Pon[o-Waseda), kanaaawa (?okohama 8uslness
CenLer). !An8C dlfferenLlaLes beLween Lhree Lvpes of lncubaLors: 8&u Lvpe, rural Lvpe and prlvaLe-
secLor-led Lvpe.
103


AnoLher lncubaLor esLabllshed a decade aao ls Lhe uS-!apan 8uslness lncubaLor CenLer (8lC) whlch ls
supporLed bv !apan LxLernal 1rade CraanlzaLlon (!L18C). noL onlv does Lhls lncubaLor follows a
Slllcon vallev model, buL lL also shows how lncubaLors can plav a role ln lnLernaLlonallzaLlon. 1he
slllcon vallev model LranslaLes lnLo an asslsLance Lo sLarLups wlLh "sofL servlces" such as menLorlna,
Leachlna presenLaLlon skllls, semlnars, and buslness developmenL supporL.
106


ln Saudl Arabla, lncubaLors are copled from Lhe Amerlcan model and are mosLlv found ln
unlverslLles. 1here ls ample room for developmenL here for Lhelr numbers are sLlll Loo low and Lhose
LhaL exlsL are noL vlslble enouah. SAClA musL publlclze Lhem more. lor Lhelr areaLer ranae adopLlon,
Lhe people need Lo have falLh ln Lhelr aovernmenL, ln Lhe sense LhaL lL won'L be overzealous ln lLs
corrupLlon. none Lhe less, 30 Lechnoloav lncubaLors are belna planned ln unlverslLles, Lechno parks
and lnnovaLlon clusLers
107
.
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.

@$3,%+33!A;$B4&,#%!.!!

1he uSA ls a verv forLunaLe counLrv ln Lerms of orlalnal lnnovaLlon works. lndeed 3 of Lhe
world's Lop 10 besL buslness schools are ln Lhe uSA
108
. 1hese schools are exLremelv lnnovaLlve even
ln Lhelr Leachlna Lechnlques, Lhus ensurlna LhaL Lhelr fuLure araduaLes wlll have a slanlflcanLlv
dlfferenL, more enaaalna and more lmpacLful learnlna experlence Lhan araduaLes from averaae
schools
109
. locus ls placed on fosLerlna creaLlvlLv, Leamwork, sollLarv hard work and case sLudles LhaL
requlre sLudenLs Lo use knowledae from all Lhelr courses slmulLaneouslv.
110
1he focus on lnnovaLlve
and darlna Leachlna Lechnlques ls [usLlfled bv Lhe lmperaLlve of Lransformlna [aded buslness sLudenLs
ln Lo more enaaaed and passlonaLe sLudenLs. 1hese Lechnlques have proven frulLful as manv
buslness school araduaLes are shunnlna banks and are Lurnlna Lo enLrepreneurshlp wlLh buslness
schools bulldlna proarams Lo supporL Lhem wlLh aranLs awarded Lhrouah compeLlLlons
111
.

lurLhermore Amerlcan buslness schools Lend Lo oraanlze buslness plan compeLlLlons where
sLudenLs submlL Lhelr own pro[ecLs ln hopes of recelvlna a reward. lor lnsLance, Lhe Parvard's annual
8uslness Þlan ConLesL lnvlLes sLudenLs Lo do so and wlnners recelve a uS$ 23,000 cash prlze LhaL
would be spenL on Lhelr pro[ecL.
112
ln 2010, enLrepreneurs aL Parvard formed Lhe SLarLup 1rlbe
sLudenL aroup LhaL persuaded Parvard Lo sLarL Lhe uS$ 30,000 Mlnlmum vlable ÞroducL (MvÞ) fund.
1hls proaram dlsLrlbuLes awards of approxlmaLelv $3,000 a plece Lo promlslna Leams. Slmllar efforLs
are belna made ln buslness schools around Lhe uSA Lo moLlvaLe sLudenLs Lowards
enLrepreneurshlp
113
. As menLloned above, Lhe resulLs are showlna more enLrepreneurs shunnlna
hlah pavlna flnance [obs. uesplLe LhaL, Lhe uSA sLlll feels a shorLaae ln enLrepreneurs, buL Lo be one lL
ls necessarv Lo be a rlsk Laker. noL evervone ls.
114
unforLunaLelv, !apav, kSA and 8ussla are noL as
well known for Lhelr buslness educaLlon as Lhe uSA and Lurope are. 1hev have much Lo learn and
copv from Lhe Amerlcans ln Lhls respecL.

0B,+%&,=,B!A;$B4&,#%!!

8uslness educaLlon ls noL Lhe onlv Lvpe of educaLlon LhaL requlres some aLLenLlon. lor
buslness people Lo work wlLh sclence lnnovaLlon and Lechnoloav, Lhev musL have a quallfled seL of
human resources Lo work wlLh. 1hls resource dlrecLlv depends on Lhe quallLv of S1LM educaLlon. 1he
uSA, under Lhe C8AMA admlnlsLraLlon has Laken areaL sLeps desplLe Lhe recesslon Lo enhance Lhe
slLuaLlon. lndeed, 1he Cbama admlnlsLraLlon has sees Lhe uraencv ln and has aareed Lo a uS$3.4
bllllon budaeL for sclence, Lechnoloav, enalneerlna and maLh educaLlon (S1LM). 1hls lncludes a 100
mllllon uS$ down pavmenL on an lnlLlaLlve Lo prepare 100,000 new and hlahlv effecLlve S1LM
Leachers over Lhe nexL decade
113
.

8ussla has a Lerrlble educaLlon svsLem, and as such has launched Lhe Lhe unlverslLv 8esearch
Þroaram
116
. 1hls proarams alms Lo creaLe polnLs of excellence ln Lhe secLor of Plaher LducaLlon ln
educaLlon, research and knowledae Lransfer. 1he mlsslon ls Lo asslsL Lhe dvnamlc developmenL of Lhe
S&1 complex and Lo ensure Lhe relevanL hlah quallLv human caplLal ls acLlve and enaaaed. 1he scope
of Lhe pro[ecL ls of 10 vears and has an overall budaeL of $4.4 bllllon. 1he maln ob[ecLlve of Lhe
aovernmenL Lhrouah Lhe n8u proaram ls Lo brlna 8usslan educaLlonal lnsLlLuLlons Lo Lhe world
compeLlLlveness level, empowerlna Lhem Lo adequaLelv underLake Lhe responslblllLv of preservlna
and developlna human resources for Lhe sclence, hlah Lech and professlonal educaLlon secLors, as
well as Lhe developmenL and commerclallzaLlon of advance Lechnoloales ln 8ussla.

1he n8u proaram ls an lnLer-unlverslLv conLesL proaram where Lhe Lop unlverslLles are
rewarded Lhe n8u demarcaLlon. 1he flrsL selecLlon conLesL Look place on AuausL, 1, 2009. 110
unlverslLles parLlclpaLed ln Lhe conLesL and onlv 12 unlverslLles were selecLed. whlch recelved Lhe
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
caLeaorv n8u and means from Lhe federal budaeL for flnanclna Lhelr developmenL proarams ln 2009-
2018 ln Lhe volume up Lo 1,8 bllllon rubles each
117
. 1he consequences of such a selecLlon are a
areaLer lnLearaLlon of educaLlon and sclence, as well as Lhe developlna of modernlzed educaLlonal
proarams for hlaher educaLlon relaLed Lo sLudenL's proflles. 1he flnanclal reward allows for Lhe
purchase of new equlpmenL, faclllLles and sofLware, and parLlclpaLlon evenLs favorlna lnLernaLlonal
collaboraLlon.
118


!apan has launched Lhe Clobal CCL Þroaram Lo help !apanese unlverslLles Lo compeLe aL Lhe
world level. lL alms Lo lmplemenL compeLlLlve envlronmenL amona Lhe !apanese naLlonal, prlvaLe and
publlc unlverslLles bv lnLroduclna Lhe prlnclple of compeLlLlon Lhrouah Lhlrd-parLv assessmenLs.
SclenLlflc flelds, lncludlna lnLerdlsclpllnarv and comblned flelds and new dlsclpllnes are covered
119
.
1he CCL proaram alms Lo bulld more lnLernaLlonal unlverslLles ln !apan, ln parLlcular Lo develop
lnsLlLuLlons LhaL are recoanlzed Lo perform research aL Lhe hlahesL lnLernaLlonal level, prlmarllv
Lhrouah subsLanLlal fundlna. SelecLed parLlclpanLs obLaln aranLs wlLh overall budaeL of $uS 1 bllllon.

lor a proposal Lo be selecLed lL musL fulflll Lhe followlna crlLerla
120
:

1) Þroposal should embodv a fuLure concepL for developlna Lhe unlverslLv reflecLlna lLs unlque
lnsLlLuLlonal characLer and be alven powerful lnsLrumenLs for creaLlna an lnLernaLlonallv excellenL
educaLlon and research cenLer under Lhe unlverslLv presldenL manaaemenL.

2) AfLer Lhe flve vears, fundlna ends and Lhe unlverslLv's CCL should conLlnue lLs operaLlons
lndependenLlv wlLhouL a loss ln quallLv.

3) Þroaram should bulld educaLlon and research cenLer LhaL funcLlon Lo fosLer hlahlv creaLlve vouna
researchers. 1he purpose of Lhe proaram ls noL Lo complle research pro[ecLs. 1o do Lhls, Lhe cenLer
musL conducL hlahlv creaLlve and vanauard research aL Lhe hlahesL world level. lL should also have
Lhe poLenLlal for fuLure expanslon.

1he klnadom of Saudl Arabla has been poorlv endowed ln Lerms of educaLlonal faclllLles.
lorLunaLelv, Lhanks Lo lLs oll wealLh lL has manaaed Lo bulld manv unlverslLles ln a shorL perlod of
Llme. lurLhermore, lL has launched a verv comprehenslve scholarshlp proaram Lo lncrease supplv so
LhaL lL maLches Lhe verv hlah demand of hlaher-level educaLlon. SLudenLs, reaardless of sex, are alven
a llvlna salarv, Lhelr healLh lnsurance ls covered, and Lhelr LulLlon fees are pald fullv bv Lhe
aovernmenL, wherever ln Lhe world Lhev choose Lo ao. A llsL of needed speclalLles ls made avallable
for sLudenLs wlshlna Lo parLlclpaLe ln Lhe proaram, Lhev are obllaed Lo plck a speclalLv from Lhe
proposed llsL. 1hese sLudenLs are expecLed Lo meeL arade requlremenLs Lo quallfv and Lo remaln ln
Lhe proaram, as well as choose a speclalLv from Lhe offlclal llsL of needed speclalLles, all of whlch
domalns of sclence, lnnovaLlon and Lechnoloav
121
. As such, noL onlv do Saudls have access Lo areaL
opLlons for educaLlon buL Lhev also learn from forelan culLures LhaL whlch academla cannoL Leach
aldlna ln Lhe lnLernaLlonallzaLlon process of educaLlon.

ln Lhe meanwhlle, Saudl Arabla has noL slowed down lLs naLlonal educaLlon developmenL
process. ln Lhe flrsL decade of Lhe 2000s, 26 unlverslLles have been bullL. Cf Lhese 26, 19 were bullL
under Lhe rule of klna Abdullah 8ln Abdulazlz over Lhe lasL 3 vears
122
ln Lhe 2000s, 19 of Lhem
founded ln Lhe lasL 3 vears. 1he flaashlp unlverslLv ls Lhe klna Abdullah unlverslLv of Sclence and
1echnoloav. lL was founded ln 200 and focuses on araduaLe educaLlon and research. Where
LradlLlonal unlverslLles relv on a lona hlsLorv of alumnl and academlc sLaff's success, kAuS1 emeraed
as a ma[or plaver ln Lhe fleld of Sl1 Lhanks Lo lLs world class faclllLles and uS$ 10 bllllon endowmenL.
1hls ma[or lnvesLmenL was made for Lhe klna saw and undersLood Lhe cruclal need of Lechnoloav
orlenLed educaLlon ln Lhe paramounL and cenLral economlc acLlvlLv of lnnovaLlon. Such faclllLles are
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
worLhless wlLhouL proper human resources, as such Lhe unlverslLv's deep pockeLs and areaL faclllLles
are seL Lo aLLracL Lop sLudenLs and faculLv. kAuS1 ls all Lhe more aLLracLlve Lo lnLernaLlonal people
conslderlna LhaL lL ls a non sharla compllanL ºbubble" where wesLern Lvpe freedoms can be exerclsed
(save for crlLlclsm aaalnsL Lhe sLaLe). llnallv, kAuS1 alms Lo aLLracL Lop LalenL wlLh Lhe verv lucraLlve
packaaes lL offers.
123


1op LalenL ls whaL kSA alms Lo aLLracL, Lo do so more effecLlvelv lL has developed Lhe
Mawhlba proaram. 1hls proaram, esLabllshed ln 1999, has as a aoal Lo supporL LalenLed and creaLlve
people, flnd ploneer vouLhs LhaL have a areaL poLenLlal ln sclence and Lechnoloav, supporL and enrlch
Lhe educaLlonal acLlvlLv of Lhe alfLed and LalenLed Saudl sLudenLs, and Lo publlclse meLhods Lo
nurLure and saLlsfv Lhe lnLellecLual demands of alfLed chlldren. under Lhls proaram, alfLed chlldren
wlll be followed from Lhelr vounaesL aae LhrouahouL Lhelr educaLlon, and aulded wlLh menLors, alven
opporLunlLles wlLh lnLernshlps and scholarshlps as well as sklll-bulldlna proarams.
124


normal sLudenLs are noL lefL behlnd, 1aLweer, a uS$2.4 bllllon dollar pro[ecL meanlna
ºdevelopmenL", was launched ln 2006 bv klna Abdullah. AL Lhe Llme of launch Lhe klna announced
LhaL Lhe proaram would be run as an lndependenL corporaLlon, ouLslde Lhe purvlew of Lhe ºbloaLed
conservaLlve mlnlsLrv of educaLlon"
123
. lurLher uparades lnvolve re-educaLlon of educaLors and Lhe
lnsLallaLlon of pracLlcal exerclse proarams and Lools aL schools Lo help sLudenLs learn how Lo Lhlnk
lnsLead of [usL ºmemorlzlna and reauralLaLlna"
126
. 1he hope ls LhaL 1aLweer and Mawhlba wlll make
Lhe naLlon more acLlve and lnqulslLlve ln Lhelr pursulL of knowledae and economlc developmenL,
Lherefore creaLlna more fuLure [obs and furLher dlverslfvlna Lhe Saudl economv.

C%&+'%4&,#%4?,D4&,#%.!!

1houah lndlaenlzaLlon ls lmporLanL Lo esLabllsh one's own lnnovaLlve capaclLv and credlblllLv
ln Lhe eves of Lhe world, collaboraLlon ls an essenLlal parL of Lhe lnnovaLlon puzzle. As such,
academla and buslnesses allke sLrlve Lo esLabllsh parLnershlps wlLh one anoLher aL Lhe lnLernaLlonal
level. 1hls provldes access Lo lnLellecLual ÞroperLv LhaL oLherwlse would be lnaccesslble and oLher
ludlcrous Lransfers of Lechnoloav upon whlch fuLure Lechnoloales and lnvenLlons Lo be bullL upon.
127


lf one ls Lo look aL Lhe Saudl Arablan example, Lhe sLaLe has reduced manv barrlers Lo aLLracL
companles Lo Lhe counLrv. As wlll be seen laLer, lL ls now Lhe 11
Lh
counLrv ln Lhe ºease of dolna
buslness" world ranklnas. As such, Lhere are lncenLlves for lnLernaLlonal companles Lo esLabllsh
parLnershlps wlLh local unlverslLles. 1hese lncenLlves are made all Lhe sLronaer conslderlna LhaL kSA
ls one of Lhe onlv aulf counLrles LhaL has walved anv sponsor requlremenLs and has exLremelv low
corporaLe Laxes and no lncome Lax
128
.

1he Chazal 1 pro[ecL ls an ldeal lllusLraLlon of such relaLlonshlps. 8ullL bv sLudenLs of Lhe klna
Saud unlverslLv over Lwo vears wlLh help from Mercedes 8enz, Lhe Chazal 1 ls Lhe flrsL Saudl Arablan
car developed for Lhe Mlddle LasLern Culf's rockv and sandv Lerraln. lL was bullL on Lhe Mercedes
8enz M class 4x4 wheel drlve car, buL exLenslvel and llberallv modlfled bv Lhe Saudl Arablan sLudenLs,
wlLh asslsLance from Mercedes 8enz, Lo meeL Lhe requlremenLs of Lhe mlddle easLern cllmaLe. CLher
companles such as 8oelna SA8lC, and Schlumberaer are acLlve wlLh kAuS1 and Lhe klna lahd
ÞeLroleum unlverslLv
129
. ?eL parLnershlps are noL onlv esLabllshed beLween unlverslLles and lndusLrv,
buL also beLween lndusLrv lLself. As such kAuS1 and Lhe klna lahd ÞeLroleum unlverslLv have
esLabllshed parLnershlps wlLh manv world leadlna unlverslLles, whlch can be found ln Lhe llsL
provlded ln Lhe annex.


Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
!apan ls flahLlna Lhe Lendencv of lnLernaLlonal companles' fllahL. 1he Core Lo Core Þroaram
130

was lmplemenLed bv Lhe !apan SocleLv for Lhe ÞromoLlon of Sclence (!SÞS) and alms Lo bulld and
expand a cooperaLlve lnLernaLlonal neLwork ln leadlna flelds of sclence amona unlverslLles and
research lnsLlLuLlons ln !apan and 13 wesLern naLlons
131
. lurLhermore, !apan ls aLLempLlna Lo
esLabllsh svsLems Lo aLLracL ouLsLandlna forelan researchers.

!apanese efforLs ln aLLracLlna forelan companles exLend Lo Lhe lmplemenLaLlon of
conslderable lncenLlves. 1hese lnclude a preferenLlal Lax svsLem, subsldles for facLorv locaLlon and
speclal lmmlaraLlon LreaLmenL under Lhe framework of companv cerLlflcaLlon. 1he !apanese have
lnLroduced ºLhe polnLs proaram" LhaL has been used ln some WesLern and Aslan counLrles Lo aLLracL
Lop class personnel. 1hls lnvolves a preferenLlal LreaLmenL aL lmmlaraLlon conLrol for Lop class
forelan personnel.
132


1he nexL area of concern, once neLworks are esLabllshed and forelan researchers are brouahL
Lo !apan, ls creaLlna svnerales. AdequaLelv maLchlna Lhe approprlaLe sLrenaLhs and weaknesses,
lnLulLlons eLc. of researchers wlll allow for Lhem Lo be hlahlv efflclenL ln Lerms of Lhelr creaLlvlLv and
lnnovaLlve research. ?eL for forelan researchers Lo be aLLracLed Lo !apan, chanaes ln pollcles are
necessarv. lmmlaraLlon conLrol and vlsas, houslna and accommodaLlons, medlcal lnsurance, lanauaae
lssues and Lhe workplace envlronmenL make for slanlflcanL barrlers. lL ls whv Lhere are efforLs
exerLed ln Lhe fundamenLal enhancemenL of unlverslLv secreLarlaLs as well as oLher llalson funcLlons,
comblned wlLh Lhe esLabllshmenL of lnLer-unlverslLv neLwork svsLems for coordlnaLlna Lhe
accepLance of forelan researchers
133
.

ln conLrasL, Lhe uSA has esLabllshed lLself as such as ma[or kev plaver ln Lhe fleld of
lnnovaLlon, Sclence and Lechnoloav LhaL Lhev barelv have anvLhlna Lo do. 1hev are souahL afLer.
lndeed, of Lhe Lop 30 unlverslLles ln Lhe world for enalneerlna and Lechnoloav, 23 are from Lhe uSA.
ln Lhe Lop 20, 13 are from Lhe uSA and Lhe Lop 3 are all from Lhe uSA (CalLech, Ml1, SLanford,
ÞrlnceLon, 8erkelev)
134
. 1hese unlverslLles onlv accepL world level sLudenLs and provlde Lhem wlLh
world-class faclllLles and faculLles. lurLhermore Lhese sLudenLs recelve enormous pracLlce from Lhelr
well-equlpped laboraLorles and prove Lo be of areaL convenlence for companles LhaL cooperaLe wlLh
unlverslLles. noL onlv are Lhese sLudenLs provldlna a pool of cheap and skllled labor, buL are also
provldlna corporaLlons wlLh a dlrecL source Lo quallLv fuLure emplovees.

1he uSA does noL cease Lo lmpress. 1he uS aovernmenL and academla ofLen collaboraLe ln
research faclllLles, and ofLen research parks house uS aovernmenL research faclllLles LhaL are dlsLlncL
and alonaslde Lhose of academla. Conslderlna Lhe masslve lnvesLmenLs presenLed bv Lhe uS
aovernmenL ln 8&u, lL ls noL surprlslna Lo reveal how compllcaLed a mesh of deparLmenLal proaram
collaboraLlons exlsL aL realonal and federal levels. 1he ueparLmenL of Lnerav alone ls responslble for
21 laboraLorles
133
. 1he annex provldes Lhe reader wlLh a more compleLe vlew of Lhe complex web
Lhe uS lnsLlLuLlonal map forms.

1he hlah cosL of lnLernaLlonallzaLlon and lncenLlvlzlna sclenLlflc educaLlon has a areaL reward
whlch ls Lhe lndlaenlzaLlon of Lechnoloav. unlverslLles are mosL ofLen owners of Lhe lnLellecLual
ÞroperLv of lnnovaLlons LhaL are dlscovered and made on Lhelr arounds. As such, lL ls ln Lhe lnLeresL
of Lhe unlverslLles Lo aLLracL Lop LalenL and have Lhem work, for as Lhe Colombla venLures proaram
shows, proflLablllLv can ensue from such acLlvlLv. 1hls underllnes Lhe lmporLance of lndlaenlzaLlon of
Lechnoloav, ln oLher words, Lhe process of creaLlna Lechnoloav ln Lhe home markeL. 1hls lacks areaLlv
ln boLh kSA and 8ussla.

Ind|gen|z|ng 1echno|ogy

Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
8ussla has areaL hopes wlLh lLs lederal 1araeLed Þroaram 8&u ln ÞrlorlLv llelds of Lhe S&1
Complex of 8ussla
136
(2007-2012). 1hls complex alms Lo creaLe a slllcon vallev Lvpe of ecosvsLem
promoLlna all dlmenslons of 8&u and lnvenLlon commerclallzaLlon. 1he complex ls manaaed bv Lhe
MlnlsLrv of LducaLlon and Sclence and Lhe proaram's budaeL amounLs Lo $uS 6.87 bllllon. 1hls
pro[ecL shows Lhe parLnershlp beLween Lhe dlfferenL sLakeholders of sclence and Lechnoloav
developmenL, as lL 70° of Lhe pro[ecL was flnanced bv Lhe federal budaeL Lhe resL belna flnanced bv
realonal and prlvaLe co-fundlna ( companles ln Lhe llfe sclences, nano-svsLems & maLerlals, lC1,
envlronmenL, enerav secLors). 1hls proaram alms Lo supporL 8ussla's advancemenL of lL's sclenLlflc
and Lechnoloalcal poLenLlal Lhrouah economlc compeLlLlon. 1he aoal ls Lo be reached bv a
concenLraLlon of sLaLe and prlvaLe flnanclal resources on Lhe mosL promlslna S&1 flelds. 1he hlah
lnvesLmenLs and Lhe lncreased llkellhood of proflLable pro[ecLs wlll aLLracL vouna speclallsLs lnLo Lhe
8&u sphere.

1he ÞresldenL CranLs for CovernmenL SupporL of ?ouna 8usslan SclenLlsLs and Lhe Leadlna
SclenLlflc Schools of Lhe 8usslan lederaLlon alve opporLunlLles Lo hlahlv quallfled sclenLlsLs (up Lo Lhe
aae of 40) Lo compeLe for a supplemenL Lo Lhelr research pro[ecLs flnanclna and salarv. CranLs are
almed aL lndlvlduals buL appllcaLlon for aranLs and manaaemenL of flnances ls done vla Lhelr
emplovers (research lnsLlLuLlons, PLl). 1he labour expenses parL of Lhe aranL ls flxed. uurlna lLs 10
vears of exlsLence Lhe measure has underaone several modlflcaLlons. 1he flrsL modlflcaLlon was an
lncrease of Lhe aranL for lL Lo have a laraer reach and areaLer lmpacL. ln Lhe lasL flve vears lL was
lnLearaLed wlLh oLher aovernmenL lnlLlaLlves for Lhe developmenL of sclence and lnnovaLlon ln
8ussla. CranLs are alven for a Lwo-vear perlod and covers labor and oLher expenses (Lravel,
conferences, equlpmenL, eLc.). 1here are Lwo Lvpes of aranLs: 1vpe 1 aranLs reach t17,143 per vear,
and Lvpe 2 aranLs are worLh t28,371 per vear.
137


1here are Lhree Lvpes of research cenLers LhaL are accesslble Lo SMLs ln kSA. 1hese are
aovernmenLal, academlc and publlc laboraLorles. Access Lo Lhem ls easv for all LhaL ls requlred ls a
requesL and lL wlll be an answered
138
. A conLracL ls slaned beLween Lhe research cenLer (reaardless of
Lvpe) and Lhe prlvaLe companv where an aareemenL ls declded upon Lhe dlrecLlon of Lhe research.
1he SML Lhen beneflLs from Lechnlcal and maLerlal asslsLance aL barelv anv cosL. lndeed, kAuS1 onlv
asks for 20,000 uS$ for small buslnesses Lo beneflL from lLs servlces, sLudenLs, faculLv, and labs
139
.
8ased on Lhe exLenL of Lhe research collaboraLlon and dependence of Lhe enLrepreneur on Lhe
ouLslde help, he wlll share a porLlon of Lhe proflLs wlLh Lhe sclenLlsLs. neverLheless, Lhe enLrepreneur
llke Lhe corporaLlon, wlll remaln Lhe excluslve owner of Lhe lnLellecLual properLv
140
. 1he slLuaLlon ls
dlfferenL when sLudenLs and faculLv come up wlLh dlscoverles on Lhelr own uslna unlverslLv
resources, ln LhaL case, Lhe unlverslLv possesses Lhe lnLellecLual properLv buL lL alves Lhe dlscoverer a
porLlon of fuLure proflLs.

ln case of a confllcL of lnLeresL around lnLellecLual properLv, Lhe confllcL of lnLeresL
commlLLee of each unlverslLv wlll mlLlaaLe Lhe problem ln a wav LhaL proLecLs Lhe owner of Lhe
rlahLs. lL ls whv Saudl unlverslLles are open Lo llcenslna Lechnoloales and are verv wllllna Lo slan and
respecL non-dlsclosure aareemenLs.
141
Such laboraLorles are made avallable aL unlverslLles such as
Lhe research lnsLlLuLe of Lhe klna lahd unlverslLv of ÞeLroleum and mlnerals, kAuS1, kAu, kSu
142
.
1he aovernmenL has varlous research faclllLles focused on llvesLock, flsherles, aarlculLure, a
conslderable amounL ln Lhe healLh secLor such as Lhe klna lalsal speclallsL hosplLal, klna khaled Lve
SpeclallsL PosplLal, [olnL cenLre for research ln prosLheLlcs devlces, naLlonal cenLer for vacclne
producLlon, and Lhe Þrlnce Salman cenLre for dlsablllLv research. uesplLe all Lhe soluLlons and opLlons
Saudl Arabla offers, Lhere ls a conslderable number of clLlzens LhaL choose Lo sLav abroad raLher Lhan
come back.

ECFG7CHF!7GA!@21CH!I21CH!1HI!2AJA20A!@21CH!I21CH!72AHI0!!
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.

1he maln reason Saudl Arablans choose Lo leave Lhelr counLrv behlnd ls Lhe freedom Lhev flnd
elsewhere and Lhe culLural wealLh Lhev wlzen Lhemselves up wlLh. Conslderlna Lhe lmporLanL
resources lnvesLed ln opLlmlzlna Lhe Saudl naLlon ln Lerms of sclence, lnnovaLlon and Lechnoloav,
Lhere ls no soluLlon for lL buL Lo llberallze lLself. lndeed, freedom of expresslon, rellalon, LhouahL, and
oLher baslc freedoms musL be auaranLeed ln order for Lhe besL and brlahLesL Lo feel safe and
comforLable ln Lhelr envlronmenL. 1o Lhlnk freelv ls kev Lo fosLerlna Lhe klnd of creaLlvlLv and
moLlvaLlon LhaL drlves researchers Lo make conslderable dlscoverles. kAuS1 and Lhe 1aLweer
pro[ecLs are a sLarL for Lhls chanae Lo be compleLe. ?eL, deeper socleLal chanaes are necessarv for lL ls
noL Lhe aovernmenL or klna LhaL refuses freedom, buL Lhe powerful conservaLlve rellalous members
of socleLv. 8ussla and !apan do noL have Lhe luxurv of such a leewav.

8ussla's lederal 1araeLed Þroaram for SclenLlflc and SclenLlflc-Þedaaoalcal Þersonnel of
lnnovaLlve 8ussla
143
was esLabllshed Lo aLLracL and reLaln LalenLed people, especlallv sLudenLs, ln
sclence. 1hls proaram ls Lo be execuLed over 3 vears from (and lncludlna) 2009 Lo 2013 wlLh a budaeL
of $uS 3.173 bllllon. 1he proaram lncludes an aspecL of lnLernaLlonallzaLlon for 8&u aL unlverslLles.
1hls ls esLabllshed prlmarllv Lhrouah a fundlna llne, whlch alms Lo flahL braln draln and Lo aLLracL
8usslan sclenLlsLs worklna abroad Lo dlrecL research pro[ecLs lnvolvlna vouna sclenLlsLs back ln Lhelr
former home counLrv. More deLalls on Lhls lnlLlaLlve can be found ln Lhe annex.

1he lnvesLmenLs made, pro[ecLs launched and lnlLlaLlves Laken as explalned above are a aood
sLarL ln alvlna hope and reason for Lhe fleelna brlahLesL naLlonals Lo reLurn home. lndeed, Lhe uSA,
whlch was a prlme desLlnaLlon for such mlnds, experlenclna a reverse braln draln, wherebv Lhe
brllllanL lmmlaranLs are sLarLlna Lo reLurn Lo Lhelr home counLrles for Lhev see more opporLunlLv
back home Lhan locallv.

8uL Lhe uSA ls aLLempLlna Lo flahL Lhe slLuaLlon. 1he uSA ls noLorlous for Lhe dlfflculLv lL
lmposes on lmmlaranLs ln Lerms of LerrlLorv enLrv. ?eL, Lhe new kerrv-Luaar lealslaLlon provldes vlsas
for a few aroups of lmmlaranLs under cerLaln condlLlons. LnLrepreneurs llvlna ouLslde Lhe uSA can be
alven a vlsa lf an Amerlcan lnvesLor aarees Lo flnanclallv sponsor Lhe pro[ecL wlLh a mlnlmum of
uS$100,000. 1he sLarL up ls requlred Lo have creaLed aL leasL 3 new [obs for Amerlcans and have
elLher ralsed over 3000,000 ln flnanclna or be aeneraLlna more Lhan 300,000 ln vearlv revenue.

More lnLeresLlnalv, workers on a precarlous vlsa or araduaLes from uS unlverslLles ln sclence,
Lechnoloav, maLhemaLlcs, compuLer sclences or enalneerlna can obLaln a vlsa. 1he condlLlons are
LhaL Lhev musL have an lncome of aL leasL uS$30,000 or asseLs of aL leasL uS$60,000 and have an
Amerlcan lnvesLor commlL Lo lnvesLmenLs of aL leasL uS$ 20,000. AddlLlonallv, Lhe venLure musL have
creaLed Lhree new Amerlcan [obs and elLher have ralsed over uS$100,000 ln flnanclna or be
aeneraLlna more Lhan uS$100,000 ln vearlv revenue.

1he Lhlrd and flnal aroup LaraeLed bv Lhe new blll are forelan enLrepreneurs. 1o quallfv for a
vlsa, Lhelr buslness musL have had aeneraLed aL leasL uS$100,000 ln sales from Lhe u.S. lurLhermore,
Lwo vears laLer Lhe sLarLup musL have creaLed Lhree new Amerlcan [obs and ralsed over 100,000 ln
flnanclna or be aeneraLlna more Lhan 1000,000 ln vearlv revenue.

1he rlsk for enLrepreneurs Lo be expelled from Lhe counLrv exlsLs. lf Lhelr venLure falls Lhev
musL elLher sLarL aaaln or leave Lhe uSA. 1he SLarLup vlsa ls for rlsk Lakers. 1here are some
consLralnLs as well, Lhe SLarLup vlsa doesn'L allow for lLs holders Lo work for anv companv oLher Lhan
Lhelr own. 1hese chanaes are welcome for skllled lmmlaranLs creaLe [obs, and reclplenLs of Lhe
sLarLup vlsa wlll noL be allowed Lo sLav ln Lhe u.S. permanenLlv unless Lhev do. WlLhouL Lhls
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
lealslaLlon, Lhe [ob creaLors wlll be forced Lo Lake Lhelr ldeas and savlnas Lo Lhelr home counLrles
where Lhev wlll creaLe [obs and become compeLlLors Lo uS based companles.
144


C%B+%&,*,D,%:!A%&'+6'+%+$'38,6!C%!7+B8%#?#:(!!

Þrobablv ln order Lo more resemble Amerlcan sLarL ups, Lhe 8usslan lederal Law 217 auLhorlzed Lhe
creaLlon of small enLerprlses ln unlverslLles. Such sLlmulaLlon can be achleved bv means of
aovernmenL orders. lL ls hoped LhaL Lhls law wlll conLrlbuLe Lo Lhe creaLlon of Lhe necessarv leaal
framework promoLlna efflclenL developmenL of SML buslness ln Lhe lnnovaLlon area and wlll
slanlflcanLlv slmpllfv creaLlon of small lnnovaLlon companles. !usL as lmporLanLlv, law 217 made lL
posslble for unlverslLles Lo Lransfer a share of Lhelr caplLal, equlpmenL and premlses lnLo a newlv-
formed unlverslLv sLarL-up, Lhus lncreaslna lLs lnvesLmenL aLLracLlveness and sLlmulaLlna
enLrepreneurshlp.
143
1o sLlmulaLe enLrepreneurshlp furLher, an aLLempL Lo brldae Lhe lnformaLlon
aap was made. lndeed, would be enLrepreneurs dld noL know of Lhe opLlons and posslblllLles
avallable Lo Lhem. 1hls prompLed Lhe launch of lnnovbuslness.ru and smallbuslness.ru where
enLrepreneurs can obLaln lnformaLlon abouL SMLs supporL, venLure funds, Lechnoparks and
subsldles
146
.

Saudl Arabla, as menLloned above ls a rlsk averse naLlon. 1he facL LhaL corrupLlon ran
rampanL for a lona Llme doesn'L help lncenLlvlze enLrepreneurshlp. 1hls has been brouahL Lo Lhe
aLLenLlon of Lhe klna whom has Laken several lnlLlaLlves. 1he flrsL ls Lhe consLrucLlon of four
economlc clLles
147
wlLh a LoLal budaeL of uS$ 70 bllllon dollars wlLh consLrucLlon bealnnlna ln 2007.
1helr aoal ls Lo dlverslfv Lhe economv so LhaL Lhe klnadom mav become less rellanL on oll revenue
and Lo help Lhe evoluLlon of Lhe sLaLe ln Lo a knowledae based economv.

1he second ls Lhe 10x10 lnlLlaLlve bv whlch Saudl Arabla almed Lo become one of Lhe Lop 10
easlesL counLrles Lo do buslness ln. 1he economlc clLles, as well as Lhe esLabllshmenL of a naLlonal
CompeLlLlveness CenLer and a SAClA (Saudl Arablan Ceneral lnvesLmenL AuLhorlLv) llsL of ºsecLor
opporLunlLles" are pushlna Lowards slanlflcanL reforms ln order Lo reach Lhe 10x10 aoal
148
. ln 2011,
Saudl Arabla was ranked 11
Lh
counLrv ln Lhe ºLase of dolna buslness" ranklnas.
149
llnallv, Lhe Saudl
fasL 100 Saudl lasL 100 proaram rewards Lhe mosL successful SMLs everv vear bv adverLlslna Lhelr
servlces enormouslv. 1hls boosLs emplovee and lnvesLor morale, provldes neLworklna opporLunlLles,
and alves a powerful endorsemenL Lo companles. lL ls hoped LhaL Lhelr success would lnsplre and
moLlvaLe oLhers Lo sLarL Lhelr own SMLs
130
.

laclna recenL Lenslons and proLesLs bv Saudl clvlllans, Lhe klna has also lssued a roval decree
on on lrldav Lhe 18Lh of March 2011, esLabllshlna Lhe klnadom's AnLl-corrupLlon Commlsslon. 1hls
commlsslon ls Lo be esLabllshed ln Lhe 3 monLhs followlna Lhe lssuance of Lhe decree and wlll be led
bv a prlnclpal offlcer wlLh Lhe rank of a aovernmenL mlnlsLer. 1hls ls noL a half baked aLLempL aL
quelllna dlssaLlsfacLlon. lndeed, Lhe AnLl-CorrupLlon Commlsslon wlll oversee and observe all
aovernmenL deparLmenLs and no aovernmenL deparLmenL wlll be excluded from Lhe purvlew of Lhe
AnLl CorrupLlon Commlsslon. 1he powers of Lhe anLl-corrupLlon commlsslon wlll be verv exLenslve as
lL wlll also be Lasked wlLh Lhe duLv of observlna Lhe lmplemenLaLlon of orders and speclal lnsLrucLlons
wlLh respecLs Lo publlc affalrs, as well as observlna and challenalna admlnlsLraLlve and flnanclal
corrupLlon. All aovernmenL secLors and bodles wlll be requlred Lo cooperaLe and provlde Lhe
commlsslon wlLh all lnformaLlon lL needs. 1he onlv danaer lles ln Lhe quesLlon of who wlll pollce Lhe
pollceman. A safeauard aaalnsL Lhe corrupLlon commlsslon's abuses wlll need Lo be esLabllshed, and
Lhls wlll probablv lnvolve Lhe publlc oplnlon.
131


lor Lhe purpose of lmprovlna Lhe Lechnoloalcal level, promoLlna lnnovaLlon ln !apan and creaLlna
lncenLlves, Lhe lnnovaLlon ÞromoLlon Þroaram wlll provlde supporL for Lhe efflclenL pracLlcal
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
appllcaLlon of ouLsLandlna Lechnoloales derlved from cuLLlna-edae Lechnoloav seeds and promlslna
seeds found bv unlverslLles and research lnsLlLuLlons. lL comprlses aranLs and Lax lncenLlves
(lncludlna reducLlon of soclal charaes)
132
. 1he overall budaeL of lnnovaLlon ÞromoLlon Þroaram ls $uS
40 mllllon. 1he aranL for Lhe AppllcaLlon of lndusLrlal 1echnoloav lnnovaLlon ls one of such aranLs.
More deLalls can be found ln Lhe annex.

1he uSA ls verv exhausLlve ln lLs communlques wlLh Lhe enLrepreneurlal populaLlon. 1he uS
LnvlronmenLal ÞroLecLlon Aaencv alone lnforms lnLeresLed parLles as Lo Lhe areas where work ls
needed Lhrouah lL's LnvlronmenLal 1echnoloav CpporLunlLles ÞorLal (L1CÞ)
133
. L1CÞ ls a neLwork
deslaned Lo promoLe proarams LhaL fosLer developmenL of new cosL-effecLlve envlronmenLal
Lechnoloales. 1hese can ranae from arsenlc removal Lo dlesel reLroflLLlna, passlna bv areen chemlsLrv
and areen archlLecLure. ln Lhe same veln, Lhe LÞA presenLs Lhe LnvlronmenLal Lechnoloav verlflcaLlon
(L1v)
134
proaram LhaL develops LesL proLocols and verlfles Lhe performance of lnnovaLlve
Lechnoloales LhaL have Lhe poLenLlal Lo lmprove proLecLlon of human healLh and Lhe envlronmenL.
Concernlna Lhe envlronmenL aaaln, Lhe Clobal Chanae 8esearch Þroaram seeks Lo lnLearaLe federal
research and soluLlons for cllmaLe and alobal chanae.

AnoLher lnlLlaLlve ls Lhe naLlonal nanoLechnoloav lnlLlaLlve (nnl) whlch alms Lo ºundersLand and
conLrol maLLer aL Lhe nanoscale (so as Lo have) a revoluLlon ln Lechnoloav and lndusLrv LhaL beneflLs
socleLv."
133
1he nnl alms Lo do so bv expedlLlna Lhe dlscoverv, developmenL and deplovmenL of
nanoscale sclence and Lechnoloav Lo serve Lhe publlc aood, Lhrouah a proaram of ºcoordlnaLed
research and developmenL allaned wlLh Lhe mlsslons of Lhe parLlclpaLlna aaencles". llnallv, Lhe ºalm
of Lhe nnl ls Lo move nanoLechnoloav dlscoverles from Lhe laboraLorv lnLo new producLs for
commerclal and publlc beneflL" as well as creaLlna a skllled workforce wlLh a supporLlve
lnfrasLrucLure ln Lhe fleld of nanoLechnoloav.

1here are a pleLhora of slmllar publlclv funded lnlLlaLlves and proarams LhaL alm Lo fosLer furLher
research whlch would evenLuallv lead Lo commerclal success for companles. 1hese help SMLs flnd
opporLunlLles LhaL can serve Lhelr own arowLh ln domalns LhaL are relevanL Lo Lhelr experLlse.

WhaL ls lnLeresLlna Lo noLe are LhaL Lhere exlsLs plenLv of prlvaLelv run lnlLlaLlves almed aL
promoLlna Lhe commerclallzaLlon of Lechnoloalcal advancemenLs. ÞrlvaLe companles 1he mosL
famous ls Lhe x-Þrlze foundaLlon, whlch has as a mlsslon sLaLemenL LhaL lL's mlsslon ls Lo brlna abouL
ºradlcal breakLhrouahs for Lhe beneflL of humanlLv Lhrouah lncenLlvlzed compeLlLlon"
136
. lndeed, lL
poses a Lechnoloalcal challenae Lo Lhe publlc, and flnanclallv rewards whom ever can meeL lL. 1he
flrsL such prlze was awarded Lo Lhe lnvenLor of Lhe reusable commerclal ºspace place" used bv vlraln
CalacLlc. 1he wlnner of Lhe prlze, Mo[ave Aerospace venLures, alven uS$ 10 mllllon Lhouah Lhev
lnvesLed 100 mllllon ln 8&u for Lhe shlp.
137
1odav, Lhe x-Þrlze foundaLlon has compeLlLlons ranalna
from manv flelds, such as Lhe Cooale Lunar x Þrlze whlch alms Lo puL a roboL on Lhe moon, Lhe
archon Cenomlcs x prlze whlch asks compeLlLors Lo sequence 100 human aenomes wlLhln 10 davs or
less, and anoLher whlch wlll reward Lhe creaLors of a smarL phone app LhaL can dlaanose dlseases as
accuraLelv as a human docLor amonasL oLhers CLhers
138
. 1hese challenaes Lvplcallv aLLracL buddlna
sLarL-ups composed of all sorLs of enLrepreneurs and Lechnlclans, be Lhev veLerans or novlces on Lhe
Lechnoloalcal enLrepreneurlal fleld. ºÞerhaps Lhe mosL far-reachlna efforL, however, comes from Lhe
federal aovernmenL. LealslaLlon passed ln uecember, Lhe Amerlca CompeLes AcL, alves aovernmenL
aaencles far areaLer freedom Lo sponsor prlze conLesLs wlLh purses of up Lo $30 mllllon. LasL
SepLember, even before Lhe lealslaLlon, Lhe Cbama admlnlsLraLlon puL up a Web slLe, challenae.aov,
llsLlna aovernmenL challenaes, some wlLh prlze monev and some wlLhouL, as parL of lLs aoal of
Lapplna lnnovaLlve ldeas from clLlzens"
139
. Þrlzes help ln obLalnlna flnanclna, buL Lhere oLher wavs Lo
ao abouL flnanclna.

Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
I|nanc|ng : 5o|ut|ons for Very ||m|t|ng and constr|ct|ng cond|t|ons :

Companles Lvplcallv mosL need fundlna when Lhev are ln Lhelr mosL vulnerable phases: Lhe
sLarL up phase or ln Lhelr need of flnanclna for 8&u. 1o help such efforLs, !apan's lC1 venLure
SupporL fund, provlded bv Lhe naLlonal lnsLlLuLe of lnformaLlon and CommunlcaLlons 1echnoloav,
supporLs Lhe appllcaLlon developmenL sLaae of lnnovaLlon raLher Lhan Lhe 8&u sLaae. lundlna has
been made avallable Lo supporL venLure companles wlLh producLs aL varlous sLaaes of Lhe lnnovaLlon
process. 1he overall budaeL ls $13.3 mllllon
160
. 8ussla has a slmllar proaram: Lhe lederal
LnLrepreneurshlp lund and lederal lund of SMLs ln sclence and Lechnoloav provldes aovernmenLal
supporL for sLarL-ups. 1helr ob[ecLlves are: Lo provlde flnanclal ald Lo promoLe Lhe esLabllshmenL of
lnnovaLlve SMLs. lL ls hoped LhaL such companles wlll aeneraLe emplovmenL creaLlon and lncrease
8ussla's compeLlLlveness Lhrouah Lhe launch of cuLLlna edae Lechnoloales and a areaLer seL of
Lechnlcal skllls ln Lhelr people
161
.

ln order Lo help SMLs obLaln lslamlc flnanclna for Lhe developlna and expandlna of Lhelr acLlvlLles,
Lo supporL lnnovaLlon and aenerallv develop Lhe Saudl Arablan economv, Lhe kafalah proaram was
lnsLlLuLed.
162
1hls proaram ls ºa collaboraLlon beLween Lhe MlnlsLrv of llnance, represenLed bv Lhe
Saudl lndusLrlal uevelopmenL lund (Slul) and Saudl banks, whlch alms Lo promoLe flnanclna Lo Small
and Medlum LnLerprlses (SMLs) wlLhln Lhe klnadom of Saudl Arabla. 1hrouah Lhls proaram, banks
wlll flnance cusLomers aL up Lo 2 mllllon Saudl 8val, and wlll slmulLaneouslv lssue a auaranLee Lo Lhe
bank, coverlna up Lo 73° of Lhe flnanclna amounL"
163
. 1he alm ls Lo cover a percenLaae of lender's
rlsk ln evenL of defaulL of a auaranLeed enLerprlse Lo repav Lhe loan whollv or parLlallv, as well as Lo
encouraae local commerclal banks Lo flnance SMLs whlch are poLenLlallv vlable buL unable Lo provlde
Lhe auaranLees or accounLlna records requlred Lo prove Lhelr merlL for flnance.

CondlLlons of approval are Lhe provlslon of a sound buslness plan wlLh a robusL enouah flnanclal
pro[ecLlons, and LhaL Lhe enLrepreneurlal lnlLlaLlve wlll creaLe [obs and boosL Saudl Arabla's
economlc sLandlna.
164
. 1he proaram encouraaes banks Lo flnance buslnesses up Lo S8200 mllllon
($33.3M) allowlna up Lo 2 mllllon S8 per buslness, wlLh loan auaranLees LhaL cover up Lo 73 percenL
of Lhe amounL flnanced. Slnce Lhe sLarL of Lhe kafalah proaram ln 2006, lL has been performlna well.
1here had been 1,668 auaranLees approved so far wlLh a LoLal value of S8644 mllllon ($171.6M)
aaalnsL S81.6 bllllon ($426M) ln loans. 1o daLe, Lhe proaram has beneflLed approxlmaLelv 1,113 small
and medlum-slzed enLerprlses.
163
Cne hopes LhaL wlLh Lhe rlse of access Lo Lools for lnnovaLlon
posslble Lhrouah academla, and exLenslve flnanclna, Lhe klnadom wlll become a boon for Lechnoloav
orlenLed sLarL-ups and SMLs Lhus releaslna Lhe pressure from Lhe reLall lndusLrv Lo aeneraLe [obs.


1he uSA provldes SMLs wlLh flnanclal supporL for 8&u Lhrouah Lhe uS Small 8uslness
AdmlnlsLraLlon's (S8A) Small 8uslness lnnovaLlon 8esearch Þroaram (S8l8). knowlna LhaL lnnovaLlons
and lnnovaLors Lhrlve ln a small buslness envlronmenL and mosL noLablv wlLh enLrepreneurs, S8l8
LaraeLs LhaL aroup speclflcallv. 8ecause Lhe rlsks and cosLs are far bevond Lhe means of manv small
buslnesses, S8l8 obllaaLes eleven federal deparLmenLs and aaencles Lo reserve approxlmaLelv 4° of
Lhelr annual 8&u budaeLs for awards Lo small buslnesses
166
. ln 2010, Lhls represenLed uS$ 1 8llllon ln
research funds. 1he concerned deparLmenLs and aaencles, ln reLurn, aeL Lo deslanaLe 8&u Loplcs and
accepL proposals. 1he flrsL prlorlLv of Lhe proaram ls educaLlon Lechnoloav producLs used bv
sLudenLs or Leachers, or oLher lnsLrucLlonal personnel, and Lhe second prlorlLv ls educaLlon
Lechnoloav Lools used bv researchers.
167


Accordlna Lo Lhe S8A, ºfollowlna submlsslon of proposals, aaencles make S8l8 awards based
on small buslness quallflcaLlon, dearee of lnnovaLlon, Lechnlcal merlL, and fuLure markeL poLenLlal.
Small buslnesses LhaL recelve awards Lhen bealn a Lhree-phase proaram.
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.

1. Þhase l ls Lhe sLarLup phase. Awards of up Lo $100,000 for approxlmaLelv 6 monLhs supporL
exploraLlon of Lhe Lechnlcal merlL or feaslblllLv of an ldea or Lechnoloav.
2. Þhase ll awards of up Lo $730,000, for as manv as 2 vears, expand Þhase l resulLs. uurlna Lhls
Llme, Lhe 8&u work ls performed and Lhe developer evaluaLes commerclallzaLlon poLenLlal.
Cnlv Þhase l award wlnners are consldered for Þhase ll.
3. Þhase lll ls Lhe perlod durlna whlch Þhase ll lnnovaLlon moves from Lhe laboraLorv lnLo Lhe
markeLplace. no S8l8 funds supporL Lhls phase. 1he small buslness musL flnd fundlna ln Lhe
prlvaLe secLor or oLher non-S8l8 federal aaencv fundlna."

AnoLher posslblllLv ln uslna S8l8 funds ls Lhe lasL-1rack opLlon. ln Lhls formaL, a slnale proposal
conLalnlna boLh Þhase l and Þhase ll acLlvlLles ls presenLed. 8v provldlna Lhe opporLunlLv Lo
concurrenLlv submlL and revlew a proposal LhaL conLalns boLh Þhase l and Þhase ll acLlvlLles, Lhe lasL-
1rack opLlon has Lhe poLenLlal Lo mlnlmlze anv fundlna aap beLween Lhe Þhase l and Þhase ll perlods.
A lasL-1rack 1echnlcal LvaluaLlon 8evlew Þanel Lhen evaluaLes all ellalble lasL-1rack proposals and
alve Lhem a slnale raLlna.
168

A slmllar proaram, Lhe Small 8uslness 1echnoloav 1ransfer Þroaram (S118), uses a slmllar 3
phase approach Lo Lhe S8l8 proaram Lo expand publlc/prlvaLe secLor parLnershlps beLween small
buslnesses and nonproflL u.S. research lnsLlLuLlons, and ls funded aL presenL aL .3° of Lhe relevanL
aaencles' exLramural research budaeLs.
169
ln Lhe flscal vear 2010, LhaL amounLed Lo over $100
Mllllon.
1he S118 and S8l8 lnlLlaLlves could use more monev Lo beneflL more SMLs. lndeed, as Lhe
supplv of funds ls low compared Lo Lhe number of SMLs applvlna, and because Lhelr flnanclal needs
ln Lerms 8&u are conslderablv hlah, onlv a llmlLed number of SMLs can be aranLed accepLance Lo Lhe
S8l8 and/or S118 proarams. 1hls has Lhe beneflL of pushlna compeLlLlon beLween SMLs for havlna
Lhe mosL aLLracLlve proposals. 1he scarclLv ensures LhaL onlv Lhe besL are funded. lf Loo manv SMLs
are aranLed access Lo Lhe S118 and/or S8l8 pro[ecLs, Lhe uS aovernmenL would rlsk spendlna monev
on non vlable pro[ecLs, or noL lnvesLlna enouah monev where funds are needed. lurLhermore, Lhe
facL LhaL 11 aaencles are requlred Lo provlde a fracLlon of Lhelr annual budaeL underllnes Lhe need
for dlverslLv ln lnnovaLlon. 1hls ls all Lhe more underllned conslderlna Lhe aforemenLloned
collaboraLlons LhaL exlsL beLween deparLmenLs.
1here are lndlrecL soluLlons such as Lax breaks and lncenLlves LhaL aovernmenLs can conslder
Lo moLlvaLe companles Lo enaaae ln 8&u desplLe lLs hlah cosL. lor lnsLance Lhe uSA recenLlv made
permanenL Lhe 8esearch and LxperlmenLaLlon 1ax CredlL. 8efore lL's belna made permanenL, lL was
renewed perlodlcallv and wlLhouL much conslderaLlon, Lhouah Lhere was alwavs a rlsk LhaL Lhe house
represenLaLlves would refuse Lo renew lL. 1he beneflL of such a credlL ls LhaL Lhe companv enaaalna
ln 8&u acLlvlLles LhaL saLlsfv Lhe requlremenLs sees a deducLlon from Lhe LoLal amounL owed ln Laxes.
1o quallfv for such a Lax credlL 8&u acLlvlLles musL:
- 8e Lechnoloalcal ln naLure
- WlLh a level of uncerLalnLv relaLed Lo Lhe developmenL or lmprovemenL of a producL,
- WlLh as a dlrecL resulL of Lhe uncerLalnLv a process of experlmenLaLlon showlna proaresslon
from Lheorv Lo pracLlce Lhrouah LesLable proLoLvpes
- 1haL Lhe aoal of Lhe acLlvlLv ls Lo lmprove Lhe flL, form, or funcLlon of a producL or process for
a buslness componenL.
170


1he research musL also be conducLed on uS soll, wlLhouL Lhe fundlna of a Lhlrd parLv, and before
commerclal producLlon bealns. Anv cusLomlzaLlon for parLlcular cusLomers ls excluded, as ls Lhe
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
dupllcaLlon of an exlsLlna producL or process. Are also excluded from Lhe research and
experlmenLaLlon Lax credlL Lxpenses Lo obLaln lSC cerLlflcaLlon and Lo conducL efflclencv survevs
171
.
1hls proaram serves as Lo lncenLlvlze 8&u acLlvlLv and one can expecL, uslna baslc rules of economlcs
LhaL such lnvesLmenLs would decrease conslderablv lf such a Lax break dld noL exlsL.
172


8ussla has emploved a Lax sLraLeav as well. lL esLabllshed Lhe Skolkovo lnnovaLlon CenLre
whlch ls an 8&u zone almed aL aLLracLlna lnvesLors Lo seL up Lechnlcal research faclllLles. ÞarL of Lhe
aLLracLlon of Lhe 8&u zone wlll be 0° Lax on 8&u lncome and 0° properLv Lax for 10 vears. 1he Lax
advanLaaes lnclude a 10-vear Lax holldav for lnvesLors bv reduclna Lax raLes: 0° proflL Lax on 8&u
lncome (normallv 20°) and 0° properLv Lax (normallv 2.2° of asseL value). Soclal lnsurance
conLrlbuLlons wlll also be reduced
173
. ?eL because 8&u and Lechnoloav sLarL ups are a hlah rlsk/hlah
reward endeavor, venture cap|ta| ls Lhe besL opLlon soluLlon for Lhelr flnanclna. venLure caplLal plavs
Lhe double role of lnvesLor and lncubaLor. lndeed Lhev develop exlsLlna buslness areas, and creaLe
opporLunlLles Lo develop new markeL seamenLs
174
.

!apan has made use of Lax sLraLeales as well Lhrouah Lhe enacLmenL of a 2009 lealslaLlon wlLh
respecL Lo Lhe research and developmenL (8&u) Lax credlLs. 1hls lealslaLlon was a parL of Lhe
addlLlonal sLlmulus packaae announced bv Lhe !apanese aovernmenL
173
. 1he new rules provlde
furLher lncenLlves for corporaLlons Lo carrv ouL 8&u acLlvlLles vla Lhelr !apanese operaLlons bv
lncreaslna Lhe maxlmum 8&u Lax credlL avallable Lo a !apanese corporaLlon, or !apanese branch of a
forelan corporaLlon, from 30° Lo a maxlmum of 40° of Lhe corporaLe lncome Lax llablllLv
176
.

CK!'+?4&+;!,33$+3
LMM
!78+!/01!AN4<6?+!
LMO
!

1he reason Lhe uSA lnvesLs so much efforL ln baslc research ls because Lhere are rarelv anv
Lechnoloalcal producLs brouahL Lo markeL LhaL do noL use mulLlple paLenLs. lor one companv Lo
comblne dlfferenL paLenLs lL ls necessarv for lL Lo obLaln auLhorlzaLlon from Lhe paLenL holder rlahLs
holder ln Lhe form of a llcense. 1hls ln Lurn aeneraLes revenue for Lhe paLenL holder and ln order Lo
sLrenaLhen Lhe uS economv, lL would be favorable for lL Lo see as manv paLenLs as posslble be of
Amerlcan orlaln. As lL Lurns ouL, Lhe uSA ls Lhe world's laraesL paLenL producer, wlLh 9 of Lhe Lop 10
world's mosL lnvenLlve clLles belna ln Lhe uSA.
179


ÞaLenLs orlalnaLe mosLlv from mulLlnaLlonal corporaLlons. 1helr presence ls so lmporLanL LhaL
lndependenL lndlvlduals or aroups of researchers wlLh a paLenL are more llkelv Lo sell lL Lo
mulLlnaLlonals ln order Lo make Lhe mosL proflL from lL. Where lL ls lnLeresLlna ls when paLenLs
orlalnaLe from SMLs LhaL collaboraLe wlLh lnsLlLuLlons Lo flnd and commerclallze Lhelr lnnovaLlons.

lnsLlLuLlons, be Lhev academlc or publlc, have a aeneral framework where ln case of
collaboraLlon wlLh sLudenLs or prlvaLe lndlvlduals, paLenL ownershlp belonas Lo Lhe lnsLlLuLlon. 1he
lnsLlLuLlon Lhen slans conLracLs wlLh Lhe researchers and lnvenLors lnvolved ln Lhe frulLlon of Lhe
lnvenLlon ln order Lo provlde Lhem wlLh beneflLs. ln effecL, lnLellecLual properLv sees properLv and
rlahLs belna dlsmanLled so LhaL properLv ls aLLrlbuLed Lo Lhe lnsLlLuLlon, and some rlahLs are
conLracLuallv ºleased" Lo Lhe lnLeresLed parLles. 1hls ls Lvplcallv Lhe case when Lhe lnvenLlon came
abouL afLer subsLanLlal use of lnsLlLuLlonal resources, be Lhev human or maLerlal. 1he lnsLlLuLlon Lhen
relnvesLs Lhe revenue ln enhanclna lLs lnfrasLrucLure and servlces.
180


Lach lnsLlLuLlon has lL's own lnLellecLual ÞroperLv pollcv whlch can be referred Lo and sLudled bv
Lhe lnLeresLed parLles ln order Lo know where Lhev sLand. ln Lerms of neaoLlaLlon, Lhe lnsLlLuLlons
have a areaLer leveraae Lhan Lhe SMLs, for Lhe laLLer need Lhe former ln order Lo compleLe Lhelr
pro[ecLs. lL ls Lherefore lmperaLlve LhaL would be lnnovaLors lnform Lhemselves correcLlv as Lo Lhe lÞ
pollcv. 1he Lraalc lronv lles ln Lhe facL LhaL desplLe Lhe facL LhaL lL ls lnLelllaenL people LhaL brlna forLh
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
remarkable lnnovaLlons, lL ls Lhe same klnd of people LhaL far Loo ofLen over look copvrlahL
manaaemenL. 1hls ls especlallv Lrue for novlce enLrepreneurs. uesplLe Lhe facL LhaL buslness
lncubaLors, forums and a pleLhora of resources provlde lnformaLlon and help, lÞ rlahLs manaaemenL
ls Loo ofLen foraoLLen. novlce enLrepreneurs are qulcklv overwhelmed bv Lhe dlfference beLween
Lheorv and pracLlce ln Lhe hlah pressure world of buslness. Seasoned veLerans of Lhe buslness world
have learned Lhe lmporLance of lÞ manaaemenL and have no lssues.

A popular sLraLeav for sLarL ups LhaL can'L afford llcenslna ls Lo lnfrlnae on copvrlahLs wlLh Lhe
hopes LhaL Lhev won'L be deLecLed bv Lhe rlahLs holder. ln case Lhe rlahLs holder deLecLs Lhe
slLuaLlon, lL ls hoped LhaL he would do so afLer sufflclenL Llme has passed for Lhe companv or producL
Lo become proflLable. AL Lhls polnL, Lhe lnfrlnaer Lvplcallv seLLles a deal wlLh Lhe rlahLs holder. 1hls ls
a hlah-rlsk sLraLealc cholce LhaL some SMLs have no opLlon buL Lo Lake.

1he slLuaLlon ln 8ussla ls dellcaLe. A cruclal elemenL LhaL musL be addressed concerns lLs
Lransferrlna Lhe ownershlp of aovernmenL-funded lÞ Lo research lnsLlLuLe or unlverslLv where lL was
creaLed. Clarlfvlna lÞ ownershlp ls essenLlal Lo lmprove Lhe quallLv of aovernmenL 8&u spendlna and
Lo faclllLaLe more producLlve llnkaaes beLween SMLs and laraer domesLlc and forelan enLerprlses,
aLLracL venLure caplLal, commerclallze 8ussla's exlsLlna sLock and new flow of lnnovaLlons, and
aenerallv faclllLaLe 8ussla's LranslLlon Lo a more producLlve poslLlon ln Lhe alobal knowledae
economv. As CLCu experlence suaaesLs: Lransferrlna ownershlp of aovernmenL-funded lÞ Lo Lhe
research lnsLlLuLe or unlverslLv where Lhe lnnovaLlon was creaLed ls Lhe mosL effecLlve wav Lo
ellmlnaLe amblaulLles and uncerLalnLles and aeneraLe successful aovernmenL-lndusLrv 8&u
collaboraLlon and lÞ commerclallzaLlon proarams.
181


lour crlLlcal facLors deLermlne success:

1) 1he replacemenL of uncerLalnLv wlLh clarlLv ln Lerms of acLual ownershlp

2) 1he esLabllshmenL of clear commerclallzaLlon rules of Lhe aame. lL ls lmporLanL LhaL answers Lo
Lhe followlna klnd of quesLlons be clear : who ls responslble for commerclallzaLlon, how are Lhe
flnanclal reLurns of Lechnoloav commerclallzaLlon dlvlded beLween Lhe lnvenLor, Lhe oraanlzaLlon
bearlna Lhe flnanclal rlsk of commerclallzaLlon, Lhe owner of Lhe lÞ and Lhe CovernmenL,eLc.?

3) 1he esLabllshmenL of effecLlve oraanlzaLlonal arranaemenLs Lo manaae and lmplemenL Lhe
commerclallzaLlon process. 1hls process sLarLs wlLh Lhe flllna of domesLlc and lnLernaLlonal paLenL
appllcaLlons and ends wlLh Lhe collecLlon and dlsLrlbuLlon of rovalLles aeneraLed bv successfullv
commerclallzed lnnovaLlons.

4) 1he developmenL of clear mechanlsms Lo promoLe Lhe arowLh of new, sclence lnLenslve SMLs and
Lo ensure LhaL lnnovaLlons are used Lo lmprove Lhe alobal compeLlLlveness of domesLlc enLerprlses ln
aeneral.

"#%B?$3,#%3!4%;!2+B#<<+%;4&,#%3!!

lL ls a duLv all for all naLlons around Lhe world Lo make chlldren en[ov sclence and knowledae ln
aeneral from a verv vouna aae. ulverse meLhods are avallable and are aL use bv consclous and
dedlcaLed parenLs, buL no aeneral proaram has been lmplemenLed veL.

8ased on Lhe research performed above, Lhe quallLv of human resources, flnanclna, lnsLlLuLlonal
oraanlzaLlons, parLnershlps and adequaLe maLerlals are Lhe necessarv lnaredlenLs for a sLrona
knowledae based economv. 1he hlsLorlcal laaaards ln Lhe expose are kSA and 8ussla, Lhouah Lhe
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
klnadom has been movlna aaaresslvelv Lowards caLchlna up Lo more advanced naLlons. ?eL because
mosL of lLs lnlLlaLlves and pro[ecLs are verv recenL, Lhev haven'L been publlclzed ln alobal reporLs of
Lhe unLSCC, un or Lu Lvpe. Surelv, areaL sLrldes have been made, buL Lhev have veL Lo be reporLed.
lurLhermore, Lhe klnadom musL be careful noL Lo be Loo eaaer and end up spendlna unwlselv. 1he
relevanL auLhorlLles musL consLanLlv requlre reporLs and measuremenLs Lo be Laken ln order Lo besL
know how and where Lo spend monev. Saudl Arabla musL conLlnue sLrlvlna Lowards weedlna ouL Lhe
excesslve rellance on rellalon. ldeallv, Lhe klnadom would esLabllsh and onllne forum on whlch
clLlzens could volce Lhelr concerns and have Lhe assurance LhaL Lhev wlll be heard Lo avold fuLure
lnsLablllLv. An alaorlLhm could be elaboraLed bv whlch Lhe aovernmenL and relevanL auLhorlLles could
measure unresL levels, plnpolnL Lhelr causes and move Lo address and solve Lhe lssues Lhe people
have ralsed. AddlLlonallv Lhe aovernmenL musL keep Lhe pace aL whlch lL ls developlna lLs educaLlon
and lnnovaLlon ecosvsLems. llnallv, Lhe klnadom musL esLabllsh more lncubaLors Lo moLlvaLe people
ln Lo becomlna enLrepreneurs and help Lhem oraanlze Lhe necessarv resources Lo launch pro[ecLs. ln
Lhe same veln, venLure caplLallsm musL be promoLed and adverLlsed aaaresslvelv so as Lo empower
Lhe clLlzens and alve Lhem Lhe reallzaLlon LhaL Lhev have power as well. 1he aovernmenL musL noL be
Lhe sole auaranLor and source of flnanclna, Lhe clLlzens musL parLlclpaLe as well, for lf a voLe ls noL
casL ln a balloL, lL ls casL ln an lnvesLmenL.

8ussla has manv opLlons Lo follow. 1he flrsL would be Lo esLabllsh a LrlparLlLe CovernmenL-
lndusLrv-research advlsorv councll Lo recommend a llmlLed number of baslc research prlorlLles for
aovernmenL funded research. 1he acLual research would be flnanced on Lhe basls of Lhe compeLlLlve
fundlna recommendaLlon.

A second approach ls focused more on applled research: Lo beLLer maLch aranL proarams wlLh
8&u lnlLlaLlves. under Lhls approach research or educaLlonal lnsLlLuLlons would recelve aovernmenL
supporL for research pro[ecLs provlded LhaL Lhev are able Lo aLLracL co-flnanclna from prlvaLe
enLerprlses. 1hls would have several beneflclal effecLs. llrsL, lL would leveraae federal and enLerprlse
8&u resources. Second, lL would fosLer areaLer communlcaLlon and lnLeracLlon beLween Lhe
research communlLv and Lhe enLerprlse communlLv. 1hlrd, lL would help Lo sLlmulaLe prlvaLe secLor
8&u spendlna, whlch ln 8ussla ls far below Lhe CLCu averaae. lourLh, lL would maralnallv encouraae
larae 8usslan enLerprlses Lo purchase more lnLellecLual properLv and 8&u from domesLlc enLerprlses
and lnsLlLuLes. And flnallv, bv ensurlna LhaL federallv funded 8&u ls channeled ln dlrecLlons LhaL are
of areaLesL lnLeresL Lo 8usslan lndusLrv, lL would beLLer ensure LhaL 8ussla's 8&u resources are
adequaLelv modernlzlna and lmprovlna Lhe compeLlLlveness of 8usslan lndusLrv.
182


ln 2009 a new fedral law (217-lZ) reaulaLlna spln-offs and lnLellecLual ÞroperLv 8lahLs came lnLo
force. lL allows unlverslLles and research lnsLlLuLlons Lo esLabllsh companles LoaeLher wlLh oLher
parLners (e.a. buslnesses) for Lhe commerclallzaLlon of aeneraLed lnnovaLlons. unlverslLles have an
excluslve rlahL on lnLellecLual properLv aeneraLed aL Lhelr lnsLlLuLlon. 8uL Lhev can Lransfer lÞ8
Lhrouah a llcenslna aareemenL and aaalnsL a shareholdlna Lo a spln-off companv. 1he MlnlsLrv of
LducaLlon and Sclence ls preparlna for 2010 a fundlna proaram and oLher measures Lo supporL Lhls
process of esLabllshlna small lnnovaLlve spln-offs companles
183
.

8ussla's weakness ls Lhe braln draln affecLlna sclenLlsLs ln academla and lndusLrv. 8ussla has no
cholce buL Lo sLrlve Lo keep valuable resources bv brlnalna Lhe educaLlonal svsLem Lo a hlaher level of
quallLv. lL musL keep lnLellecLuals LoaeLher wlll allow proceedlna Lo creaLlon of demand for new
Lechnlcal soluLlons and lnnovaLlve producLs. ln Lhls case, Lhe maln aspecL ls noL demand volume lLself
buL lLs sLrucLure, enabllna Lhe developmenL and use of modern, hlah-Lech aoods and servlces.
AnoLher dellcaLe quesLlons ls SMLs creaLlon. As lona as Lhere ls flnanclal and lnformaLlonal
supporL, 8ussla mav anLlclpaLe poslLlve resulLs ln Lhe fuLure. Cverall lf 8ussla adheres Lo Lhe
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
menLloned soluLlons and recommendaLlons lL mav lmprove lLs currenL sLaLe and enLer ranks of Lhe
Lop-10 lnnovaLlve counLrles, especlallv when one conslders lLs resources and poLenLlal.
!apan and uSA were used as benchmarks Lo compare aaalnsL Lhe laaaards. 1hev have proven
Lhemselves exLremelv efflclenL, whlch [usLlfles Lhelr world poslLlons as parL of Lhe Lop lnnovaLlna
counLrles ln Lhe world. !apan ls sLlll behlnd Lhe uSA because of numerous problems. neverLheless,
Lhe aovernmenL does lLs besL whlle sLlmulaLlna Lhe local economv bv promoLlna Lhe arowLh and
enLrv of new SMLs Lhrouah relevanL SML pollcles and aovernmenL-lndusLrv-research collaboraLlon.
lL encouraaes SMLs creaLlon bv provldlna prlvlleaes such as subsldles, low-lnLeresL loans and Lax
credlLs as Lhese can conLrlbuLe Lo emplovmenL creaLlon and enLrv of new lndusLrles. !apan has all
Lhe prerequlslLes Lo sllahLlv move Lowards belna world leader. lndeed, Lhev have hlaher worklna
sLandards for Lhe averaae person, !apanese culLure lmposes a much areaLer pressure on lLs people Lo
do well ln socleLv (aood arades, besL emplovees) Lhan Amerlcan culLure. 1he proof of Lhls ls ln Lhelr
number of researchers per mllllon and Lhelr hlah ranklna ln Lhe alobal compeLlLlveness lndex.











ANNEX :

uSA : 1Lx1 Cn 1PL ClllCLS Anu ln18lCA1L C8CAnlSA1lCn ln vlLW Cl Þ8CMC1lnC lnnCvA1lCn

1he Cff|ce of 5c|ence and 1echno|ogy Þo||cy was esLabllshed ln 1976 wlLh a broad mandaLe
Lo advlse Lhe presldenL on Lhe effecLs of sclence and Lechnoloav on domesLlc and lnLernaLlonal
affalrs. 1he 1976 AcL also auLhorlzes CS1Þ Lo lead lnLeraaencv efforLs Lo develop and lmplemenL
sound sclence and Lechnoloav pollcles and budaeLs, and Lo work wlLh Lhe prlvaLe secLor, sLaLe and
local aovernmenLs, Lhe sclence and hlaher educaLlon communlLles, and oLher naLlons Loward Lhls
end.
184


1helr mlsslon ls Lhreefold, º flrsL, Lo provlde Lhe ÞresldenL and hls senlor sLaff wlLh accuraLe,
relevanL, and Llmelv sclenLlflc and Lechnlcal advlce on all maLLers of consequence, second, Lo ensure
LhaL Lhe pollcles of Lhe LxecuLlve 8ranch are lnformed bv sound sclence, and Lhlrd, Lo ensure LhaL Lhe
sclenLlflc and Lechnlcal work of Lhe LxecuLlve 8ranch ls properlv coordlnaLed so as Lo provlde Lhe
areaLesL beneflL Lo socleLv."
183


lL ls Lhus responslble for advlslna Lhe presldenL on proposlna a 147.9 bllllon lederal 8&u,
lncreaslna non defense 8&u bv 4.1 bllllon, Lo 66.8 bllllon. 1hev were also responslble for lncreaslna
Lhe budaeLs of Lhe naLlonal Sclence loundaLlon, Lhe ueparLmenL of Lnerav's Cfflce of Sclence, and
Lhe naLlonal lnsLlLuLe of SLandards and 1echnoloav laboraLorles. lurLhermore, Cbama has made lL
clear LhaL clean and susLalnable enerav ls ºour maln challenae". 1o supporL hls clalm, Lhe 2012
budaeL promlses Lo spend 330 mllllon for Lhe ueparLmenL Cf Lnerav's Advanced 8esearch Þro[ecLs
Aaencv-Lnerav, and sufflclenL ºsupporL Lo double Lhe number of Lnerav lnnovaLlon Pubs from Lhree
Lo slx Lo furLher caLalvze svnerales beLween lndusLrv and academla".
186
1hese are [usL some
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
examples of Lhe areaL lnfluence and power Lhe CS1Þ holds, buL whaL ls mosL lmporLanL Lo noLlce ls
how lL plavs Lhe role of conducLor ln fronL of Lhe orchesLra LhaL are Lhe oLher aaencles.

1he nexL aaencv Lo conslder ls Lhe naLlonal Sclence loundaLlon whlch funds approxlmaLelv
20° of all federallv supporLed baslc research conducLed bv Amerlca's colleaes and unlverslLles
187
.
lurLhermore, lL ls Lhe onlv aaencv Lo supporL all flelds of fundamenLal sclence and enalneerlna,
excepL for medlcal sclences. 1herefore, Lhe nSl also funds some hlah-rlsk, hlah-reward ldeas, novel
collaboraLlons and pro[ecLs LhaL have Lhe poLenLlal Lo Lransform presenL sclence flcLlon ln Lo fuLure
Laken-for-aranLed reallLles. 1he nSl provldes fundlna bv lssulna approxlmaLelv 10,000 new awards
everv vear Lo fund speclflc research proposals LhaL have been [udaed sufflclenLlv promlslna bv a
rlaorous merlL revlew svsLem. 1he nSl also funds equlpmenL LhaL ls Loo expenslve for anv one aroup
or researcher Lo afford. ºAnoLher essenLlal elemenL ln nSl's mlsslon ls supporL for sclence and
enalneerlna educaLlon, from pre-k Lhrouah araduaLe school and bevond. 1he research we fund ls
Lhorouahlv lnLearaLed wlLh educaLlon Lo help ensure LhaL Lhere wlll alwavs be plenLv of skllled
people avallable Lo work ln new and emeralna sclenLlflc, enalneerlna and Lechnoloalcal flelds, and
plenLv of capable Leachers Lo educaLe Lhe nexL aeneraLlon."
188


1he ueparLmenL of Lnerav manaaes fundamenLal research proarams ln baslc enerav
sclences, bloloalcal and envlronmenLal sclences, and compuLaLlonal sclence and ls Lhe lederal
CovernmenL's laraesL slnale provlder of funds for maLerlals and chemlcal sclences.
189
lL plavs a areaL
role ln promoLlna enerav relaLed lnnovaLlons, as was Lhe case wlLh Lhe esLabllshmenL of Lhe
ConsorLlum for Advanced SlmulaLlon of LlahL waLer 8eacLlons, an enerav lnnovaLlon hub.
190


As observed, Lhe nSl and uCL have laboraLorles and more speclallzed dauahLer aaencles
LhaL focus Lhelr research and developmenL on baslc research and applled sclences. CLher sclence
based federal aaencles do Lhe same and have esLabllshed laboraLorles.
191
WhaL ls veL even more
lmpresslve ls Lhe number and dlverslLv of sLaLe level auLhorlLles LhaL conducL slmllar, buL on a smaller
scale, operaLlons Lo federal level aaencles. lurLhermore, Lhe realonal, sLaLe, and federal
oraanlzaLlons ofLen collaboraLe ln Lhelr 8&u efforLs. 1hese aaencles also run proarams and lnlLlaLlves
Lo promoLe lnnovaLlon.
192



!apanese CranLs Þroaram ueLalls
193
:

1. CranL for AppllcaLlon of lndusLrlal 1echnoloav lnnovaLlon: proaram comprlses Lhree elemenLs:
• CranL for ÞracLlcal AppllcaLlon of lndusLrlal 1echnoloav
:**;-&+,6(< prlvaLe enLerprlses developlna new Lechnoloales whlch can be puL Lo pracLlcal use wlLhln
Lhree vears from Lhe end of Lhe supporLed research and developmenL perlod, caplLal of less Lhan 30
bllllon ven.
• CranL for 1echnoloalcal uevelopmenL bv 8&u venLure 8uslnesses
:**;-&+,6(: be spln-offs of exlsLlna parenL companles or research and developmenL venLures
orlalnaLlna from unlverslLles LhaL develop Lechnoloales for pracLlcal appllcaLlon, esLabllshed wlLhln
Lhe lasL Len vears and elLher have less Lhan 300 mllllon ven ln caplLal or 300 or fewer emplovees.
• CranL for ÞracLlcal AppllcaLlon of nexL-aeneraLlon SLraLealc 1echnoloav
:**;-&+,6(< prlvaLe enLerprlses developlna Lechnoloales for pracLlcal appllcaLlon Lo achleve
breakLhrouahs ln nexL-aeneraLlon Lechnoloav.

2. CranL for ÞracLlcal AppllcaLlon of unlverslLv 8&u 8esulLs under Lhe MaLchlna lund MeLhod:
proaram supporLs collaboraLlve 8&u beLween prlvaLe enLerprlses and academlc lnsLlLuLes Lo
promoLe Lhe pracLlcal appllcaLlon of research resulLs obLalned bv academlc lnsLlLuLes.
1he overall budaeL of lnnovaLlon ÞromoLlon Þroaram ls $uS 40 mllllon.
Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.
lurLher lnformaLlon on Lhe Iedera| 1argeted Þrogram for 5c|ent|f|c and 5c|ent|f|c-Þedagog|ca|
Þersonne| of Innovat|ve kuss|a

1he aoal ls dlvlded lnLo Lhree Lasks Lo creaLe:
1) CondlLlons for lmprovemenL of a quallLaLlve composlLlon of Lhe sclenLlflc and sclenLlflc-
educaLlonal personnel, effecLlve svsLem of moLlvaLlon,
2) MeLhods Lo aLLracL more vouna people ln Lhe sphere of sclence, educaLlon and hlah-
Lechnoloav (mlllLarv complex, enerav, avlaLlon and space, nuclear secLors as well as oLher
prlorlLv hlah-Lech secLors), and ensure Lhelr lona-duraLlon lnvolvemenL,
3) SvsLem of mechanlsms for renewal of Lhe sclenLlflc and sclenLlflc-pedaaoalcal personnel.
1he measures of Lhe Þroaram are deslaned Lo be based on: popularlzaLlon of Lhe sclenLlflc acLlvlLv for
sLudenLs and vouna sclenLlsLs, sLlmulaLlon of Lhe cooperaLlon processes beLween sclence and
educaLlon, sclence and hlah-Lech secLors, lnformlna of Lhe aeneral publlc abouL successful cases of
Lhe Þroaram reallzaLlon, lmpllcaLlon of Lhe 8usslan sclenLlflc dlasporas abroad, ensurlna conLlnulLv of
renewal of Lhe sclenLlflc and sclenLlflc-pedaaoalcal personnel.

1he measures are arouped lnLo four blocks:
1) SLlmulaLlon of lona-Lerm sLav of vouLh ln Lhe sphere of sclence, educaLlon and hlah-
Lechnoloav,
2) ALLracLlon and sLlmulaLlon of lona-Lerm sLav of vouLh ln Lhe sphere of sclence, educaLlon and
hlah-Lechnoloav due Lo developed lnfrasLrucLure,
3) lnvesLmenL for sLaLe svsLem of Lralnlna of Lhe sclenLlflc and sclenLlflc-pedaaoalcal sLaff,
4) SupporL for Lhe Þroaram lmplemenLaLlon.
Measures are orlenLed Lo supporL researches and research ln lnsLlLuLlons of Lhe sclenLlflc and hlah
educaLlon secLors, promoLe collaboraLlon and knowledae Lransfer Lhrouah fundlna evenLs, varlous
compeLlLlons and conLesLs, lnLernshlps, all-8usslan and lnLernaLlonal conferences. SlanlflcanL fundlna
ls dedlcaLed Lo provlslon of maLerlal base (purchase of speclallzed sclenLlflc equlpmenL).
lnfrasLrucLural parL of Lhe Þroaram lncludes consLrucLlon of houslna faclllLles for sLudenLs and vouna
sclenLlsLs as well as for academla sLaff lnvlLed Lo work or Leach ln cenLers of research and educaLlon.

U5 |nst|tut|ona| map


Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaii Be Synthese 2u11 - Innovation,
Science anu Technology in Iapan, Russia, Sauui Aiabia anu the 0SA. ! All Rights
Reseiveu to the Benefit of the Ioint Authois.



1he Cfflce of Sclence and 1echnoloav Þollcv (CS1Þ) ls locaLed ln Lhe LxecuLlve Cfflce of Lhe ÞresldenL
and has a mandaLe Lo advlse Lhe ÞresldenL and oLhers on Lhe effecL of sclence and Lechnoloav pollcv
on domesLlc and lnLernaLlonal affalrs. CS1Þ also acLs as an lnLer-aaencv coordlnaLlna bodv. lundlna
Lhrouah Lhe federal deparLmenLs and aaencles ln Lhe execuLlve branch occurs as a resulL of
Conaresslonal auLhorlzaLlons. 1he LxecuLlve 8ranch of Lhe aovernmenL lncludes 12 federal
deparLmenLs and 18 federal aaencles LhaL fund research. 1hls fundlna ls auLhorlzed bv Lhe uS
Conaress. 1he Lop deparLmenLs and aaencles based on Lhelr 8&u budaeLs are Lhe ueparLmenL of
uefense, ueparLmenL of PealLh and Puman Servlces, nASA, ueparLmenL of Lnerav and Lhe naLlonal
Sclence loundaLlon. Several aaencles operaLe research laboraLorles. lor example Lhe ueparLmenL of
Lnerav operaLes 10 naLlonal laboraLorles.
1he federal [udlclarv mav revlew pollcles ln Lhe naLlonal research enLerprlse. 1vplcallv Lhls
occurs as a resulL of Lhe need Lo deal leaallv wlLh a parLv ralslna concerns abouL Lhe conducL of a
publlc secLor aaencv wlLh respecL Lo a sLaLuLorv pollcv. 1he courL lnLerpreLs Lhe exLenL Lo whlch Lhe
pollcv ls provlded for under Lhe consLlLuLlon. As a resulL of a rullna, Lhe pollcv mav be upheld or
sLruck down wlLhln Lhe conflnes of Lhe arounds of Lhe parLlcular conLroversv ln quesLlon raLher Lhan
as a broad-based declslon.
CLher ma[or acLors lnclude sLaLe and local aovernmenLs and publlc and prlvaLe research
performers and funders. SLaLe and local aovernmenLs also provlde fundlna for research LhaL lmpacLs
Lhelr local economles Lhrouah varlous mechanlsms such as Lax credlLs and bond lssuance
d
.

u
0S oiganoigam,
http:¡¡coiuis.euiopa.eu¡eiawatch¡inuex.cfm.fuseaction=ii.content&topicIB=SS&paien
tIB=S4&countiyCoue=0S, 16.uS.2u11

Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaiie ue Synthese 2u11 : Innovation
in Iapan, Russia, the 0SA, anu the Kinguom of Sauui Aiabia !
S7
k5A |nst|tut|ona| map





1he klna of Saudl Arabla ls aL Lhe verv Lop of Lhe lnsLlLuLlonal map, wlLh Lhe rlahL Lo oversee
and conLrol anv and everv declslon LhaL Lakes place under hlm. MlnlsLrles and Lhe
corrupLlon commlsslon lle ln a secondarv level, afLer Lhe klna, as Lhev reporL dlrecLlv Lo hlm.
1he corrupLlon commlsslon also has power of lnvesLlaaLlon ln Lo Lhe affalrs of Lhe mlnlsLrles
Lo deLecL and reprehend anv abuse of power bv anv offlclal, roval, or mlnlsLer. 1he
corrupLlon commlsslon can also lnvesLlaaLe buslness and academla, as well as Lhe Saudl
Arablan Ceneral lnvesLmenL AuLhorlLv (SAClA).

CommunlcaLlon channels are noL alwavs as opLlmal as one would hope beLween mlnlsLrles,
buL Lhev do exlsL. 1hev are supposed Lo collaboraLe and coordlnaLe ln order Lo beLLer
deLecL Lhe needs of Lhe Saudl Arablan economv and lnvesL ln LhaL dlrecLlon. lor lnsLance,
Lhe mlnlsLrv of healLh collaboraLes wlLh LhaL of aarlculLure and waLer Lo ensure LhaL Lhere
are no mlsLakes made LhaL would cause Loo much harm. Such collaboraLlons provlde
dlrecLlon for 8&u ln academla, and provlde Saudl Arablan Ceneral lnvesLmenL AuLhorlLv
(SAClA) wlLh lnformaLlon Lo provlde enLrepreneurs wlLh whaL ls ln demand. SAClA ls also
dlrecLlv responslble ln fronL of Lhe klna, as are academla's presldenLs.

lndusLrv ls aL veL anoLher level lower, parallel Lo academla and consequenLlv laboraLorles.
lndusLrv and academla collaboraLe ln Lhe dlrecLlons provlded bv SAClA and Lhe relevanL
mlnlsLrles. 1he relevanL mlnlsLrles have dlrecL connecLlon wlLh some of Lhe blaaer plavers
ln lndusLrv, such as A8AMCC and SAA8lC wlLh Lhe mlnlsLrv of peLroleum and mlneral
resources.

SAClA has a sLrona bond wlLh Lhe MlnlsLrv of Commerce buL works wlLh manv dlfferenL
mlnlsLrles Lo obLaln relevanL lnformaLlon for Lhe would be enLrepreneurs. lL more looselv
works wlLh academla Lo beneflL from Lhelr labs and Lo have an ldea as Lo whaL klnd of
human resources are avallable for lndusLrv.


Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaiie ue Synthese 2u11 : Innovation
in Iapan, Russia, the 0SA, anu the Kinguom of Sauui Aiabia !
S8
kuss|an |nst|tut|ona| map




1he maln plaver ln Lhe 8usslan research svsLem on Lhe pollLlcal level ls Lhe MlnlsLrv of LducaLlon
and Sclence, whlch Lakes care of research pollcv formulaLlon and oversees lLs lmplemenLaLlon.
Several oLher mlnlsLrles have responslblllLles for 8&u and respecLlve budaeLs: MlnlsLrv for
Lconomlc uevelopmenL, MlnlsLrv of lndusLrv and 1rade, MlnlsLrv of Lnerav, MlnlsLrv of lnformaLlon
1echnoloales and CommunlcaLlon, MlnlsLrv of uefense. 8esearch pollcv ls coordlnaLed aL Lhe
aovernmenLal level bv Lhe CovernmenLal Commlsslon on Plah 1echnoloales and lnnovaLlons.
8esearch relaLed advlsorv bodles Lo Lhe ÞresldenL are Lhe Councll for Sclence, 1echnoloales and
LducaLlon and Lhe Commlsslon for ModernlzaLlon and 1echnoloalcal uevelopmenL of Lhe 8usslan
Lconomv.
WlLhln Lhe 8usslan ÞarllamenL's lower house, Lhe SLaLe uuma, Lhe CommlLLee on Sclence
and Plah 1echnoloales Lakes care of research pollcv, whlle ln Lhe upper house, Lhe lederal Councll,
Lhe CommlLLee on LducaLlon and Sclence ls responslble. 8oLh commlLLees propose and scruLlnlze
lealslaLlon relevanL for 8&u.
8esearch fundlna ls allocaLed elLher dlrecLlv from Lhe sLaLe budaeL Lo research performlna
oraanlzaLlons, channeled Lhrouah Lhe mlnlsLrles menLloned above or dlsLrlbuLed vla several
aaencles. CompeLlLlve 8&u fundlna allocaLlon ls handled bv several mlnlsLrles, Lhe 8usslan
loundaLlon for 8aslc 8esearch (8l88), Lhe loundaLlon for AsslsLance Lo Small lnnovaLlve LnLerprlses
(lASlL), Lhe SLaLe CorporaLlon for nanoLechnoloales - 8usnano, Lhe 8usslan loundaLlon for
PumanlLles (8lP), and Lhe 8usslan loundaLlon for 1echnoloalcal uevelopmenL (8l18).
8&u ls performed overwhelmlnalv ln Lhe publlc secLor and here especlallv ln Lhe Academv
and lnsLlLuLe secLor, as well as bv corporaLlons, whlch are parLlv or fullv owned bv Lhe sLaLe.
SubsLanLlal parLs of Lhe 8&u budaeL are allocaLed Lo ma[or publlclv owned oraanlzaLlons such as Lhe

Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaiie ue Synthese 2u11 : Innovation
in Iapan, Russia, the 0SA, anu the Kinguom of Sauui Aiabia !
S9
8usslan Academv of Sclences (8AS), Lhe 8usslan Space Aaencv - 8oscosmos, and Lhe SLaLe nuclear
CorporaLlon - 8osaLom.
e



Iapanese |nst|tut|ona| map







ln Lerms of Lhe sLrucLure of !apan's research svsLem, Lhe Lhree maln acLors are Lhe aovernmenL
(cenLral coordlnaLlon), Lhe buslness enLerprlse secLor (8&u), and Lhe hlaher educaLlon secLor, whlch
has areaLer auLonomv from aovernmenL.
CoordlnaLlon of research pollcv ls provlded bv Lhe Councll for Sclence and 1echnoloav Þollcv (CS1Þ),
based wlLhln Lhe CablneL Cfflce. 1hrouah Lhe seLLlna of Lhe Sclence and 1echnoloav 8aslc Þlans, Lhe
CS1Þ seLs secLoral research prlorlLles and fundlna levels, wlLh pollcles Lhen lmplemenLed bv
MlnlsLrles and fundlna aaencles. WlLh a new aovernmenL elecLed ln AuLumn 2009, Lhe maln pollcv
maklna apparaLus was Lo shlfL Lo a naLlonal SLraLeav unlL ln Lhe CablneL Cfflce. 1he relaLlons
beLween Lhls, and Lhe CS1Þ, whlch ls sub[ecL Lo reform due Lo Lhe passaae of a new revlslon law ln
Lhe parllamenL bv AuLumn, 2010, ls sLlll noL clear.
1he MlnlsLrv of LducaLlon, CulLure, SporLs, Sclence and 1echnoloav (MLx1), whlch spends around
63° of aovernmenL expendlLure on 8&u, shapes Lhe sLrucLure of Lhe educaLlon and research and
developmenL svsLems of !apan Lhrouah Lhe provlslon of lnsLlLuLlonal funds and research proarams.
MLx1 ls also Lhe home of Lhe naLlonal lnsLlLuLe of Sclence and 1echnoloav Þollcv (nlS1LÞ), whlch
supporLs pollcv maklna Lhrouah Lhe producLlon of daLa, analvsls and reporLs on sclence and
Lechnoloav. 1he MlnlsLrv of Lconomv, 1rade and lndusLrv (ML1l) prlmarllv develops pollcles for
lndusLrv, lndusLrlal compeLlLlveness and Lhe realonal economv. ML1l spends 14° of aovernmenL

e
Russian oiganogiam,
http:¡¡coiuis.euiopa.eu¡eiawatch¡inuex.cfm.fuseaction=ii.content&topicIB=SS&paie
ntIB=S4&countiyCoue=R0, 16.uS.2u11

Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaiie ue Synthese 2u11 : Innovation
in Iapan, Russia, the 0SA, anu the Kinguom of Sauui Aiabia !
4u
expendlLure on 8&u.
lundlna ls dlsLrlbuLed vla Lhe MlnlsLrles Lo lndependenL AdmlnlsLraLlve lnsLlLuLlons (lAls). 1hese
lnclude kev fundlna bodles llke Lhe !apan Sclence and 1echnoloav Aaencv (!S1) and Lhe !apan
SocleLv for Lhe ÞromoLlon of Sclence (!SÞS) as well as Lhe naLlonal unlverslLles, whlch recelve mosL
of Lhelr budaeL from Lhe MlnlsLrv of LducaLlon, CulLure, SporLs, Sclence and 1echnoloav (MLx1). kev
aaencles such as Lhe lnsLlLuLe of Þhvslcal and Chemlcal 8esearch (8lkLn), Lhe naLlonal lnsLlLuLe of
Advanced Sclence and 1echnoloav (AlS1), and Lhe new Lnerav and lndusLrlal 1echnoloav
uevelopmenL CraanlzaLlon (nLuC) are all lndependenL admlnlsLraLlve lnsLlLuLlons LhaL malnLaln
relaLlons wlLh ML1l
f
.



!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!

f
Iapanese oiganogiam,
http:¡¡coiuis.euiopa.eu¡eiawatch¡inuex.cfm.fuseaction=ii.content&topicIB=SS&paie
ntIB=S4&countiyCoue=IP, 16.uS.2u11

Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaiie ue Synthese 2u11 : Innovation
in Iapan, Russia, the 0SA, anu the Kinguom of Sauui Aiabia !
41
!
!
-#'?;!+B#%#<,B!=#'$<
!
24%P,%:!#=!04$;,!1'4>,4!,%!&8+!
433,<,?4&,#%!#=!&+B8%#?#:(!,%;+N (out
of 1S4) - 44
ulobal competitiveness inuex (2uu9-
2u1u) out of 1SS
KSA: 28
Russia: S1
Iapan: 8

Q$4?,&(!#=!3B,+%&,=,B!'+3+4'B8!
,%3&,&$&,#%3,
KSA S8
th
in the teims of netwoik-
ieauiness in the woilu (WEF uITR
2uu9-2u1u).
KSA 4.S1 (the highei the bettei)
0SA 6.18
Russia 4.21
Iapan S.S4

<4'P+&!+%*,'#%<+%&.!
KSA: SS
Iapan: 28
Russia: 116
0SA: 9

6#?,&,B4?!4%;!'+:$?4&#'(!+%*,'#%<+%&!!
KSA: SS
0SA: 19
Iapan: 2u
Russia: 1u9

,%='43&'$B&$'+!+%*,'#%<+%&!
KSA: 48th
Iapan: 2S
Russia: 4S
0SA: S

J+%&$'+!B46,&4?,3<!,%!34$;,!1'4>,4 -
2uu8-2uu9, S.S¡7 (1 being veiy
uifficult, 7 being veiy easy).
0SA scoieu 4.17.

J+%&'$'+!B46,&4?!4*4,?4>,?,&(!RSTLTU
STLLV!
KSA: 27
0SA: 7
Iapan: S4
Russia: 86

1*4,?4>,?,&(!#=!?4&+3&!&+B8%#?#:,+3!W!!
KSA: S.S8 (7 veiy available, 1 not
available at all),
0SA 6.S8
Russia: 4.1u
Iapan: 6.SS

"?$3&+'!;+*+?#6<+%& :
KSA S.92
0SA S.4S (the highei the numbei, the
moie the clusteis aie uevelopeu)
Russia S.u2
Iapan S.47 (iank 1)

A43+!#=!;#,%:!>$3,%+33!!
901 11
th

0SA S
th
,
Iapan: 1S
th

Russia 12S
iu



@$';+%!#=!:#*+'%<+%&!'+:$?4&,#%
KSA.S.97, (the highei the bettei)
0SA S.S9
Russia 2.4S
Iapan S.9


AN&+%&!4%;!+==+B&!#=!&4N4&,#% :
KSA S.SS (the highei the less impact
theie is)
0SA S.S9
Russia S.u6
Iapan S.u4

&#&4?!&4N!'4&+.!
KSA 14.S
0SA 46.S
Russia 48.S
Iapan SS.7


Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaiie ue Synthese 2u11 : Innovation
in Iapan, Russia, the 0SA, anu the Kinguom of Sauui Aiabia !
42
7,<+!'+X$,'+;!!,%!;4(3!&#!3&4'&!4!
>$3,%+33:
KSA S
0SA 6
Russia Su
Iapan 2S

H$<>+'!#=!6'#B+;$'+3!'+X$,'+;!&#!
3&4'&!4!>$3,%+33:
KSA 4
0SA, 6
Russia 9
Iapan 8

C%&+%3,&(!#=!?#B4?!B#<6+&,&,#% (7 =
intense in most inuustiies), :
KSA S.S4
0SA S.91,
Russia 4.S
Iapan S.81

A==+B&,*+%+33!#=!?4-!<4P,%:!>#;,+3 :
KSA 4.u8,
0SA 4.17 -(the highei the moie
effective).
Russia S.2S
Iapan 4.29

CK!6'#&+B&,#% (the highei the stiongei)
:
KSA 4.64
0SA S.44
Russia 2.7S
Iapan S.4S

K'#6+'&(!',:8&3
KSA S.S1
0SA S.SS
Russia S.u7
Iapan S.9

1*4,?4>,?,&(!#=!3B,+%&,3&3!4%;!
+%:,%++'3 :
KSA 4.47
0SA S.6 - (the highei, the moie
available)
Russia 4.44
Iapan S.89

H$<>+'!#=!'+3+4'B8+'3!6+'!<,??,#%!
,%84>,&4%&3 :
KSA 41
0SA 4,66S
Russia S, 191
Iapan S, S7S

Accoiuing to the iepoit, Aiab
ieseaicheis aie buiueneu with teaching
uuties of twice the scope of those of
theii colleagues in westein univeisities.
Theie is a lack of cleai guiuelines anu
incentives foi full time scientific
ieseaich anu uevelopment as a
piofession

Q$4?,&(!#=!3B,+%&,=,B!'+3+4'B8!
,%3&,&$&,#%3:
KSA 4.S1
0SA 6.18 (the highei the bettei)
Russia 4.21
Iapan S.S4

7+'&,4'(!+;$B4&,#%!+%'#??<+%& :

KSA #67 (Su.24)
0SA #1 (81.68)
Russia # 6 (74.71)
Iapan # 29 (S8.u6)

A;$B4&,#%!+N6+%;,&$'+!43!Y!#=!FHC :
KSA 7.19
0SA 4.79
Russia S.S4
Iapan S.17

Q$4?,&(!#=!<4&8!4%;!3B,+%B+!
+;$B4&,#% (highei is bettei)-
KSA S.7S
0SA 4.47
Russia 4.68
Iapan 4.9S

Z#B4?!4*4,?4>,?,&(!#=!36+B,4?,D+;!
'+3+4'B8!4%;!&'4,%,%:!3+'*,B+3 :
KSA 4.S8
0SA S.98
Russia S.96
Iapan S.S1


Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaiie ue Synthese 2u11 : Innovation
in Iapan, Russia, the 0SA, anu the Kinguom of Sauui Aiabia !
4S
Q$4?,&(!#=!<4%4:+<+%&!3B8##?3:
0SA S.8S
KSA: S.87
Russia S.69
Iapan S.89

"#<64%(!36+%;,%:!#%!2[I -
KSA S.62
0SA S.6S
Russia S.S
Iapan S.9S
!
/%,*+'3,&(U,%;$3&'(!B#??4>#'4&,#%!,%!
2[I -
KSA 4.u2
0SA S.9u
Russia S.76
Iapan 4.6S

F#*+'%<+%&!6',#',&,D4&,#%!#=!C"7 -
KSA S.S2,
0SA S.62 (the highei the bettei)
Russia 4.16
Iapan S.u8

F#*+'%<+%&!6'#B$'+<+%&!#=!
4;*4%B+;!&+B8%#?#:(!6'#;$B&3 :
KSA 4.24
0SA 4.77 (the highei the bettei)
Russia S.S7
Iapan S.88

C<6#'&4%B+!#=!C%=#'<4&,#%!4%;!
"#<<$%,B4&,#%!7+B8%#?#:(!&#!
:#*+'%<+%& *,3,#%!#=!&8+!=$&$'+:
KSA 4.84
0SA 4.91
Russia S.S
Iapan 4.69

K'+*4?+%B+!#=!=#'+,:%!&+B8%#?#:(!
?,B+%3,%::
KSA S.S1
0SA S.S6
Russia S.79
Iapan S.91

E,'<!?+*+?!&+B8%#?#:(!4>3#'6&,#%:
KSA S.S6
0SA, 6.2S
Russia 4.18
Iapan 6.S6

"464B,&(!=#'!,%%#*4&,#%:
KSA S.72
0SA: S.49
Russia S.4S
Iapan S.89

KSA: Su% population is unuei 2u,
Ninimum capital iequiiements:
12S,uuu 0S$

.4% KSA uBP spent on innovation,
R&B, goal of 2% by 2u2S: financial
contiibutions of the piivate sectoi is
low.
















!
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D-'E!!!
!
!
!
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D-'E!!!
!
!
!
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D-'E!!!
!
!
"#$%&!'()*#+#&!,!-./0(#1#!*/&1%.2$#+#!3!-/451#5&!6/!-+107/2/!89::!3!-;5/1;/!#1<!*/;71%(%=+!51!-#><5!'&#?5#@!A>225#@!B#C#1@!#1<!07/!
D-'E!!!
!
!
!
!
"#$%&!'()*#+#&!,!-./0(#1#!*/&1%.2$#+#!3!-/451#5&!6/!-+107/2/!89::!3!-;5/1;/!#1<!*/;71%(%=+!51!-#><5!'&#?5#@!A>225#@!B#C#1@!#1<!07/!
D-'E!!!
!
!
!
"#$%&!'()*#+#&!,!-./0(#1#!*/&1%.2$#+#!3!-/451#5&!6/!-+107/2/!89::!3!-;5/1;/!#1<!*/;71%(%=+!51!-#><5!'&#?5#@!A>225#@!B#C#1@!#1<!07/!
D-'E!!!
!
!
!
"#$%&!'()*#+#&!,!-./0(#1#!*/&1%.2$#+#!3!-/451#5&!6/!-+107/2/!89::!3!-;5/1;/!#1<!*/;71%(%=+!51!-#><5!'&#?5#@!A>225#@!B#C#1@!#1<!07/!
D-'E!!!
!
!
!
"#$%&!'()*#+#&!,!-./0(#1#!*/&1%.2$#+#!3!-/451#5&!6/!-+107/2/!89::!3!-;5/1;/!#1<!*/;71%(%=+!51!-#><5!'&#?5#@!A>225#@!B#C#1@!#1<!07/!
D-'E!!!
!
!
!
"#$%&!'()*#+#&!,!-./0(#1#!*/&1%.2$#+#!3!-/451#5&!6/!-+107/2/!89::!3!-;5/1;/!#1<!*/;71%(%=+!51!-#><5!'&#?5#@!A>225#@!B#C#1@!#1<!07/!
D-'E!!!
!
!
"#$%&!'()*#+#&!,!-./0(#1#!*/&1%.2$#+#!3!-/451#5&!6/!-+107/2/!89::!3!-;5/1;/!#1<!*/;71%(%=+!51!-#><5!'&#?5#@!A>225#@!B#C#1@!#1<!07/!
D-'E!!!
!
!
!
!
"#$%&!'()*#+#&!,!-./0(#1#!*/&1%.2$#+#!3!-/451#5&!6/!-+107/2/!89::!3!-;5/1;/!#1<!*/;71%(%=+!51!-#><5!'&#?5#@!A>225#@!B#C#1@!#1<!07/!
D-'E!!!
!
!
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D-'E!!!
!
!

Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaiie ue Synthese 2u11 : Innovation
in Iapan, Russia, the 0SA, anu the Kinguom of Sauui Aiabia !
44
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Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaiie ue Synthese 2u11 : Innovation
in Iapan, Russia, the 0SA, anu the Kinguom of Sauui Aiabia !
4S

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Bakoi Al-Tayai & Svetlana Teinovskaya - Seminaiie ue Synthese 2u11 : Innovation
in Iapan, Russia, the 0SA, anu the Kinguom of Sauui Aiabia !
46

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47

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192
See Annex for an lnsLlLuLlonal map

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