Strategic Innovation in Russia: Towards a Sustainable and Profitable National Innovation System

296 Pages·2017·6.904 MB·English

by  Taco C.R. van Someren, Shuhua van Someren-Wang (auth.)

Taco C.R. van Someren ·
Shuhua van Someren-Wang
Strategic
Innovation
in Russia
Towards a Sustainable and Profi table
National Innovation System
Strategic Innovation in Russia
ThiSisaFMBlankPage
Taco C.R. van Someren (cid:129)
Shuhua van Someren-Wang
Strategic Innovation in
Russia
Towards a Sustainable and Profitable National
Innovation System
TacoC.R.vanSomeren ShuhuavanSomeren-Wang
Ynnovate Ynnovate
Hilversum,TheNetherlands Hilversum,TheNetherlands
ISBN978-3-319-41080-7 ISBN978-3-319-41081-4 (eBook)
DOI10.1007/978-3-319-41081-4
LibraryofCongressControlNumber:2016950914
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Contents
1 TheChallenge:RenewaloftheRussianInnovationSystem. . . . . . . 1
1.1 StrategicInnovationReplacesTechnology. . . . . . . . . . . . . . . . . 1
1.2 TheRelevanceofStrategicInnovationforRussia. . . . . . . . . . . . 4
1.2.1 NotDiversificationbutRenewalofDomesticIndustries
IsKey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.2.2 FutureWorldSociety. . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.2.3 Sustainability. . . . . . . . . .. . . . . . . . . .. . . . . . . . . .. . 6
1.2.4 GeopoliticalPowerShifts. . . . . . . . . . . . . . . . . . . . . . . 7
1.2.5 MarketEconomyquovadis?!. . . . . . . . . . . . . . . . . . . . 7
1.3 RussianHeroicbutUnknownInnovationHistory. . . . . . . . . . . . 8
1.4 CurrentStatusofInnovationintheRussianEconomy. . . . . . . . . 10
1.4.1 InsufficientInnovationPerformance. . . . . . . . . . . . . . . 10
1.4.2 InsufficientInternationalization. . . . . . . . . . . . . . . . . . 15
1.4.3 InsufficientEntrepreneurialActivity. . . . . . . . . . . . . . . 16
1.4.4 InsufficientContributionofSMEs. . . . . . . . . . . . . . . . 20
1.5 NationalInnovationSystem. . . . . . . . . . . . . . . . . . . . . . . . . . . 21
1.6 MilestonesofInnovation. . . . .. . . . . .. . . . . .. . . . . .. . . . . .. 22
1.7 TheStrategy. . . . .. . . . .. . . . . .. . . . .. . . . . .. . . . .. . . . .. . 24
1.8 Bottlenecks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
1.9 Megatrends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
1.10 RussiaAimsattheTechnologyFrontier. . . . . . . . . . . . . . . . . . 36
1.11 OverviewofThisBook. . . . . .. . . . . . . . . . . .. . . . . . . . . . . .. 39
Literature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
2 TheSolution:StrategicInnovationMoneyMakerModelVersus
TechnologyFrontierMoneyTakerModel. . . . . . . . . . . . . . . . . . . . 45
2.1 TheNeedforaNewBigPicture. . . . . . . . . . . . . . . . . . . . . . . . 45
2.1.1 MacrolevelandMassiveOutlook. . . . . . . . . . . . . . . . . 46
2.1.2 MesolevelandMajorRenewal. . . . . . . . . . . . . . . . . . 48
2.1.3 MicrolevelandMegaImpact. . . . . . . . . . . . . . . . . . . . 51
v
vi Contents
2.2 MajorDevelopmentsRequiringStrategicInnovation. . . . . . . . . 52
2.2.1 SustainableEconomy. . . . . . . . . . . . . . . . . . . . . . . . . . 53
2.2.2 InternetofThingsandIndustry5.0. . . . . . . . . . . . . . . . 55
2.2.3 NewDominantRegions. . . . . . . . . . . . . . . . . . . . . . . . 59
2.2.4 WorldEconomyReplacesGlobalization. . . . . . . . . . . . 64
2.2.5 BigUnknown. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
2.2.6 CommonDenominatorofSustainability,Internet
ofThings,NewDominantRegions,WorldEconomy
andBigUnknown. . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
2.3 ConsequencesforRussia. . . . . . . . .. . . . . . . . . .. . . . . . . . . .. 67
2.4 GrowthCycleVersusTechnologyFrontier:MoneyMakerVersus
MoneyTaker. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
2.5 Russia’sPositionontheGrowthCycle. . . . . . . . . . . . . . . . . . . 75
Literature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
3 TheInstrument:StrategicInnovationasaNewFoundationfor
RussianInnovationSystem. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
3.1 TheMindShiftfromTechnologytoFutureEarningPowerNeeds
NewTheory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
3.1.1 StrategyConceptsCannotExplain“WhatHappens
Here?”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
3.1.2 InnovationTheoriesCannotExplain“WhatHappens
Here?”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
3.1.3 StrategyandInnovationConceptsCompared. . . . . . . . . 86
3.2 FromParrot-Economyto24-Karat:FromTechnologyFrontier
TowardsStrategicInnovation. . . . . . . . . . . . . . . . . . . . . . . . . . 90
3.3 TheInnovationMatryoshka. . . .. . . .. . . .. . . .. . .. . . .. . . .. 93
3.4 TheSixPillarsofStrategicInnovationTheory. . . . . . . . . . . . . . 95
3.5 EntrepreneurialFunction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
3.6 GrowthCycleIsMoreThanDisruption. . . . . . . . . . . . . . . . . . . 98
3.7 Non-technicalInnovations.. . . .. . . .. . .. . . .. . . .. . . .. . . .. 100
3.7.1 ScopeofNon-technicalInnovation. . . . . . . . . . . . . . . . 100
3.7.2 ImpactofNon-technologicalInnovation. . . . . . . . . . . . 104
3.7.3 Non-technologicalInnovationsAreHardtoImitate. . . . 105
3.7.4 ImplicitandTacitInnovation. . . . . . . . . . . . . . . . . . . . 105
3.8 UltimatePowerofTime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
3.8.1 TimeIstheMasteroftheUniverse. . . . . . . . . . . . . . . . 106
3.8.2 TheBasicbutUnnoticedRoleofTime. . . . . . . . . . . . . 108
3.8.3 TacitKnowledgeDoesnotExist,ItIstheTimeFactor... 110
3.8.4 TheSevenTimeDimensions. . . . . . . . . . . . . . . . . . . . 111
3.8.5 TimeCulture:AProfoundHiddenForceofSocietal
DevelopmentandProgress. . . . . . . . . . . . . . . . . . . . . . 112
3.8.6 TimeArrow:FutureorBackwardsOrientedSociety. . . 114
3.8.7 TimeControl:WhoControlsTimeOwnsPower. . . . . . 119
3.8.8 Timing:MultiplierofProfitsandLosses. . . . . . . . . . . . 122
3.8.9 TimeDuration:CreatorandDestroyerofWealth. . . . . . 124
Contents vii
3.8.10 TimeConsumption:FromUbiquitytoScarcity. . . . . . . 129
3.8.11 TimeIntensity:Evolutionary,Revolutionary,Speedy
andRiskyTimes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
3.8.12 WrapUpSevenTimeDimensions. . . . . . . . . . . . . . . . 135
3.8.13 DynamicProductionFunction. . . . . . . . . . . . . . . . . . . 136
3.9 DynamicValue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
3.9.1 FromProfittoDynamicValue. . . . . . . . . . . . . . . . . . . 139
3.9.2 MultiplierTimeEffectandExponentialGrowth. . . . . . 147
3.9.3 DynamicValueasModusOperandiofStrategic
Innovation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
3.9.4 RelevanceofDynamicValueforRussia. . . . . . . . . . . . 151
3.10 EmulationasEndlessRaceofOutperformingandnot
ofDisruption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
3.10.1 EmulationIsCoreofProgressandProsperity. . . . . . . . 151
3.10.2 The4IEmulationSchemeforRussianeedsTailorMade
Approach. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
3.11 StrategicInnovationTheoryElevatesRussiainWorldInnovation
League. . . . . . . . . . . .. . . . . . . . . . . . . . .. . . . . . . . . . . . . .. . 157
Literature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
4 TheManagement:UnleashingtheStrategicInnovationPotential.... 163
4.1 GrowthCycleandStrategicInnovation. . . . . . . . . . . . . . . . . . . 163
4.2 GrowthCyclePhases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
4.2.1 Pre-seedandSeed:LeadorBleed. . . . . . . . . . . . . . . . . 167
4.2.2 Start-upSmart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
4.2.3 ScaleorFail. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
4.2.4 IncumbentsDefendorExpand. . . . . . . . . . . . . . . . . . . 171
4.2.5 FromRenewaltoFutureCrownJewel. . . . . . . . . . . . . 172
4.3 MythBustingtheNewEconomy. . . . . . . . . . . . . . . . . . . . . . . . 175
4.3.1 Myth1:Technology. . . . . . . . . . . . . . . . . . . . . . . . . . 175
4.3.2 Myth2:KnowledgeEconomy. . . . . . . . . . . . . . . . . . . 176
4.3.3 Myth3:Disruption. . . . . . . . . . . . . . . . . . . . . . . . . . . 177
4.3.4 Myth4:OpenInnovation. . . . . . . . . . . . . . . . . . . . . . . 178
4.3.5 Myth5:Cooperation. . . . . . . . . . . . . . . . . . . . . . . . . . 180
4.3.6 Myth6:NetworkFirms. . . . . . . . . . . . . . . . . . . . . . . . 180
4.3.7 Myth7:SharingEconomy. . . . . . . . . . . . . . . . . . . . . . 182
4.3.8 Myth8:TacitKnowledge. . . . . . . . . . .. . . . . . . . . .. . 183
4.3.9 Myth9:CostlessInformation. . . . . . . . . . . . . . . . . . . . 183
4.3.10 Myth10:ObsoleteProductionFunction. . . . . . . . . . . . 184
4.4 BacktoBasicsforRussianInnovationSystem. . . . . . . . . . . . . . 184
4.5 TheManagementBasicsofStrategicInnovation. . . . . . . . . . . . 185
4.6 FutureEarnings:CreatingCompanyoftheFuture. . . . . . . . . . . 185
4.7 GrowthPhaseManagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
4.7.1 Aspire. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
4.7.2 Discover. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
4.7.3 Create. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
viii Contents
4.7.4 Select. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
4.7.5 Institutionalize. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
4.7.6 Expand. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
4.7.7 Exploit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
4.7.8 Dominate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
4.7.9 Reset. . .. . . . . .. . . . . . .. . . . . . .. . . . . .. . . . . . .. . 189
4.7.10 Emerge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
4.8 LongitudinalManagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
4.8.1 StrategicInnovationLeadership. . . . . . . . . . . . . . . . . . 191
4.8.2 InstitutionalInnovation. . . . . . . . . . . . . . . . . . . . . . . . 198
4.8.3 CorporateGovernance. . . . . . . . . . . . . . . . . . . . . . . . . 204
4.8.4 BusinessDevelopment. . . . . . . . . . . . . . . . . . . . . . . . . 205
4.8.5 BusinessModelFormulationandExecution. . . . . . . . . 206
4.8.6 IndustrialGovernanceasPower. . . . . . . . . . . . . . . . . . 207
4.8.7 CrossCulturalManagement. . . . . . . . . . . . . . . . . . . . . 210
4.8.8 DynamicValue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
4.9 RussianVolgaAmurModelforIndustrialLeadership. . . . . . . . 214
Literature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
5 TheInternationalization:RussianCross-culturalStrategic
Innovations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
5.1 WhyDoesRussiaHavetoIntegrateStrategicInnovationsAcross
theBorder?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
5.1.1 FromCreativitytoRussianStrategicInnovations.. . . .. 223
5.1.2 FromCultureDiversitytoRussianStrategicInnovation
Context. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
5.1.3 FromTradePartnerstoTripleEofRussianStrategic
Innovations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232
5.2 FromLose-LosetoWin-Win,HowCanRussiaandChina
CooperateinInternationalStrategicInnovations?. . . . . . . . . . . . 234
5.2.1 TheLose-LoseHistoryofSino-RussiaRelationship. . . . 234
5.2.2 TheNewStrategicInnovationChancesforChinaand
RussiaLookingforWin-Win. . . . . . . . . . . . . . . . . . . . 237
5.2.3 HuaweiasanExampleoftheChineseStrategic
InnovationsinRussia. . . . . . . . . . . . . . . . . . . . . . . . . . 241
5.2.4 HowShouldRussiaWorkwithChina?. . . . . . . . . . . . . 244
Literature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
6 TheCases:PotentialsandOpportunitiesofRussianStrategic
Innovations“Urbi,OrbietUniversum”. . . . . . . . . . . . . . . . . . . . . . 247
6.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
6.2 Agrofood:Grain,FoodChainandBrain. . . . . . . . . . . . . . . . . . 247
6.3 Aerospace:HeroicPastandHeroicFuture?. . . . . . . . . . . . . . . . 260
6.3.1 Go-Around. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262
Contents ix
6.3.2 Takeoff:GrowingintotheSky. . . . . . . . . . . . . . . . . . . 269
6.3.3 BeyondtheCloud:SpaceRaceasMoneyMaker. . . . . . 276
6.4 FarEasternFederalUniversity(FEFU):Vladivostok
Valorization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
6.4.1 PastSuccesses,RankingsandNewOpportunities. . . . . 280
6.4.2 BuildingQuadrupleHelix. . . . . . . . . . . . . . . . . . . . . . 282
6.4.3 FEFUasStrategicInnovation. . . . . . . . . . . . . . . . . . . . 283
Literature. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286