Application of Regional Innovative Environment

A. Profile of the Initiative Geographic Region Eastern Europe Country/Region Russia Federation Name of City/Local Authority Saint Petersburg Organization JSC Technopark of Saint Petersburg Title, Name and Position of Person(s) Leading the Initiative

Basic City Data Population size: 5,200,000 Population Growth Rate(%)1.28 Surface Area (sq.km): 1439.000 Population Density (people/sq.km): 381464.000 GDP Per Capita (U.S.$): 25277.000 GINI Index: 0.41 URL/Webpage of Your City: URL/Webpage of Your Initiative: Main source of prosperity (e.g. industry, trade, tourism, creative industry, etc.): trade, industry, real estate, tourism

B. Title and Abstract For a large integrated initiative, please consider submitting up to three initiatives under the same title. For example, you may wish to submit under “Low-Carbon Urban Development for My City” an initiative on public transport, an initiative on energy efficiency in buildings, and an initiative on use of renewable energy. Title or Tagline of the Initiative Regional Innovative Environment Sub-title Start date of the initiative 2016-12-01 Tentative End Date of the Initiative (if 2018-12-31 not yet completed) Economic Thematic Areas Governance/Management Technology

Abstract/Short description of the innovative initiative being submitted for Award.(150 words max)

Nowadays sustainable development of territories depends on complex support of innovations from the very beginning to its implementation. Saint Petersburg is one of the first regions in Russia to have initiated the systematic development of the innovative environment. Supported by the Committee for Industrial Policy and Innovation, the company is implementing a modern Technopark model, implying the establishment of a

EE/RUS/SAINT PETERSBURG/0126 comprehensive innovative ecosystem. It employs tools supporting innovation at all stages, from startup to large cluster projects, and is aimed at formation of the appropriate manufacturing and technology-transfer chains by ecosystem members. Thus, Ingria Business Incubator, one of the nation’s largest, is functioning at one pole, while the Cluster Development Centre, a crucial tool for the implementation of regional cluster policy, is functioning at the other. Our results: Formation of Saint Petersburg’s first-ever fully-integrated chain dedicated to the support of innovative pursuits: from startups to large industrial enterprises implementing cluster projects. Within the innovation environment, Saint Petersburg is positioning itself as one of the leaders setting the standards for sector development. New innovation projects are being drawn to Saint Petersburg. Conditions are being created for achieving the indexes of the “Economic and Social Development Policy of Saint Petersburg Through 2030,” in particular, in terms of increasing the output share of high-tech and science-intensive industries in Saint Petersburg’s Gross Regional Product (GRP), the share of the knowledge-driven economy in Saint Petersburg’s GRP, and the share of innovative products in the region’s total volume of manufacturing output.

C. Background Information Describe the legislative or policy framework under which the initiative is taking place, for example, a public policy document at the central or local government level, a policy statement, a covenant, a compact or internationally recognized agreement including, for example, the Sustainable Development Goals, and/or the New Urban Agenda

State program of St. Petersburg"Development of industry, innovation and agro-industrial complex in St. Petersburg"; The regional program for supporting the development of territorial clusters by the Government of St. Petersburg in accordance with the Resolution of the Government of St. Petersburg of June 23, 2014 No. 495

D. Summary of the Origins of the Initiative

Describe how the initiative came about and what challenges or issues of sustainable development it is meant to address using the following lead questions as your guide. (350 words max)

1. Describe briefly the reason(s) for undertaking the initiative including social, economic, political or cultural challenge(s) or issues confronting the city/region/community. Include where relevant number of people, enterprises or institutions affected. The high concentration of industrial enterprises, universities and development centers has created a significant technological reserve in a number of industries, attracted talented human resources, realized as specialists in their professions and fields of science, and aimed at development in technological entrepreneurship. Nevertheless, the peculiarities of the system of higher and professional education, the traditional organization of production, lack of skills in the market valuation of own

EE/RUS/SAINT PETERSBURG/0126 developments seriously hampered the process of commercialization of innovations, which as a whole frustrated plans for diversifying the regional economy. Separate success stories did not turn into mass production of ready-to-market technological projects due to the lack of network interactions between technology entrepreneurs, weak management experience in implementing cooperative projects, accessible infrastructure and services for their development

2. Describe the goals of the initiative in terms of desired change or outcome and timeframe for achieving the change or outcome (for example, change in policy, strategy, business model, technology, means of implementation, financing arrangements, human development and empowerment, measuring and evaluating progress and impact, etc.). Creation of conditions aimed at the growth of the region's economic potential (practices to ensure a favorable investment climate and development of entrepreneurship, practices to promote entrepreneurship, practices for organizing a dialogue between government and business, practices for successful interaction with development institutions, practices for developing infrastructure to stimulate self-employed and young people). Creation and development of infrastructure that meets the needs of industrial companies and technology entrepreneurs. Organization of the Technopark of St. Petersburg to provide consulting and technological services to SMEs in three key areas: Technopark2Industry, Technopark2Business, Technopark2Community. The program of the St. Petersburg Technopark's own events aimed at popularizing technological entrepreneurship and developing an enabling environment for the formation of professional communities and the development of innovative projects at various stages of growth (the My.Tech technology festival, the St. Petersburg International Cluster Conference"Clusters Open Borders", the HackingDays Hackaton series, monthly open examination of StartupLynch projects

3. Describe whether the innovation involves any partnership (public-public, public-private, public- community, etc.) and if yes, who is or was the leading partner(s), the role they each played and whether other parties have benefited or are benefiting from your innovation and how? The St.Petersburg Technopark project is implemented with the support of the Committee for Industrial Policy and Innovation of St. Petersburg (KPPI). The Committee acts as a navigator for SME support, and the Technopark of St. Petersburg implements SME support. The main tasks of the Committee are: 1. Implementation of programs for the development of industry in St. Petersburg, the agricultural production of St. Petersburg, innovative development, investment development of territories intended for the placement of production, transportation, logistics, public- business and storage facilities within the boundaries established by the resolutions of the Government of St. Petersburg ( further - the territory of non-residential areas), including

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production zones. 2. Creation in St. Petersburg of favorable conditions for innovation and investment activities, assistance to investors in promoting projects for the development of non- residential areas, including production zones. 3. Ensuring the creation and operation of special economic zones in the territory of St. Petersburg. 4. Organization and implementation of programs and projects in the field of development of exhibition and fair activities, support of the export of industrial products and promotion of Russian goods, services, results of intellectual activity to world markets. 5. Formation of targeted investment program.

4. Describe the resources used for implementing the initiative, including funding/financing strategy or arrangements and any significant contributions that are not in cash, for example, in human, technical or managerial resources. Technopark uses resources from federal and regional authorities. During 2017 we use $90 mln from federal budget (equipment for Engineering Centers) and $3 mln from regional government for support of SME and startups.

E. Summary of the Innovative Aspect(s) of the Initiative Describe the innovation for the initiative using the following lead questions as a guide. (350 words max)

1. Describe whether the initiative should be considered evolutionary or revolutionary. Evolutionary would imply that innovation evolved over time based on lessons learned from experience and that the changes or outcomes are cumulative. Revolutionary would imply something quite new or something that has been borrowed from elsewhere but never been tried before in the sector or context in question and therefore bears a certain degree of risk. If it’s borrowed from elsewhere, describe what the linkage with the other preceding experiences is.

The quality of services rendered in 2017 by the Technopark and its directorates was confirmed by external expertise. So, in April 2017, the Technopark of St. Petersburg won the"Best for Russia"award for its contribution to the formation and development of the national economic environment. The residency program and the results of the Ingria Business Incubator in 2017 were highly appreciated by the international analytical company UBI Global, which presented the global rating of the best business incubators and accelerators. St. Petersburg Business Incubator"Ingria"took 8th place among the top 10 business incubators. Petersburg innovative territorial clusters, according to the report of the Higher School of Economics published in August 2017, are among the most cost-effective in the country - the aggregate revenue of participants in regional clusters from sales of products in the foreign market was on average 20% higher than in the base regions, and the volume of shipped innovative products and services - by 60-90%.

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The directions of the further development of the Technopark are tied to the current needs of its residents and clusters. In the near future, they are associated with the deployment of engineering infrastructure for high-tech industries in St. Petersburg (robotics, photonics and laser technology).

2. Describe where the innovation is being applied, for example, in policy or strategy; planning, design and implementation; business model or financing arrangement; tools and technology; governance and administration; etc

Business Incubator Ingria: 81 innovative project, employment of jobs by residents of the business incubator BI Ingria - 92%. The volume of investments attracted to resident projects in 2017 amounted to about 405 million rubles. In the rating"TOP-10: incubators", published in the II quarter of 2017 in the journal RBC, BI Ingria took the second place in terms of the number of residents and the first place in terms of attracted investments in 2016. Social effectiveness: he average number of employees in resident companies was 696. Economic efficiency: For each ruble received subsidies from the budget of SPb, 21 ruble of revenue of the resident company. For each ruble received subsidies from the budget of St. Petersburg, it was attracted 6.46 rubles of investment. The volume of all tax deductions in 2016 shows that for each ruble received subsidies from the budget of St. Petersburg, the budget was returned 6.18 rubles.

3. Describe whether there was or are any obstacles or resistance to the innovation and if so, how were/are they being overcome.

We received good support from some GO and NGO, but it was uneasy to start cooperation with big industrial companies. In order to overcome it we held special events - Technology DemoDays.

F. Summary of the Desired Change or Outcome and how it is being Measured

Describe how the initiative, and in particular the innovation, is or will be making a qualitative and/or quantitative change and how that change or outcome is being measured. (350 words max)

1. What change(s) or outcome(s) have you already achieved or hope to achieve? Please describe the nature of the change(s) or outcome(s) in, for example, improved quality of life; new levels of social, economic or environmental sustainability, including new attitudes and behavior; improved efficiency, effectiveness, accountability or transparency, etc. Please describe the scale of the change, for example, primarily local, regional, national or global and where possible, please quantify the change(s) or outcome(s) being achieved.

The Technopark model: a single innovative ecosystem, which includes tools to support

EE/RUS/SAINT PETERSBURG/0126 innovative developments at all stages: from startups to large cluster projects, and is aimed at creating full-value chains of production and technology transfer by the ecosystem participants. Thus, the Business Incubator"Ingria"helps business projects enter the market and attract investment; The prototyping center and the Engineering Centers allow solving design and technological problems of different difficulty levels; The cluster development center promotes the formation of production chains through the merger of companies into territorial clusters and the implementation of the cluster policy of the region. Thus, innovative projects at any stage of growth can find support in the Technopark

2. What indicators or metrics are you using to assess the change? Describe who is doing the measuring, and who is using the measurements and how.

We evaluate ratio between budget funds spent within our program and tax revenues of our residents. Also we count amount of services provided, level of employed of our residents, growth of these paremeters. Also an important factor is interest from communities - number of participants of our professional technological events.

3. Describe any specific tools or methods that were developed or applied to improve the chances to attain the desired outcome or change, for example, new working methods, new data and information, new incentives or disincentives, new means of communication and knowledge, new technology, etc.

Today JSC"Technopark of St. Petersburg"carries out its activities on leased areas and its structure includes five structural divisions: pilot project business incubator"Ingria"; Center for Cluster Development of St. Petersburg; Center of prototyping; Regional Engineering Center in the field of microreactor synthesis of active pharmaceutical substances; Regional engineering center"Development of the market of security systems for information and cyber-physical cluster systems"Development of information technologies, radio electronics, instrument engineering, communication facilities and info- telecommunications of St. Petersburg".

4. How does the initiative and its intended changes or outcomes contribute to a new image or reputation for your city or community?

In general, JSC"Technopark of St. Petersburg"has established itself as a key city center for technological entrepreneurship, which conducts weekly educational activities and consultations. St. Petersburg has strengthened its historically developed industrial structure and high innovative potential with new models of business and production organization. Unlike the megacities in other developed countries, St. Petersburg has retained the

EE/RUS/SAINT PETERSBURG/0126 opportunity to conduct the entire cycle of developing and introducing innovations into mass production within the one city.

This factor, as well as constantly increasing roles of the knowledge economy, innovation development and technological lifestyle, allow St. Petersburg to stand with a confident position in the global technology markets

G. Describe what you think other cities can learn from our initiative and what your city/community is prepared to do to further that learning.

Choose any of the above headings or a particular aspect of the initiative that you wish to highlight and that you think best describes the reasons why the innovative aspect(s) of the initiative could be of benefit to improving social, economic and environmental sustainability in cities and regions and, in so doing, to advance the prosperity and quality of life of their citizens. (400 words max)

The Technopark model: a single innovative ecosystem that includes tools to support innovative developments at all stages: from start-ups to large cluster projects, and is aimed at creating full-value chains of production and technology transfer by the ecosystem participants.

H. Relevance of the Initiative to the 2030 Agenda for Sustainable Development, Commonly Referred to as the “Sustainable Development Goals” and to the New Urban Agenda.

Please tick the most appropriate boxes and provide a brief description of the relevance of your initiative in relation to the relevant goal(s). Please also refer to the complete text of the Sustainable Development Goals at: www.un.org/sustainabledevelopment/sustainable-development-goals/

Goal 4: Ensure inclusive and equitable education and promote life-long learning opportunities for all Goal 5: Achieve gender equality and empower all women and girls Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation Goal 11: Make cities and human settlements inclusive, safe, resilient and sustainable Target 8: Support positive economic, social and environmental links between urban, peri- urban and rural areas Goal 12: Ensure sustainable consumption and production patterns

I. Descriptive Materials in Annex to the Document These are materials destined to allow members of the Technical Committee and the Jury to have a better understanding of the context of your initiative which is a very important consideration. Please do not exceed the specifications below; anything that exceeds these specifications may not be

EE/RUS/SAINT PETERSBURG/0126 availed to the Technical Committee or the Jury. Please provide, where possible and relevant, the following: ◆Up to 5 press clippings or copies of covers and tables of content of reports published on the initiative. ◆Up to 5 photos (with titles) that best illustrate the initiative (.jpeg at 300 dpi, 2000 x 2000 px max). ◆Up to 5 graphics that best illustrate the initiative (300 dpi). These graphics could illustrate for example, trends, ratios or percentages; tools or technologies; etc. ◆1 map that best illustrates the physical context of the initiative (300 dpi) ◆1 chart that best illustrates the initiative (300 dpi) ◆1 technical drawing (300 dpi)

J. Additional material Any additional material such as videos should be submitted on a DVD/CD or by email to the Secretariat at [email protected]. Note: Any additional material should be submitted to the Secretariat via email or mailing. The Guangzhou Award Secretariat Tel: +86-20-66289390 Fax: +86-20-66289391 Email: [email protected] Address: 3901-02, Pearl River International Building, 112 Yuehua Lu, Guangzhou, P.R. China