STI Policies in Russia Amid COVID-19 3

______2021/SOM3/PPSTI/007 Agenda Item: 10d

Science, Technology and Innovation Cooperation for the Sustainable and Resilient System After COVID-19 from the Russian Perspective

Purpose: Information Submitted by: Russia

18th Policy Partnership on Science, Technology and Innovation Meeting 25-26 August 2021

STI cooperation for the Sustainable and resilient system after COVID-19 from the Russian perspective

Karine Haji, researcher, Institute for International Economics and Finance Russian Foreign Trade Academy, Russia Plan of the presentation

1. COVID-19 changes everything 2. STI policies in Russia amid COVID-19 3. How can STI help? The opportunities for future recovery

2 COVID-19 changes everything

GLOBAL PHENOMENON The World Health Organisation announced the pandemic just in three months after the first case detected

COMMON SET OF  Social distancing; MEASURES  Lockdown;  Travel restrictions;  Medical check-ups and speed tests;  Mapping and tracking of COVID-19 infected people and their contacts.

MORE DIGITAL STI are vital instruments in all speres of human life and society

3 STI policies in Russia amid COVID-19

RAPID E-commerce (including in traditional sectors); DIGITALISATION E-government; remoted work and education. “Sputnik V”, “Sputnik Light”, «EpiVacCorona» and VACCINATION «CoviVac».

LEGAL To support STI amid COVID-19. GROUND

IT- Two sets of supportive measures. INDUSTRY SUPPORT Olympic movement among children and youth EDUCATIO more places for STI specialists in Universities, N subsidised by the Government.

4 STI policies in Russia amid COVID-19: e-commerce Growth of E-Commerce Market in Russia in 2011-2024 8 50% 44% 7.2 7 45% 40% 5.7 6 34% 35% 34% 5.6 32% 35% 5 29% 4.5 32% 28% 28% 4.4 27% 30% 31% 27% 30% 4 28% 24% 25% 26% 3.3 3.6 25% 3 22% 2.8 20% 20% 2.5 2.2 19% 15% 2 1.7 1.3 16% 10% 0.9 1.07 13% 1 0.71 11% 0.42 0.56 9% 5% 0.24 0.32 5% 6% 0 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Sales volume, RUB trln (left axis) Sales volume without pandemic impact (left axis) Sales volume growth, considering the pandemic impact, % to the previous year (rights axis) Sales volume growth without the pandemic impact, % to the previous yeas (right axis) E-commerce share in retail trade, % (right axis) Note: forecast numbers starting from 2020. Resource: Based on Data Insight research in 2019 and 2020. 5 STI policies in Russia amid COVID-19: e-commerce Market capitalization of the largest digital companies in Russia, mln Name Field of activity $ Value in 2019 Value in 2020 Yandex Search, advertising, services, e- $10 724 mln $22 980 mln Market capitalization of the largest digital commerce, taxi companies in the world, bn $ Wildberries Marketplace $1 200 mln $14 523 mln 2500 Ozon Marketplace $694 mln $10 581 mln 2213 Mail.ru Group Mail, social networks, games, services $5 362 mln $6 084 mln Avito Bulletin board $3 850 mln $4 907 mln 1С Software development, services $106 mln $2 287 mln 2000 Marketplace ml 2 ml Lamoda $226 n $ 276 n 1653 Headhunter HR bulletin board $299 mln $1 600 mln 1596 Delivery Club Food delivery aggregator - $1521 mln 1500 1203 AliExpress Russia Marketplace - $1100 mln 1305 1200 1203 1113 Citymobil Taxi aggregator - $982 mln 971 1000 916 923 Cian Real estate bulletin board $96 mln $763 mln 799 757 738 Ivi Online cinema $204 mln $709 mln 585 569 620 SKB Kontur Software development - $657 mln 522 461469 Positive Software development and provision - $580 mln 500 475 Technologies of services in the field of information security Goods Marketplace - $530 mln 0 Okko Online cinema - $453 mln Apple Microsoft Amazon Aplphabet Facebook Tencent Alibaba Superjob HR bulletin board $93 mln $339 mln Group KupiVip Marketplace - $318 mln 31.12.2019 31.03.2020 11.01.2021 Tenzor Software development - $269 mln

Note: the list includes 20 most expensive companies on the Runet in 2020. Some of them were Note: compiled based on PwC и FXSSI not included in the list of 2019. Sources: compilated, based on Forbes ratings in 2019 and 2020 6 STI policies in Russia amid COVID-19: Legal ground

• Regulatory sandboxes law; • Range of activities for Artificial Intelligence:  The concept of relations regulation development in the field of Artificial Intelligence and robotics technologies until 2024;  Federal project “Artificial Intelligence” in the framework of a Federal Programme “Digital Economy of the Russian Federation;  Law on the Artificial Intelligence development in Moscow. • Labour Code for remote employment and work. • Electronic document exchange in the wider number of spheres. • Telemedicine law; • Distant trade in medical drugs law. • Law on distant education in the times of emergency.

7 STI policies in Russia amid COVID-19: IT-industry support

• Two sets of supportive measures:

 Tax maneuver;  More than 60 additional measures in other spheres.

8 How can STI help? The opportunities for future recovery• We need new sustainable approaches to everything: STI, economy, politics and social development • Technologies for human progress and social problems resolution.

• What is progress? Becoming consciousness of ourselves and the Universe we live in: caring for everyone, seeing everyone as one, working with love, serving to others, fostering inclusive and sustainable development of society.

• Technology should help for:  human resources-related, including promotion new STI in the spheres of education and healthcare;  transparent and digital economy;  further development of industrial and technological infrastructure;  opening the borders (development of tourism-support initiatives);  trade and investment cooperation including promotion of MSMEs (digital transformation of MSMEs).  energy efficiency (expansion of the use of renewables, liquefied natural gas and local fuels).

• PPSTI future policies:  new, changing circumstances in the world;  pay more attention to STI, as a tool to transform society and adapt to the requirements of the new age;  develop technologies “with a human face” in the transitional period we live in;  see the STI from the new angle and create the STI policies of the new age generation. 9 Thank you for your attention!

Karine Haji

Russian Foreign Trade Academy Institute for International Economics and Finance Researcher

Email: [email protected] Website: https://www.vavt-imef.ru/ Twitter: @AnalyticsIMEF Facebook: @TorgIMEF