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RUSSIA-DIRECT.ORG VOL. 4 (2016) ISSUE 8 AVAILABLE FOR SUBSCRIBERS ONLY $4.99 | 31 | CONTENTS EXECUTIVE SUMMARY In an effort to become more competitive globally, Russian universities are attempting to reinvent themselves as new hubs of innovation and entre- 05. A plan for the growth of the preneurship. In this report, we take a closer look at what needs to be done knowledge economy in Russia to complete the transformation of the Russian university system. BY ALEXANDRA ENGOVATOVA AND The report examines the role of the modern university using the frame- EVGENY KUZNETSOV work of University 4.0, a paradigm for innovation and entrepreneurship developed by Russia’s National Technology Initiative (NTI). First and fore- 10. The process of Russian edu- most, Russian universities need to re-think the link between teaching and cational reforms is underway research. For too long, these functions have been separated, and that’s led BY GEORGY LAPTEV to an inability to commercialize new academic innovations, or to inspire students to launch new startups. 12. How universities can become Based on the real-world experience of Russian educational institutions more innovative and entrepre- that are at the forefront of the University 4.0 trend, the report analyzes neurial some of the specific changes that need to be made – such as the introduc- BY KENDRICK WHITE tion of a formal technology transfer office within each university – to encourage more partnerships between business and academia. 22. Interview with Loren Gra- Of course, creating the modern University 4.0 is harder than it sounds. For ham: Why Russia fails to mod- more than a decade, Russian university administrators have struggled with ernize its educational system ways to make their institutions more competitive globally, especially via BY PAVEL KOSHKIN international rankings. However, aside from a few highlights – such as the creation of Skolkovo as a new innovation hub – the Russian economy has 25. Book review: How the U.S. proved frustratingly resilient to change. university system became the Yet, it’s clear that the ability to unlock all of the remarkable intellectual best in the world property (IP) within Russian academic institutions and encourage young BY DIMITRI ELKIN Russian millennials to launch new startups could have important implica- tions for the future growth of the nation’s economy. The University 4.0 27. Further reading model could be the key to diversifying the economy away from oil and gas, and creating entirely new (and futuristic) industries in fields ranging from robotics to 3D printing. Rather than just supporting and complementing business, universities could become the new engine of innovation driving Russia’s technological development. KIRILL LAGUTKO | 1 | RUSSIA-DIRECT.ORG AUTHORS Evgeny Kuznetsov Deputy director of the Russian Venture Company and one of the initiators and leaders of the National Technology Initiative. Kuznetsov is also a member of both the Russian government’s expert council and the presidium of the Council on Foreign and Defense Policy think tank. Alexandra Engovatova Associate Professor of Economics and Innovation in the Depart- ment of Economics and deputy head of the Department for Re- search Policy and Research Management of Lomonosov Moscow State University. She has published extensively on the evolution of the academic institution model, as well as the identification and justification of the key role of universities in shaping the knowl- edge economy, with a special focus on Russia. Georgy Laptev Associate professor at Lomonosov Moscow State University, where he is the head of the Innovation Business and Entrepre- neurship Lab and the Master’s degree program in Innovation Man- agement at the Department of Economics. Dr. Laptev manages the activities to support startup entrepreneurial teams in product concept and business model development. Kendrick White Founder and CEO of Marchmont Capital Partners, and Advi- sor to the rector of the Lobachevsky State University of Nizhny Novgorod. White is a U.S.-born entrepreneur who has built unique know-how in commercializing early stage, high-tech investment projects over more than 20 years of investing and management experience in Russia. He lives and works in Nizhny Novgorod. | 2 | RUSSIA-DIRECT.ORG FROM Thinking outside the box THE EDITOR We cannot solve problems by using the same kind of thinking we used when we created them. These words, attributed to Albert Einstein, are relevant for Russian universities as never before, given their perennial struggle to become more competitive globally. This is the primary challenge of Russia’s National Technology Initiative (NTI), a state-sponsored program intended to strengthen Russia’s position in global technol- ogy markets by 2035. Today the nation’s leaders are rigor- ously mulling over potential ways to modernize Russian higher education within the University 4.0 model, which initially evolved from the University 3.0 concept. The goal is to make Russian academia more innovative, entrepre- neurial and multifaceted. In this report, we outline the attempts of Russian universities to modernize themselves, overcome their tains an interview with well-known MIT Professor Loren major institutional challenges and attract the best Graham (author of the book “Lonely Ideas”), who explains students, professors and investors. Specifically, the why many talented scientists are leaving Russia and what report features analysis from Russian Venture Company’s the government should do to reform the system. Evgeny Kuznetsov, as well as Lomonosov Moscow State Finally, we outline the key takeaways from the book “Wis- University’s Alexandra Engovatova and Georgy Laptev, dom’s Workshop: The Rise of the Modern University” by who present a detailed plan of how Russia can boost the James Axtell as a potential guide for Russian universities. knowledge economy while describing the key features of I hope you enjoy this report. Please, do not hesitate to University 4.0. reach me directly at [email protected] with At the same time, we give voice to Kendrick White, a your questions. Thank you for being our loyal reader. U.S. entrepreneur and an advisor to the rector of the Lobachevsky Nizhny Novgorod State University. He explains why Russia fails to commercialize its ideas and Pavel Koshkin, Editor-in-Chief scientific potential and sheds light on how to innovate Russia’s higher education system. The report also con- Write to us [email protected] for general comments, subscription and distribution questions; Send an email to: [email protected] for your submissions, article proposals, topic suggestions, and content-related comments; [email protected] for sales and advertising. Eugene Abov Chairman, Russia Direct, Deputy Director General, Rossiyskaya Gazeta Publishing House, Publisher, Russia Beyond The Headlines Julia Golikova Director for Development, Russia Direct, Deputy Publisher, Commercial and Foreign Partnership Director, Russia Beyond The Headlines Pavel Koshkin Editor-in-Chief Ksenia Zubacheva Executive Editor Dominic Basulto Executive Editor, U.S. Andrei Zolotov Executive Editor, Europe Alexey Khlebnikov Senior Editor Maria Stambler Social Media Director Julia Sinitsky Intern Elena Potapova Head of Video and Mobile Yaroslav Cohen Digital Innovations Producer Pavel Inzhelevskiy Video Producer Olga Fastova Associate Publisher, Sales, Marketing, Events Maria Shashaeva Deputy Publisher, Circulation, Digital Strategy and Operations Ekaterina Belan Digital Marketing Manager Anna Sergeeva Representative, New York Olga Guitchounts Representative, Washington, D.C. 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The views expressed are those of certain participants in the discussion and do not necessarily reflect the views of all participants or of Russia Direct. | 3 | RUSSIA-DIRECT.ORG THE STATE OF RUSSIAN HIGHER EDUCATION SYSTEM Changes in the number of universities and students since 1990/91 academic year Number of universities Number of students, in millions 1,090 1,108 1,134 1,114 1,115 1,080 1,046 969 1,068 950 896 965 7.3 7.4 7.5 7.4 7 7 792 6 6.4 514 5.6 5.2 4.7 4.7 2.8 2.7 1990/91 1995/96 2000/01 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 1990/91 1995/96 2000/01 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 TOP 500 Russian universities in world Number of people leaving Russia rankings Shanghai 2016 310,496 353,233 • Lomonosov Moscow State University 87 186,382 • St. Petersburg State University 301-400 • Novosibirsk State University 401-500 2013 2015 QS 2015/16 2014 • Lomonosov Moscow State University 108 19% of Russians would move abroad permanently • St. Petersburg State University 256 • Novosibirsk State University 317 • Bauman Moscow State Technical University 338 • Moscow State Institute of International Relations (MGIMO University) 397 Russia’s state funding in 2015 • National Research Nuclear University MePhI 431-440 Times Higher Education 2015/16 • Lomonosov Moscow State University 161 for education • Peter the Great St. Petersburg Polytechnic University 201-250 for higher $8.7 in total education $7.4 • National Research Nuclear University MePhI 251-300 • Tomsk Polytechnic University 251-300 billion billion • Kazan Federal University 301-350 • Novosibirsk State University 401-500 • St. Petersburg State University 401-500 Just to compare 70,700 Number of foreign students (2014/15) $69 Average number of staff in state was the value of Harvard 271,500 universities (2014/15) University’s endowment, as of June 30, 2015 Average number of staff in private 28,200 universities (2014/15) $37.6 was spent on education Rubles ($837) average monthly by the U.S.