The Integration of Russian R&D into the International Economy
6.2 Russia’s Strategy for International S&T Cooperation
A dominant part of economic growth depends on technological advances. These advances come from many countries, so by participating in international R&D activities, a country gains from inventions achieved in other parts of the world. If it pursues a policy of isolation, its economic growth is limited to the technological advances achieved only with its own resources. Russian R&D resources are now in disarray. Therefore, the transition to a market economy and democratic society requires international participation. Increased participation in world activities may reduce the lag in technology that Russia has in many fields. A level of technology equal to that in industrialized countries is essential for the success of Russia’s manufacturing industries and to enable Russia to shift away from its current natural-resource orientation.
Imports of advanced production equipment and know-how are also an essential element of international activity. Experience in other parts of the world, partic-ularly in Japan, shows that the effective use of such imports requires substantial domestic R&D to adapt imported technology. This is especially true for Russia, given the variety of its climate and environmental conditions, labor skills, and
population’s educational level. New products must also be modified to conform to local consumer preferences. International activity also allows Russian defense R&D to be the basis of exports of both military and civilian goods.
As pointed out in earlier chapters, the Russian R&D sector is large in abso-lute size. Earnings from abroad help support the sector and its large staff and improvements in equipment. Increased international S&T links may help institu-tional transformations, in particular allowing financial and industrial groups and corporations currently emerging in Russia to become international organizations.
Likewise, it can contribute to the rise of small and medium-sized enterprises. Fi-nally, technology can increase productivity, raising wages without inflation and creating more highly skilled jobs.
Even though it is unclear which model of market economy will prevail in Russia, it is possible to identify nine basic principles that should guide Russian policies in international S&T cooperation:
Balance. Involvement in international R&D on a reciprocal basis requires a certain amount of domestic S&T activity so that there is interest abroad in domestic results that can be used in technology exchanges. It is naive to rely on another nation’s altruism; rather the country should be able to offer technology in exchange for S&T results. Russia’s influence in international affairs depends on its own S&T activity. The right approach is to secure tech-nological independence while taking advantage of the international division of intellectual labor.
Advancement. Raising Russian R&D to international standards means adjust-ment to future trends, not to the current level of S&T activity. This advanceadjust-ment will help to form a new model of the Russian R&D establishment. Without a new model Russia risks finding itself in a state of always trying to catch up. A particular valuable tactic is to establish positions in certain niches in the world market and to export science-intensive products from these niches.
Efficiency. International cooperation must be cost-efficient. A general method for determining efficiency consists of comparing expenses of domestic ac-tivities with the value of the R&D received from international efforts. For international R&D, however, this method of evaluation is limited because many aspects of both costs and results cannot be measured. Furthermore, na-tional efficiency is not limited to immediate economic results, but also includes the effects of the intangible and long-run gains to a nation from S&T cooper-ation. A more comprehensive accounting of the impact of international S&T transactions should also recognize the gains from increasing the stock of knowl-edge available to a nation and from diffusion of R&D results to neighboring
industries, since externalities are pervasive in R&D. Social, environmental, and other impacts must also be taken into account.
Flexibility. One-sided approaches to complicated problems must be avoided.
Thus, while in the most developed fields in Russia (e.g., nuclear physics and space exploration) a policy of national independence is possible, in others, with smaller domestic potential (chemistry and electricity generation), the emphasis should be on the consolidation of research efforts in frameworks of joint studies and projects. In still others (such as agriculture) it is important to stimulate technology imports.
Differentiation by country. Relations with specific countries, international organizations, and individual companies must be maintained. It is important to remove long-ingrained stereotypes of a uniform world capitalist system.
Every participant has strategic and tactical interests which influence his or her behavior in S&T transactions.
Coordination. It is desirable to avoid uncoordinated actions of different Rus-sian participants in international R&D activity. In so doing, efforts should be made to prevent restrictive features of the previous regime from reappearing, and avoid infringement on the rights and interests of independent organiza-tions trying to maintain international connecorganiza-tions. Coordination should take into account both domestic and foreign interests.
Improvement. International R&D activity should not be a short-term cam-paign as it was, for example, with the establishment of joint ventures during the perestroika period. Long-term relationships and a stable public policy are necessary. There should be provisions, however, for dismantling organiza-tional structures that have completed their tasks and for discontinuing public policies that are no longer desirable.
Protection of national interests. Reasonable participation should be combined with protection of national security interests, including restrictions on the transfer of strategic technologies and products.
Participation in international scientific and research organizations. These organizations are increasingly important in S&T activity. By joining these groups, Russia can obtain access to information and the ability to influence activities and protect its particular interests.
These principles should be followed in many aspects of S&T policy such as financing, legislation, product standardization, intellectual property rights, and the development of information and other infrastructures. These elements are discussed in other chapters, but their international dimensions must be emphasized.