Recreating Silicon Valley

treseder · Joined: 05 Apr 2011 Posts: 6

Here are some issues I have related to Russia's top-down attempts to foster entrepreneurism:
How do you have bureaucrats selecting innovators?
What sort of criteria appeal to a person who occupies an important government position?
Who controls the front door (i.e. who gets to pitch their business plan in the first place)?
How do "real" Russian entrepreneurs view these programs?
Follow-up: Are there feedback mechanisms for the government?

I'd love to hear anyone's thoughts from the Stanford side or experience from the Russian side.

Tisen89 · Joined: 08 Apr 2011 Posts: 1

Thanks for your questions, William. I`ll try to give you direct answer on your questions. Than I will give you some facts of the situation which is emerging in my country. I hope this will give you better picture of modern Russia, and I want to warn you that it's still a subjective opinion. And I apologize for answering with such a delay on.

The economy of previous decade in Russia as it is commonly believed was totally managed by the government. We call that manual economy. E.g. Many officials (bereaucrats) took up management seats in all companies where government had it's share, instead of professional managers like in all developed countries. Also Russia has been always bureaucratic country. Now it is some kind of national feature. We can't imagine life without them. What kind of bureacrats you meant? Its little irony. Far from Brazil by Terry Gilliam, but still… There are several startup challenges orginized by state funds in Russia. The main is «Старт» (Start). It is held out once a year and divided into several categories. The biggest amount of grants are given to IT projects, second place electronics and etc. The whole period of competition lasts long, and the principles of selecting the project are not quite clear. That is why i think the reasons were in some stereotypes and historical peculiarities. The situation changes lately. But today private investors become important players of the market. In addition Medvedev recently ordered that officials must give up managing state companies. Thus I hope that situation will change in nearest future.

I can't say that there are particular criteria to persons from top management of the county. But today situation shows that all government positions are occupied by people close to rulers

I think most entrepreneurs perceive reforms ambiguously. No one can deny that the reforms are implemented, but at the same time, they have not led to tangible results. All rather occupy a position of passive observer in the matters of state initiatives. Especially because it sometimes makes unexpected surprises. Stronger market players are trying to independently organize various activities, infrastructure, coordinating their actions with the state.

What concerns feedback mechanisms I think that they are being established now as well. Today they are not rather efficient and not institutional.

Well, William. It's rather complicated topic to discuss. I mean the enteprinerial space in Russia. Of course, there are many government initiatives, which are connected with entrepreneurship development. Some of them work, other not. That process began just after Medvedev became the president of Russia. Only 3 years have past, so it's difficult to estimate the results of his reforms. One can see the general trend, ambitions, but still it hasn’t yet effected on people`s live.
Catching up with the arrears in technology is one of the most important aims now for Russia. That`s why great deal of different joint ventures are started. Russia is in the process of creating startup infrastructure: special soft-tax areas are supposed to be created in every region of Russian Federation, measures of strengthening connections between universities, technological firm, funds are taken. Government tries to support young specialists.
I mentioned that special zones are considered to be created, but in fact only several regions made them, among them are Koluzskay oblast` (oblast` - region of the federation), Leningradskaya oblast`, Tomskaya oblast`, Belgorodskaya oblast` thanks to the governors of these regions. Others just have empty field without any infrastructure. Skolkovo is considered to be the main among them.
Entrepreneurial infrastructure is being created now. That process is too far from its end. Connections between business and universities are being established. It is strange but the city of Tomsk has achieved great progress in that field. That city is located in the centre of Siberia far from European part of Russia, where all resources as it is considered are concentrated. (I know it may be seemed strange for representatives of country where the regions are equally developed. It is another issue for Russia – hypocentralisation of economy.) Also Skolkovo is area where members of different groups can meet together.
Great deal of infrastructure projects are made by "retired" experienced entrepreneurs, who more than ten years ago started their own first businesses e.g. Arkadiy Moreinyz who became business angel and created ground for start uppers in Moscow. He is the first person in Russia, who is responsible for organizing Russian start up weekend.
As you see the process is in the run. Ask more questions. Maxim and I would be glad to answer them.
Taicenov Ilyas, development manager.
SyboRobotics. Laughing

treseder · Joined: 05 Apr 2011 Posts: 6

So if we ignore the legal and cultural issues surrounding entrepreneurship, we can focus on one I think we will be particularly useful - bureaucratic aid.

What is available in the area? Are there offices in these "soft tax areas" you've been to or has all your help been through other start-ups, VCs, or angels investors? I ask because it's obviously important to be more than an anonymous name to the bureaucratic who decides whether to fund Sybo Robotics.