Amendments to the Law on Science Will Help Creating New Jobs
The amendments to the law on science adopted by the State Duma on Friday will help to create new jobs and bring Russian innovations to the world level. This was stated to TASS by Alexey Kachay, Deputy Director General of the Fund for Infrastructure and Educational Programs of RUSNANO.
“The forthcoming law will provide great support to the innovation industry, create new projects, new jobs, and allow to gain leadership positions in increasing number of industries. The ideas will be embodied in specific companies not only for the Russian market but also over time—on a global scale,” Kachay said.
According to him, the law introduces a number of new concepts, linking innovation activities at various stages, in particular the concept of direct or venture financing of innovative projects.
“The proposed law is based on the logic of promoting projects between different stages. Once scientists have invented something, the project switches to the commercialization stage—from the late stage of research and development, the start-up creation, its growth, scaling, and further development. In this way, various forms of state financing of innovations are provided,” the agency’s source added.
He also specified that the proposed law would give venture capitalists and high-tech entrepreneurs the necessary “right to risk”. In this case, companies can deal not only with short-term, fast-reaching and guaranteed projects, but also with breakthrough ideas, whose success at the start is not obvious, but can bring the greatest results for the society and the economy.
“The proposed law determines that in innovation there is a possibility of not achieving the planned result, and this is normal. Not every ruble of the budget funds will lead to something financially embodied. Sometimes a start-up tries to do something, then, realizing that the original idea does not work, reformats its activities and achieves success in a different technological incarnation. For the company and its investors (including the state) it means success, new markets, new horizons of development and significant economic effect of investment. But it will not happen with all investments, some projects will not be able to kick-in or even pay off, but, assessing the overall portfolio of investments, it will be a noticeable result,” Kachay concluded.
About the Law
On Friday, in the first reading, the State Duma adopted amendments to the law on science and state scientific and technical policy. The purpose of the proposed law is to form a unified system of state support for innovation.
The initiative was developed by the Ministry of Economic Development under the Russian President’s message and aims to establish the acceptable level of financial risks in venture financing using budget funds.