Innovations and imitations The roads we take Table

Innovations and imitations The roads we take

Table of contents 1. 2. 3. 4. How are imitations different from innovations? Russia’s imitation experience Non-tech side of innovations Is an imitation-based national business model possible?

Innovation Creation of a new knowledge-based product with a separate economic value Business model Technology Product Service

Imitation Reproduction of an existing knowledge product Business model Technology Product Service

Russian way • The fastest way to success in Russia - imitation – Reproduction of a proven business model • Public catering (coffee shops, fast food), Internet projects (web mail, portals) – Technology reporduction • Copying of IBM 360 and Intel processors in 1967 -1987 SEE THE DIFFERENCE?

Inovation via imitation? Peter the Great – founder of modern Russia… and the first Russian innovator

Imitation is not limited to technology ull of f o s r art ? » u o y is ns y o i h s r W e « rv cove ur yo y b f of d e s s our pi y m d a s an e, I * * m * * e bor p, your u e!» o n o o t h «Y op pink micr

See the difference F. Baum, J. Garland – The Wizard of Oz (1939) Alexander Volkov– The Wizard of Emerald City (1939)

See the difference Paris Hilton (2009) Xenia Sobchak (2009)

See the difference Washington, DC (2009) Moscow (2009)

Innovation vs. Imitation INNOVATION IMITATION + Overtaking development Develop creative abilities Global Drive export orientation Cheap Low risk Relatively profitable Can be a form of apprenticeship - Expensive High risk Either very profitable, or catastrophically loss-making Ever-chasing development Atrophy of creative abilities Local Drive import substitution

Is an imitation-based economy possible? • National imitation experience – Japan – 1950 – 1970 – China – 1980 – now – USSR – 1920 – 1990 • Russia: are we playing with terms? – September 2009: plan to buy Infiteon and written-off AMD chip foundry – October 2009: national project for producing generic drugs • Innovations instead of imitations – Can we innovate? • Have we got the skills and abilities? • Do we have enough money? – Do we need imitation as a schooling period? • Will we gain experience? • Can we lose time and competitive position?