How the Industry Spends Money on Innovation

The proportion of innovative products from the Russian manufacturing industry on the global market is not more than 1%. 

Most of the products are either "breakthrough" for organisations, but already common in the industry (65%), or are an improvement based on previous products (about 23%), according to the HSE ISSEK information bulletin series “Science, Technology, Innovation”.

In 2016, the share of innovative products in the total sales of the manufacturing industry was about 11% (manufacturing of television and radio equipment, aircrafts and spacecrafts, automobiles and shipbuilding).

In general, the level of innovative activity of manufacturing enterprises in Russia is 11.8%. For comparison, in Switzerland — 62.3%, Germany — 60.7%, Belgium — 60.3%, Finland — 54.3%. Latvia and Poland are the nearest to Russia at 17% and 18.5% respectively.

In 2016, 574.2 billion rubles were spent on development and deployment of innovations by the domestic manufacturing industry. Most were privately funded by companies themselves. About a quarter (24.4%) was funded by the government. The contribution of attracted investment was low: 0.2 percent — the share of foreign investments, 0.01% — the share of the funds for the support of STI activities.

Most often (almost 50% of cases) companies spend money on the purchase of machinery and equipment. Research and development costs are two times lower. 10% are spent on engineering, about 5% — on design, acquisition of new technologies, software, marketing, training and training of personnel in total.

Source: IQ.hse.ru