The innovative scenario of development of Russia is defined by the Russian Government as a key priority. Now, innovative development reached the new level due to the recent events — the American and European sanctions in a consequence of economic and political crisis in Ukraine. The government works under constantly growing pressure now that as a result can be shown in the accelerated economic modernization and acceleration of innovative development of the country. In this regard, this article shows possibilities of innovative cooperation with the most perspective at the current moment partner in BRICS — China.
Keywords: innovations; innovative partnership; innovative activity; investments; economic growth; BRICS.
The current worsening of the relations between Russia and the West will probably negatively influence the future economic development of Russia and growth of its innovative economy.
In this connection, cooperation with China can act as the valid alternative for Russia. «The share of high-tech production in structure of the Russian export of industrial goods in 2012 was 8,4 %, and the similar indicator of the People's Republic of China makes 26,3 %. Besides, the People's Republic of China is included into the list of 30 countries of the world according to the level of innovative activity and it is the leader in this sphere among BRICS countries» .
China turned into a new pole of innovations and, now, it is on the second place after the USA on expenses on R&D. According to the report of the consulting company Zinnov for 2013, China is also the leader in number of the companies which placed the research centers in this country: out of 500 largest companies from the Fortune Global 500, 385 have the research centers in China .
Those two countries show mutual interest in cooperation development, growth of investments and implementation of joint projects. Russia is interested in that the Chinese business invested outside the Russian power branch more actively (which holds leadership in the volume of investments from China so far). And laws of the People's Republic of China stimulate investments into the hi-tech Russian companies. Now Russia and China have joint projects in 40 directions, the total amount of investments into them exceeds 20 billion dollars. Mutual interest is represented by cooperation on GLONASS systems and «Beidou», space projects.
Therefore it is quite logical that the relations between China and Russia have harmonious character. Researchers believe that China is mostly concerned with the possibility of collision of interests with the USA in the Pacific Rim, and also with the western intervention in internal problems of Taiwan, Tibet and Hong Kong. At the same time Russia perceives instability in Ukraine through a prism of interests and extent of participation of the European Union and the USA in the region. Thus, following logic of this approach, cooperation of Russia and China will proceed until there are no serious disagreements infringing the national interests of the countries or before elimination of key problems with other states.
Taking into account all political difficulties between Russia and the West, now it is the perfect time to start the Russian-Chinese relations. But why is this innovative cooperation between Russia and China so important?
There are, at least, two main reasons why innovative cooperation is a natural strategic choice for Russia and China.
Firstly, both countries consider innovations as the solution to solve the problems of economic development. For Russia innovations are the necessary tool and with their help it will be able to get rid or at least to reduce dependence on export of natural resources. For China innovations will help to modernize its export structure and to move from simple low-quality not expensive production to export of high technologies.
According to the Global Innovation Index (GII) 2014, a study coproduced by Cornell University, INSEAD, and the World Intellectual Property Organization (WIPO), Russia ranks 49th among 143 countries. The authors of the report note that Russia’s key strengths are in education (with special mention of the number of Russian graduates in science and engineering) and knowledge creation (which is based on the number of domestic resident trademark applications and domestic resident utility model applications).
Russia remains relatively strong in basic research (0.17 percent of GDP spent on basic research in Russia in 2012 compared to 0.1 percent in China, according to the OECD), although a problem in Russia is a lack of applied demand for basic research outputs. As Russian basic science is suffering from a lack of domestic demand and does not generate enough money, Russian research faces constant financial stress and, as a result, increasingly relies on government support.
Secondly, Russia and China are obliged to cooperate with each other more as their opportunities for transfer of technology from the West are limited. The relations of these two countries are also complicated by absence of trust and sanctions from the West. China passed this stage in 1989 during events on Tiananmen Square (embargo on delivery of the weapon from the USA and the EU still is in force); Russia has just entered this stage with the Ukrainian crisis.
Innovative cooperation of Russia and China actually is not so new: for many years Russia was one of the main innovative sources for China, the leading supplier of the modern equipment and technologies. China, for example, is dependent on the Russian engines for the military aircraft . Russia also plays an important role in sector of nuclear power industry of China: JSC Atomstroyexport is a general contractor and the supplier of the equipment for the Tianwan NPP .
In this regard, Russia is interested in more and more deep cooperation with China in spheres which concern not only purchases or sales of high, innovative technologies, but also joint research activity. First of all, it is economically profitable: the Russian research sector suffers from shortage of investments. Also, this step is politically favorable: the Russian-Chinese relations received the status of «comprehensive strategic partnership» in 2011. In spite of the fact that China has a number of partnerships with other countries, only with Russia it is «comprehensive» .
2014 was marked by several events in the Russian-Chinese innovative partnership which even more strengthened the role of China in it.
During Vladimir Putin's visit to China in May 2014, there was signed the memorandum of understanding on cooperation in a construction of floating nuclear thermal power plants of low power (FNTPP MM) between Rosatom State Corporation and China Atomic Energy Authority .
Also in May, 2014 JSC Gazprom and the Chinese CNPC signed the agreement on export of the Russian gas on the total price of 400 billion dollars under which the Russian company will deliver within 30 years to China annually about 38 billion cubic meters of gas.
The agreement provides that the gas exported to China will be extracted on the new fields located in Eastern Siberia — Kovykta and Chayandinsky in which creation, and also in construction of the gas pipeline large-scale investments will be carried out: the Russian side invests 55 billion dollars, and Chinese — not less than 20 billion dollars .
Lomonosov Moscow State University signed the agreement with the Beijing polytechnical institute on opening in the city of Shenzhen international university on the basis of MSU .
The Chinese electronic giant Huawei is an example of one more successful company operating in the Russian market. There was signed an agreement between Huawei and JSC RZD on scientific and technological cooperation which provides development and modernization of wireless communication networks of the GSM-R standard, a broadband radio communication of the LTE standard for needs of the Russian Railway . Also the agreement with the «Megafon» company on purchase of the equipment Huawei for the sum of 500 million dollars was signed .
In general, the structure of innovative cooperation of Russia and China looks as follows: China imports technologies with a high scientific component from Russia. Many of these technologies are military and dual-use technologies. At the same time Russia imports civil technologies from China, such as electronics and the high-speed railroads which are cheaper and more available than their western or Japanese and Korean analogs.
Demand for the Russian science in China, and also for the Chinese technological innovations, will cause new scientific achievements in Russia. Along with it, import of the Russian science will increase the Chinese technological development, and the money earned by means of technological export will provide resources for scientific financing.
Russia and China endure updating of the economic sphere today. Scientific and technical innovations realized both in the countries and within the international cooperation will become a basis of the modernized system. The joint Russian-Chinese projects relying on innovative scientific development will allow both states to reach the new level.
First of all, the scientific base and qualified personnel are necessary for implementation of such projects. Therefore it is important to pay attention to systems of professional education and scientific institutes, to encourage cooperation of Russia and China in this sphere, to adopt successful experience of creation of the innovative focused universities.
The innovation cooperation between Russia and China is calculated on long-term historical term. The prospects of the Russian-Chinese relations are reflected in bilateral and multilateral contracts and agreements. But, nevertheless, modern times dictate the terms cramming the states to think, mainly, of national security, sovereignty of the borders and of own interests. For this reason it is rather difficult to predict what will be the Russian-Chinese innovation cooperation in 15–20 years.
1. Zinnov. Crossing the Value Chasm, November 2013
2. http://www.ase.atomstroyexport.ru/press/releases/?id=637 — «Атомстройэкспорт и JNPC подписали протоколы окончательной приемки первой очереди Тяньваньской АЭС»
3. http://www.atomic-energy.ru/news/2014/05/21/49039 — «Росатом» подписал меморандум о сотрудничестве с Китаем в сооружении ПАТЭС
4. http://www.bjreview.com.cn/world/txt/2014–10/13/content_644116.htm — An Evolving Partnership
5. http://www.centrasia.ru/newsA.php?st=1413479580 — Российско-китайское инновационное сотрудничество как взаимная экспансия
6. http://www.gazeta.ru/business/2014/10/13/6259605.shtml — «Мегафон» зазвонит по-китайски
7. http://www.rbc.ru/rbcfreenews/20140520124409.shtml — Huawei и РЖД подписали соглашение о научно-техническом сотрудничестве
8. http://www.rg.ru/2014/10/11/gaz-site.html — Стоимость газа для Китая держится в тайне
9. http://www.south-insight.com/node/298 — МГУ в Шэньчжэне
10. http://www.vedomosti.ru/politics/news/1801946/s_kitaem_polnaya_zagruzka — «Рособоронэкспорт» поставит в Китай авиамоторы на $700 млн