According to the Association, regardless of the global economic meltdown, a total of $46bn in support of innovation programs and projects has been allocated for this year from both Russian federal and regional government coffers, up 10-15% y/y. However, a maximum of $13bn was spent in the first six months of the year, down 8% y/y.
Private VC funds did not boost investment compared to results of the first half of 2011, staying level at a total of $80m injected into just over 40 projects. (For comparison, in the first six months of this year US-based venture funds pumped more than a reported $12bn into as many as 1,600 projects.)
However, the structure of investment has changed. In the first half of 2012 later-stage investments reportedly shrank by 10% y/y, while seed-stage projects received an estimated 15-50% more funds than a year ago.
The IT and telecom sector traditionally accounted for the largest share of investment raised (25%), followed by energy and energy saving (14.1%), biotech and medicine (12.2%), and transport and engine-making (12%).
According to this year’s NAIRIT poll conducted for an estimated 1,150 innovators across 52 regions of Russia, the respondents emphasized social and household difficulties (39.7%), a high level of corruption (26.3%) and government officials’ tyranny (23.6%) as the largest hurdles impeding the development of innovation projects in Russia.