Policy Analysis: Re-thinking Innovation Policy in Times of the Global Financial Crisis

This paper develops a model for the evaluation of the financial needs of innovative companies on the«seed» and «start-up» stages of their projects. In the model, the demand for finance is calculated withregard to the target performance of the industry set in «The Concept of Long-Term Socio-EconomicDevelopment of the Russian Federation» (17 November 2008). The study reveals certain problemsthat have impeeded the process of establishing a venture industry in Russia. These setbacks includea lack of venture entrepreneurship experience, an insufficient amount of private investment in theearly stages of innovative projects and the absence of a functioning infrastructure. In order to tacklethese problems a new concept of «seed» finance is proposed. The suggested scheme, which involvesthe OJSC «RVC» and «RUSNANO», seeks to stimulate innovation development in universities, regionsand technological clusters and increase the efficiency of budget spending. The key parameters of thescheme are also described in the work.