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Industry/University Centers: Russian centers analogous to the U.S. National Science Foundation's Industry/University Cooperative Research Centers should be considered. These centers might be regionally-oriented—for example, located in Nizhnynovgorod, Novosibirsk, Krasnoyarsk, Vladivostok, and Irkutsk as well as Moscow and St. Petersburg—rather than industry-specific. These centers would bring Russian research institutes, universities, and industry together; and American and other foreign universities and industry could be invited to participate as appropriate. In addition to serving as focal points for Russian research and technology, the centers could convene international meetings to consider solutions to barriers to commercialization and international collaboration.

Innovation Incubators: The initial positive experiences at some of the sixteen innovation incubators in Russia should be replicated in other industrial areas. The American experience, such as the experience in the Research Triangle Park region, is of special interest in helping to provide guidance and support for emerging scientific entrepreneurs in Russia. Incubators might be appropriate at locations near closed cities where research institutes are attempting to convert their military-oriented R&D capabilities to provide products and services for civilian markets.

Publicizing Sections of the Russian Tax Code that Impact on R&D: There is considerable confusion among Russian research institutes and enterprises about the tax regulations concerning R&D expenses, income from the use of new inventions, and income of scientific organizations in general. There is even greater confusion as to proposed changes in the tax code. The Russian government should consider ways to clearly communicate to affected parties the existing rules and future regulations as they are enacted, particularly tax incentives for use of innovations and the standards for certification (for tax purposes) of an organization as a scientific entity.

Clarifying Questions of Ownership of Property and Property Rights: Much equipment and many buildings of research institutes have been acquired with federal and local government funding, and the ownership of much of this property has not been settled. In addition, innovations with commercial potential continue to be developed using this property and additional government funding; thus, there remains uncertainty about the rights the federal and regional governments have to these innovations and the circumstances under which these rights can be exercised. Such lingering questions impede the commercialization of innovations, and the Russian government should consider ways to clarify these issues as soon as possible.

Regional Coordination Centers: The Russian government should consider supporting centers with modest budgets to encourage and evaluate technology



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