Stepan Zemtsov, Doctor of Economic Sciences, Head of the Research Department of Development Economics at the Institute of Applied Economic Research of the Presidential Academy, has prepared a review on the book by Mehran Gul “The New Geography of Innovation: global fight for disruptive technologies”, issued by the Gaidar Institute Publishing House.
Mehran Gul's monograph analyzes successful examples of unicorn technology companies and best practices in technology policy worldwide. Despite its light, popular scientific style, the book is based on comprehensive research. Gul concludes that conditions for technology entrepreneurship depend on the business climate, human capital and the effectiveness of the innovation system.
He introduces a concept of the "emoji economy", a new stage in the development of global innovation hubs (Silicon Valley, Beijing, London, etc.), where an atmosphere of support, creativity, and self-realization is reflected in the smiling emoji symbol.
Gul emphasizes that the United States has long been a leader in digital technology development, however, today Silicon Valley faces challenges, such as prevalence of monopolies, high costs of living and toxic corporate culture. Competitors are emerging in China, Europe, South Korea, and Singapore. Disruptive technologies are increasingly being born in fast-growing startups rather than in universities or corporations. This is an idea that dates back to the work of David Birch and William Baumol. Thus, success depends not only on inventions but also on the ability to commercialize them, and here the entrepreneurial capital and culture play a key role.
The concentration of innovation in a limited number of hubs is explained by agglomeration effects, dense interactions and knowledge spillovers. The US and China dominate in AI, accounting for approximately 90% of all developments. The leaders are Silicon Valley, Highway 128 and Texas in the United States, and Guangdong and Shanghai in China. Universities play a significant role: Stanford graduates have created a quarter of the world's unicorns.
Analyzing the US experience, Gul demonstrates that Silicon Valley's success was driven by a combination of research universities, government funding (especially through DARPA and the military-industrial complex), and the development of venture capital. The SBIC program (1953) became the prototype for modern startup co-financing mechanisms. Gul emphasizes the importance of immigration: more than 50% of Silicon Valley startup founders were born outside the US.
In China, the technological leap forward has been driven by gradual market reforms, the involvement of the diaspora (the "Thousand Talents Plan”), support from state-owned corporations and rapid commercialization of innovations. China leads the world in the number of patents, scientific papers and researchers, particularly in AI.
Other countries are also demonstrating successful models: Taiwan and the Netherlands in semiconductors, South Korea through chaebols (Samsung), Germany through “hidden champions”, and Singapore through state-led innovation management (One North, SNDGG).
Russia is barely mentioned in M. Gul's book, but results of the study could be useful for developing technology policy in this country. Russia is one of the few countries that has developed unique digital technologies for data protection, search engines, AI, and other technologies. Russia has high scientific potential: it ranks in the top 10 for researchers, patents, and R&D expenditures. A number of universities in the country, such as Moscow Institute of Physics and Technology, the Lomonosov University, St. Petersburg State University, etc., have established the environment for emerging new technologies. Nevertheless, additional efforts are needed for their commercialization and development of technology businesses. Import substitution conditions stimulate growth of startups.
To accelerate the development of an "emoji economy" in Russia, it is necessary:
- Focus resources for disruptive technologies, including AI, on leading regions: Moscow, St. Petersburg, Novosibirsk, Tatarstan, etc.
- Support technological entrepreneurship through training, innovative infrastructure and tax incentives.
- Develop a program similar to SBIC or Israeli Yozma to relaunch the venture capital market involving participation of private and foreign investors.
- Develop international cooperation within the BRICS.
- Develop a university entrepreneurial model and commercialize R&D.
- More actively engage the Russian diaspora and technology entrepreneurs from abroad.
Key conclusion: innovation hubs emerge in the concentration of talent, capital, infrastructure and supportive culture. Scattering resources reduces efficiency. Russia needs a spatially differentiated "smart specialization" policy focusing on leaders to achieve technological breakthrough.