Long-term Socioeconomic Challenges for Russia and Demand for New Technology

Abstract

The primary long-term socio-economic challenges facing Russia – both global and country-specific in nature – drive demand for a range of technologies. We explore several groups of challenges, namely urbanization, demographic, socio-economic, the consequences of ageing, geopolitical, restricted access to key technological competences, climate change and its ecological consequences, as well as technological challenges largely associated with risks in ICT and biotech development, and the emergence of so-called ‘killer technologies’ that induce structural transformation in the economy. 
We identify four groups of key factors influencing demand for new technology. First, those factors that strengthening Russia’s role as a provider of key natural resources for the global economy. Second, of equal importance are those factors that support import substitution of various products of the global market, including electronic components, chemicals, and food products. Third, developing centres of technological competences plays a significant role, especially in export-oriented, manufacturing, and services sectors. These include nuclear energy, software, weapons and military equipment, military aircraft, and energy machinery. Finally, technological advancement would occur by integrating Russia within global technological value chains with external system integrators in pharmaceuticals, machine-building, petroleum products, and some ICT sub-sectors.