Prime Minister Vladimir Putin chaired a meeting of the Council of Chief Designers and Leading Experts on High Technology Sectors of the Economy

Putin's introductory remarks:

Good afternoon,

Today we are holding the first meeting of the Council of Chief Designers and Leading Experts on High Technology Sectors of the Economy. Allow me to remind you that a decision was made last October to establish this consultative body under the supervision of the Prime Minister.

I simply wanted to make sure that all of you - that is, people who generate major ideas and organise this process - are in touch with the national leadership. I think this mechanism is essential and important, and it would be a great asset if used properly.

The Council was designed to be the Russian industry's R&D headquarters. It is called upon to become a centre for elaborating professional recommendations on key issues of structural, innovation, scientific, and technical policy, and for thoroughly analysing and predicting trends in high-tech development for the mid- and long-term perspective.

I'd also like the members of the Council to take a very active part in the expert evaluation of the state's technical and investment projects.

As you know, many industrialised countries are rapidly upgrading their technological base, primarily on the basis of R&D in nano-, bio-, and energy-saving technologies, and by introducing advanced information and communication systems.

We should admit that we are not leading the pack in this area. Our share of science-intensive products in the global market is no more than half a percent, a modest figure with which you are no doubt familiar. Compare it with 36% for the United States, or 30% for Japan. The share of high-tech products in our exports does not exceed five percent, compared to more than 22% for China. Even if Chinese exports are mostly licensed consumer goods, the figure is still 22%. For South Korea, the relevant figure is over 38%, and for the most part it manufactures its products domestically.

Nevertheless, I'm sure that we can change this situation. I have no doubts about this. It is important to understand that successful post-crisis recovery and future steady growth of domestic industry are only possible on a new technological foundation.

In the next few years, we must fundamentally change the structure of the domestic economy to reduce our dependence on the ups and downs in the world market of raw materials.

We should develop a whole number of high-tech industries to consolidate and expand our presence on the permanently growing global market of science-intensive products.

I'd like to emphasise that we are devoting special attention to the resolution of these tasks.

Since 2001, federal budget appropriations on civilian science have grown from 23 billion to 149 billion roubles - that is, more than six-fold.

We have adopted a plan for the scientific and technical development and modernisation of the domestic economy for 2008-2010. It would be useful to discuss its implementation today.

We should make the most of our innovations achievements and compile a list of priorities in R&D. We should concentrate, rather than scatter, our resources in those directions that promise a powerful synergetic effect and will obviously make our country more competitive.

In this context, we cannot do without modern design approaches to the organisation of scientific studies. This is the only way of converting investment into an intellectual product that will be in demand both at home and abroad.

I think that despite all current problems, the state is obliged to guarantee steady funding of fundamental research, and there will be no reductions in this sphere.

We must think about funding the development of critical technologies in defence, healthcare, space, aircraft-building, education, and environmental protection. We will not curtail or shelve promising scientific and technological programmes.

As you know, anti-crisis measures provide special support to strategic companies, many of which belong to the high-tech sector. We'll subsidise their loan interest rates, provide state guarantees, and facilitate their exports. A total of 300 billion roubles have been reserved for these purposes, including the provision of state guarantees to the enterprises of the military-industrial complex, and about 150 billion roubles have been allotted for other measures, including subsidies.

We are holding this meeting at Russia's MiG Aircraft Corporation, and I've just told its top managers that we have decided to contribute 15 billion roubles from the federal budget to MiG's charter capital. We have also coordinated the purchase of equipment for the Armed Forces.

Incidentally, I'd like to tell you that yesterday, having thoroughly analysed our budget potentialities, we eventually decided not to reduce state defence contracts as a matter of principle. I hope this is good news for both Armed Forces personnel and for defence-oriented industries.

It goes without saying that one of the state's major responsibilities is the training of professional personnel. New technologies will not work without proper specialists. Ships won't travel across sea waters and aircraft won't fly without them.

At the same time, it would be wrong to rely on budget funds alone to carry out the technological modernisation of the economy. We should encourage businesses to invest more in innovations, both independently and under public-private partnership.

It goes without saying that we all understand the difficulty our companies face in organising this partnership. Nevertheless, we should think about this, and we have some promising developments here, including participation of business in this effort.

In resolving all of the aforementioned issues, we are relying on the experience and constructive cooperation of the members of the Council, and will use your potential in drafting additional anti-crisis measures in concrete industries.

I'd like to mention one more subject that is of no small interest to everyone, including all those present - the status, authority, and responsibility of chief designers. I'd like you to tell me whether you have enough opportunities and authority for building a technological process and developing effective scientific and industrial cooperation in major projects.

If there are any other questions that you'd like to raise and discuss, we'll certainly deal with them in a free and open manner. You can raise and discuss all problems that you consider urgent and that you believe require discussion.