than 20 different laws. These changes enabled more universities to afford the investment required for effectively monitoring, protecting, and marketing IP, and encouraged academic researchers to engage in the related activities. Legislation inspired by the Bayh-Dole Act has thus far been adopted in around 20 OECD countries.

In July 2009, Federal Law 217 (FL 217) was enacted to regulate the use of IP generated with public funds to form start-up companies by universities and RAS research institutes. The FL 17 states that the creation of a new firm has to be notified to the federal government, specifically to the MoES. Universities and public research institutions can be sole founders or cofounders of start-ups based on IP. The participation of the university or research institute cannot be less than 25 percent in the case of a joint stock company and 33.3 percent in the case of a limited company.

# **III. Technology Commercialization Results**

As of June 2011, 973 start-ups had been created, based on IP produced by publicly funded research under Federal Law 217 and those are geographically concentrated. Annex IV provides a regional breakdown of the start-up creation process. More than half of the start-ups are concentrated in two regions. The Siberian Federal District accounts for 30% of the new firms created after FL 217, with Tomsk State University of Systems of Management and Radio-electronics and the National Research of Tomsk Polytechnical University being the most important institutions. The Central Federal District accounts for 23% of the start-ups created, with the Belgrod State Technical University (V.G. Shuhov) being the main institution. The Volga Federal District is also an important region for start-up creation, accounting for 18% of all new ventures under FL217, with the Kazan State Technological University being the main institution for startup creation.

The participation of universities in the commercialization process far exceeds that of research institutes, though the latter receive the bulk of both financial and human capital resources in R&D. The great majority of these new firms (97 percent) stemmed from university research and very few from research institutes (3 percent) (Table 8). Nevertheless, research institutes concentrate the bulk of R&D resources, around 60 percent of both government funding for R&D and number of researchers. Almost a third, 29 percent, of the 621 universities in Russia have spinoffs based on research. In contrast, less than 4 percent of the 468 research institutes affiliated with the RAS have initiated spinoffs (Table 8). By number of start-ups, 943 have been initiated in 181 universities – an average of 5.1 – but only 30 from 25 research institutes – an average of 1.2.

**Table 8: Enterprises created by universities’  academic departments and research and** **<u>development institutes (RDIs) related to the Federal Law 217 dated August 2009</u>**

||**Number of start-ups,**<br>**November 2010**|**Number of start-ups,**<br>**June 2011**|
|---|---|---|
|Number of enterprises, organized by academic<br>departments|602|943|
|Number of enterprises, organized by RDIs|12|30|
|Number of enterprises by RAS RDIs||21|
||**Number of institutions,**|**Number of institutions,**|
||**November 2010**|**June 2011**|
|Number of academic departments that created<br>enterprises|145|181|
|Number of RDIs that created enterprises|10|25|
|Number of RAS RDIs that created enterprises||16|

Source: MoES 2010, 2011.

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