German-Russian Business R&D Cooperation: A Bridge Still Too Far?

This article reviews German-Russian business enterprise R&D cooperation in three main areas: (1) framework conditions for R&D cooperation; (2) German involvement in Russian mega projects (Rusnano, Skolkovo); and (3) recent activities of German R&D institutes and companies in Russia. An analysis of present framework conditions for R&D cooperation (intergovernmental agreements, business environment, size and structure of R&D expenditures) reveals that although both governments have been very actively providing adequate policy instruments and program funding, efforts still fall short of being strong incentives for more intensive collaboration. Reasons for that are closely connected with the still unsatisfying business-environment, institutional, and legal conditions in Russia. Giving examples of recent activities of German institutes and companies in Russia, the hampering factors for deeper bilateral cooperation are discussed on a case-to-case basis. Following up on the fi ndings, recommendations stress the importance of the Russian business enterprise sector as crucial to innovation and cooperation in R&D