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Why Dmitry Medvedev wants a Russian Silicon Valley

By | June 23, 2010, 6:29 PM PDT

The Russian president has been touring California’s Silicon Valley for the last two days, meeting with Governor Arnold Schwarzenegger, Russian immigrants, and the heads of Twitter, Cisco and Apple, among others.

His government is spending the equivalent of millions of dollars to try to build a high-tech center outside of Moscow, called Skolkovo, that will shake up Russia’s bureaucracy and give educated Russians, of which there are many, the opportunity to innovate and start companies the way Americans do.

“In a very good way, I’m sort of jealous of you all,” he told a group of students and faculty at Stanford this afternoon, “because you have the opportunity to learn, teach, make money, do what you love and see your work building…”

Cisco, which already invests in Russia, today committed $1 billion over the next decade to build up Skolkovo and other parts of Russia’s technology infrastructure, as Smart Planet noted earlier. The Russian government is offering incentives to foreign companies to invest in Skolkovo and has vowed, according to this Russia Today account, that the project will be “corruption-free.”

But CBS News points out that Medvedev faces opposition to Skolkovo inside his country, and Medvedev acknowledged as much when a Russian in the Stanford audience asked him how specifically he planned to protect Russians who want to start companies from criminal activity, bad attitudes (”crazy Russians with crazy startups”) and other obstacles.

“Of course we have plans,” Medvedev said. “In Russia, people hope the government will do something,,,but we must do it correctly. Russia has its own attitudes and says the task of the government is to create startup conditions, but that’s a very complicated point. Money can’t create it. We have money, but we don’t have Silicon Valley. It has to be money in the right hands, with the correct rules [he cited special laws, tax regimes, registration and control for Skolkovo]. If performed correctly, I’m sure the project will be a success, but everything depends on people and finally on you — if you’re ready to help.”

Skolkovo and Silicon Valley, he added later, “are a state of mind, a state of freedom, that can’t be imposed by laws or decrees. It’s hard, but I’m sure we’ll be able to succeed.”

Despite Russian opposition, though, the Russian media coverage that I saw of Medvedev’s tour is admiring. Here’s a report from Russia Today that describes Medvedev as “a high-tech savvy person, the first Russian person to have his own blog,” talking at Stanford to “representatives of the business and academic elite” and rumored to be getting a new iPhone 4G from Steve Jobs.

Medvedev also got his first Twitter account today — @KremlinRussia. It’s in Russian. But here’s his fake Twitter account — @MrMedvedev. Tomorrow the real President Medvedev will be in Washington, D.C., to meet with President Obama.

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Deborah Gage

About Deborah Gage

Deborah Gage was a contributing editor for SmartPlanet in 2010.

Deborah Gage

Deborah Gage

Contributing Editor, Technology

Deborah Gage has written for the San Francisco Chronicle, Minnesota Public Radio, Baseline and various magazines and newspapers. She is based in San Francisco.

Follow her on Twitter.

Deborah Gage

Deborah Gage

I pride myself on being an independent journalist. My reporting and writing are not influenced by any financial holdings, and I have no business affiliations with companies other than the publishers I write for as a journalist.

She writes for SmartPlanet and is not an employee of CBS.

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Medvedev's kidding, right?
Medvedev can't be serious. He and his boss Putin have done just about everything possible to stifle independent thought and initiative in Russia. Free press and free exchange of information is nearly non-existent. The same is true for reliable rule-of-law. They've put some of their leading industrialists in jail on trumped-up charges because they politically opposed the Putin dictatorship. Corruption is a way of doing business, and the bosses get there by who they know, not how good they are at their jobs.

If Medvedev's really serious, he should stop worrying about the relatively small potatoes of what makes Silicon Valley work. He needs to focus on the much bigger picture of how to get Russia to work.
Posted by zackers
24th Jun 2010
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RE: Why Dmitry Medvedev wants a Russian Silicon Valley
He's absolutely serious, and they do not have a dictatorship in
Russia - by all accounts Medvedev was freely elected by an
overwhelming majority, and Putin is also extremely popular. That
isn't fake, thats credit to their success in turning Russia around.

This project is one of many initiatives, and is exactly what Russia
needs - to use their human talent, of which they have a lot, they
are a very highly educated society - and they must diversify
away from soley being an energy and raw materials supplier.

This is a great idea.

However, as Medvedev acknowledges they still have a
corruption problem, and I know from experience, they still have a
huge attitude problem as a society.

The guy above being a perfect example of that. Everyone tries to
be a leader, everyone wants to pull in the other direction, and
they are still ridiculous in their attitudes towards foreigners.
Posted by rdupuy11
1st Jul 2010
0 Votes
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RE: Why Dmitry Medvedev wants a Russian Silicon Valley
oh and zackers, those people they put in jail - thought they were
above the law. This is one area where the West, in their
nitpicking got the narrative completely wrong. It was imperative
and really important for Putin to stress to the oligarchs that they
still must obey the law and pay taxes. That is exactly what you
hope a government will do - force even the most privileged and
powerful to respect the rule of law. The West was too busy with
their easy criticisms and didn't, frankly, understand how you
actually go about weeding out corruption and turn the system
back into one that works for the people, instead of for the few.

Putting in jail, non-taxpaying oligarchs, is actually a key step to
achieving that.
Posted by rdupuy11
1st Jul 2010
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