More details are emerging on the Russian Science City, originally announced earlier this spring.

While Russia has a long tradition in building science cities, the new "Silicon Valley" built on the outskirts of Moscow in the district of Skolkovo is first of its kind after the breakup of Soviet Union. The massive $200 million project aims to help reduce the dependency of Russian economy on natural resources. Companies locating in Skolkovo will receive tax reductions and other incentives. Russian Federal Government will establish a foundation to build and run the city. Project extends further than just basic infrastructure creation; Russian lawmakers are making amendments to strict and burdensome migration legistlation to help foreign specialists work and reisde in Russia.

Finnish business newspaper Taloussanomat has reported that major companies Cisco Systems and Nokia are involved in talks with Russian officials. CEO of Nokia met privately with Russian President Dimitry Medvedev this month. Former Intel chief Craig Barrett is also said to be involved in the project.

However, as Videk Wahwa writing for Businessweek asserts, top-down cluster creation is rarely without challenges. He mentions that many similar projects trying to emulate the success of Silicon Valley have died a slow prolonged death at the expense of taxpayers without success.

Cluster development model is nonetheless expected to gain momentum in Russia after the Federal Government issued funding for cluster-based development in March this year. It is becoming a high priority issue for Kreml. Prime Minister Vladimir Putin expressed his view at EU-Russia Innovation Forum that innovation is now Russia's priority.

21 June 2010