Who and as manages development of digital economy

Main article: Digital economy of Russia

Management structure program

Comments on the scheme

Government commission on digital economy

Main article: The government commission on digital development and use of IT for improvement of quality of life

On September 10, 2018 the resolution on conversion of the government commission on use of IT for improvement of quality of life and conditions of conducting business activity in the government commission on digital development, use of IT for improvement of quality of life and conditions of conducting business activity is approved.

The commission provides interaction of federal and regional executive authorities concerning development of ecosystems of digital economy and increase in level of use of IT and communication for the purpose of formation in the country of information society and electronic government.

The presidium of the commission performs functions of project committee of the Digital Economy of Russia national program. At the same time, decisions of presidium are obligatory for all executive authorities provided as a part of the commission.

One of tasks of presidium of the commission is coordination of activity of authorities on federal and the regional levels concerning determination of uniform state policy of development of digital platforms for the benefit of branches of the economy, including a state administration, health care, education, the industry, communication, agriculture, construction, municipal economy, transport and power infrastructure, financial services.

Commission sessions should is carried out as required, but at least once a quarter, a meeting of presidium – at least once a month.

Subcommittee on digital economy

Main article: A subcommittee on digital economy

The main objective of the Subcommittee declares coordination of interaction of all authorities, business, science that will provide a possibility of solving of tasks in a foreground mode.

Russian Government Analytical Centre

Main article: Russian Government Analytical Centre

The Russian Government Analytical Centre within the program executes a role of project office.

ANO Tsifrovaya ekonomika

Main article: Digital economy of ANO

ANO should create requests from business, carry out monitoring of the Digital Economy program, estimate efficiency of program implementation and also to become the advisory body of management defining strategic and technical issues.

Competence centers

At the end of August, 2017 the first meeting of a government subcommittee on digital economy devoted to an organization structure of program implementation took place. Competence centers which need to be created, and the heads of the working groups elected from representatives of business were determined by each direction of the program of digital economy:

"Normative regulation"

• The Competence Center is Skolkovo Foundation

• Head of the RG – R.S. Ibragimov (MTS)

In more detail on normative regulation - here.

"Personnel and education"

• Competence Center – ANO Agency of Strategic Initiatives

• Head of the RG – B.G. Nuraliyev (1C)

"Formation of research competences and technology backlogs"

• Competence centers:

Competence Center at Rostec Group

Competence Center at Rosatom State Corporation

• Head of the RG – A.B. Povalko (RVC)

In more detail about formation of research competences and technology backlogs - here.

"Information infrastructure"

• The Competence Center is Rostelecom

• Head of the RG – A.A. Serebryanikova (MegaFon)

In more detail about information infrastructure - here.

"Information security"

• The Competence Center is Sberbank

• The head of the RG – N.I. Kasperskaya (InfoWatch)

2020: Three federal projects of "Digital economy" replaced heads

The federal drafts "Personnel for Digital Economy", "Digital Technologies", "Digital Public Administration" of the national program "Digital Economy" replaced heads. It follows from the protocol of presidium of the Government commission on digital development, use of information technologies for improvement of quality of life and conditions of conducting Business activity of February 20, 2020.

The Deputy Minister of Economic Development of the Russian Federation Tatyana Ilyushnikova is appointed the head of the "Personnel for Digital Economy" fedproyekt. She released the deputy head from this duty Ministry of Economic Development Ilya Torosov.

The federal project "Digital Technologies" was headed by the deputy minister of digital development, communication and mass communications of the Russian Federation Maxim Parshin. Earlier the deputy head was the head of this direction Ministry of Telecom and Mass Communications Evgeny Kislyakov.

The first deputy minister of digital development, communication and mass communications Oleg Pak became the head of the Digital Public Administration fedproyekt. It released Maxim Parshin from this duty.

All three nomination are supported by the head of presidium of the Government commission on digital development in the proposal of the minister of digital development Maksut Shadayev.

2018

At the State Council of the Russian Federation the group on digital economy is created. The head - the governor of Moscow area Vorobyov

At the end of December, 2018 the president Vladimir Putin signed the order about creation of 16 groups of the State Council of the Russian Federation^[1]. One of them – in the "Communications, Communication and Digital Economy" direction. The governor of the Moscow region Andrey Vorobyov is appointed the head of this group.

Information on tasks and the structure of group - in the separate article.

The Economic Council under the President is abolished also together with it the working group on digital economy

According to the decree of the Russian President Vladimir Putin of July 19, 2018 the Economic Council under the President of the Russian Federation was abolished (the text of the decree). Since spring of 2017, within council the working group on the Digital Economy direction under the leadership of Andrey Belousov and Igor Shchegolev acted.

Digital Trinity. Scheme and analysis of a new management system for technology development of Russia

Despite, apparently, cosmetic shifts in the Government of the Russian Federation in May, 2018, the control circuit digital and technology development of Russia became absolutely other. Read more here.

Medvedev's order: in the key ministries deputy ministers on digital transformation should be appointed

Around a subject of digital economy in Russia the political landscape changed - there was a selected Deputy Prime Minister who bears responsibility for program implementation "Digital economy", and the Ministry of Communications became the ministry of digital development, the minister of digital development Konstantin Noskov said on July 4, 2018.

One more important innovation in a management system, according to Noskov, is that the prime minister Dmitry Medvedev made the decision on introduction in the key ministries of positions of deputy ministers of digital transformation.

These are agents of changes which will become one big command which is engaged in digital transformation, he added.

According to Noskov, start of big training programs is important.

So far we will not infect with the ideas of digital transformation tens, hundreds, thousands and even millions of people – it is not enough chances to achieve progress. We need millions of CDO (Chief Digital Officier) – the people who are responsible for digital transformation. Beginning from deputy ministers, finishing with the management of schools, hospitals, people who work at the earth

Among the problems impeding progress of digitalization, Socks noted that everyone understands digital economy on the. It is necessary to agree about terms, about the global directions, he considers.

2017

The actions plan on development of information infrastructure within "Digital economy" is submitted

Submitted to the Ministry of Telecom and Mass Communications of the Russian Federation within the Digital Economy program the actions plan in the Information Infrastructure direction for 2017-2020. At the same time, measures and indicators of key achievements are counted in it till 2024.

In the document it is told about three main objectives of the Information Infrastructure direction. Read more here.

The Deputy Minister of Telecom and Mass Communications of Russia Alexey Kozyrev about the place of regions in the Digital Economy program

Each region should define the place to itself, proceeding from the specifics, the competences. The program contains now only those sections which are necessary in general for creation of conditions for development of digital economy. Within these conditions absolutely different industry transformational processes will develop. For agrarian regions the main effect from use of digital technologies will be in agriculture, for industrial regions — "the industry 4.0". For regions where there are opportunities for development of digital infrastructure - it is construction of data processing centers, development of fiber lines of communication. There will be demand and, respectively, the offer of these services, these technologies. This sector of economy will develop, - Alexey Kozyrev said in an interview to TAdviser in October, 2017

Creation   of consortium "Smart City"

In October, 2017 it became known of creation of National consortium of development and implementation of digital technologies in the field of the municipal government (consortium "Smart City").  Its tasks will include creation and implementation of the concept of the "smart" cities in the territory of the Russian Federation. Read more here.

As from the Russian officials train future leaders of digital economy

As TAdviser became knows, since June, 2017 more than 70 Russian officials of federal and regional authorities, deputies and senators are trained according to the program of development of a talent managerial reserve. The RANEPA and the Higher school of a state administration act as the organizer of the program, the curator – Presidential Administration.

The program purpose – to submerge officials in modern trends of development of information and financial technologies, the public and municipal administration. From listeners the talent pool for appointment to the leading posts in regions forms.

Among listeners, according to TAdviser, a number of the officials who are engaged or earlier concerning the state informatization:

• minister of IT and communication of Tatarstan Roman Shaykhutdinov,

• the Deputy Minister of Economic Development Russia Oleg Fomichev (supervises department of innovations, earlier supervised the electronic government),

• the head of Federal Accreditation Service Alexey Hersontsev (earlier supervised the electronic government in the Ministry of Economic Development),

• the deputy minister of construction Andrey Chibis (supervises including creation of GIS of housing and public utilities),

• the deputy administrator of Rosimushchestvo Denis Solodovnikov (supervises including IT),

• the ex-deputy minister of the industry Gleb Nikitin (supervised including the IT, was appointed on September 26, 2017 the acting the governor of the Nizhny Novgorod Region),

• industrial director of a radio-electronic cluster of Rostec Sergey Kulikov.

The program for 75% is devoted to technology trends and IT, one of her listeners told TAdviser. Among lecturers of the fourth module "New Methods of Management in the Digital World" (training in it started on October 3 in Sochi):

• the managing partner of Almaz Capital Alexander Galitsky (a subject – "Regulation of the Market of Cryptocurrencies"),

• CEO of Alibaba in Russia Mark Zavadsky ("Growth of the technology companies in emerging markets"),

• the director of the department of strategic technologies of Microsoft Mikhail Chernomordikov ("Big Data and artificial intelligence in the industry),

• head of the Central Bank Elvira Nabiullina ("Russian regulation in the context of new financial technologies")

• head of VEB Sergey Gorkov ("State under the pressure of new financial technologies")

• chief innovation officer of Consult Hyperion David Byorch ("Cyber security and cyberidentity in global digital economy").

During the modules which passed earlier lectures about trends to officials were given by the head of Sberbank German Gref, experts of McKinsey and PWC, professors of MIT and Stanford university, the head of FTS Mikhail Mishustin performed with a lecture about Big Data in a state administration.

Everything, according to RBC, in the program 8 modules are planned. As expected, in the future listeners will also be addressed by founders of "Yandex" and Kaspersky Lab Arkady Volozh and Evgeny Kaspersky.

Three listeners of the program of a talent pool, as of October 4, 2017, are already appointed heads of regions. Dmitry Azarov became the acting the head of the Samara region, Gleb Nikitin – Nizhny Novgorod, Alexander Tsybulsky – the Nenets Autonomous Okrug.

The source of TAdviser did not begin to give forecasts of rather following appointments: "Who and where will go, for us, as a rule, is a surprise".

ANO Tsifrovaya ekonomika Evgeny Kovnir headed

By ANO Tsifrovaya ekonomika it is created in September, 2017 for participation in program implementation of development of digital economy of Russia and will provide interaction between business, expert communities and public authorities when implementing the Digital Economy program. ANO Evgeny Kovnir who was responsible in the Agency of Strategic Initiatives (ASI) for the National technology initiative earlier headed.

FAS told about the role in digital economy

On September 20, 2017 the management of the Federal Antimonopoly Service (FAS) told about an important role of department in digital economy.

The digital economy infringes on the interests of all mankind, and in these conditions competitive department should play in many respects a crucial role in formation of control of the new sphere without causing any damage to progress — the head of the FAS Igor Artemyev at the enlarged meeting of board of FAS Russia said during the speech.

According to him, it will be necessary to review approaches to antimonopoly regulation, law enforcement and also the legislation. Artemyev gave an example of purchase of Monsanto by Bayer company.

At first sight, the dominant position will not be, however by means of Big Data  of the company coordinate all lifecycle of cultivation of plants. In such cases it is impossible to define market borders separately, it is the uniform market where everything is interconnected — the Head of FAS noted.

He reported that FAS received order from the Government of the Russian Federation to change the legislation taking into account need of regulation of the digital markets. It can be the new head in the Law on protection of the competition or something wider, Igor Artemyev told.

The head of department noted a trend of use of the latest technologies for violation of the law, for example, for the organization of cartel collusions:

We will surely answer these calls and we try not to lag behind digitalization.

At the enlarged meeting of board of FAS Russia Artemyev also brought up a question of the cases of existence of dependence of cost of goods or service which became known from the previous search queries, purchases of the user or his material level.^[2]

The expert advice on digital economy and blockchain technologies is created in the State Duma

On September 28, 2017 at the State Duma Committee on economic development, industry, the innovative development and entrepreneurship the Expert advice on digital economy and blockchain technologies is created. The entrepreneur Artem Koltsov from St. Petersburg headed advisory body (the founder of the consulting agency in the field of blockchain technologies of "Mirtrudmayning", the founder and the CEO of the agency in the field of web integration Legion of Digital).

Council is responsible for legal, expert and information providing advice for activity of Committee on issues of development of digital economy and implementation of blockchain technologies. Decisions of council have advisory nature.

Were a part of council internet- the ombudsman Dmitry Marinichev, professor of MGIMO Elina Sidorenko, the director of NPO IIDF Kirill Varlamov, the creator of the platform of p2p-crediting Karma Yury Gugnin, the chief executive of NPO "Association of electronic marketplaces" Eli Dimitrov, the vice president of group Softline Elena Volotovskaya, the director of Institute of management of social and economic design Plekhanov Russian University of Economics Nadezhda Surova, the director of Institute of financial cybertechnologies ITMO university Maria Sigova.

Our purpose as practicians to expertize and offer candidate solutions of key questions which arise at development of digital economy and implementation of blockchain technologies. All members of council professionals in the information technology industry in the directions are web and a developer blockchain, ICO specialists, cryptotraders, successful entrepreneurs, lawyers, project managers. We support creating favorable conditions for activity of entrepreneurs in the field of digital economy and blockchain technologies. It will promote inflow of investments, economic development of the country and increase in receipts to the state budget — the chairman of Expert advice Artem Koltsov said.

Mikron suggested to create in Zelenograd a polygon for pilot projects of digital economy

In September, 2017 the Mikron company suggested to create in Zelenograd a technology polygon of pilot projects of digital economy — the center of innovations and experiments for development of the urban environment. The idea was voiced during the forum "Import substitution-2017".

For start of new solutions on domestic EKB in serial production, except technologies and the working factory, the package of measures is necessary and the platform for experiments of developers is necessary. Mikron is ready to become such platform opened in the foundry mode for all new ideas — laboratory, high school, engineering, scientific or startapersky which before subduing house and global market, should be implemented in the chip — Gulnara Hasyanova, the CEO of PJSC Mikron said.

As she explained, increase in demand for analog microcircuits is connected with market development of IoT which is one of drivers of microelectronics in the world. Internet of Things requires a big variety of rather simple end devices and basic chips. Micron has a serial production of hi-tech products, including chips for ID documents with the strengthened cryptoprotection, RFID tags for different objects of marking, more than 100 types of chips for power management, power electronics, industrial application which work worldwide. Such platform allows to create an infinite set of solutions for digital economy, but this process should be stimulated — deep integration and motivation on all chain of producers and consumers is required, Gulnara Hasyanova is convinced.

As you know, development of electronic component base is one of the key directions of the "Digital Economy of the Russian Federation" program approved on July 28, 2017 No. 1632-r.

The Ministry of Telecom and Mass Communications discussed work of Competence center "Information infrastructure"

In Ministry of Telecom and Mass Communications of the Russian Federation September 7, 2017 the first meeting on the organization of work of Competence center on the Information Infrastructure direction of the Digital Economy program took place. Ministry of Telecom and Mass Communications Russia Alexey Kozyrev Representatives of the company "Rostelecom" Ministry of Economic Development Ministry of Energy Ministry of Education and Science Ministry of Construction, Russian Government Analytical Centre and other departments participated in a meeting under the chairmanship of the deputy head.

For development and implementation of the direction the Competence center "Digital infrastructure" was created. The head of the center — the vice president for strategic initiatives of Rostelecom company Boris Glazkov — reported at a meeting on regulations of work of body.

The competence center will be engaged in preparation of three-year actions plans on implementation of the Information Infrastructure direction of the Digital Economy program. In 2017 formation of expert community, preparation of financial and economic justifications of actions is planned.

In Competence center several working groups will be created: "Wired networks of communication", "Wireless networks of communication", "DPCs and cloud storages of data", "Digital platforms" and Geodannye.

Curators of digital economy are determined by the directions

On August 31, 2017 the first meeting of a subcommittee on digital economy of the government commission on use of information technologies for improvement of quality of life and conditions of conducting business activity took place. Curators of digital economy are defined.

The action was devoted to organizational aspects of implementation of "Digital economy". Competence centers and the leaders of the working groups (WG) chosen from representatives of business were determined by each direction of the program:

• "Normative regulation": the Competence Center is Skolkovo Foundation; the head of the RG is R.S. Ibragimov (MTS);
• "Personnel and education": Competence Center — ANO Agency of Strategic Initiatives; head of the RG – B.G. Nuraliyev (1C);
• "Formation of research competences and technology backlogs": competence centers – Rostec Group and Rosatom State Corporation; the head of the RG is an A.B. Povalko (JSC RVC);
• "Information infrastructure": the Competence Center is PJSC Rostelecom; the head of the RG is A.A. Serebryanikova (MegaFon);
• "Information security": Competence Center – PJSC Sberbank; the head of the RG – N.I. Kasperskaya (InfoWatch).

The diagram of preparation of actions plans on program implementation was approved. The federal ministries and departments, competence centers, representatives of business and also experts jointly should prepare actions plans in each direction of the program.

As a result of this large-scale work for which two months are allotted, specific actions of the Digital Economy program will be defined. Participants of a meeting noted that such form of collective work assumes reduction of formal procedures including in federal executive authorities. Responsible persons in the ministries and departments will be directly involved in plan development of actions.^[3]

In Sberbank the competence center on information security for TsE is created

Within the Digital Economy state program at Sberbank the competence center on information security is created. Coordinating of implementation of the section Information security of this program will become a task new structure.^[4]

The Domestic Software Association of Software Developers (ASD) which included 140 companies was a main competitor for the right to create competence center. Sberbank has a home company dealing with issues of information security -  Bezopasnaya informatsionnaya zona LLC ("BISON"). Existence and examinations – and more than considerable resources – added to bank of trumps in opposition.

According to the Izvestia newspaper, the decision that Sberbank will be engaged in Competence Center was accepted in Presidential Administration. "Domestic software" is offered to head the working group on information security within the same state program.

According to the draft resolution of the government "About a management system for program implementation "The digital economy", all projects which will be planned by competence center should be approved with the working group. Thus, ARPP "Domestic Software" will have all the same significant effect on activity of competence center.

After approval of the working group the competence center sends offers to the actions plan and the conclusion of the working group in project office for the organization of consideration of the offer at the regular meeting of a subcommittee — Izvestia quotes the document. — In case of existence of disagreements between competence center and the working group the protocol of disagreements is made out. Disagreements are removed a subcommittee.

The press service of Sberbank of Russia did not confirm and did not disprove news of creation of Competence Center based on bank.

Resolution on management of "Digital economy" and plan of creation of the IT system

At the end of August, 2017 the Russian Prime Minister Dmitry Medvedev signed the resolution which defines a management system for the Digital Economy state program. Plans for creation of the program implementation specialized InformSystems of electronic interaction of participants are mentioned in it.

"We move this program, included it in the list of the main directions of strategy up to 2018 and until 2025 — Medvedev at a thematic meeting told. — And today I signed the resolution by which functional structures of a management system, the rule of development, monitoring and control of accomplishment of this program approve. So there all tools are defined, would ask all who are responsible for the corresponding direction of works in the Government, to concentrate on implementation of this program as it is extremely important in order that our country was modern and had the sufficient potential of development".

In the reference on the website of the Government it is said that the document was prepared the Ministry of Telecom and Mass Communications in execution of the order of the President of Russia according to the results of a meeting of Council for strategic development and priority projects on July 5, 2017.

Functions of project office on implementation of "Digital economy" were assigned to autonomous nonprofit organization "Russian Government Analytical Centre".

She will carry out works on creation of an above-mentioned information system of electronic interaction for the program. Also it will begin to perform organizational and methodological maintenance of "Digital economy", including preparation of methodical recommendations about plan development of actions and reports on their accomplishment^[5].

In the draft of the signed resolution which was posted on the website regulation.gov.ru earlier, was offered to define Ministry of Economics responsible for implementation of the directions of the Normative Regulation and Personnel and Education program.

In the same place the Ministry of Telecom and Mass Communications was offered to allocate with responsibility for the "Formation of Research Competences and Technical Backlogs", "Information Infrastructure" and "Information security" directions.

Division of powers between the Ministry of Telecom and Mass Communications and the Ministry of Economic Development

On August 22, 2017 it became known that the Ministry of Telecom and Mass Communications and the Ministry of Economic Development divided among themselves powers on development of digital economy in Russia. The relevant draft resolution of the government is published on the federal portal of projects   of regulatory legal acts  regulation.gov.ru, the Kommersant newspaper tells.

In the document parts of separation of duties are not specified, however, as notes the edition, the Ministry of Economics will get a wide range of tasks, including legal regulation of development of digital economy, forecasting, selection of the directions of development, change of the program, etc.

The Ministry of Telecom and Mass Communications, in turn, will create research competences, to deal with issues of information infrastructure and security. 

Two deputy ministers will supervise development of digital economy in the Ministry of Economic Development: Savva Shipov will be engaged in normative regulation (he headed this direction by preparation of the government program), and Oleg Fomichev — the personnel and education.

Under the authority of the Ministry of Telecom and Mass Communications which was responsible for development of the program in general there will be a formation of research competences and technology backlogs, information infrastructure and information security,

In the project it is noted that delegation of power of the Ministry of Economics will not demand additional budgeted expenses — as earlier Kommersant wrote, delegation of power to department will be de facto "compensation" of the normative ensuring state procurements in the spring transferred from the Ministry of Economics to the Ministry of Finance.

Determination of the Ministry of Economics responsible will positively affect program implementation, the head of the Council of directors of Institute of development of information society Yury Khokhlov considers. According to him, the present project needs to be considered in total with the draft of other regulatory legal act of the government — "About a management system for program implementation 'Digital economy'" where to the Ministry of Economics it is just going to assign responsibility for implementation of the Normative Regulation direction.^[6]

Creation of a subcommittee on digital economy under the leadership of Maxim Akimov

Main article: A subcommittee on digital economy

As it became known on August 15, 2017, the prime minister of the Russian Federation Dmitry Medvedev signed the order about creation in the Government of the Subcommittee on program implementation of "Digital economy". The first deputy chief of staff of the government Maxim Akimov will head the Subcommittee.^[7] Read more here^[8].

Sberbank, Rostec, Rostelecom and Rosatom will rise at a wheel of digital economy

On July 19 the President of Russia Vladimir Putin signed the minutes of Council for strategic development and priority projects.

The meeting at which the Minister of Communications Nikolai Nikiforov submitted the draft of the Digital Economy program took place on July 5. The head Sberbank German Gref, the president "Rostelecom" Mikhail Oseevsky, the mayor Moscow Sergey Sobyanin, the minister of the industry Denis Manturov , etc. participated in it along with Putin.

Council made the decision to include the Digital Economy direction in the list of the main directions of strategic development of the Russian Federation till 2018 and until 2025 and also "approve generally introduced draft of the Digital Economy program".

It is going to approve the program till July 30, 2017, having revised it in several directions.

In particular, as stated in the protocol, for the purpose of and tasks of the program it is necessary to consider consumer interests, including by improvement of a system of legal safeguards and implementation of measures for protection of their rights when using digital technologies.

Also at completion of the program the government should pay attention to questions of support (including financial) development of key end-to-end digital technologies, including such as artificial intelligence, the distributed registers, robotics, quantum computings.

In addition by forces of state agencies and the largest organizations in the field of ICT to create conditions and practical solutions in information security field and also to provide participation of the interested organizations in development of a system of rendering public services in a remote type.

Separate point of the protocol it is entrusted to government to create the organization "for accomplishment of function of organizational and methodological and analytical maintenance of implementation of program execution".

Among its functions there is an interaction with business, scientific and educational and other communities, determination of their needs for digital economy, determination of competence centers in the directions of program implementation, participation in preparation of drafts of actions plans, conducting examination of efficiency of their execution and also formation of recommendations about increase in efficiency of expenditure of funds of the federal budget for implementation of the program.

Will have to found the organization methodologist "the leading organizations in digital economy", including Sberbank, Rostelecom, Rostec, Rosatom, Skolkovo Foundation and "Agency of strategic initiatives on promotion of new projects", follows from the protocol.

About the increasing role of the listed state corporations in the Russian IT industry TAdviser wrote in May, 2016 in material "Repartition of IT market of Russia. 10 candidates for leadership".

One more point of the protocol charges to the government to create a subcommittee on digital economy at the Government commission on use of information technologies for improvement of quality of life and conditions of conducting business activity for the purpose of implementation of operational management of program implementation.

The State Office of Public Prosecutor is the platform for a running in of digital economy

The State Office of Public Prosecutor intends to become the partner of the Ministry of Telecom and Mass Communications for a running in of types of projects which in the future will form the basis of conversions which are stated in the Digital Economy program adopted in Russia. The director and the cofounder of autonomous nonprofit organization "Information Culture" Ivan Begtin who as the member of Centre for Strategic research took part in writing of the mentioned program told about this CNews, and now acts as the chairman of the Expert advice which is recently created at the State Office of Public Prosecutor on IT. According to him projects can be connected with the technologies which are the most discussed at the market — a blockchain, Big Data, etc.

As Begtin explains, the State Office of Public Prosecutor significantly differs from other federal agencies of Russia. She is not included into structure of the Government because of what does not participate in an IT gosprogrammakh and does not receive financing on their line, but is subject in this sense of smaller bureaucracy and at the moment has an opportunity to implement many technologies almost from scratch^[9].

Rostelecom looks for the place in digital economy

Rostelecom prepared and in the nearest future is going to provide to the government the position that the company can do in response to the tasks of creation of digital economy and information society set by the state in Russia. The director of the Center of strategic innovations of Rostelecom Boris Glazkov told about this TAdviser in May, 2017. Read more here.

Igor Shchegolev called the main interests of Russia in digital economy

On May 3, 2017 the Assistant to the President of the Russian Federation Igor Shchegolev, speaking at opening of annual board of the Ministry of Telecom and Mass Communications, designated the main state interests in the Russian digital economy. Among the called directions — formation of the new hi-tech markets and cooperation with partners, reports the D-russia.ru online edition.

According to Shchegolev, many countries look for optimal model of transition to digital economy in which information obtained as a result of processing of large volumes of data will be the main value. Protection of such resources is complicated by a transgranichnost of the Internet, and efforts of the countries are directed to that resources worked for the benefit of national economies and inhabitants, he noted.

In the conditions of digital economy the one who will be able competently to use these data to increase efficiency of different types of production, the equipment, storage, sale, the goods delivery and services will have an advantage. Own technologies and algorithms of data processing, knowledge, competence and skills are for this purpose necessary — the Assistant to the President of the Russian Federation reported.

It also indicated the need development in the Russian Federation of the system of reproduction of own end-to-end technologies, creations of the advanced developments and scientific solutions, their active use in various sectors of the economy and also formations of a strong education system, advanced science and home large IT companies.

Igor Shchegolev considers that Russia needs not to enter the markets occupied with the international companies, and to create new and to help to develop to the domestic hi-tech companies. For this purpose, according to him, it is necessary to participate in development of standards in the field of end-to-end technologies at the international level.

Shchegolev also added that the Russian system of digital economy needs to be developed not in the closed circuit, and taking into account the interests of partners in EEU, SCO and BRICS.^[10]

Who develops the program of digital economy

At the beginning of May, 2017, acting on expanded board of the Ministry of Telecom and Mass Communications, the Minister of Communications Nikolai Nikiforov opened the structure of the working group which conducts works on creation of the program of development of digital economy.

I want to call group of adherents and the organizations with which we create this program and we implement:

• Savva Shipov, the Deputy Minister of Economic Development of the Russian Federation — the head of subgroup 'Legislative and regulatory environment';
• Leonid Osipov, the deputy chief of Expert management of the Russian President Administration — the head of subgroup Management system;
• Boris Glazkov, the director of the Center of strategic innovations of PJSC Rostelecom — the head of subgroup 'Smart city';
• Ilya Massukh, the president Fonda of information democracy — the head of subgroup Information security;
• Mikhail Samsonov, the director of medical department of JSC R-Pharm — the head of subgroup 'Digital health care';
• Boris Nuraliyev, the director of 1C LLC — the co-director of subgroup 'Personnel and education';
• Dmitry Peskov, the area director 'Young professionals' of the Agency of strategic initiatives — the co-director of subgroup 'Personnel and education';
• Vladimir Vasilyev, the rector of the National research university of information technologies, mechanics and optics — the head of subgroup 'Research and development';
• Alexey Kozyrev, the Deputy Minister of Telecom and Mass Communications of the Russian Federation — the head of subgroup Infrastructure;
• Vladimir Averbakh, the director of the department of development of the electronic government of the Ministry of Telecom and Mass Communications of the Russian Federation — the head of subgroup State administration.

The Minister of Economic Development called the priority industries of digital economy

On April 24, 2017 the expanded board of the Ministry of Economic Development took place.

As the first the prime minister Dmitry Medvedev made a speech at a meeting. In addition, in its report it came about technologies of management and development of digital economy.

Your ministry (The Ministry of Economic Development, - a comment of TAdviser) became pilot for implementation of the principles of project management. The solution this correct, but it is not enough of one: without dynamic and modern work on preparation of regulations we will not be able to move. Electronic formats, new technologies of information exchange, new software products create for this purpose the mass of opportunities, - the prime minister noted, having added that all of them not bad work in business and a lot of things should be used including in public administration.

He also told about need of maintaining qualitative statistics without which carrying out effective economic policy is impossible. According to him, there are reserves regarding technologies of collecting and information analysis, including big data here, and in respect of integration into other statistical aggregators which collect a big information stream, is both the Central Bank of Russia, and tax administration.

All this needs to be analyzed together. Therefore it is necessary to prepare the approved offers on how to us further to develop this service taking into account its transfer under the aegis of the Ministry of Economic Development, - Medvedev noted.

The Minister of Economic Development Maxim Oreshkin speaking about plans of the ministry for 2017 mentioned also priorities of digital economy. In particular, according to him, an important task of work of subordinated services – Rosreestr, Federal Accreditation Service, Rosimushchestvo, Rospatent, is minimization of direct contacts of applicants and officials, the exterritorial principles of work and also digitalization of receiving state services.

Let's analyze a possibility of implementation of new technologies, including, for example, blockchain technologies, - the minister told.

According to the estimates made by the Ministry of Economic Development together with "Yandex", the maximum positive effect from digitalization of economy can be reached in such industries as trade, transport, housing and public utilities, finance and also education and health care where transition to remote work and use of artificial intelligence technologies should become the reason of disruptive changes.

The ministry is already responsible for development and implementation of the innovation policy, coordinates activity of institutes of development in this sphere. But this work needs to be integrated more closely with promotion on industry strategy, with digitalization support, - Oreshkin added.

Igor Shchegolev and Andrey Belousov headed the working group of the Economic Council under the President on digital economy

On April 3, 2017 the president Vladimir Putin approved regulations on the working group of the Economic Council under the President in the Digital Economy direction and its structure. Two co-directors – the former Minister of Economics Andrey Belousov and the ex-Minister of Communications Igor Shchegolev who are nowadays working as Assistants to the President headed group. In addition to them 26 people (the list of members of council) entered into the working group.

Volodin: in the State Duma council for digital economy will appear

The first council which after consultations with colleagues we decided to create is council for legislative ensuring development of digital economy — the speaker of the State Duma Vladislav Volodin told during visit of Tatarstan on February 13, 2017

In council, according to Volodin, leading experts of the IT industry will work, "that we could solve the current problems qualitatively", the RIA Novosti agency reports.

By 2022, according to forecasts, "the bills regulating relationship of the robot and the person will be everywhere adopted", he added.

Volodin gave a situation when data of the GLONASS satellites can be used in mobile application as an example and each person in real time can learn when public transport necessary for it arrives to its stop.

In Moscow it is implemented and shows that such service is convenient and demanded by the population. Perhaps, it is time to think of the law which would allow passazhiroperevozchik to open data on transport coordinates for distribution of this practice to all Russia, - the speaker said

Vyacheslav Volodin gave telemedicine as one more example when the IT industry helps to solve problems of people.

She is capable to expand qualitatively possibilities of the Russian health care, to increase its availability that is especially relevant taking into account our distances and inaccessibility of many areas. Use of telemedicine will allow to provide patients with new medical services, to reduce decision making time in difficult situations. Everything together it will increase efficiency of rendering medical services, and will help to reduce death rate and to increase life expectancy of the person

During the conversation with students and teachers of the university of Innopolis Vyacheslav Volodin paid attention to the questions arising at development and use of robotics and artificial intelligence. The world, according to him, will be faced the need of complex legal regulation of this sphere soon. System and professional discussion of this subject and development of the corresponding legal positions need to be begun also in Russia, the Chairman of the State Duma is sure.

2016

How to construct digital economy in Russia? Experts from the USA, Australia and the European Union gave advice to Nikolai Nikiforov

After in the first day of December, 2016 the president Putin announced in the country a rate on digital economy, many asked a question, what is it. Two weeks later after that the Minister of Communications Nikolai Nikiforov collected on a seminar, joint with the World Bank, the best minds in the digital industry from Australia to the USA. The minister who should create the strategy of development of digital economy in Russia wanted to learn from them what to make to the country first of all that "reach effect of fast victories".

TAdviser studied opinions of these experts and other international analysts on the concept "digital economy" and perspectives of Russia on the way to it.

From where the concept went

Theorists from different universities say that the concept "digital economy" arose in the 90th years of the XX century. Its ideology best of all was designated in 1995 by the American scientist-information scientist Nicholas Negroponte.^[11]

"Transition from the movement of atoms to movements of bits" – such metaphor it provided digital economy.

One of key Russian experts in this subject Yury Khokhlov, the chairman of the board of directors of Institute of development of information society, notes that widely Don Tapskott, the author of the book "Electronic and Digital Society" (in the original - "Digital Economy") published in 1994 for the first time began to use the term "digital economy". Some called Don Tapskott "one of the leading cyber-gurus of the world".

Scientists of MSU note that there is no uniform term yet, and in addition to "digital economy", such are used, in particular: "electronic economy", "new technology way of the world", "API economy", "economy of applications", "creative economy", etc.

The European part of the international community uses the term "digital economy" more often, and American on behalf of Deloitte, IBM and some other the companies is inclined to more technology name – "API economy".

What is digital economy

In 2014 Gartner gave such definition: "digital business" is the new model of business covering people/business/thing, scaled globally for the whole world due to use of IT, the Internet, and all of them properties, assuming effective personal service of everything, everywhere, always".^[12]

Analysts of Boston Consulting Group consider that digitalization is use of opportunities online and the innovative digital technologies by all participants of an economic system – from certain people to the large companies and the states. ^[13]

The World Bank considers that it is necessary to understand very widely this phenomenon which not simply concerns the ICT industry, and deeply transforms all economy. Experts of bank offer such determination:

The digital economy is a new paradigm of the accelerated economic development.

It is based on data exchange in real time, affects all branches of the economy and gives such digital dividends as: economic growth, additional jobs and better services.

That the concept should be treated more widely, than just development and implementation of ICT, many world experts from different sran agree.

The digital economy is the all-technology progress influencing the general development of all economy in general, – the deputy minister of science, ICT and planning of South Korea, the Chairman of the Committee of OECD on policy of development of digital economy of Wonka Min considers that it is necessary to understand this concept quite so.

Moreover, the president Fonda of information technologies and innovations Robert Atkinson (USA), for example, considers that if narrowly to approach a question, then everything will come down just to development of one industry.

The industry of ICT can be developed in the different ways. For example, to demand to block import of ICT. Yes, it will help your industry, but all economy will begin to lag behind, – Atkinson says.

What the digital economy is based on

Electronics became the base for development of digital economy, theorists from MSU say. Electronic devices became miniature, came off the socket when batteries appeared, Internet of Things as a result became possible.

In the first 10 years (since 1994) electronic trading and services developed. Then the digital economy passed to other step of development: level of services became complicated, earlier separated technologies began to integrate.

Now the digital economy covers practically all spheres of life: education, health care, online banking. For this step of development it is required 10 times more digital capacities and disruptive technologies in the field of IT.

Main driving force of digital economy

Fuel of changes in digital economies are innovations, – scientists from MSU are sure.

At the same time experts note that the most successful innovations for the last few years were not technology. It were innovations in the field of business models, the chief executive on global indexes of INSEAD Business school Bruno Lanvin (France) says. He cites as an example Uber company – a revolution was made by not the platform, but a new business model. He even uses new expression – "uberization of economy":

And speaking about "uberization of economy", we speak not about the platform, and about the deep levels of transformation of economy and society which concern how interact demand and supply.

What the digital economy gives

Analysts of the World Bank actively use the term "digital dividends" – those pluses which will be brought with itself by new economic way. Among them:

• Trade expansion.

The Internet allows even to the new or tiny companies to trade in products worldwide. For example, in Morocco rural handicraftsmen (some of them – illiterate) sell the goods through the Anou platform worldwide.

• Increase in productivity.

IT help to reduce costs, and, so to increase efficiency and labor productivity practically in all sectors of economy. For example, the delivery company of sendings UPS is known that it uses smart algorithms of routing to avoid turns on the left: it saves time and allows to preserve up to 4.5 million liters of gasoline annually.

• Competition development.

The companies can appear and quickly grow, with rather small capital investments. For example, in Uganda the eKeebo service allows independently busy cooks and amateur cooks to sell house dishes, without obtaining licenses for creation of restaurant.

• Creation of new jobs.

Each workplace in the field of high technologies creates in the USA 4.9 more jobs in other sectors. At the same time with development of the Internet of an opportunity for employment in all raise many times (for example, disabled people, residents of the remote areas, etc. remotely can work).

• Quality improvement of services and state services, in particular.

For example, with electronic state services everything can be made quicker, cheaper. In many countries services of acceptance of complaints from inhabitants about any problems in the city already work.

In general experts in digital economy note that its development should accelerate economic growth and as a result increase welfare of people.

What role of the government

The leading consultant of the World Bank Andrew Stott (Great Britain) considers that in the course of creation of digital economy the role of the state is very important: "It is necessary that it was performed within national policy".

The government plays an essential role in this process and in the USA, Robert Atkinson, the president Fonda of information technologies and innovations (USA) says. First of all, at the initial stages.

The state helps technology development of the companies at early stages. For example, Google was developed on grants from the government. So the government helps with Research and Development, but generally money goes from private venture funds. And in process of their development the market itself offers business models, – the American expert explains.

As for IT infrastructure in the USA, from the state participation modest, generally is private investments. At the same time the state helps the companies to adapt – using tax benefits of the company can write off expenses on servers, machine providing, etc.

At the same time experience of Australia shows that digitalization develops generally under pressure of the market, the Australian representative of the World Bank, the director of global practicians in the field of digital platforms and services Jane Tredvell says. But the government has a certain role, she says: first of all, it is investments into public broadband access into the Internet, into science and researches, and, of course, providing a flexible regulatory framework.

The deputy minister on IT of South Korea Wonka Min it is sure that "there are no clothes which would suit all" – at each country development of digital economy and participation of the state in it will depend on a situation.

If the mature market developed the science is strongly developed, then the role of the government can be weak. If there is no strong science and the industry fed by science, the market is insufficiently developed, then the role of the state will be stronger, – says Wonka Min.

Already in relation to Russia the chairman of the board of directors of Institute of development of information society Yury Khokhlov considers that the state should oblige to move state corporations in the necessary direction, and as for free market, "that will be won there by the one who quicker and more smart".

How to measure efficiency of digital economy

Measure efficiency extremely difficult, all experts say. There are no commonly accepted and unambiguous techniques for this purpose. But it is important to measure, all agree (by the way, are seriously anxious with it in the Ministry of Telecom and Mass Communications of the Russian Federation and in detail asked the international experts on methods).

You can improve nothing if you are not able to measure it, – the French expert Bruno Lanvin says.

At the same time he notes that each country should understand accurately the purpose for the sake of which it undertakes to form digital economy. Then it will be more clear what to measure and as.

"Development strategies ICT are not developed for the sake of them. It is necessary to understand why to us it. If the purpose – fight against mass unemployment and creation of jobs for youth, then is one measurement if the purpose another – another. Measurement of effectiveness should be directly coordinated to a main goal", – Lanvin summarizes.

Main threats of digital economy

• How will the digital economy influence labor market?

Here opinions of experts differ. The World Bank considers that one of "digital dividends" is an increase in jobs.

At the same time some say that the digital economy, on the contrary, can result in mass unemployment. By some estimates, approximately in about 30 years. The American expert Robert Atkinson considers that this fear is not justified.

It is not necessary to be afraid that development of ICT will lead to rise in unemployment. There is no actual material that it leads to such effects, – he says.

• Whether at all the welfare will grow?

The World Bank recognizes that there is a certain risk: automation leads to the fact that some lose work. As a result among the poor the competition for jobs can become stronger, and it can lead to stagnation of salaries.

Digital technologies can aggravate social and economic inequality, - recognize in the World Bank.

Losers at digital economy will be, the South Korean expert of Wonka Min considers. New way destroys many traditional sectors, negative emotions among those who worked there grow. The state will have to look for balance between old and new economy.

A lot of things will collapse, the representative of Gartner of Sayan Mountains Dorzhiyev considers.

For example, the business models seeming firm as it already begins to happen to banks, to insurance companies.

The governments will be under the threat too, Dorzhiyev says. According to Gartner, issue of national currencies will stick to be a prerogative of the state. People will be able to exchange small values using, in particular, blockchain technologies (it will be not bitcoin, and something another).

Each large technology break brought undesirable and even dangerous effects, and the programmable economy will not become an exception. For example, adverse effects of programmable economy will include the ethical problems connected by the fact that machines will make independent decisions, and also with emergence of potential for illegal financial activities, – the vice president and the member of council of Gartner David Furlonger said earlier.[14]

Lag of Russia

Now lag of Russia from the leading countries of digitalization makes about 5-8 years, analysts of Boston Consulting Group counted.

If not to do efforts, this gap will quickly increase. In 5 years owing to the high speed of global changes and innovations it can make 15–20 years. It will be extremely difficult to reduce it.

Three scenarios of development of digital economy in Russia

Analysts of Boston Consulting Group predict three main scenarios according to which development of digital economy in Russia can go.

• Stagnation (Venezuelan model)

It is just that option when lag from leaders can grow through the fifth anniversary from 5–8 to 15–20 years today. It can happen without address stimulation of a digital component of economy, as a result of its share in GDP will continue to stagnate.

• Scenario of moderate growth (Middle Eastern model)

It is possible in case of full-scale implementation of already begun initiatives: if services in state services, medicine, education develop if the existing electronic processes are optimized to be excluded their duplication in offline.

At such scenario radical lag will not be, experts consider. This way of development will create added value for economy in the amount of 0.8-1.2 trillion rubles a year, and the digital economy can reach 3% of GDP.

• Intensive digitalization (Asian model)

The most large-scale and most difficult scenario. Changes should happen both at the level of the state, and at the level of the separate industries and the companies. Investments (both state, and private) in such perspective directions as Internet of Things, Big Data, development of IT products and services with the high export potential should grow.

It will allow to increase a share of digital economy to 5.6% of GDP and also to create large-scale cross-industry effects and actual added value in the industries to 5-7 trillion rubles a year.

According to such scenario made having dug China which soon will be in top ten on digitalization though in 2011 it lagged behind Russia on 8 positions.

Several important steps for development of digital economy in Russia

The international experts gave several key advice of Russia what to make to begin to form digital economy.

• To accurately select the purpose and priorities

If widely to formulate strategy, then it will be impossible to measure result, Bruno Lanvin warns.

Selecting priorities, it is necessary to define three principal components, the expert from the European Union, the chief adviser for IT in European Commission Francisco Garcia Moeran considers: the first – how the ICT and digital economy will promote economic growth, the second – as will adapt present economy, the third – what to wait for results.

• Undertake reforms in education

According to Bruno Lanvin, skills of management, leadership, an entrepreneurship should thrive in all society. Reforms in education, and from the kindergarten, but not from the university are for this purpose simply necessary. As people study new whether they perceive lifelong training as useful inevitability, whether they are ready to purchase new skills – all this important for ICT revolution, the expert says.

• Think over measures which will protect losers in digital economy

"It is an important issue for stability in general and stability of the most digital economy", – considers Wonka Min.

• Stimulate innovations and the competition

The most successful countries on implementation of digital strategy are the countries which could turn achievements of ICT into technology, industrial, scientific, social innovations. "It is absolutely necessary. In Russia it can be the locomotive to get moving forward the digitalization train", – Bruno Lanvin considers.

At the same time it is necessary to advance as far as possible the competition on all chain of added value, Andrew Stott considers. It in turn promotes distribution of innovations.

• Reduce direct state expenditure for unsuccessful projects

The leading consultant of the World Bank Andrew Stott gives an example when in Great Britain in large quantities replicated technologies in rural areas. Direct interventions of the state were scary expensive, it was necessary to look for alternate paths.

• Refuse excess regulation

The legal base at excess regulation can slow down development, considers Wonka Min. He suggests to study experience of Japan and South Korea where the regulatory base is worked well out. "We try to regulate more flexibly our market, to make it more friendly", – the expert says.

Dmitry Medvedev's order to the ministries to develop the Digital Economy program

On December 8, 2016 the prime minister Dmitry Medvedev appointed responsible for development of the Digital Economy program.

Together with Presidential Administration the Ministry of Economic Development, the MFA, the Ministry of Finance, Minpromtorg, the Ministry of Education and Science and also the minister of the open government Mikhail Abyzov, Expert advice at the government and Analytical center at the government will be engaged in it the Ministry of Telecom and Mass Communications.

Completion date of order – till May 11, 2017.

Presidential order to the government about digital economy

Following statements for need of development of digital economy (see them below), on December 5, 2016 Vladimir Putin gave the corresponding instructions^[15].

It is entrusted to head of the government Dmitry Medvedev to develop together with Presidential Administration and to approve the Digital Economy program, "having provided measures for creation of legal, technical, organizational and financial conditions for development of digital economy in the Russian Federation and its integration into space of digital economy of member states of the Eurasian Economic Union".

Medvedev and the head of administration Anton Vaino should execute order till June 1, 2017.

Vladimir Putin's statement for start of the large-scale system program of development of digital economy

For reaching the new level of development of economy, the social industries we need own advanced developments and scientific solutions, the president Putin said, making the message to Federal Assembly on December 1, 2016.

It is necessary to focus on the directions where the powerful technology potential of the future collects, and these are digital, other, so-called end-to-end technologies which define an appearance of all spheres of life today, - he explained. - The countries which will be able to generate them will have long-term benefit, an opportunity to receive an enormous technology rent. Those who will not make it will fall into a dependent, vulnerable state. End-to-end are those which are tried on in all industries: these are digital, quantum, robotics, neurotechnologies and so on

Also, according to the president, it is necessary to consider that in digital technologies also risks are: "It is necessary to strengthen protection against cyberthreats, stability of all elements of infrastructure, financial system, public administration should be considerably increased".

I suggest to start the large-scale system program of development of economy of new technology generation, so-called digital economy. In its implementation we will rely on the Russian companies, the scientific, research and engineering centers of the country. It is a national security issue and technology independence of Russia, in the true sense of the word – our future, - Putin said

For start of the program, according to him, it is necessary "to carry out inventory and to remove all administrative, legal, any other barriers which prevent business to come both to existing, and to the forming hi-tech markets; provide such projects with financial resources, including aim work of the updated VEB ("Development bank") at these tasks".

We will need qualified personnel, engineers, working, ready to carry out tasks of new level, the president noted: "Therefore together with business it is built the modern system of secondary professional education, we will organize training of teachers of colleges and technical schools on the basis of the advanced international standards".

Let's increase number of budget places on engineering disciplines, on IT specialties, other key directions which define development of economy. Next year based on the leading universities, including regional, Competence Centers will be created, they are designed to provide intellectual, personnel support to the projects connected with formation of the new industries and the markets

As powerful factor of accumulation of the scientific and technology backlogs necessary for economic growth, for social development, according to Putin, also the fundamental science should serve. It is faced by a double task: estimate, predict trends of the future and propose optimal solutions for the answer to calls which we will face.

And in the scientific sphere, as well as everywhere, we will develop the competition, to support strong, capable to yield practical result. It needs to be considered also the Russian Academy of Sciences, all scientific organizations. Let's continue formation of research infrastructure which will allow to solve major scientific problems

Within the program of megagrants, the president reported, more than 200 world-class laboratories are already created; they are headed by the scientists defining trends of global scientific development (many of them our compatriots who earlier left abroad).

Recently I met group of such researchers. Already now the most part of the time many of them work in the Russian laboratories, work successfully, with pleasure. And they see that today in Russia interesting scientific challenges are set, the good research base and material conditions at the worthy level is created. But, of course, people have the right and should understand that they have a horizon of work and planning horizon, in this regard I suggest to provide long-term financing of effective research projects, including at the expense of resources of the Russian scientific fund

At the same time it is essentially important, according to Putin, "support our Russian talented young scientists – them much, – that they formed the research teams, laboratories in Russia". For them the special line of the grants calculated until seven years will be started. On these purposes and also 3.5 billion rubles will be selected for development of scientific infrastructure, opening of new laboratories only in 2017 to already stated resources on science in addition, he said.

Activity of scientific centers should be closely integrated with an education system, economy, the hi-tech companies, the president added.

We need to turn research backlogs into successful commercial products, to these, by the way, we always suffered: from developments before implementation huge time passes and in general sometimes … It concerns not only our time, and even not Soviet, and in the Russian Empire everything was the same. It is necessary this tendency to break – we are able to do it. For the solution of this task two years ago we started the National technology initiative, it is designed to provide leader positions of the Russian companies and products in the most perspective markets of the future

See Also

Notes