By: Modern Russia and Val Kogan, MARBC on June 30, 2011
On June 23, the Mid-Atlantic Russia Business Council’s (MARBC) 14th Semi-Annual Biotechnological Russian-American Innovation Technology Week (RANIT-BIO) began. Modern Russia spoke with MARBC President Val Kogan aboutthe host of events the MARBC will be sponsoring around the world as part of RANIT-BIO and other programs and why American businesses from the Mid-Atlantic region continue to explore business opportunities in Russia.
How did the MARBC begin?
Our region has had a long history of cooperation with Russia. Benjamin Franklin, for instance, was the first American member of the Russian Academy of Sciences, and he made the Russian princess Dashkova the first female member of the American Philosophical Society. The MARBC was established in 1994 as a Pennsylvania-Russia Business Council. Pennsylvania is a region with a significant historical connection to Russia. In the early 1990s, there were already some businesses with ties to Russia, and we saw that more people wanted to gain a better knowledge about Russia’s business environment before making further steps in this direction.
We eventually became the Mid-Atlantic Russia Business Council (MARBC) to reflect the growing interest in the Mid-Atlantic region in business opportunities in Russia and our expanded our activities outside of Pennsylvania. Our mission now is to enhance the position of Mid-Atlantic based companies in Russia, while simultaneously attracting Russian businesses to the Mid-Atlantic region. We foster business relations between Russia and the Mid-Atlantic by cultivating contacts and facilitating cooperation along political, economic and educational lines.
What are some examples of how the MARBC fulfills this mission?
As part of our activities,each year we organize more than 25 events in the United States and facilitate American participation in more than 10 events in Russia. Since the Mid-Atlantic is one of the most diverse regions in the country, our events have focused on our work with Russia in multiple industries, from the older traditional sectors to agricultural and high-tech industries. Today we focus much of our energy on one of the industries that is thriving the most in both Russia and the Mid-Atlantic, the technology sector, specifically the biotechnology and life sciences sectors.
Our largest and mostsuccessful event has been the Semi-Annual Russian-American Innovation Technology Week (RANIT). This event is designed to bring together entrepreneurs, scientists, venture capitalists and established corporations from American and Russian technology communities. Due to its success, RANIT is now held twice a year and includes a growing number of Russian-American technology seminars, conferences, panel discussions, trade shows, and networking events. Under the framework of RANIT, the MARBC organizes Russian participation at various technology events, including the world's largest biotechnology conference and exhibition - BIO International Convention. Since the BIO Convention is held annually during the spring or early summer, RANIT held in the spring includes the Russian participation in BIO International Convention.
The 14th Semi-Annual Biotechnological Russian-American Innovation Technology Week (RANIT-BIO) will highlight biotechnology, nanotechnology, pharmaceuticals, chemical engineering and the life sciences. As has become customary, RANIT-BIO will commence with a welcoming ceremony and the opening sessions held at Philadelphia City Hall. RANIT-BIO will continue with the key event held in Philadelphia - 2011 Russian-American Life Sciences Conference and will conclude with the Russian program and participation in the 2011 BIO International Convention in Washington, D.C.
What will panelists at RANIT-BIO discuss?
With the adoption of the Pharma 2020 strategy, Russia has indicated its desire to be a world-class innovative bio-pharmaceutical producer and exporter. We in the U.S. welcome that goal and during RANIT-BIO look forward to discussing the policies that will achieve it. To that end, panels at this conference will acquaint participants with the Russian market overall and introduce key senior government officials responsible for policy. We will also examine Russia’s investment climate and key policy issues for Russia and the U.S. We plan provide an update on the status of ongoing activities in the Health and the Business Development Working-Groups of the U.S.-Russia Bilateral Presidential Commission, including plans for enhancing collaboration between the U.S. and Russia in the areas of public health and biomedical research.
Overall, this year’s conferences are designed to highlight increased involvement by key Russian and American policy-makers. This year the Russian delegation includes Deputy Minister of Economic Development of Russian Federation and Deputy Minister of Ministry of Industry and Trade of Russian Federation, governors and vice governors from Kirov and Volgograd regions, as well as key figures of the Russian innovation industry, including, ROSNANO and RVC (Russian Venture Company), Skolkovo and others. The Mid-Atlantic region traditionally was traditionally represented by state and local government officials, presidents of the Pennsylvania, New Jersey and Delaware Biotechnology Associations, as well as by the key leaders of the American innovation industry. RANIT- BIO culminates MARBC’s efforts to develop regional collaboration and entrepreneurship innovation in biotechnology and life sciences.
Why does MARBC focus on the high-tech and innovative sectors? How do you envision the future for these industries?
MARBC focuses on these sectors for a few reasons:
- We are in the middle of one of the regions in the United States that is strongest in biotechnology, pharmaceuticals, nanotechnology and life science, so it was natural for us to develop these industries for expansion into Russia.
- In the past 10 years, we have seen continued growth in Russia’s high-tech industry. There’s a growing demand there and here for development in these industries. It’s the perfect partnership.
- The Mid-Atlantic region has a strong network of higher education institutions. Several colleges and universities here have strong relationships with their Russian counterparts. As a result, we see a lot of new developments in Russia, as American students from the Mid-Atlantic region actively demonstrate a greater interest in Russia and as Russian students travel to attend universities in the Mid-Atlantic region.
- Our organization is also highly involved in other dimensions of high-tech, from IT to alternative energy. The Mid-Atlantic region is trying to position itself as a leading region to attract Russian high-tech companies and to ease way for the Mid-Atlantic high - tech companies to expand into the Russian market.
Russia is still a challenging market, but it also can be one of the most prosperous and exciting markets. When I think back to the early 1990s, the major challenges to entering the Russian market in the early 1990s were a lack of adequate resources and support to go and get information about business opportunities environment in various regions. Currency exchange was an issue. Media coverage of the investment climate was not positive. But those issues are no longer applicable anymore. People are increasingly realizing Russia’s significant growth potential.
The Russian market is not for everyone because it is a market that requires a certain amount of effort; you have to do your homework. The market is not for investors who are not ready to adapt to change. However, we have seen the tremendous progress from the previous years. Today, Russia isconsidered to be a much morestable and transparent business environment.
The high-tech industry has very significant potential for investment and growth in Russia and it is my hope that our regional companies play a large part in driving that growth. We believe that the Mid-Atlantic region will continue to be a leading region in developing ties to the Russian market and also a leading place for Russian companies to access the American market.
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