Examining the critical role of institutions and innovations in shaping productive energy policy for Russia

Abstract

This article focuses on the role of institutions and innovations in shaping future energy policy in Russia. First, it provides a context of current trends to understand the need for greater innovation policies in Russia. Second, it reviews the need for a more institutional approach to innovation in Russia, especially with respect to energy policy and climate change solutions. It also suggests the kind of innovations at scale that must be fostered and promoted to achieve the substantial outcome that is needed. Finally, the assessment closes with a discussion of next steps that should be quickly taken, if Russia is to ensure a positive outcome. The authors argue that to maintain a robust and sustainable economy in the long term, countries should increase overall energy and resource productivity. A revitalized innovation process is necessary to achieve large-scale cost reductions for energy efficiency services and clean energy technologies that dramatically increase the deployment of both new and existing clean energy technologies. Part of that revitalized innovation will include the creation of new systems of general-purpose energy and communication technologies. In summary, a proper institutional background is proposed as a key to innovative development. Hence, the priority policy measures which should be undertaken in Russia are those aimed more specifically at institutional improvement.