Cisco CEO Chambers Signs MoU With Viktor Vekselberg to Establish Physical Presence in Skolkovo; Announces I-Prize Contest for Russia; Extends Venture Capital Investment by $100M
SAN JOSE, CA and MOSCOW--(Marketwire - June 23, 2010) - In a meeting today in San Jose, President of the Russian Federation Dmitry Medvedev and Cisco Chairman and CEO John Chambers discussed a wide-ranging series of collaborative initiatives that will underpin the Russian Federation's technology innovation agenda. During the meeting, Cisco (
Key Facts
Skolkovo Project
The Skolkovo Project plans were publicly announced last March by President Medvedev and aim to develop a technology and innovation hub in Russia. Built around President Medvedev's priorities for economic development and modernization, the Skolkovo project will focus on areas in information and communication technology as well as biotech, energy and nuclear technology. The project will be managed and financed by a consortium of public and private organizations in Russia.
According to the MoU, Cisco will share with the Fund global best practices and expertise in the creation of innovation centers and put forward this expertise to the development of the Skolkovo Project. Special emphasis will be put on the creation of a culture of innovation, collaboration and replicable business models.
One of the areas of focus for Cisco and the Skolkovo project will be for Cisco to play a key role in the design of 'Technopolis Skolkovo', a framework that will be based on the business model behind the Cisco Globalisation Centre East in Bangalore, India.
'Technopolis Skolkovo' will be designed to fully reflect the concepts of Cisco Smart+Connected Communities and will serve as a best practice facility in multiple focus areas such as: Smart Connected Buildings, Smart Grid, Smart Connected Real Estate, Safety and Security, Connected Transportation, Education, and Healthcare.
Cisco and the Fund will also work on other ICT and Entrepreneurship skills development programs that are created based on existing Cisco education and training programs and initiatives such as the Cisco Entrepreneur Institute program. Cisco's Entrepreneur Institute, already successfully operating in countries such as the US, Turkey and Mexico, provides a practical curriculum for entrepreneurs and small business owners to develop their full potential.
Cisco I-Prize for Russia
The Cisco I-Prize, now entering its third stage, is a global innovation competition that has mined collective wisdom to identify and develop new business models and opportunities for Cisco. The winning team from the first round of the I-Prize contest was in fact a joint Russian - German team whose ideas made a significant contribution to Cisco's connected energy strategy.
In Russia, Cisco is announcing its intention to tap collaborative innovation, and to help stimulate this type of creativity and will offer total prize money of $175,000 for this initial contest. Cisco will award a prize of $100,000 USD to the winning entry, the second winning team will receive $50,000 and the third team $25,000. Further details on how to enter and categories for entry will be announced shortly. If successful, Cisco will examine running additional I-Prize contests in Russia to further stimulate innovation.
The Russian contest is intended to attract talent and ideas that have the potential to become new start-up ventures that could be based in the new 'Technopolis Skolkovo'. The winning idea and team will likely also represent an opportunity for investment by Cisco and/or venture capital firms.
Cisco's longstanding commitment to Innovation and Skills Development
To date, Cisco has made both direct and indirect venture investments in locations such as the US, China, India, Israel, South Korea, Mexico and across Europe, including Russia.
Cisco is extending and accelerating our investments in markets in which we are already present, and we are entering into new markets with exciting new teams and partnerships as part of our overall strategy of global market investment.
In 2008, Cisco announced a $30M USD anchor investment in the Almaz Capital Russia Fund I, L.P., as part of an initial $60M USD close of a venture capital fund that focuses on Russia and the Commonwealth of Independent States (CIS), in collaboration with Almaz Capital Partners.
Cisco has been an active participant in developing technology education initiatives in Russia for several years and currently has 133 active Cisco Networking Academies delivering educational programs across the country of which 54 are based in the Moscow area. With this announcement and with this announcement will increase the number to 300.
Executive Quotes
President Dmitry Medvedev, president of the Russian Federation
"During the next decade Russia should become a country in which the welfare and the good quality of life is ensured by its intellectual, rather than natural, resources, its innovative economy. The Skolkovo Project embodies the focus that we are placing both on innovation and public private partnership and we welcome the significant commitments that Cisco is making with us today to support Russia's future."
Viktor Vekselberg, president of the Fund for the Development of Russia's Center for Elaboration and Commercialization of New Technologies
"We are very excited to have Cisco's support in advancing the Skolkovo project. As a key global technology organization, Cisco is a front-runner for advancing innovation models. We view the Skolkovo project as a truly international initiative, and it is my view that instead of reinventing the bicycle, we should learn from the successful models that originated in the US. We look forward to a successful cooperation with Cisco."
John T. Chambers, chairman and chief executive officer, Cisco
"President Medvedev's vision of transforming economic development through innovation is closely aligned with Cisco's belief that the innovative application of technology can have a positive impact on a country's competitiveness, diversification of its industry base, its ability to create jobs and improve quality of life for its citizens. Cisco is aggressively hiring talent and investing in innovation as we capture market transitions. Our approach is to grow jobs and investments aligned with the growth and opportunity in our business, here in the United States and globally where we see countries investing in education, infrastructure and innovation. Russia is clearly doing just that, which for Cisco represents an opportunity to grow our global business and our innovation platform."
Paul Mountford, president of Emerging Markets for Cisco
"Russia is rapidly building out its communications infrastructure, which presents a unique opportunity for local entrepreneurs to develop new technologies and applications. Cisco is committed to support the building of entrepreneurial capacity in Russia and looks forward to catalyze and accelerate tech innovation and intends to become a defining player in taking technology investment in the region to the next level. We see a clear economic benefit to Cisco, and it is our belief that the I-Prize innovation competition for Russia we are announcing today has the potential to generate between 200 - 300 new ideas by tapping into these new sources of collective development."
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