Absolutely great to see the low tax and profit orientated strategy, just make sure it is also backed by low debt ratios and sutable stable (regulate out the financial warfare through G20) interest rates (not too low for credit bubble, and also to reward savers - not too high to stunt growth). Otherwise sooner or later the tax will go up together with interst rates - double whammy, as the debt Trojan does its work - the European model. So now we are in a good position to create the environemnt for modernization to take place, and modernization means making things better, not making things as bad as in Europe. The US and in particular the Californian innovation model is the aim, mixed with a sprinkling of German and Chinese flavours at the backend. But we need go further and see past the Californian model. This is where the hub concept really comes in. The Californian VC market and environment is truly exceptional, like many commentators said, it is the best in the world. Its success breeds success, this success acts a magnet to draw everything to it, to get bigger and bigger. People speak of the US as a whole, but actually other parts of the US are nothing compared to the VC level in California. Why? because the California VC gravity draws everythig to it. They try to spread it out, and there are other bubbles in the US, but still California keeps on attracting, keeps on acting as the centre. The success is intoxicating and acts like a Mecca. So what should we learn and how do we look past California. Well first we learn that we have to go big in one area - Skolkova, innograd, and secondly if you want a hub with spokes, you will have to go at least as big in those other areas in the peripherals, not immediately, because of dilution, but one at at a time in the future to move them past their supporting role to the hub. Natural gravity will work with the hub, and its enough to deal with that right now, so lets focus on that frist, as we are doing.

Count Cash, I agree with you on the following: a) the suppose to be Russian “Silicon Valley” should be considered as a hub (politically and economically pumped), well-known and iconic around the country. b) success (read: money) attracts businesses and people (talented and, not very talented); so, it is important to create that original “hype” based on some, even initially not so big, but real achievements. But, I personally, see the key success of the Californian Silicon Valley as based on: a) proximity of the country's best technical universities -- most of innovations and ambitious engineers arrive from there; b) industry works together with universities and other research centers (as one organism); c) national diversity -- one of the most important elements for creating superior, competitive, and innovative environment; foreign workers/students are very welcome; b) freedom in its biggest sense -- economical, political, intellectual, freedom of braking traditions and conventional barriers; the economical life in the Valley is truly driven from the very low levels (individual initiative); d) cozy environment for startups -- where risk is respected and rewarded (by, potentially, very big money). e) the good whether (I am not joking -- I would never go to any Silicon Valley which would be located in Minnesota or, even, Massachusetts. I need coffee shops with palm trees next to them). In the very simple terms, I would describe Silicon Valley phenomena as being rather pragmatic -- this is another American “gold rush”. Only this time the money presented not in form of the yellow metal, but in form of high-tech products. And instead of the gun, the law regulates the relationships. Nothing romantic, really. People, primarily come here (and make great things) to become rich, and not to make this place being more famous.

Bogdanov, Excellent analysis, you pretty well covered the drivers behind silicon valley and what needs to be done, and freedom is the key and I would amplify a bottom up approach enabled with a big top end initiator (cash and political will). I would have to be pretty well innovative to deliver on the weather, but never say never! If my hub was up in Rostov, well for part of the year, I could certainly match it! Anyway I hope not everyone wants palm trees, just for now! or we are doomed unless we get bought by HP.