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Disruptive Technologies in International Business

Challenges and opportunities for emerging markets.

• Edited by: Alka Maurya , J. Mark Munoz , Loveleen Gaur and Gurinder Singh
• X / Twitter

Please login or register with De Gruyter to order this product.

• Language: English
• Publisher: De Gruyter
• Copyright year: 2023
• Audience: Scholars and graduate students of international business.
• Front matter: 8
• Main content: 109
• Illustrations: 1
• Coloured Illustrations: 17
• Keywords: Disruptive Technologies ; Breakthrough Technologies ; E-business ; Global Value Chains ; Emerging Markets
• Published: July 24, 2023
• ISBN: 9783110734133
• ISBN: 9783110738599

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Dissertations / Theses on the topic 'Business model and disruptive technologies'

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Saénger, Jonathan, Sahlin Marcus, and Uhler Chris. "Adoption of Disruptive Technologies : Exploratory research into consumer attitude formation regarding Bitcoin adoption." Thesis, Linnéuniversitetet, Institutionen för marknadsföring (MF), 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:lnu:diva-104765.

Fessé, Johan, and Anders Jessen. "Dags att byta skiva : Paradigmskiftens påverkan på skivbolag." Thesis, Linköping University, Department of Management and Engineering, 2009. http://urn.kb.se/resolve?urn=urn:nbn:se:liu:diva-53137.

Bakgrund: Musikindustrin har upplevt omvälvande förändringar det senaste decenniet, där skivbolagen har tappat 50 % av sin försäljning sedan år 2000. Minskningen beror till stor del på det teknologiska paradigmskifte som skett i och med digitaliseringens intåg i musikindustrin, ett intåg som förändrat marknadsvillkoren för berörda parter.

Syfte: Syftet är att förstå hur marknadsledande företag påverkas och handlar under teknologiska paradigmskiften, med utgångspunkt från skivbolagsindustrin. Vidare ämnar vi undersöka vad skivbolagen har haft för roll inom musikindustrin och hur den ser ut i dag efter digitaliseringens intåg.

Metod: Uppsatsen är baserad på fyra intervjuer samt en e-postkorrenspondens med personer som har upplevt industrins utveckling de senaste åren. Som komplement till intervjuerna används sekundärdata.

Resultat: Skivbolagen upplevde svårigheter i och med det teknologiska paradigmskifte som digitaliseringen stod för. Skivbolagen har efter ett defensivt beteende där de motverkat förändringen börjat arbeta för att skapa affärsmodeller som är applicerbara på den digitala marknaden. Studien visar även att skivbolagen har en viktig roll i musikindustrin, då de fungerar som en samordnare för de många funktioner som är involverade i en musikproduktion.

Background: Music industry has experienced substantial change in the last decade, in which record companies have lost 50% of its sales since the year 2000. The decrease is largely due to the technological paradigm shift that has taken place with the digitalization of the music industry. These changes have changed market conditions for existing companies.

Aim: The aim of this study is to understand how market leading companies affects from and act during changes in technological paradigms with a focus on the record industry. Furthermore we will investigate the record companies’ role in the market and what their role is today after the digitalization of the market.

Method: This essay is based on four interviews and one e-mail correspondence with people who have experienced the development of industry in the last decade. As complement secondary data has been used.

Results: Record companies suffered difficulties due to the technological change of paradigm which was the result of digitalization. After defensive behavior the companies started to create new business models applicable on the digital market. This study also shows that record companies do have an important role in music industry as whole, as they work as a coordinator to the many functions involved in a music production.

Francke, Errol Roland. "A study of development agency as an augmenter in the commercialisation of the mobile applications development SME sector in the Western Cape through business model innovation in response to disruptive innovation." Thesis, Cape Peninsula University of Technology, 2018. http://hdl.handle.net/20.500.11838/2740.

Martinez, Oscar, and Veronica Wenner. "Strategisk, kulturell och kundbaserad affärsmodellsutveckling : Bredbandsmarknaden under disruptiv förändring." Thesis, Mittuniversitetet, Avdelningen för informationssystem och -teknologi, 2017. http://urn.kb.se/resolve?urn=urn:nbn:se:miun:diva-30851.

Sietzema, Maarten, and Illipse Ines. "Exploring Disruptive Innovation: Case study on Multi-sided Platforms." Thesis, KTH, Skolan för industriell teknik och management (ITM), 2019. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-253833.

Ekman, Björn. "Bilindustrins förmåga att hantera förändringar i affärsmodellerna : Hur den uppkopplade bilen påverkar bilindustrins affärsmodeller." Thesis, Mittuniversitetet, Avdelningen för informationssystem och -teknologi, 2017. http://urn.kb.se/resolve?urn=urn:nbn:se:miun:diva-30908.

Dover, Oliver, and Erik Nord. "Market Susceptibility Toward Disruptive Business Model Innovation." Thesis, KTH, Industriell ekonomi och organisation (Inst.), 2015. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-159560.

Suikki, R. (Raija). "Changing business environment—effects of continuous innovations and disruptive technologies." Doctoral thesis, University of Oulu, 2007. http://urn.fi/urn:isbn:9789514283437.

Weisenbach, Keller Eileen Dolores. "Anatomy of disruptive technologies: analyses and comparison." Kent State University / OhioLINK, 2005. http://rave.ohiolink.edu/etdc/view?acc_num=kent1133196965.

Fjellström, William, and Vladislav Snitko. "Disruptive business model transitioning in B2B : A subscription-based approach for Industry 4.0." Thesis, Luleå tekniska universitet, Institutionen för ekonomi, teknik, konst och samhälle, 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:ltu:diva-86199.

Mudaly, Nicolette Andrea. "Business model innovation : the drivers, enablers and inhibitors of firms facing disruptive change." Diss., University of Pretoria, 2017. http://hdl.handle.net/2263/59891.

Bsirini, Hekmat, Moe Gamil Hashem, and Jayasinghe Hasitha Gayathri. "A Disruptive Innovation Approach to Design a Business Model for a Startup DigitalHealthcare Platform." Thesis, Mälardalens högskola, Akademin för ekonomi, samhälle och teknik, 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:mdh:diva-54903.

Tidebrant, Patrik. "Disruptive innovation in the Swedish payment market: A supply-side perspective." Thesis, KTH, Industriell Management, 2013. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-125597.

Alverönn, Oresvärd Jessica, Charlotta Herkommer, and Laine Sandra Siljevik. "Stay exclusive or go inclusive : Exploring consumers’ perception of luxury fashion brands’ use of digital channels and disruptive technologies." Thesis, Jönköping University, Internationella Handelshögskolan, 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-52891.

Chreno, Petr. "Zjišťování dopadu disruptivních business modelů na české outgoingové cestovní kanceláře." Master's thesis, Vysoká škola ekonomická v Praze, 2017. http://www.nusl.cz/ntk/nusl-360146.

Arouche, Patricia, and Blerta Balaj. "FinTech, an Emerging Industry : An Explorative Study of Business Model Innovation on FinTech Companies in Sweden." Thesis, Södertörns högskola, Institutionen för samhällsvetenskaper, 2020. http://urn.kb.se/resolve?urn=urn:nbn:se:sh:diva-41081.

Costopulos, Cappi Michele. "Disruptive Marketing Strategy - ribaltare i classici modelli di approccio al mercato." Bachelor's thesis, Alma Mater Studiorum - Università di Bologna, 2016.

Hoffmann, Sven Oliver. "Business model transformation influenced by Germany's Energiewende : a comparative case study analysis of business model innovation in start-up and incumbent firms." Thesis, University of Bradford, 2016. http://hdl.handle.net/10454/12740.

Martens, Robert. "Strategies for Adopting Additive Manufacturing Technology Into Business Models." ScholarWorks, 2018. https://scholarworks.waldenu.edu/dissertations/5572.

Kohle, Victor. "Business Model Innovation : An Emerging (Grocer)E-shopping Service." Thesis, Högskolan i Halmstad, Akademin för ekonomi, teknik och naturvetenskap, 2015. http://urn.kb.se/resolve?urn=urn:nbn:se:hh:diva-40515.

Pieterse, Petrus Jacobus. "A historical examination of disruptive innovation management in the global media & entertainment industry." Thesis, Stellenbosch : Stellenbosch University, 2012. http://hdl.handle.net/10019.1/19979.

PORAT, INGRID, and KLARA HOVSTADIUS. "A Business Model Perspective on Additive Manufacturing." Thesis, KTH, Industriell Management, 2018. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-239665.

Maffei, Antonio. "Characterisation of the Business Models for Innovative, Non-Mature Production Automation Technology." Doctoral thesis, KTH, Produktionssystem, 2012. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-105111.

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Gudjonsson, Knutur. "Iterative Business Model Innovation : Exploring a Holistic Framework in Order to Create and Capture New Value." Thesis, Linköpings universitet, Företagsekonomi, 2013. http://urn.kb.se/resolve?urn=urn:nbn:se:liu:diva-97540.

Lebherz, Matthias, and Jonathan Hartmann. "Commercializing Additive Manufacturing Technologies : A Business Model Innovation approach to shift from Traditional to Additive Manufacturing." Thesis, Högskolan i Halmstad, Akademin för ekonomi, teknik och naturvetenskap, 2017. http://urn.kb.se/resolve?urn=urn:nbn:se:hh:diva-36132.

Bennett, James. "Strategies for Achieving Profitability in the Music Streaming Service Business Model." ScholarWorks, 2018. https://scholarworks.waldenu.edu/dissertations/6170.

ANSELMETTI, Romain. "The Autonomous Vehicle: End of the Road, or the Beginning of A New Era? : Concept and Challenges of a Disruptive Innovation within the Automotive Industry." Thesis, KTH, Entreprenörskap och Innovation, 2016. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-189246.

Lazarevic, David, and Seif Saleh. "Innovative Business Models within the Swedish Proptech sector." Thesis, KTH, Fastigheter och byggande, 2019. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-264454.

Abt, Tobias, and Fabian Erath. "Power of E-Motion : Business Model Innovation for the Introduction of Electric Cars to China." Thesis, Högskolan i Halmstad, Centrum för innovations-, entreprenörskaps- och lärandeforskning (CIEL), 2014. http://urn.kb.se/resolve?urn=urn:nbn:se:hh:diva-25832.

ENGWALL, ANDREAS, and ANTON ÅLUND. "Business As Usual,No Business At All? : Exploring the Role of Servitization in theProcess of Business Model Innovation." Thesis, KTH, Industriell ekonomi och organisation (Inst.), 2018. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-237187.

Brandel, Mikael C., and Mohammad H. Syarif. "Improving business to customer communication : Applying lean and information and communication technologies." Thesis, KTH, Industriell produktion, 2010. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-50400.

Gron, Tetiana. "Contextual dependence of a business model : A study of IT companies." Thesis, Linnéuniversitetet, Institutionen för informatik (IK), 2014. http://urn.kb.se/resolve?urn=urn:nbn:se:lnu:diva-32707.

Van, Rooyen Gert Willem. "Innovation focused on the base of pyramid : the case of an African telecommunications company." Thesis, Stellenbosch : University of Stellenbosch, 2007. http://hdl.handle.net/10019.1/792.

Goitom, Meron. "Shared Value Creation in Social Business Models : Shared value in social businesses: A business model approach." Thesis, Högskolan i Halmstad, Business Model Innovation (BMI), 2015. http://urn.kb.se/resolve?urn=urn:nbn:se:hh:diva-27909.

Öhlin, Jennie. "Retail Business Model Change in the Era of Digital Transformation : A case study from the perspective of a business model canvas." Thesis, KTH, Industriell ekonomi och organisation (Inst.), 2019. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-259397.

ZAKIPOUR, MAHMOUDI ANNA, and ARSHAM ATIGHECHI. "Innovations in the business model : Leapfrogging competitors in the Swedish rental housing market." Thesis, KTH, Skolan för industriell teknik och management (ITM), 2020. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-281972.

Neukirchen, Daniel. "Fast fashion : supply-chain management as the basis for disruptive business model innovation : a case study in the context of the theory of the firm." Thesis, Manchester Metropolitan University, 2017. http://e-space.mmu.ac.uk/620027/.

Van, Rooyen Marleen. "A model for determining management training needs of an organisation via distance education technologies : with Medi-Clinic as a case study." Thesis, Stellenbosch : Stellenbosch University, 2001. http://hdl.handle.net/10019.1/52086.

Bäckman, Emma, and Josefin Ellmarker. "Capturing Business Model Innovation Driven by the Emergence of New Technologies in Established Firms : A Case Study at Siemens Healthineers." Thesis, Högskolan i Halmstad, Akademin för ekonomi, teknik och naturvetenskap, 2018. http://urn.kb.se/resolve?urn=urn:nbn:se:hh:diva-37130.

Söderbom, Olsson Tobias. "AN EVALUATION OF PHARMACEUTICAL REMOVAL TECHNOLOGIES AND BUSINESS MODEL STRATEGIES : FROM A WASTE WATER TREATMENT PLANT AND SUPPLIER PERSPECTIVE." Thesis, Karlstads universitet, 2020. http://urn.kb.se/resolve?urn=urn:nbn:se:kau:diva-78869.

Aspebo, Philip, and Luisa Kriegel. "Sharing Isn't Caring? : A Qualitative Study Focused on How Industry Incumbents Can Successfully Compete with Sharing Economy Businesses." Thesis, Umeå universitet, Företagsekonomi, 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-185358.

Gaur, Aakanksha. "Exploring the creation and evolution of ICT for development initiatives in India : issues of scaling through bricolage, business model design and inclusive innovation." Thesis, Cergy-Pontoise, Ecole supérieure des sciences économiques et commerciales, 2016. http://www.theses.fr/2016ESEC0008/document.

Shaaban, Sarah, and Sumera Magsi. "Digital business strategy : The driver for change in internal and external business environment." Thesis, Linköpings universitet, Institutionen för ekonomisk och industriell utveckling, 2019. http://urn.kb.se/resolve?urn=urn:nbn:se:liu:diva-159938.

Bravo, Guerrera Mariángeles, Annie Snöberg, and Laurie Tetzlaff. "Digital Maturity Model for Management Consultant Firms : Digital Technologies within a Standardized Management Consulting Process and Performance Improvements." Thesis, Linnéuniversitetet, Institutionen för ekonomistyrning och logistik (ELO), 2020. http://urn.kb.se/resolve?urn=urn:nbn:se:lnu:diva-96024.

Murray-Noel, Jeanelle Lemol. "Small Business Profitability Strategies in the Music Recording Industry." ScholarWorks, 2018. https://scholarworks.waldenu.edu/dissertations/6072.

MASUWELY, FONDESON Melvin. "Provider Reactions and Cooperation Models in the Swedish Mobile Payment Space." Thesis, KTH, Industriell Management, 2014. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-159414.

Bhatti, Harrison John. "The future of sustainable society – The state of the art of renewable energy and distribution systems." Thesis, Högskolan i Halmstad, Akademin för ekonomi, teknik och naturvetenskap, 2018. http://urn.kb.se/resolve?urn=urn:nbn:se:hh:diva-37022.

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Abedin, Raeed Ibnul, and Syed Sajjad Hossain. "Ecosystem Approach in Value Creation : A Case Study of HMS." Thesis, Högskolan i Halmstad, Akademin för ekonomi, teknik och naturvetenskap, 2019. http://urn.kb.se/resolve?urn=urn:nbn:se:hh:diva-39672.

Artz, Matthew. "An Ethnography of Direct-to-Consumer Genomics [DTCG]: Design Anthropology Insights for the Product Management of a Disruptive Innovation." Thesis, University of North Texas, 2018. https://digital.library.unt.edu/ark:/67531/metadc1248393/.

Ohlsson, Jens. "Exploring Designs for a Process Prioritisation Method." Doctoral thesis, Stockholms universitet, Institutionen för data- och systemvetenskap, 2016. http://urn.kb.se/resolve?urn=urn:nbn:se:su:diva-134553.

Digital Technologies of the Project “Moscow ‘Smart City—2030’”: The Transport Sector

• First Online: 17 May 2023

Cite this chapter

• Aleksandr A. Matenkov   ORCID: orcid.org/0000-0003-3831-1245 3 ,
• Ruslan I. Grin   ORCID: orcid.org/0000-0003-4343-9219 3 ,
• Markha K. Muzaeva   ORCID: orcid.org/0000-0003-0843-5685 3 &
• Dali A. Tsuraeva   ORCID: orcid.org/0000-0002-2445-6729 3  

Part of the book series: Environmental Footprints and Eco-design of Products and Processes ((EFEPP))

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The research deals with the priority areas of digitalization in the transport sector in interpreting the strategy “Moscow ‘Smart City—2030’.” The research aims to study the priority areas of digitalization of transport flows of the metropolis and the potential impact of digitalization on the functioning of the territory. By applying the methods of content analysis and the regulatory-legal method in the research, the authors assessed the position of the city authorities on the most sought-after areas of innovation in the transport sector and determined the composition of socio-economic benefits of digitalization of the transport sector. The analysis of statistical indicators of the development of the transport sector of the Moscow urban agglomeration has confirmed the growing need to improve the efficiency of transport infrastructure in the broad sense, including an increase in the level of connectivity of the city districts and the level of sustainability of the transport system. The results show certain disproportions between the priority areas of transport development and the actual needs of the urban infrastructure, as well as the presence of significant legal constraints in implementing uncrewed transport concepts. It is demonstrated that there is a certain consensus between the municipal authorities and the population on the issue of assigning the transport sector among the priorities for implementing digital technology. The specifics of the metropolitan area (high concentration of capital and innovation activity) allow for considering Moscow as a model example of the introduction of innovative technologies. In this regard, it is necessary to optimize the legal restrictions on the introduction of innovations in the field of transport (on the model of a legal sandbox, Regulatory Sandbox).

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Matenkov, A.A., Grin, R.I., Muzaeva, M.K., Tsuraeva, D.A. (2023). Digital Technologies of the Project “Moscow ‘Smart City—2030’”: The Transport Sector. In: Popkova, E.G. (eds) Smart Green Innovations in Industry 4.0 for Climate Change Risk Management. Environmental Footprints and Eco-design of Products and Processes. Springer, Cham. https://doi.org/10.1007/978-3-031-28457-1_45

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In Moscow’s Technological Advances, a ‘Double-Edged Sword’

The latest example is Face Pay, which replaces a Metro card with facial recognition. It may be advanced, but activists are sounding the alarm on privacy issues.

By Celestine Bohlen

The Moscow Metro — a world-class marvel of efficient mass transportation since it opened in 1935 — made headlines last month with a very 21st-century innovation: a payment system that doesn’t require passengers to produce a ticket, a transit card, a smartphone or a contactless bank card. All they have to do is show their face.

By Oct. 15, the facial recognition system, called Face Pay, was up and running at about 240 stations on the Moscow Metro, a sprawling and constantly expanding system famous for its on-time track record and its grandiose and ornate stations.

Moscow city officials were quick to tout the system’s latest technological innovation, one of several over the last decade. “There are no analogues of Face Pay in terms of quality and ease of use for a passenger anywhere in the world,” said Maksim Liksutov, deputy mayor for transport.

To activate Face Pay, passengers must connect their photo with a bank card and the Metro’s Troika, or transit card, via a special mobile app. Once connected, a camera at the turnstiles identifies their faces (even with masks on) and opens the gates. In theory, it should take two to three seconds for a passenger to clear the turnstile, easing the crush of people at peak rush hours.

It is one of the most visible — and controversial — of the city’s projects to modernize its services, one that takes full advantage of advancing biometric technology and the skills of a new generation of Russian computer engineers. “The technology is new and very complex, we will continue to work on improving it,’’ said Moscow’s mayor, Sergei Sobyanin, in a statement.

But digital privacy activists in Russia were quick to raise the alarm, noting that the new system is not just about improving service on the Moscow Metro. “It is a good pretext to put cameras at the turnstiles,’’ said Artyom Koslyuk, a director at Roskomsvoboda, a digital rights group based in Moscow. “This will allow them to perfect the algorithms used for the recognition of faces.’’

According to Mr. Koslyuk, Moscow ranks third in the world for the most surveillance on streets and public transport, with some 200,000 cameras placed around the city and on the Metro to help police identify criminals and prevent crime. Russian police have already used facial recognition to find and arrest demonstrators who participated in peaceful opposition protests.

The two other countries that have gone ahead with facial recognition payment systems are China and Belarus, where privacy rights are also of little concern to the government. (In Belarus, the facial recognition system on the Minsk metro is called Look and Go.) In contrast, the European Parliament voted last month in favor of a nonbinding resolution to ban use of facial recognition technology in public places for police purposes.

Moscow officials have tried to calm concerns about privacy invasion by insisting that the images and data collected are “securely encrypted.’’ Roskomsvoboda, though, said they have uncovered evidence that the system is porous, vulnerable to intruders who can use the data and images for criminal purposes.

Privacy advocates are pushing for a more transparent system of control for this and other advanced, and often intrusive, technologies. “We need to be sure that all these innovations are used to help the people, not harm them,’’ said Mr. Koslyuk.

Face Pay is part of a broader set of efforts in the city to institute technological solutions. Moscow is undoubtedly Russia’s “smartest” city, not least because it is the nation’s capital, and a focus of government attention. Its 12.5 million people make it the second most populous city in Europe — and it is growing. Between 2002 and 2010, while Russia’s population decreased by 1.2 percent, Moscow’s grew by 10.9 percent. And the average wage in the capital is almost double the national average.

The capital also gets royal treatment from the federal government. In 2019, Moscow’s urban renewal budget equaled that of the rest of the country.

“Moscow has the power in terms of finance and budgets,’’ said Sergei Kamolov, a professor at the prestigious Moscow State Institute of International Relations. “Moscow is in the avant-garde, a test case for all different kinds of systems.’’

Two years ago, Russia adopted its own system for ranking its “smart cities,” measuring what is called their “I.Q. level.” This provides benchmarks for cities to measure progress in putting modern techniques and digital services in place for their population. Mr. Kamolov said these are useful tools to pressure local officials to meet targets set in a national “Smart Cities” program.

Mr. Kamolov, who is member of a working group on the “Smart Cities” program, cautions that its ideas and technologies are not easily duplicated from city to city. Nor, he said, do fancy new technologies necessarily have an impact on the citizens’ quality of life. “It seems to me that ‘Smart Cities’ is a deep marketing concept,’’ he said in a telephone interview.

In recent years, Russia has put a major nationwide effort into its e-government services. Ahead of the 2018 World Cup, Russia developed a system of e-visas, allowing tourists to come into the country for a limited time and for limited purpose. And like many countries, it has developed a popular online government portal — known as Gosuslugi , a one-stop website where citizens can retrieve documents, pay fines and make appointments. In a 2020 United Nations e-government survey , Russia’s services ranked 36th out of 193 countries.

In this, as in other areas, Moscow leads the way. More Muscovites use Gosuslgi proportionately than any other region of Russia — not surprising given its concentration of young, educated and computer literate people. But other regions are stepping up efforts to catch up, by offering special courses for computer literacy , especially for the elderly.

Moscow and six other regions were also used as a test case for Russia’s experiment with online voting in last September’s parliamentary elections. The system was challenged by democracy protesters, who described it as a “black box” that allowed the government to fiddle with the vote. Setting aside the contested results — a huge caveat, to be sure — online voting did its job, at least on a technical level.

Moscow has introduced other digital services in health care, in schools and in the legal system, but transportation continues to receive a hefty share of the city’s modernization budget.

According to Mr. Kamolov, Moscow has the largest fleet of electronic buses in Europe while the Metro — which now moves about six million passengers on weekdays (down from more than eight million in the pre-Covid era) — still commands a large portion of public funds: $27 billion for expansion and improvement from 2011 to 2022 , most of it for expansion but some of it undoubtedly for the facial recognition system that is now expected to be introduced in other Russian cities.

At Roskomsvoboda, Mr. Koslyuk says the key to introducing advanced digital services that depend on personal data is trust. ‘‘We need to be sure there are controls,’’ he said. “These improvements can be a double-edged sword.”

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Masha Borak

Inside Safe City, Moscow’s AI Surveillance Dystopia

Sergey Vyborov was on his way to the Moscow Metro’s Aeroport station last September when police officers stopped him. The 49-year-old knew that taking the metro could spell trouble. During a protest against Russia’s invasion of Ukraine, police had fingerprinted and photographed him. He’d already been detained four times in 2022. But he was rushing to his daughter’s birthday, so he took a chance.

Vyborov wasn’t arrested that day, but the police informed him that he was under surveillance through Sfera, one of Moscow’s face recognition systems, for participating in unsanctioned rallies. Considered one of the most efficient surveillance systems, Sfera led to the detention of  141 people last year. “Facial recognition, and video cameras in general in a totalitarian state, are an absolute evil,” Vyborov says. 

Vyborov finds himself at the bottom of a slippery slope that privacy advocates have long warned about . Under the guise of smart city technology, authoritarian and democratic governments have rolled out huge networks of security cameras and used artificial intelligence to try to ensure there is no place to hide. Cities have touted the ability of such systems to tackle crime, manage crowds, and better respond to emergencies. Privacy campaigners say such systems could be used as tools of oppression. In Moscow, Vyborov and countless others now face that oppression on a daily basis.

The Russian capital is now the  seventh -most-surveilled city in the world. Across Russia, there are an  estimated 21 million surveillance cameras, and the country ranks among the top in the world in terms of the number of connected surveillance cameras. The system created by Moscow’s government, dubbed Safe City, was touted by city officials as a way to streamline its public safety systems. In recent years, however, its  217,000 surveillance cameras, designed to catch criminals and terrorists, have been turned against protestors, political rivals, and journalists. 

“Facial recognition was supposed to be the ‘cherry on top,’ the reason why all of this was built,” says a former employee of NTechLab, one of the principal companies building Safe City’s face recognition system.

Following Russia’s invasion of Ukraine, Safe City’s data collection practices have become increasingly opaque. The project is now seen as a tool of rising digital repression as Russia wages war against Ukraine and dissenting voices within its own borders. It is an example of the danger smart city technologies pose. And for the engineers and programmers who built such systems, its transformation into a tool of oppression has led to a moment of reckoning. 

Founded in 2015, NTechLab  caught the attention of the global press with the February 2016 launch of FindFace, an app that allowed anyone to identify faces by matching them with images gathered from social network  VKontakte , Russia’s Facebook equivalent. Met with warnings of the  “end to public anonymity,” the app was reportedly downloaded by 500,000 people within two months of its launch. But for NTechLab, it was primarily a proof of concept for its nascent face recognition algorithm.

NTechLab still felt like a startup when one former employee, who asked not to be named for privacy reasons, joined the company. And he was drawn in by the complexity of the work.

Marah Eakin

David Gilbert

Andy Greenberg

“From [an] engineering point of view, it’s very interesting to work with: It’s very difficult,” he says. 

After the release of FindFace, NTechLab began selling its face recognition tech to small businesses, such as shopping malls that could use it to catch shoplifters or see how many people return to certain stores. But NTechLab was also working with the Moscow Department of IT Technology (DIT), the government department tasked with building Moscow’s digital infrastructure. In 2018, when Russia hosted the FIFA World Cup, NTechLab’s face recognition tech was connected to more than 450 security cameras around Moscow, and its tech  reportedly helped police detain 180 people whom the state deemed “wanted criminals.”

At its inception, Moscow’s face recognition system was fed official watchlists, like the database of wanted people. The system uses these lists to notify the police once a person on the list is detected, but law enforcement can also upload an image and search for where a person has appeared. Over the years, security and law enforcement agencies have compiled a database of the leaders of the political opposition and prominent activists, according to Sarkis Darbinyan, cofounder of digital rights group Roskomsvoboda, which has been campaigning for a suspension of the technology. It remains unclear who is in charge of adding activists and protesters to watchlists.

In March 2019, following the success of the World Cup trial—some of Russia’s “most wanted” people were arrested while trying to attend matches—the Moscow Department of Transportation, which operates the city’s metro, launched its own surveillance system, Sfera. By October 2019, 3,000 of the city’s 160,000 cameras were enabled with face recognition tech, according to interior minister Vladimir Kolokoltsev.

NTechLab was one of many companies building the slew of systems that would later be branded Safe City. International companies, from US tech firms such as Nvidia, Intel, and Broadcom to South Korea’s Samsung and Chinese camera maker Hikvision, worked alongside local firms such as  HeadPoint ,  Netris , and  Rostelecom  that have developed various components of the surveillance systems. According to procurement documents cited by the UK’s BBC, three companies besides NTechLab created face recognition tech for Moscow’s growing surveillance apparatus, including Tevian, and Kipod, and VisionLabs. Moscow's Transportation Department said in social media posts that Sfera was built using VisionLabs technology, although the company downplays its involvement.

NtechLab says it operates in compliance with local laws and does not have access to customer data or camera video streams. Nvidia and Intel say they left Russia in 2022, with Nvidia adding that it does not create software or algorithms for surveillance. Broadcom and Samsung also say they stopped doing business in Russia following the invasion. VisionLabs says it only provides the Moscow Metro with its face recognition payment system. Other companies did not respond to requests for comment. The DIT and the Moscow Department of Transportation did not respond to requests for comment.

At the end of 2018, as Russia cracked down harder on political dissent online and in the streets, the DIT started to change, says a former employee who asked to remain anonymous for safety reasons. The department used to just be the “technical guys” providing assistance to security services, with the Moscow government recruiting highly paid IT specialists to make the most efficient systems possible, according to Andrey Soldatov, an investigative journalist and Russian security services expert. But according to the former employee, the DIT was beginning to reflect the Kremlin’s authoritarian bent.

Then came Covid. 

Safe City launched in 2020, at the height of the Covid-19 pandemic. Russia, like some other countries, seemingly used the pandemic as grounds to expand its surveillance systems to catch people breaking self-isolation rules. By mid-March 2020, Safe City’s face recognition system had  caught 200 people breaking lockdown restrictions. At the same time, Moscow  introduced a regulatory sandbox for the development of AI applications with the participation of large IT companies, exempting authorities from the country’s already lax data protection requirements. “With Covid, [the DIT] essentially became a part of the repressive apparatus,” says Soldatov.

In addition to its network of more than 200,000 cameras, Safe City also incorporates data from  169  information systems, managing data on citizens, public services, transportation, and nearly everything else that makes up Moscow’s infrastructure. This includes anonymized cell phone geolocation data collection, vehicle license plate recognition, data from ride-hailing services, and voice recognition devices. As Safe City was still rolling out in 2020, the Russian government  announced  plans to spend $1.3 billion deploying similar Safe City systems across Russia. From the outside, the potential for the system to be abused seemed obvious. But for those involved in its development, it looked like many other smart city projects. “No one expected that the country would turn into hell in two years,” says one former NTechLab employee, who asked to remain anonymous for safety reasons.

Attempts to break open Moscow’s digital black box have been stonewalled. Alena Popova, whose image was captured during a protest against  politician Leonid Eduardovich Slutsky in April 2018, filed the first lawsuit against Moscow’s DIT for allegedly violating her privacy, seeking a ban on face recognition tech. The case was  thrown out , but Popova has continued to file lawsuits, including one at the European Court of Human Rights—which Russia is  no longer a part of. 

While Moscow operates one of the world’s most pervasive surveillance systems, Russian law does not safeguard individual privacy. With seemingly no hope of recourse, some activists have been forced to leave Russia altogether. Popova is now on the list of foreign agents and is living in an undisclosed overseas location. “I will not apply to any political asylum in any country because I would like to go back to my own country and fight back,” she says.

A key concern is that Moscow’s surveillance system was designed to conceal its data collection from Moscow’s 12 million residents, says Sergey Ross, founder of the Collective Action Center think tank and a former Moscow politician. Although the system is run by the Moscow government, elected members of the Moscow City Duma  say  they are excluded from regulating face recognition systems and have little insight into how it is being used. “It’s a complete black box,” says Ross.

“It was clear that sooner or later the technology would be used to catch activists and dissenters,” says Roskomsvoboda’s Darbinyan. 

Russia made  almost 20,500 political arrests in 2022 , according to data from human rights media organization OVD-Info, which characterizes the number as “unprecedented.” The arrests have sparked fears that Safe City will be expanded to catch draft dodgers—although former NTechLab employees say that doing so would be technically difficult to pull it off because of too many false positives. Still, Moscow police appear to be using face recognition to aid Russia’s war efforts in other ways.

In September 2022, just after Putin announced additional mobilization for the war against Ukraine, Viktor Kapitonov, a 27-year-old activist who’d protested regularly since 2013, was stopped by two police officers after being flagged by face recognition surveillance while he approached the turnstiles in Moscow’s marble-covered Avtozavdodskaya metro station. The officers took him to the military recruitment office, where around 15 people were waiting to enlist in Putin’s newly announced draft. 

“They let me in without waiting in line as if I were some sort of VIP person,” he says. The recruiters wanted to force Kapitonov to enlist, but he ended up escaping the draft. “I explained that I am not fit, I have a disability.”

From 2017 to 2020, NTechLab became one of Russia’s  fastest-growing companies. Other face recognition firms have cashed in as well: The revenue of Russian face recognition developers  grew between 30 and 35 percent in 2022, thanks in part to deals struck in the Middle East, Southeast Asia, India, and South America. Russia’s national AI strategy has supported such firms with grants, tax exemptions, and subsidies, which have benefited both startups and state corporations, including tech and finance giant Sber , telecom provider  Rostelecom , and defense firm Rostec, which previously owned a minority stake in NTechLab. While NTechLab continues to work globally, reporting a revenue increase of 35 percent in 2022, it has also faced a backlash against its work with the Russian state.

In June of last year, a “name-and-shame” list of NTechLab employees was  published [in Russian] with information collected from social media. The project went viral, and some employees reported being harassed online. Artem Zinnatullin, a software engineer now based in the US, says he published the list after NTechLab  sold its new  silhouette recognition technology to the Moscow government in June 2022. To him, it signaled support for Russia’s war in Ukraine. In the post, he called NTechLab “the blacksmith of the Digital Gulag.” Zinnatullin, who says he knew people arrested with the help of face recognition technology, believes publishing the list of NTechLab employees was only fair. “You recognize people on the street, it’s only fair if we use public data to recognize who you are,” he says.

Unlike many face recognition companies that keep a low profile, NTechLab’s splash with FindFace has turned it into a recognized brand. Employees say this high profile has made them into scapegoats. 

As arrests of activists and politicians mounted, the ethics of NTechLab’s technology became a recurring topic at company meetings. NTechLab staff have resisted the use of the company’s face recognition in rallies and refused to sell the technology to the military, according to people familiar with these discussions. Still, the NTechLab leadership concluded that the technology was ultimately positive—even if the occasional dissenting voice was arrested because of it. 

“We all saw these positive examples, we saw how it really catches criminals,” says one former NTechLab employee. “Most people in NTechLab would say they were doing something very good, technologies that can help and save people’s lives. It really did.”

As Russia furthered its march toward authoritarianism in 2021, NTechLab leadership began talking about moving the company abroad, according to people familiar with internal company discussions. But with lucrative government contracts abounding—NTechLab  received a $13 million investment from the Russian Direct Investment Fund, the country’s sovereign wealth fund, in September 2020—its investors resisted the idea. The company was also changing. Its founders, Alexander Kabakov and Artem Kukharenko, stepped down from NTechLab—and both left Russia in December 2021 and February 2022, respectively, declaring   their  anti-war stance on social media. 

Other employees left amid an exodus of IT talent from Russia. The war changed how they viewed their work. “Looking back, we realize that we shouldn’t have done it,” says an NTechLab employee. “But even in 2017 and 2018, it was a completely different country. At least, that’s how it seemed to those who weren’t very immersed in politics.”

Russia’s Safe City projects show no sign of slowing. As more surveillance systems are deployed across the country, Moscow’s DIT is planning to centralize video streams collected across all regions into its own system. And new projects to digitize public services may make it even easier for the government to eventually create large databases where everyone can be found, according to Popova. “It is really scary,” she says. “If they digitalize all the databases and combine them to make this joint database, they can find everybody.” In July, Putin  signed a federal law that funnels personal biometric data collected in the country into a single system—an effort to obtain an “almost unlimited monopoly” on the collection and storage of biometrics, says Roskomsvoboda’s Darbinyan. 

In a further expansion of the Safe City project, Rostec is also  reportedly  developing software that will help authorities predict riots and prevent their escalation by analyzing media reports, data from social networks, video cameras, and other sources. Rostec did not respond to a request for comment on its development of these systems.

Similar systems have been developed in some Chinese cities, and Russia is now playing catch-up. “The Russian government would probably like to move toward China, but they do not yet have the necessary technology,” says Kiril Koroteev, head of international practice at the Russia-based Agora International Human Rights Group.

For now, many activists in Russia are left to do whatever they can to skirt the country’s growing surveillance apparatus, including avoiding the Moscow Metro. Kapitonov hopes that a balaclava will keep him safe, while Vyborov aims to ride the metro early in the morning, when there are fewer police around to detain him. 

“I think that it was inevitable that such a system would be made sooner or later,” says one former NTechLab employee. Face recognition is like a knife, he says: It can be used to cut food, but it can also be used to cut innocent people. He now regrets that NTechLab played a key role in building Moscow’s Safe City project. He has left Russia and doesn’t think he will work on face recognition again. “I do not want to mess with it anymore,” he says.

Update 9:25 am ET, February 6, 2023: Clarified the role of VisionLabs in the Sfera system and that NTechLab's founders have since left the company.

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