The architect of Russia's 1990s privatizations have given a sobering assessment of the country's present and future in the high-tech world, warning that Russia faces an "innovate-or-degrade" choice.

Anatoly Chubais, a former finance minister who now runs the state-owned corporation for the development of the nascent high-tech sector, said "We have to admit: We have fallen very far behind."

Chubais said at a Moscow investment forum Wednesday, "Not to understand this would be a very grave historic and political mistake."

He said Russia is 30 to 40 years behind developed countries in terms of technology, a factor that must compel the government to hammer out a long-term growth strategy.