MOSCOW, November 12 (RIA Novosti) - Modernization...

"In the 21st century the country again needs an all-embracing modernization and this will be our first experience in modernization based on values and institutions of democracy," Dmitry Medvedev said at his annual state-of-the-nation address.

The president said that the largest part of the Russian economy is a heritage from the Soviet era, which is extremely outdated.

"It is high time for today"s generations of the Russian people to express themselves and raise Russia to a new and higher level in developing civilization," the president said.

"Instead of an archaic society, where leaders think and decide for everyone, we will become a society that is clever, free and responsible," he added.