Evolution of Innovation Performance in the Russian Vodka Industry
Evolution of Innovation Performance in the Russian Vodka Industry

Summary/Abstract: The purpose of this paper is to understand the relationship between increased levels of competition – facilitated by market liberalisation – and innovation performance in the context of the Russian vodka industry. Through this understanding this paper subsequently develops a series of innovation policy considerations for transitional economies. In order to achieve this, this paper reflects on the existing literature surrounding innovation performance and competition; as well as the development of the Russian economy more broadly.This paper finds that a state-controlled industry is capable of fostering innovation. However, once the presence of the state in an industry is reduced, innovation performance is enhanced. A recommendation is made that the state should not exhibit control beyond providing a legislative framework for competitiveness; where possible monopolies should be broken down; and private enterprise should be encouraged.A number of the world's large economies find themselves in a state of transition, as such the development of an innovation policy that will allow transitional economies to realise their innovation potential in a sustainable way is imperative to the success of their ongoing transition. The Russian Federation has endured significant economic transition since the collapse of the Soviet Union, and the Russian vodka industry has been a constant throughout, it is therefore an ideal case in examining the evolution of innovation in a transitional context.

• Details
• Contents