Characteristics of the Innovation Development of Russia’s Industrial Enterprises under Conditions of Economic Sanctions
Characteristics of the Innovation Development of Russia’s Industrial Enterprises under Conditions of Economic Sanctions

Summary/Abstract: The present- day conditions of global economic development are such that there is a need to activate the innovation component in a national economy. A nation will be able to compete in the global market only if it has reached a high level of innovation development and employs the latest cutting-edge technology. In this regard, Russia, despite its vast scientific potential, has yet to make its presence felt in the market for high- tech products. Compared with developed countries, characterized by fairly high levels of innovation activity in industry, the share of Russian industrial enterprises engaged in the development of innovations is not very big, no more than 10%, with the combined volume of domestic innovative products currently checking in at 585 billion rubles (around $9.5 billion, as of December 21, 2016). The innovation development of Russia’s industry has been affected by the economic sanctions imposed on the nation in recent years. When these sanctions were imposed, the Russian government had to take immediate measures, one such measure being the active pursuit of import substitution policies, including in the innovation sphere. That being said, since then there have been a number of challenges impeding innovation development in Russian industry. This paper explores the impact the sanctions have had in relation to the innovation development of Russia’s industrial enterprises, identifies some of the major issues in this respect, and brings forward special mechanisms expected to help remediate these issues.

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