Academic journal article Journal of East European Management Studies

The Russian Enterprise Directors' Perceptions on the Innovation Activity of Their Caompany: A Briefing of the Empirical Results*

Academic journal article Journal of East European Management Studies

The Russian Enterprise Directors' Perceptions on the Innovation Activity of Their Caompany: A Briefing of the Empirical Results*

Article excerpt

The main objective of the article is to analyse the current state of the innovation activity among the Russian enterprises. The empirical evidence shows only 13% of the sample indicated that innovation is the first priority for the firm. We propose that the Russian Government designs innovation policies which takes into account the differences between the industries. Secondly, the Russian Government should promote international innovation cooperation by setting up technology trade agents in the most active countries in terms of innovation cooperation, such as Germany, the USA, and Finland. Thirdly, the CEOs of the Russian enterprises consider R&D funding as well as policy steps to increase R&D effectiveness, as those measures of innovation policy which should be of the highest priority for the Russian government.

Das Ziel dieses Artikels ist es, den aktuellen Stand der Innovations aktivitäten von russischen Unternehmen zu analysieren. Die Ergebnisse zeigen, das s nur für 13% Innovation oberste Priorität hat. Wir schlagen vor, dass die russische Regierung eine Innovationspolitik entwickelt, welche die Unterschiede zwischen den Branchen berücksichtigt. Zweitens sollte die russische Regierung die internationale Zusammenarbeit in Bezug auf Innovation durch die Einrichtung von Technologietransfer mit den aktivsten Ländern wie Deutschland, den USA und Finnland fördern. Drittens erachten die russischen CEOs die Förderung von Forschungs- und Entwicklungsaus gaben sowie entsprechende Richtlinien als jene politischen Maßnahmen die höchste Priorität genießen sollten.

Keywords: innovation activity, Russia, Strategy, innovation policies Russian Government

1. Introduction

In terms of gross expenditure on R&D (GERD) relative to GDP, Russia is positioned in the club of such countries as Estonia, Belarus, South Africa, and Ukraine. Russia slightly exceeds India, Turkey, and Chile, but she is behind China and the Czech Republic. GERD, in the group of countries to which Russia belongs, is less than a half that of such a group of countries as the United States, Germany, France, and Canada and less than a third of Japan, Finland, and South Korea. It is also visible that the scientific and technological achievements of Israel have not cost that country cheap in the literal sense of the term. Israel allocates 5% of her GDP to research and development, and this amount is increasing.

The share of businesses' expenditure on research and development (BERD) in the Russian GDP is not very high (0.72%). This is more than in her CIS neighbours, and more than in Turkey, Chile or Brazil, but it is clearly less than in China, Regarding the ability to adapt technology and the present technological level, the Russian executives provide exceptionally low rankings compared to other countries. According to the World Economic Forum's Executive Opinion Survey, firms from Ukraine and Kazakhstan were more able to adapt technology, as well as had a more sophisticated technology at their disposal than enterprises from Russia.

Why is the situation so distressing for a country that was first to launch a satellite into the space? And what can be done to improve the situation?

2. Research setting

The data for our analysis were taken from the Russian Innovation Survey 20092010, which is a part of joint effort by Bauman Innovation and OPORA (the All-Russian association of SME unions) to evaluate the strengths and weaknesses of the national innovation system in Russia.

The objective of the survey was to evaluate innovation activity and innovation performance in Russia, as well as to identify the priorities of the government policy to promote innovation.

Due to the research budget constraints it was decided to enrol a sample of 250 executives. To organise the sample we had a large contact database of more than 3000 middle-sized and large companies from all over Russia, compiled in earlier surveys conducted by Bauman Innovation. …

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