New development: State-owned enterprises as powerhouses for innovation—the Russian case

Abstract

There have been many analyses of innovation in Russia’s state-owned enterprises (SOEs) and most conclude that the way forward requires the SOEs to transform into innovation powerhouses. Hence, in 2011, the Russian government set up an ambitious initiative to push innovation in the largest SOEs, which will run until 2020. This initiative has now begun its second phase. Using major case studies, for example Aeroflot and Russian Railways, this article examines the impact of the initiative. Understanding the Russian experience of transforming SOEs provides important lessons for many other emerging economies.

Keywords:

• Innovation
• public policy
• Russia
• state-owned enterprise
• strategy

Acknowledgements

Financial support from the government of the Russian Federation within the framework of the Basic Research Program at the National Research University Higher School of Economics and within the framework of implementation of the 5–100 Programme Roadmap of the National Research University Higher School of Economics is acknowledged.

Additional information

Notes on contributors

Mikhail Gershman

Mikhail Gershman is a senior research fellow at the Laboratory of Economics of Innovation, Institute for Statistical Studies and Economics of Knowledge, National ResearchUniversity Higher School of Economics, Moscow, Russia.

Thomas Thurner

Thomas W. Thurner is a professor at the National Research University Higher School of Economics and deputy head of the Laboratory of Economics of Innovation, Moscow, Russia.