The nature of innovation channels at the micro level: evidence from Russian manufacturing firms

Abstract

The main purpose of the paper is to analyze different channels for innovations. We analyze the influence of such channels on Russian companies taking into account industrial organization – vertical or horizontal orientation, peculiarities of corporate demography, roles and motives of different owners (including government and foreign investors), demand trends, customers’ profile, nature, and intensity of competition in relevant markets. Our study’s empirical base is provided by a survey of 652 Russian industrial companies conducted in 2012. We find that innovations in Russian industry are spread in accordance with two main models: vertical through corporate connections, and horizontal, based on the example of foreign companies in the atmosphere of developed competition.

Keywords:

• innovation
• industrial organization
• supply chain

JEL classification:

• D22
• L22
• L6
• O3

Acknowledgment

The study is supported by the Ministry of Education and Science of the Russian Federation.

Notes

The paper was presented at the 6th Annual Conference of the Academy of Innovation and Entrepreneurship (AIE 2013) ‘Innovation and Entrepreneurship for Inclusive and Sustainable Development,’ Oxford, United Kingdom, 29–30 August 2013.