Emerging Tech

When A Good Science Base Is Not Enough To Create Competitive Industries: Lock-in And Inertia In Russian Systems Of Innovation

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Executive Summary

Despite having a formidable position in terms of domestic R&D activity and a well-developed science and technology infrastructure prior to transition, Russia has failed to create a competitive firm sector. Using systems of innovation approach, the authors argue that institutions are subject to inertia when political and economic regimes were rapidly reformed, and the system structural lock-in, causing industrial enterprises to engage in routines that generated a sub-optimal outcome. Market forces did not result in the western style model, but a hybrid one. A significant segment of industry maintains a Soviet-style dependence on 'Top-down' supply-driven allocation of resources and a reliance on external (and domestic) network of sources for innovation and capital.

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