In recent year’s science and technology policy in Russian Federation experienced a burst of initiatives aimed on fostering innovation-based economic development. One of policy instrument deployed by the government is promotion of regional innovation clusters including innovation clusters in biotechnology. Development of the biotechnology sector in Russian Federation is grounded in significant science and technology legacy of Soviet era. The purpose of the study is to evaluate level of development of support infrastructure in regional biotechnology clusters in Russian Federation. This is an exploratory study is based on a case-study design involved semi-structured survey of 54 participants of a Russian biotechnology cluster. The paper revealed an immature nature of the support infrastructure which inhibits innovation in biotechnology companies. Based on the findings paper offers a conceptual framework of organising regional biotechnology cluster under conditions of severe market failure in support infrastructure. Although paper focuses on regional clusters in Russia, the implications of the study have significance to scholars in better understanding the nature of biotechnology development in Russia. The developed framework could be utilised by policymakers in regions with underdeveloped market conditions.