Innovative Activities of SMEs in Russia: Constraints and Growth Factors
Puprose: The article is aimed at comprehensive study of small enterprises’ innovative activity in Russia and highlights the key constraints factors as well as factors promoting small business innovative activity.
Design/Methodology/Approach: We conduct a review of modern domestic and foreign studies on innovative development of SMEs their components and factors to give a comparative description of the innovation activity of SMEs in Russia and the EU countries. We also consider the factors of innovation activity of SMEs in Russia, to identify their regional differences, and to determine the prospects for the innovation activity of small businesses in Russia. The methodological approach is based on the exploration analysis procedures, principal component analysis (PCA), multidimentional classification and logicitic regression.
Findings: This analysis revealed that Russian small enterprises are characterized by lower indicators of innovation activity than in many developed countries. The constraints to the growth of the innovation activity of small businesses in Russia are the insufficient level of development of credit financing and the backlog of the production and technological bases.
Practical implications: This approach could be used in the development of promotion measures for new innovative process participants, taking into account the regional context. Originality/Value: The main contribution of this study is that the approach can be used in the course of the study to confirm regional differences in the innovative development of small enterprises and allows to identify three clusters with different indicators of the innovative activity of small businesses.