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Regular version of the site

Working paper

On economics of innovation subsidies in Russia

FREE Policy brief. FREE Policy brief. Forum for Research on Eastern Europe and Emerging Economies, 2017
Besstremyannaya G., Golovan S., Senchenya G.
Following the general agreement that innovation is a source of economic growth, the Russian government has provided various stimuli to foster domestic innovation. One of the mechanisms of innovation policy is research subsidies. This policy brief starts off with a discussion of the theoretical predictions and empirical evidence, which relates the economic incentives of research subsides to innovation and growth. We then address the potential adverse effects of focusing innovation subsidies mainly on large public companies in Russia. Finally, we attempt to establish a link between the innovation rate and market competition within Russian industries.