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Working paper

Innovation management in Russia’s foreign manufacturing subsidiaries: a pilot exploration of creation and implementation of effective innovation routines

Gurkov I. B., Filippov S.
Subsidiaries of foreign multinational companies are essential part of the modern Russian economy. In many sectors, they enjoy dominant positions. Innovation is an important driver and determinant of this dominance. Yet, little research has been done on innovation strategies and innovation processes in foreign subsidiaries in Russia. The paper aims to fill this gap. On the basis of qualitative evidence, it explores the goals, patterns and challenges of innovation activities in Russian subsidiaries. Our findings suggest that that manufacturing subsidiaries have implemented numerous effective innovation routines that are an integral part of daily ‘routine’ management. This is driven by the two-faceted objective – to achieve global quality standards and low production costs.