The shift to localized open innovation: The impact of sanctions on co-creation in Russian companies

Russian Management Journal. 2025. Vol. 23. No. 1. P. 52–75.

Tekic Z., Svirskaya M., Tekic A., Titov S.

Purpose: to explore the co-creation practices of Russian companies, focusing on their preferred partners, organizational forms, key drivers, and barriers influencing customer-oriented innovation processes, and how these elements have changed in a constrained environment caused by recent sanctions.

Methodology: the empirical study was conducted through an exploratory survey of managers responsible for innovation and new product development in large Russian companies, with data collected in March and April 2023.

Findings: prior to the sanctions, Russian companies actively engaged in co-creation with diverse partners and employed mature practices while facing barriers such as employee skill gaps. Sanctions have shifted the role of co-creation from fostering growth to ensuring resilience, pushing firms to rely more on local talent, favour incremental improvements, and carefully select projects due to budget constraints.

Originality and contribution: this is the first empirical cross-industry study done on the usage of co-creation by Russian companies, confirming that despite limited prior research, Russian firms actively use co-creation for innovation with a higher-than-expected level of maturity. It reveals how sanctions have reshaped co-creation dynamics, shifting its focus from growth to resilience, promoting reliance on local talent, and fostering a “localized open innovation” model that prioritizes internal capabilities and incremental improvements. Moreover, it offers managers and policymakers the opportunity to better understand where they are and what they may need to do in the future.

Keywords: Россия, открытые инновации, Russia, санкции, экономический кризис, совместное творчество, co-creation, sanctions, open innovation, economic crisis

Publication based on the results of: Открытые инновации в России: передовой опыт для успеха в цифровом мире (2024)