Russian Policies in Support of Innovation : Elusive Quest for Efficiency

Focused on the efficiency of the Russian innovation-fostering policy, the research is based on an empirical analysis of how policy instruments impact firms' behavior. The data is obtained from two surveys of more than 600 Russian industrial companies in 2011-2012. The analysis shows that tax incentives are more conducive to innovations with a longer payback period, whereas public funding is more likely to facilitate launching new innovative projects. At the same time, both kinds of innovation support tools are affected by crowding out private funds by public ones. Besides, innovation policy design and administration are not friendly to young companies