The challenges of fostering innovation: Russia's unstable progress

Innovation-based growth has become an important policy objective for emerging markets these days. By fostering innovation they seek to increase their competitiveness, boost their economies and achieve wider development goals. The BRIC countries have adopted various mid- and long-term strategies that will allow them to reach these aims. However, they face multiple challenges on the way to realising them. This article looks at one of the BRIC giants, Russia, which is considered to be one of the most promising economies in the contemporary world. It invests ample resources into its 'Five I's' - institutions, investment, infrastructure, innovation, and intellect - with the major goal of re-building the national innovation capabilities. Meanwhile, many obstacles hinder stable progress and postpone the country's ascension into the group comprising the world's leading economies. Major implications include the need to significantly improve policy design and policy governance as well as develop a firm-centred innovation system.