New development: State-owned enterprises as powerhouses for innovation—the Russian case

There have been many analyses of innovation in Russia’s state-owned enterprises (SOEs) and most conclude that the way forward requires the SOEs to transform into innovation powerhouses. Hence, in 2011, the Russian government set up an ambitious initiative to push innovation in the largest SOEs, which will run until 2020. This initiative has now begun its second phase. Using major case studies, for example Aeroflot and Russian Railways, this article examines the impact of the initiative. Understanding the Russian experience of transforming SOEs provides important lessons for many other emerging economies.