Return on innovation: Analysis of trends for Russian and foreign companies

Abstract

Subject. The article investigates trends in the value of return on innovation. Objectives. The study aims to identify changes in return on innovation, using the case of leading Russian and foreign companies, to adjust the innovation management mechanism. Methods. I employed general scientific methods of research. Company official websites, market reviews and annual financial statements, patent databases of the European Patent Office, the Questel Orbit intellectual property portal, and the Google Patents search engine served as information base. Results. The study draws on the hypothesis that the value of innovation among Russian companies does not grow, despite the increase in funding for innovation. I tested the hypothesis, based on the working conditions of leading Russian companies in comparison with the performance of foreign companies. The study was conducted in three stages. It revealed divergent dynamics of the value of innovation of domestic and foreign enterprises. However, foreign companies show deviation from the average at a much higher level of the value of return on innovation as compared to Russian companies. Conclusions. Innovation has not become a factor for sustainable development of Russian companies. To change the current situation, it is necessary to reorient company's development strategy to ensure an increasing return on innovation.