INTEGRATION INTO GLOBAL VALUE CHAINS: EMPIRICAL EVIDENCE FROM RUSSIAN ENTERPRISES ON BARRIERS TO THE INNOVATION-EXPORT NEXUS

Abstract

Little is known about the different barriers that firms face as they advance with their technology uptake and tap into new markets. We show on a sample of 36,900 industrial enterprises that inwards-oriented firms had access to financial means but shied away from the economic risks associated with innovation activities. Exporters see opportunities for their innovation projects, but shy away from the investments needed. The failure to provide a supportive eco-system for innovation is one of the reasons why Russian manufacturers have not succeeded to integrate into global supply chains beyond the territories of the former Soviet Union.