2072-64142411-140610.17059/ekon.reg.2023-2-12EVALUATION OF THE IMPACT OF FIRM LEVEL COMPETITION ON RUSSIAN INNOVATIONОЦЕНКА ВЛИЯНИЯ КОНКУРЕНЦИИ ФИРМ НА ИННОВАЦИИ В РОССИИhttps://orcid.org/0000-0002-0124-1143OkrahJamesОкрах Джеймс jokrah6@gmail.comUral Federal UniversityУральский федеральный университет им.первого Президента России Б. Н. Ельцина192451462Copyright © 2023 James OkrahCopyright © 2023 Джеймс Окрах2023James OkrahДжеймс ОкрахCC BY 4.0https://www.economyofregions.org/ojs/index.php/er/article/view/272https://www.economyofregions.org/ojs/index.php/er/article/download/272/206

Innovation is an essential component of a company’s survival in this competitive world of business. Firms in free and competitive marketplaces are compelled to adopt more efficient production techniques and provide customers with new and improved products. This research examines the impact of competition on innovation in free and competitive marketplaces. The study is motivated by the Russian government’s goal of increasing productivity of small and medium-sixed enterprises (SMEs) to 32% of gross domestic product. The study employed the Logit model to analyse the data from the World Bank Enterprise Survey. The findings reveal that fierce competition has a significant negative effect on innovation. Specifically, competition reduces product, process, and new product innovation by 5%, 3%, and 3.5% respectively. The step-by-step innovation model indicates that competition stimulates innovation in firms operating in contestable markets. Additionally, higher levels of competition negatively affect new product innovation. These results suggest that intense competition may impede firms’ ability to innovate, particularly in the areas of product development, process improvement, and introducing new products. However, competition acts as a driving force that compels firms to innovate in order to maintain their competitiveness in the market. Consequently, increased competition may lead to a diversion of resources towards research and development (R&D), potentially limiting firms’ capacity to introduce new products.

Инновации — важный фактор выживания компании в конкурентном мире бизнеса. Фирмы, действующие как на свободных, так и на конкурентных рынках, вынуждены внедрять более эффективные методы производства, чтобы предоставить потребителям новые улучшенные продукты. В данной статье рассматривается влияние конкуренции на инновации на свободных и конкурентных рынках, исходя из цели российского правительства увеличить производительность малых и средних предприятий до 32% ВВП. Для анализа данных исследования предприятий Всемирного банка была применена логит-модель. Полученные выводы свидетельствуют о существенном негативном влиянии жесткой конкуренции на инновации. В частности, конкуренция отрицательно влияет на такие показатели, как инновации в продуктах, процессах и новых продуктах, приводя к их снижению на 5%, 3% и 3,5% соответственно. Модель пошаговых инноваций показывает, что конкуренция стимулирует инновации в фирмах на состязательных рынках. Кроме того, более высокий уровень конкуренции негативно влияет на создание новых инновационных продуктов. Согласно результатам анализа, острая конкуренция может снижать способность фирм к инновациям, особенно в области разработки продуктов, улучшения процессов и внедрения новых продуктов. Однако выступая в качестве движущей силы, конкуренция заставляет компании вводить новшества, чтобы поддерживать свою конкурентоспособность на рынке. Следовательно, усиление конкуренции может привести к отвлечению ресурсов организаций на исследования и разработки (НИОКР), потенциально ограничивая возможность внедрения новых продуктов.

SMEsRussiainnovationcompetitionforeign license Technology (IP)logit modelinstitutionsМСПРоссияинновацииконкуренциялицензии на технологиилогит-модельинституты

I would like to express my deepest gratitude to Ekaterina Tsygankova for her unwavering support and invaluable expertise in Russian law. Her immense knowledge has been instrumental in shaping and refining this work. I would also like to extend my sincere thanks to the anonymous reviewers and the editor for their contributions. Their insightful comments and suggestions have played a crucial role in the development and improvement of this script. Their dedication and commitment to excellence are truly commendable.

Автор выражает глубокую признательность Екатерине Цыганковой за поддержку и оказанную помощь в проведении исследования, её бесценный опыт и знания в области российского права. Также автор выражает искреннюю благодарность анонимным рецензентам и редактору за их вклад, ценные замечания и предложения, повлиявшие на качество статьи. Их преданность делу и стремление к совершенству достойны похвалы.

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