Risky Economies: Innovation of Medical Devices in Russia

Abstract

Classic views of innovation describe a relatively standard trajectory that an idea has to follow to become a profitable product. However, in Russia national policies to stimulate innovation are unpredictable and create a risky economy. This chapter, based on documents and interviews, discusses the experiences and strategies of hi-tech companies’ directors developing medical equipment in Russia. Four strategies are distinguished—smaller-scale tactics, conformist, reformist, and isolationist. While the latter is most creative, imaginary, and innovative, it is also rare. Most entrepreneurs respond to unpredictable policy agendas and rule setting by focussing on creating barely innovative products. This implies that the Russian devices market still mostly relies on copying, localising, and adapting foreign products.