Impact of External Economic Relations on Innovation Activity of Russian Industrial Firms in 2014-2018

Student: Peretiatko Polina

Educational Programme: Applied Economics (Master)

Year of Graduation: 2019

The depreciation of ruble and sanctions deeply affected external economic activity of Russian industrial firms. External economic activity, including import and export is known to be the source of foreign technology and increased productivity. Knowing this, there are legitimate concerns that scaling down the exposure of Russian industrial firms to foreign markets will lead to decline of innovative activity because now they won’t be able to borrow technology. Therefore, the goal of this study is to characterize the changes in innovative activity of Russian industrial firms and their external economic relations in this period. The main result of this thesis is as follows: In recent years, the import of foreign components and raw materials has gained much more importance as the predictor of innovative activity. It is likely that over the past few years a certain mechanism of self-selection into import has been formed.

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