Evaluation of the Impact of Firm Level Competition on Russian Innovation

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