Contrary to the advanced countries, heat energy sector in Russia hardly embraces radical innovations. Moscow heat supply system, the most innovative comparing to that of other Russian cities, is no exception. It focuses on incremental innovations while lagging in radical innovations in cogeneration, trigeneration etc. The paper considers the reasons for such a situation, compares Russian and European heating markets and corporate strategies, provides recommendations for supporting the innovative development of Russian heating companies. vol. 8, no 3, heat generation; heat supply; power generation; open innovation; labor productivity; knowledge managementThe paper was prepared within the framework of the project «Establishing the system of tools for the embedding outputs of industry S&T forecasts into the preparation and revision of the Russian Long-term S&T Foresight», supported by the Ministry of Education and Science of the Russian Federation (a unique identifier of research work RFMEFIC CC14X0002).*