Sanctions, cooperation, and innovation: Insights into Russian economy and implications for Russian firms

Abstract

The aim of this paper is to reveal the effects of sanctions at the firm level, with the special attention to cooperation and innovation activity of sanctioned firms. Specifically, the differences between domestic and international companies in their ability to adapt to the sanctions in terms of their cooperation with partners and capability to innovate are discussed. The study argues that firms operating in international markets tend to prioritize product innovation and entering new markets to overcome negative consequences of sanctions. In addition, they are more likely to improve their products and to find new markets to compensate for losses and fill their unused capacities. An important finding having both managerial and political value is that operating in the international market may not necessarily provide an advantage in terms of new partners in the local market but rather facilitate the search for new foreign markets. Inviting the government to provide assistance for Russian domestic and international firms on an equal basis, we admit that with varying degrees of control and interest in national firms, the Russian government can help sanctioned companies in different ways, regardless the scale of their internationalization. The study contributes to the literature on the impact of economic sanctions at the firm-level and in the context of the domestic market of the sanctioned country.

Spanning the boundaries: International business theories in a complex global environment

“…Research could examine the influence of regional integration on regional and global competitiveness, the significance of regional trade agreements in determining global economic governance, and the benefits and drawbacks of fusing regional value chains with global value chains. Additionally, with the increasing sanctions imposed on countries such as Russia and Iran [Panibratov, Gaur, 2022;Talley, 2022], the popularity of BRICS in non-Western countries [Paul, Benito, 2018;Panibratov, 2021], and the demand for MNEs to move towards the "friendshoring" of global value chains [U.S. Department of the Treasury, 2022], we expect MNEs to move closer to countries with political ties to their home countries rather than geographically related countries. Thus, IB research is more likely to study this trend and perhaps towards a fractionalization of FDI.…”

Improving the System of Indicators for Assessing the Effectiveness of Modern Regional Innovation Systems

“…However, in 2022, due to the war in Ukraine, the introduction of economic sanctions and the ban on the imports led to the need to intensify innovation. Meanwhile, it has become crucial to reevaluate the metrics employed for assessing the efficacy of regional innovation systems, wherein elements like the systematic advancement of innovation and the complete lifecycle of innovative products, from their inception to practical implementation in diverse domains, have gained prominence (Panibratov 2021;Zenchenko et al 2022;Allam et al 2022).…”