Author:

Dmitry Yu. Fedotov, Financial University under the Government of the Russian Federation, Moscow, Russia; Baikal State University, Irkutsk, Russia

Abstract:

In terms of the level of innovation processes’ development Russia still noticeably falls behind the countries with the established market economy. Russian companies’ innovation activity related to using patents for benefiting from scientific advancements in their operations remains insufficient. The paper’s aim is to make recommendations on stimulating innovation activities in Russia through enhancing motivation of economic entities. Institutional economics forms the methodological foundation of the research. Methods of institutional and statistical analysis are applied. The data for the analysis is obtained from the World Bank, the World Intellectual Property Organisation, the World Economic Forum, and the Russian Federal State Statistics Service. Having examined the institution of entrepreneurship, we can conclude that Russian economic entities are generally conservative when it comes to assessing the need for innovation. We suggest introducing a full-fledged patent box regime in Russia, which entails the application of a lower rate of corporate income tax to the revenues derived from the use of research developments. We justify the need to reduce the corporate income tax rate to 12.5 % for the organisations that grant and exploit their intellectual property rights, what should become a long-term incentive to earn revenues from innovating. A necessary condition for gaining the effect of innovation activities’ development is setting up such a benefit for the entire territory of the country, not for separate regions. The presented findings may bear on implementing innovation and tax policies by government bodies.

Keywords: innovation activity; innovation; social institution; tax policy; corporate income tax; patent box; patent.

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For citation: Fedotov D. Yu. (2026). Stimulating innovation in Russia based on the institutionalisation of the tax regime. Journal of New Economy, vol. 27, no. 1, pp. 134–156. DOI: 10.29141/2658-5081-2026-27-1-7. EDN: CIAKQY.