Journal of the National Research University Higher School of Economics

The article is devoted to the problems of Special Economic Zones (SEZs) in Russia. These zones are not special enough to result in a major foreign direct investment inflow, which is a prerequisite for economic modernisation.It is noted that the Russian innovation policy is concentrated on technological development; however, today some 60% of the country’s GDP is formed by services. Therefore, service-oriented innovations are expected to create economic impact. In this regard without the participation of the world’s leading innovating companies, innovation reform will remain a political exercise. The authors are confident that the mobilisation of the private sector’s R&D expenditure is key in modernising Russia’s natural resource-based economy.