TEM Journal. Volume 8, Issue 4, Pages 1366-1370, ISSN 2217-8309, DOI: 10.18421/TEM84-38, November 2019. 1366 TEM Journal – Volume 8 / Number 4 / 2019 Stimulating Innovation Activity in Enterprises within the Metallurgical Sector: the Russian and International Experience Mihail Nikolaevich Dudin 1-2 , Vitaliy Vasilievich Bezbakh 3 , Marina Vladimirovna Galkina 4 , Ekaterina Petrovna Rusakova 3 , Sergey Borisovich Zinkovsky 3 1 Russian Presidential Academy of National Economics and Public Administration (RANEPA), 82 Vernadsky Ave., Moscow, 119571, Russia 2 Market Economy Institute Russian Academy of Sciences (MEI RAS), 47 Nakhimovsky Ave., Moscow, 117418, Russia 3 Peoples’ Friendship University of Russia (RUDN University), 6 Miklouho-Maclay Str., Moscow, 117198, Russia 4 Kutafin Moscow State Law University (MSAL), 9 Sadovaya-Kudrinskaya Str., Moscow, 125993, Russia Abstract – This paper examines some of the Russian and international experience with regard to stimulating innovation activity in enterprises within the metallurgical sector. The key focus is on implementation issues regarding innovations within the sector and possible ways to resolve them. The authors explore the current state of innovation activity in metallurgical enterprises and examine some of the most promising areas for innovation in metallurgy. The paper brings forward a set of measures designed to enhance the stimulation of innovation activity in Russian metallurgical enterprises based on the experience of other European countries. The authors examine some of the most promising tenets of a government program on innovation-driven development within Russia’s metallurgical sector, which includes various measures of direct and indirect stimulation of innovation within metallurgy. Keywords – metallurgy, innovation, innovation activity, stimulation of innovation. DOI: 10.18421/TEM84-38 https://dx.doi.org/10.18421/TEM84-38 Corresponding author: Mihail Nikolaevich Dudin, Russian Presidential Academy of National Economics and Public Administration (RANEPA), Moscow, Russia Email: dudin_mihail_n@mail.ru Received: 20 June 2019. Revised: 03 November 2019. Accepted: 08 November 2019. Published: 30 November 2019. © 2019 Mihail Nikolaevich Dudin et al; published by UIKTEN. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 License. The article is published with Open Access at www.temjournal.com 1. Introduction By tradition, metallurgical production has always been an important element in Russia’s economy. Mainly being export-oriented, this sector is the second in significance comprising energy (oil and gas), with the nation possessing metallurgical capacities having production potential that exceeds domestic demand. In Russia, metallurgy has developed mainly under the influence of corporate strategies that do not always align with national social and economic objectives, with a lack of an integral vision of the sector’s development. Instead of adopting and following a uniform scientifically substantiated modernization strategy, the government has provided support in a mixed fashion – often in times to the disadvantage of other social and economic areas. There have been a few strategic documents dealing with this [1], but most of them are merely declaratory and offer few to no effective tools to help achieve the objectives. The operation of Russia’s industrial infrastructure is predicated on the use of its own resources and differs significantly from that in the majority of other European countries, with its relative share of production of raw materials surpassing its volumes of production at the final product. This has been behind the prevalence of large vertically integrated holdings, which wholly cover the production cycle, are less sensitive to fluctuations in raw materials prices, and owing to their ability to better cope with potential recessionary situations in the market, it appears to be gaining an increasingly large share within the sector at the moment.