Tasks of institutional support to increase innovation activity of small business in the region

Abstract

The reasons for the low innovation activity of Russian small enterprises are presented in the article from the standpoint of institutional theory. According to the authors, today the degree of influence of the institutional environment on meso- and mini-levels, as well as informal rules for the development of small forms of entrepreneurship, including their innovative activity are underestimated. The influence of informal component of mini-level institutional environment on the implementation of formal institutions in the examples of the phenomenon of «Old Believers» Entrepreneurship and institutions of the shadow economy is shown. The authors suggest that the shadow nature existing in Russia on mini-level informal institutions to be explained not only by the low level of trust in society (including trust in authority and leadership) and the differences between the national mentality, but also inadequate distribution of transaction costs of doing business (including innovation) between economic agents. Features of the institutional system of Russia as well as transaction costs of the domestic system of patenting inventions are investigated as the key causes of the problem. Methodological principles of institutional support of small innovative businesses are presented.

Keywords

• institutional environment
• small business
• institutional support
• innovative activity
• transaction costs.