Innovation as Key Advantage in Big Corporation Competition

The article analyzes regularities and trends in the development of the sphere of innovation among competitive market of big corporations in Russia. Advantages of independent introduction of innovation by companies were investigated in comparison with the use of external companies for elaboration of innovative solutions. Big Russian corporations buy out young start-ups or make them dependent through programs of business-accelerators. It makes an adverse effect on the competitive environment, which is confirmed by the absence of new companies among big Russian business within the last five years. Competition in such acute spheres as automobile, mobile communication, equipment manufacturing and big retail has stabilized in the process of well-known companies’ struggle with each other. Innovation made in the process of such competition does not affect market and prevents one or several companies from surpassing their competitors. It demonstrates a poor impact of innovation on Russian market. Break-through innovations are hindered by excessive control over emerging companies on the part of big business. Innovation companies are bought out at the development stage, later they adapt to corporate culture of business and do not develop unique business-projects being dependent on the central management group. The author underlined that big corporations should focus on the development of their own innovation potential rather than attract external innovators. Initial management of innovation process can provide better understanding of projects and results necessary for the company, which could cut the risk of investment in comparison with the use of external companies.