The development of innovative small business in Moscow region

Scientific and industrial complex of the Moscow region is one of the largest in the Russian Federation. Small business has a special place in the regional economic system. It not only provides employment and reduces social tension, but also serves as a factor in the innovative aspect of economic growth. Small innovative enterprises are an important component of innovation development because they connect science and its practical applications. Moreover, small firms often take the risk to develop new products and technologies--to transform knowledge into a product. However, small business does not use effectively the accumulated scientific and technological capacity. Small businesses located in the region still demonstrate low innovation activity. The paper investigates the development of small innovation business in the Moscow region and focuses on the main directions of the innovation strategy for the Moscow region through the development of small enterprises.