Abstract
The launch of the Russian Sputnik vaccine in 2020 echoed the launch of the Soviet Sputnik satellite in 1957 and reminded the world once again that Russia is a sophisticated technological power. Most inventions in the Soviet Union were managed by the system of inventor's certificates which ensured open flows of knowledge among the scientific networks behind Russia's industrial development. Inventions in today's Russia are managed by the globalized institution of patents which can create high barriers to entry in innovation markets. This article argues that the globalized institution of patents has been compromised in Russia because the barriers to entry that patents create are not justified in the absence of well-functioning markets. The danger of the institutional mismatch is lost opportunities for Russia to grow knowledge and to diversify its economy. Western property rights in innovation in the hands of crony capitalists can magnify the social harms of the patent system leading to high concentration of ownership of knowledge.