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The main goal of this study is to evaluate the effects of innovations and agglomeration effects on productivity movement in the Russian companies. We have used the microdata of 55,8 thousand Russian processing industries for the period from 2006 to 2015 inclusive. Unlike earlier studies in this area, we use the quantile regression for the overall sample, as well as for regions groups according to their level of technological intensity. The obtained results demonstrate a significant impact of all the indicators of innovation activity and agglomeration effects considered on the growth of firms’ productivity. We observe the positive effects of innovation costs and the number of patent applications, and the negative effects of technology imports and the share of innovatively active enterprises in the region. A positive effect of specialization and localization has been found for the agglomeration effects, while the localization effects have an inverted U-shape.
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