Like their counterparts in other countries, Russian students increasingly are entering graduate schools with a view to being involved in the application of research beyond the academy. Under the conditions of the raw materials economy that has become dominant in Russia over the past two decades, however, the demand for innovation is limited and of a local character. Under such conditions, only a small portion of research in higher educational institutions has a chance of being in demand by Russian businesses. [This article was translated by Kim Braithwaite.]