Purpose -The purpose of this paper is to conduct comparative research of small innovative entrepreneurship under different types of institutional environment in Russia and the USA. Design/methodology/approach -A survey was administered among small innovative firms in the State of Minnesota (USA) and Novosibirsk Oblast (Russia). Mann-Whitney test for median differences adjusted for multiple comparisons using Benjamini-Hochberg procedure is used to establish statistically significant dissimilarities between Siberian and Minnesotan populations. Findings -The results indicate that there are significant differences in the challenges faced by the Russian and American firms. The most important among them are the lack of legal structure for innovation and availability of qualified staff in Russia.Research limitations/implications -The study is limited to two regions with comparable economic and geographic environments. Practical implications -It is indicated in the results that significant changes in institutional business environment are necessary for the future development of innovative entrepreneurship in Russia. Originality/value -This study is the first of its kind to compare the challenges facing small innovative entrepreneurship in Russia and the USA.

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