The paper analyses data on innovative activities of Russian enterprises and estimates impact of several factors on number and quality of innovations. The authors use two independent data sources – enterprise survey, conducted by authors in collaboration with Institute on Economy in Transition, and data from annual surveys done by Goskomstat. Results of both surveys, barriers for innovations as perceived by enterprises, distribution by types of innovations were described in detail. The authors also conducted regression analysis for main factors, suggested by theoretical literature on innovations. Main barrier for innovative activity for the majority of Russian enterprises is lack of retained earnings and restricted access to external finance. Intensity of competition plays significant positive role, given the intensity is not too high.