Peter Schmidt(University of Giessen and HSE Moscow) and Nadya Lebedeva (HSE Moscow) Values and innovation in Central Russia and the Caucasus Innovations in the economic sector are central for the transformation of the Russian economy into a market society. This paper discusses the theoretical contribution of the refined model of 19 basic values (Schwartz et al. 2012) for understanding attitudes toward innovation and innovative behavior in organizations. It is assumed that the two subdimensions of Self-Direction that is Freedom to cultivate one`s own ideas and abilities and freedom to determine one`s own actions and furthermore Stimulation have a positive influence on individual innovative behavior in organizations. This is also postulated for the effect of achievement as value. In contrast to this we predict that conformity, tradition and Personal and Societal Security as Values are negatively associated with innovative behavior. We contextualize the postulated model by examining the differences between two culturally distinct regions of Russia, the Central and the North-Caucasian federal districts. We formulate a structural equation model for multiple(two) groups for the two districts and test it with data from a representative survey from 2012 ( N = 2000) from the two districts. The equivalence of meaning (partial metric invariance) of the value and innovation constructs across the two socio-cultural settings is assessed by using multi-group confirmatory factor analysis (MGCFA). We then report the effects of the relevant values on innovative behavior using multiple group structural equation modeling (MGSEM). Finally we examine the effects of religion,gender, age and education as control variables and test whether their effects are mediated by values.