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Interconnection of innovation activity and productivity growth is rather discussed topic, but there is still no consensus on this issue. We study the determinants of enterprise productivity using unique micro level data of the Russian firms augmented with city and regional data. We are aiming to shed light on how knowledge accumulation, human capital, and other external factors affect productivity of Russian firms. Used dataset covers such groups of factors as micro-indicators of firm performance, innovative activity indicators, human capital and education, spatial indexes and others. The paper considers not only Russian enterprises in general, but also their individual subgroups, divided by the type of goods produced, location and size. We conclude that there is a positive impact of the number of patent applications per capita and technology imports on company productivity, with greater effects observed for more "traditional" industrial groups, while for high-tech industries these indicators are insignificant. This, as well as the negative impact of spending on innovation on the productivity, suggest that level of development of basic industries is inadequate, which in turn slows the growth rates of technologically intensive industries. Among the Russian firms, there is a stable positive impact of city specialization on productivity of firms, which indicates the possibility of successful formation of industrial clusters and mono-settlements. There are number of significant differences observed between federal districts as well, confirming an argument for the diversified and region-specific innovation policy. We find that import of technologies has significant positive effect on productivity only for firms in less developed federal districts, while for others it is insignificant. At the same time effects of sending on innovation is effective only for the Central federal district, the most advanced one. The obtained results may be used as a recommendation when constructing and improving the regional innovation policies across Russia. [ABSTRACT FROM AUTHOR]