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This paper studies the innovation strategy of Russian Railways, the biggest transport company in the world. Russian Railways has chosen a strategy of international science, technology and innovation (STI) cooperation outside their own network. This strategy is a novel approach for Russian State-owned enterprises (SOE). Based on the analysis of innovation development program and interviews with managers, the paper studies the company’s experience with the chosen strategy. Thereby, the paper enhances the understanding of innovation processes in major public service companies which are crucial for the socio-economic processes inside and outside national boundaries.