"Moscow and Saint Petersburg are the largest cities in Russia, both seeking to impose themselves on the international arena as active economic places and models of social progress. To consider the competitive advantages of these cities, two major research strategies are used in this paper: 1) a critical analysis of literature in the following subject areas: history of the economy of the city and Russian system of industrialization; 2) an empirical analysis of variables describing innovative cities and human potential. The paper challenges the argument that difference in the tactics of development - lobbying action to enhance the competitiveness of the export-import marketplace against the legislative strategic planning - gives several advantages to one or other city. JEL codes: R11, O3, L5, D73, B14"