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The paper considers some issues connected with developing the innovation theory in Russia and abroad drawing on Russian scientific literature and textbooks. It is revealed that while understanding the need for an innovative way for the development of national economy, Russia lacks a harmonious and conventional innovation theory. The paper presents a critique of theoretical positions of a number of Russian authors concerning classification and essence of innovation, the corresponding terminological paradigm alongside the main mechanisms of innovations diffusion. We provide a comparison and corresponding generalization of our approach to diffusion mechanisms with those of foreign scientists. We note that the insufficient preparedness of many researchers in contextual understanding of both foreign terms and some notions of political economy poses significant obstacles to the development of innovation theory in Russia. We finally offer some recommendations to improve the innovation theory in Russia.