Currently, the development of the digital economy in Russia is limited by the insufficient level of development of fiber-optic lines, associated digital technologies, and their geographical heterogeneity of distribution. The research focuses on the problems of limiting participation in the world market of fiber-optic cables. The author analyzes the life cycle model of A. Veron. By the example of studying the optical cable market, it is shown that the application of the Chinese model of the spread of innovations in production is impossible for use in the Russian economy because it does not allow forming a condition for technology transfer and compliance with competition policy. The factors determining the dynamics of the development of the optical cable market are highlighted, and the demand for products in developed and developing countries is analyzed, which allows identifying the factors of technology transit and the spread of innovations. The research used the approaches of the theory of industry markets, antimonopoly analysis, and new institutional economics. The author concludes that to establish the production of optic fiber in Russia in order to ensure at least 50% of the demand for fiber within the country in support of import substitution, direct investments in R&D are needed to develop the scientific and technical base for the possibility of producing primary preforms for enterprises producing fiber. Despite the government’s achievement in implementing the optical fiber production project in Russia and reaching a production capacity that provides 50% of the demand for fiber within the country, the measures are not sufficient because the manufacturer is directly dependent on primary preforms for fiber production, which Russia does not produce. © 2023, The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.