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• W770839778 abstract "IGCC Defense Innovation Briefs January 2014 The State of Defense Innovation in Russia: Prospects for Revival? Vasily KASHIN Center for Analysis of Science and Technology Since 2005, the Russian defense industry has experienced a sharp rise in domestic demand for its goods and ser- vices. Since 2008, the rise of defense procurement has significantly affected the production volumes of conventional arms producers. Prior to this period, most of the resources were dedicated to strategic weapons. Early in 2011, the Russian government approved a huge state armaments program, which is worth 20 trillion rubles (US$570 billion at January 2014 exchange rate), and is supplemented by a separate program for development and modernizing the defense industry, which is worth 3 trillion rubles (US$85 billion). The industry, which has survived for some 15 years solely on exports, is now working mostly for the Russian armed forces. With the rise of domestic demand, the old institutional problems of the Russian defense procurement and research and development (R&D) planning again came to light. These problems have directly affected the Russian defense industry’s capacity and willingness to innovate. With the military leadership deeply dissatisfied with the performance of defense industry companies and bash- ing the industry in the media, industry leaders have responded by pointing at the numerous shortcomings at the Ministry of Defense (MoD) decision-making process, especially on the ministry’s inability to formulate reasonable requirements for new types of equipment. These struggle has ultimately resulted in a change of MoD leadership and another round of reforms started in 2012 that affect the military equipment pricing system and the whole defense- related R&D system. A new body, the Advanced Research Foundation, was created to coordinate defense-related research. The military is “MoDifying” its weapons procurement planning system. If successful, these reforms can create favorable institutional conditions for a revival of defense industry innovation in Russia. A number of macroeconomic and internal policy factors can significantly affect the process of that revival. The Russian defense budget since 2000 has risen from 2.63 percent of GDP to 3.2 percent of GDP in 2013. Currently it stands at 2.14 trillion rubles (US$65 billion) and further increases are expected. Russian leaders do consider defense modernization one of their budget priorities, allocating more that 16 percent of total government spending to the military. But in an economic crisis they will cut defense spending to maintain the high level of spending on social security nets. With its close dependence on ties with the European Union (more than 50 percent of trade volume), the Russian economy is starting to stagnate: GDP growth in the first half of 2013 was just 1.6 percent. With both the This series of research briefs provides analysis based on the work of participants in the IGCC project “Comparing Defense Innovation in the United States, China, Russia, and India,” generously funded by the Ford Foundation." @default.
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• W770839778 date "2014-01-01" @default.
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• W770839778 title "The State of Defense Innovation in Russia: Prospects for Revival?" @default.
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