Changes in the Product Portfolio of Defence Contractors: Global Experience and Opportunities for Russia

Abstract

The paper reviews the global experience in changing the defence contractors' product portfolios and identifies the conditions for intensifying diversification in Russian defence industry and promising ways to overcome the obstacles to defence contractors' restructuring. The information basis of the research included the works by Russian and foreign defence industry scientists and practitioners and the data from the Stockholm Peace Research Institute. The article analyses the pattern of the public funding allocated to the nuclear weapons complex and applied defence research. It later examines the global experience in conversion and diversification of military production. The authors propose possible directions for solving the problems faced by defence contractors on their way to diversified and efficient production with regard to the current operational environment in Russia and the requirements to boost the companies' innovative processes. The paper then describes the aims, advantages and disadvantages of conversion forms. The results of the research lay the ground for the methodological framework for developing recommendations to assess and improve the efficiency of innovative processes at defence contractors.

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