Russian Defense Enterprises and the State: In Search of Effective Interaction

Abstract

The article summarizes the results of twenty years’ reforming of the Russian defense-industrial complex. The analysis is based on the data of the monitoring of Russian defense enterprises, conducted in 1995—2007. The main output of reforms: the effective economic mechanism of the sector’s development has not been created, defense enterprises have remained not fully reformed. The state, as a basic owner, has hampered their inclusion in market processes. Real management has been passed into the hands of directors of the enterprises, but their possibilities are limited due to the absence of industrial policy and the accurate military doctrine. So they share the opinion that it is necessary to continue reforms in the sector.