“Innovation Systems in Transition: Preconditions for Success”: The Electronics Sector in the Former Soviet Union

Abstract

During the Soviet period, the microelectronics industry in the former Soviet Union (FSU) owed its existence to the political and military objectives of the Communist Party. Consequently, investment in the industry was planned to meet the security needs of the Cold War international environment. Since the breakup of the Soviet Union, there has been a reduction in emphasis away from the mass production of electronic devices suited to military and defense needs. The emergence of a huge rise in consumer demand for non-Soviet electronic goods has prompted a fundamental shift in production regimes to meet civilian, customer demands rather than military, political objectives. The electronics industry is being re-created because its original raison d’être has disappeared. In the process, many issues facing other sectors and countries during the transition are borne out. This article assesses the potential for innovation in the microelectronics sector in the FSU.