Networking in the Russian aerospace industry

Abstract

AbstractThis paper examines and explains the nature of networking in the Russian aerospace industry under the centrally administered innovation system and the impact on the network of the changes that have arisen post‐perestroika. The context, pre‐August 1991, was a centrally administered innovation system with the dominance of the military in resource allocation in a ‘shortage’ economy.The network was made up of the ministry of defence, design bureaux, manufacturing plants, research institutes, specialist universities and testing centres and the Aircraft Certification Authority. The focal actor was the aircraft design bureaux.The role and relationships between the actors concerned with aircraft design, development, manufacturing and marketing are determined by the activities that they perform in the seven stage innovation process, the resources available and the strategies that they adopt.Post‐perestroika the need for new customers, international certification, western collaboration, and the presence of supply chain disruption and the funding crisis are reshaping the network. The new actors, post‐perestroika, include new customers, financiers, the Department of Aviation Industry, International Certification Authorities, the ICAO and ‘nearest and furthest abroad’ subcontractors. A major change has been the linking together of the design bureaux, aircraft manufacturing, engine and avionics plants, subcontractors, financial institutions and aircraft export agencies into joint stock Complexes, or Financial Industrial Groups (FIGS).