Problems of Creating Demand for the Products of the Russian Defense Industry in the Context of Macroeconomic Instability and New Challenges

Abstract

The presented study examines the problems of creating demand for the civilian products of the Russian defense industry in the current context of macroeconomic instability and new challenges.Aim. The study aims to identify the problems of creating demand for the civilian and dual-use products of Russian defense enterprises in the current context and to analyze foreign and Russian experience in solving these problems.Tasks. The authors examine priority directions for the “civilian” diversification of Russian defense enterprises, the goals and objectives to achieve them, analyze problems at the current stage of diversification, explore the international experience of diversification, offer directions for the improvement of the process of creating demand for the products of the Russian defense industry in the face of new challenges, particularly the coronavirus pandemic.Methods. The methodological basis of this study includes the systems and institutional approaches, methods of analysis and synthesis, comparison and analogy.Results. It is shown that at this stage of “civilian” diversification of Russian defense enterprises, not all branches and enterprises of the Russian defense industry have reached their goals, reoriented production, produced competitive products and sold them. Under modern conditions, the main problem of expanding the output of civilian and dual-use products by domestic defense enterprises is the complexity of the output and leadership of civilian products of the Russian defense industry. The authors prove that enhancing the competitiveness of the dual-use and civilian products of defense enterprises through the implementation of innovative potential in domestic practice and its leadership in both domestic and foreign markets is becoming a prerequisite for efficient diversification in the context of new challenges.Conclusions. The study substantiates that “civilian” diversification in domestic practice under modern conditions requires a differentiated approach to the enterprises and branches of the Russian defense industry as regards creating demand for civilian and dual-use products from the government and business, with allowance for foreign experience and new challenges.