Dual-use Products Research Articles

DEVELOPMENT OF DEFENSE INDUSTRIAL COMPLEX ENTERPRISES IN CONDITIONS OF DIVERSIFICATION

The article analyzes the relevance of diversification processes for the modern military-industrial complex of the Russian Federation and the difficulties that domestic enterprises face on the path to their deployment. The relevance of the study is due to the role that the military-industrial complex (MIC) plays for the future of the country in general and for its economic dynamics in particular. The study uses modeling methods when forming a model for constructing the interaction of a large regional defense industry enterprise and the external environment, analysis to substantiate the effectiveness of the development of diversification processes implemented in the defense industry enterprise, a scenario approach, when predicting the development of diversification processes based on the object of study and determining its inertial, optimistic and pessimistic development scenarios. It is noted that increasing the production of civilian and dual-use products can become a guarantor of long-term operation for defense enterprises, as well as a path to ensuring their own technological sovereignty and contribution to the technological sovereignty of the country. The question is raised about the optimal way to build integration interaction between defense industry enterprises and other economic entities along the path of diversification processes. The concept of entrepreneurial ecosystems is proposed as the basis for such interaction. A model is presented for the formation of an entrepreneurial ecosystem in the military-industrial complex with the participation of local development institutions, industrial partners, universities, and small and medium-sized businesses. Using a particular example, a conclusion is drawn about the economic feasibility of introducing this model. The obtained materials can be useful to defense industry enterprises in the process of developing programs for the diversification of military production and the development of dual-use technologies.

On improving value chains by integrated companies

The article analyzes the development processes of integrated companies taking into account globalization processes. Three trends are shown that are changing the competitive environment of an integrated company, and the need to regularly normalize financial and economic indicators is stated. The driving forces of competition that ensure accelerated industrial production of high-demand military and dual-use products are examined. These forces ensure the attractiveness of the products of the enterprise (company, firm) and the industry as a whole in the domestic and world markets. It is also important to concentrate the firm’s efforts on developing those technologies whose impact on costs or differentiation will be the longest. It is especially advisable to orient the strategy of enterprises of the military-industrial complex (DIC) of Russia towards technological leadership. The choice of a position as a technological follower should also be considered as a conscious and active strategy. When developing a technology strategy, it is critical to evaluate technological trends in your chosen area.

Prospects for the creation of a conversion-cluster high-tech sector of the economy for the production of dual-use products and the diversification of technologies for the agroindustrial complex

The article considers the scientific and practical aspects of creating a conversion-cluster high-tech direction of the economy to assess the potential of using military industry products in the agroindustrial complex, creating dual technologies, as well as developing approaches and mechanisms for their implementation. The research is based on the principle of making full use of the potential of digital and high technologies created by the military-industrial complex and other sectors of the economy, which can be effectively used in agrоindustrial production. Conversion allows you to significantly reduce the costs and time lag for the implementation of application solutions already developed and used in other environments.

Method of autoregression in application of singular-spectral analysis of time series for forecasting production of oil and gas industry products

More and more time series data are produced in various fields. It provides data for the research of time series analysis method, and promotes the development of time series research. Due to the generation of highly complex and large-scale time series data, the construction of forecasting models for time series data brings greater challenges. The theoretical aspects of using the model of singular-spectral analysis of time series with the use of autoregression are considered, and the justification of the expediency of using this model for forecasting the production of products for both the oil and gas industry and dual-use products is given. Both autoregressive model and decision tree model can be applied with the same degree of reliability for forecasting aggregate values of production.

A synergetic approach to the development of the economic potential of the aviation complex enterprises

The potential of aviation enterprises makes it possible to increase the volume of development and production of aviation equipment, in particular: regional passenger and transport aircraft; aircraft engines and units; on-board radio-electronic equipment aimed at the use of satellite communication, navigation and observation systems; helicopters and general aviation aircraft, including unmanned ones; military goods and dual-use products. It is substantiated that the harmonization of the modern system of state regulation of the integration of the foreign trade sector of Ukraine into the EU should be carried out based on the fact that the parties have excellent reasons for forming an integration association. The consistent implementation of worldview and methodological procedures for maximizing the use of potential is, first of all, a tool for overcoming the low level of economic development, efforts through unification to create better conditions for the industrialization and development of aviation enterprises, the possibility of qualitative transformation of the foreign trade sector by attracting foreign investments and high technologies. This approach should contribute to the fundamental restructuring and diversification of export supplies, increase the opportunities to use positive development trends, and increase the level of international competitiveness of domestic economic entities. The results of the diagnostics of aviation enterprises made it possible to reveal the expediency of forming a new structure of interaction of enterprises and systematizing them into an aviation complex, which is considered as a set of organizations involved in the development, testing, production, sale, operation, modernization and repair of aviation equipment, which form several interconnected clusters.

NEW CHALLENGES IN THE OPERATION OF UNMANNED AERIAL VEHICLES. CHANGES IN LEGAL REGULATIONS REGARDING THE SAFETY OF UNMANNED AVIATION

The extremely dynamic development of civil aviation in recent years has simultaneously contributedto the growing popularity of unmanned aerial vehicles (UAVs), which have taken over air traffic inthe areas of protection and security of the population and, since the armed conflict in Ukraine, havealso been put to use as dual-use products in military operations. However, one must bear in mind alsousers who fly drones for private and recreational purposes. Such a rapid growth in interest caused thenecessity of introducing regulations that would enable their safe design, production, maintenanceand operation in the EU. Thanks to these requirements, the civil aviation authorities in the EU havemade every effort to create a solid legal framework for the operations of UAVs, keeping up with theirrapid technological development, minimizing accidents that involve flight participants and reducingthe risk of material damage or safety of bystanders present on the surface.The authors adopted the assumption that aviation safety regulations are excessively conservative.The first part of this hypothesis is not a revelation, the rule being that legal regulations are delayedin relation to the dynamics of technological progress in this field. The second is an open questionregarding the need for greater liberalization in the field of unmanned flights.

USA export control system for dual-use products

Export control — the permissive and prohibitive (licensing) procedure for carrying out foreign economic operations in relation to certain goods and technologies — occupies an important place in both the foreign economic and foreign policy of the United States. The analysis of the export control regime over dual-use products deserves special attention. The United States considers technological leadership as the basis of national security and an essential component of maintaining national competitiveness. It was in this area that the main changes took place throughout the post-war period. Currently, the development of this regime is undergoing another tightening cycle. The article analyzes the evolution of priorities and legislation of the American policy of control over the export of dual-use items, examines the transformation of the system of rules in this area in the light of new US approaches to national and international security issues, the actualization of foreign policy objectives. It is considered how the specifics of the regime allows the United States to widely use it as sanctions.

DEVELOPED MILITARY ECONOMY AS A COMPONENT OF UKRAINE’S NATIONAL ECONOMIC STRATEGY

Purpose. The principles, strategic goals and directions of the development of the military economy in the structure of the national economy and its influence on the formation of the military-economic policy of the state to ensure its modern military-economic security have been determined. Design/methodology/approach. In the article, the author used the following methods: analysis and synthesis – to analyze modern trends and generalize their impact on the formation and development of the military economy; systemic method – to reveal the essence of the military economy through the prism of the formation of military-economic potential and national security; statistical – for ranking the most powerful armies in the world and outlining the military and economic potential of Ukraine; comparison – to determine the volume and share of military defense expenditures of a number of states and the volume of sales of weapons and military services in the world in a geographical dimension; strategizing – for the formation of strategic goals of the policy of the national economy of Ukraine; generalization – when formulating conclusions and recommendations. Based on a review of the literature, the author determined the goals of analyzing the indicators of military and defense spending among a number of countries in the world, the dynamics of sales of weapons and military services, and substantiated the main defense trends of governments and a number of enterprises of many states. The strategic objectives of the policy of the national economy of Ukraine considered by the author made it possible to form conclusions, the reliability of which is based on the interpretation of the indicators given in the analytical part. Findings. The a proven hypothesis that the level of spending on national defense makes it possible to guarantee a high level of military-economic security, which is the fundamental function of the state. This condition in the military-economic potential can be achieved only thanks to the formation of the military-economic concept of the state, which is based on its historical experience, on the study of similar concepts and practices of states with different economic models, which reflect scientific and technical achievements. Also, the requirement of the present and the future is the need to develop special components in the structure of the military economy of Ukraine: nuclear military industry; rocket engineering; aircraft construction; tank construction; shipbuilding; production of artillery systems, rocket launchers and robotic systems, hypersonic weapons, unmanned aerial vehicles, anti-ship missiles and medium and long-range ballistic missiles; production of small arms and ammunition; production of radar surveillance systems, anti-satellite technologies and weapons with artificial intelligence, etc. This will require a constant increase in the military budget and spending on scientific research, as a certain annual share of Ukraine’s GDP Practical implications. The results of this study are of interest to state authorities, business entities in the field of the defense-industrial complex, who seek to expand and modernize the sphere of the military economy, increase the innovative and technological level of military equipment, weapons and dual-purpose products in accordance with the conditions of competitive markets and ensure employment growth at military industry enterprises. In addition, the results can help scientists of higher education institutions to improve tools for expansion of innovative knowledge and build scientific potential in the field of military technologies. Originality/value. This study emphasizes the peculiarities of the formation of the military economy sector in the structure of the national economy and its impact on the investment and innovation activity of industrial enterprises that produce dual-use products. The outline of the defense trends of governments and a number of enterprises of many states made it possible to form the strategic goals of the policy of the national economy of Ukraine in the defense sphere. Provide recommendations to the authorities regarding the development of the military industry and the adoption of a number of institutional decisions at the state level.

Singular-spectrum time series analysis for oil and gas industry production forecasting

The article considers theoretical aspects of using the model of singular-spectral analysis of time series with the use of decision trees, and also provides justification of the feasibility of using this model for forecasting the production of products for both oil and gas industry and dual-use products. To reduce the risks of distortion of aggregated forecast values when working with large data sets, the expert should carry out preliminary manual selection and exclusion of products, the release of which has been completed or suspended.

ИССЛЕДОВАНИЕ ДИНАМИКИ ПРОИЗВОДСТВА ПРОМЫШЛЕННОЙ ПРОДУКЦИИ ДВОЙНОГО НАЗНАЧЕНИЯ НА МЕЖДУНАРОДНЫХ РЫНКАХ В УСЛОВИЯХ ГЛОБАЛИЗАЦИИ ЭКОНОМИКИ

The purpose of this study is to conduct a comparative analysis of the production of dual-use products in Russia and the EU countries, using the industrial production index as an indicator. The research methodology includes a systematic review, starting with a general assessment of the situation in the countries under consideration and moving on to an analysis of dynamics in industrial sectors. Particular attention is paid to the volume of the industrial production index, emphasizing the importance of the production of dual-use products, pricing features and its impact on the overall index. The result of this study allows us to conclude that the volumes and growth rates of manufacturing dual-use products in Russia show positive dynamics. However, to further increase these volumes, the possibility of diversifying the structure of industrial production should be considered. This conclusion emphasizes the need for a more in-depth analysis of the factors influencing the structure and efficiency of industrial production.

MODELS OF NETWORK COOPERATION OF ORGANIZATIONS IN THE PROCESS OF DIVERSIFICATION OF THE DEFENSE INDUSTRY OF RUSSIA

The article presents an analysis of the models of cooperation between organizations of the Russian military-industrial complex. A comparative analysis of domestic and foreign forms of cooperation between organizations of the defense industry, scientific organizations and organizations of the real sector of the economy has been carried out. Models of cooperation relations of organizations of the military-industrial complex are considered, the main participants of cooperation relations in the holding structures of enterprises of the Russian military-industrial complex are presented, formulations of the goals and objectives for building models of network cooperation are proposed. The results of the analysis of the consortium model of cooperation are presented, taking into account the tasks of diversification of the military-industrial complex. The comparative advantages of models of cooperation between Russian enterprises and enterprises of the countries of the European Union are considered. A comparative analysis of cluster and consortium models of cooperation has been carried out, a classification of forms and criteria for network cooperation of organizations of the military-industrial complex in the process of diversification has been developed, taking into account the current regulatory framework. The article systematizes the goals of cooperation between defense industry enterprises in the context of diversification and civil-military integration: technology transfer in the creation of innovative high-tech civilian and dual-use products, the development of new technologies, the commercialization of technologies and products, the development of a new line of activity and / or specialized competencies, a full-scale launch of dual and civilian products on the market, the development of territories; in addition, the components of models of network cooperation are proposed. As part of the development of scientific and methodological approaches, the requirements for building models of network cooperation between defense industry organizations are formulated.

Current Trends in the Austrian Armament Industry

The armament industry of the Republic of Austria from 1955 to the present day has been a small part of the country’s industry, which employed more than 15,000 people in the production of weapons in its heyday in the 1980s, but today has only about 1500 employees due to a shrinking process resulting from the lack of domestic demand and extensive export restrictions. Overall, including niche products and dual-use products, around 90 percent of the products of the defence industry are exported, generating sales of 2.5 billion euros. In total, 32,000 people are employed directly or indirectly in the Austrian security and defence sector.

Interpretation of Civilian Vs. Military Equipment in European Case Law – EU and Hungary

Abstract The regulation of products suitable for both civilian and defence purposes may seem to be a marginal area; however, it affects both inner and outer safety. We present a peculiar case of this regulation: even though the EU legal framework exists for implementation in national laws, the Hungarian authorities follow a different practice, often conflicting with the spirit of the applicable EU laws. As a result, the export and import of specific dual-use products under Hungarian law is more complicated than that intended by EU law, which restricts the ability of companies in this area to conduct their business operations. The aim of the article is to present the legal framework behind the regulations, and to demonstrate the difficulties the inconsistent interpretation of these by the applicable national authorities can cause to market participants.

Letter to the Journal Dual-Use Products in the Course of Considering National Security Exceptions under GATT Article XXI

Letter to the <i>Journal</i> Dual-Use Products in the Course of Considering National Security Exceptions under GATT Article XXI

Dual Use Items: A Whole New Export Regulation in the European Union

On 9 September 2021, Regulation (EU) no. 821/2021, of the European Parliament and of the Council, of 20 May 2021, relating to the control of exports, brokering, technical assistance, transit and transfer of dual-use items, i.e., all those products, including software and technologies, which can be used for both civil and military purposes, came into effect. The new Regulation has as its main objective (see in particular ‘Whereas (5)’ in the preamble to the Regulation) that of making the common system for the control of exports of dual-use items even more effective, to ensure compliance with the commitments and responsibilities of the Member States and of the Union, particularly in the fields of non-proliferation, regional peace, security and stability and respect for human rights and international humanitarian law. For these purposes, the definitions of ‘dual-use products’ and ‘exporter’ have been expanded and, moreover, a specific Article (8) is dedicated to the issue of technical assistance, which in the previous Regulation (428/2009) was covered exclusively in certain explanatory notes in the Annexes. The changes in this Regulation also concern the authorizations for the export from the European Union of ‘dual-use’ goods: a whole new ‘large project authorization’ (Article 2 (14) of the Regulation) has been created, which consists of an individual export authorization or a global export authorization granted to one specific exporter for a type or category of dual-use items, which may be valid for exports to one or more specific end-users in one or more specified third countries for the purpose of a specified large-scale project. This permission can relate to intra-group technology transfers and cryptography. Also with regard to the procedures for the export of dual-use items, the European Union decided to make use of the ‘Internal Compliance Programmes’, already present in other legislative sectors of the Union. Dual use export controls, authorizations, civil, military, technologies, compliance, exportation, controls, Regulation

Теоретико-ігрові та оптимізаційні моделі і методи підвищення безпеки кіберінфраструктур

Критична інфраструктура взаємозалежних сучасних секторів все більше покладається на кіберсистеми та кіберінфраструктури, які характеризуються зростанням ризиків їх кіберкомпонентів, у тому числі кіберфізичних підсистем. Тому кібербезпека є важливою для захисту критичної інфраструктури. Пошук економічно ефективних шляхів підвищення або підвищення безпеки кіберінфраструктури базується на оптимізаційних моделях і методах стабільності, безпеки та надійності кіберінфраструктури. Ці моделі та методи мають різні сфери застосування та різні напрямки, не обов’язково орієнтовані на стійкість кіберінфраструктури. Зростання ролі інформаційно-комунікаційних технологій вплинуло на концепцію безпеки та характер війни. Багато критичних інфраструктур (аеропорти, лікарні, нафтопроводи) стали потенційно вразливими для організованих кібератак. Сьогодні здійснення головної державної функції оборони і безпеки значною мірою залежить від успішного застосування інформаційно-комунікаційних технологій як сучасних конкурентоспроможних (кінцевих і проміжних) продуктів подвійного призначення, які використовують різні особи з різними цілями. Теорію ігор усе більше застосовують для оцінювання стратегічних взаємодій між нападниками й оборонцями у кіберпросторі. Для дослідження безпеки кіберпростору поєднуються підходи теорії ігор і моделювання. У кіберпросторі арсенал зброї будується шляхом знаходження більшої кількості уразливіших місць у захисті цілі. Вразливість — це слабкість у процедурах безпеки системи, проєкті системи чи його реалізації, а також в організації внутрішнього контролю, якими може скористатися джерело загрози. Динамічний характер вразливостей означає, що вони постійно змінюються з часом. Виявлення вразливості оборонцем знижує ефективність кіберзброї нападника, яка користується даною вразливістю, і підвищує захист цілі. Теорія ігор застосовувалася для вирішення багатьох проблем, включаючи розподіл ресурсів, безпеку мережі, кооперацію осіб. У кіберпросторі часто зустрічається гра розміщення, де нападник і оборонець приймають рішення, куди розподіляти свої відповідні ресурси. Ресурсами оборонця можуть бути інфраструктура безпеки (брандмауери), фінанси, підготовка кадрів. Наприклад, адміністратор мережі може шукати таке розміщення ресурсів, яке мінімізує ризики кібератак (нападів) і водночас витрати захисту від кібератак. Нападник має обмежені ресурси і зазнає ризику бути відстеженим і покараним. Проблему розподілу ресурсів у кіберпросторі можна сформулювати як теоретико-ігрову задачу з урахуванням поняття загального знання і проблеми невизначеної спостережуваності.

Managing of defence industry complex enterprises’ diversification by digital platforms

The article deals with the problems of strategic management of the diversification process of the Russian defence industry complex by digital platforms. The purpose of the study was the formation of nonlinear management systems for industrial enterprises, when using digital platforms to cooperation between the defense industry enterprises with each other, and with civilian industrial enterprises.The authors used methods of retrospective analysis, scientific methods of observing the current situation in the field of diversification of industrial production and the use of digital platforms, data collection, and methods of induction and deduction. This approach made it possible to substantiate the feasibility of using digital platforms to increase in the volume of civilian and dual-use products. The consumers and suppliers can communicate in real time to exchange services, products and information.The platforms help to quickly receive information about the products and services of counterparties, automatically analyse them and make effective management decisions on the selection of suppliers. At the same time, civilian industrial enterprises receive high-tech products in cooperation with defence enterprises. Proposals for the formation and use of digital platforms for organising cooperation can be effectively used by defence and civil industrial enterprises in the production of civilian products and dual-use products.

Russia on the Latin American market of military equipment

Military-technical cooperation is an important part of bilateral relations between Russia and the countries of Latin Caribbean America. In some cases, it can serve as a start, a precedent for the development of contacts in other areas as well. This promising area of interaction with the countries of the region has not been studied sufficiently in Russian Latin American studies. In the context of accelerating technological progress, the emergence and promotion of new types of military and dualuse products, and regular changes in the political situation in the region, the Center for Analytical Studies of the Institute of Latin America of the Russian Academy of Sciences (ILA RAS) held a &amp;quot;round table&amp;quot; on the topic &amp;quot;Preconditions and factors for strengthening the positions of Russian exporters in the Latin American market of military equipment and security means”, which was attended by employees of the ILA RAS, the Department of Ibero-American Studies of the Peoples&amp;apos; Friendship University of Russia (RUDN University) and other experts. Discussing of the general situation on the arms market in the region and in the world, the peculiarities of equipping the armed forces of the LCA countries, the prospects for the military-technical cooperation of the states of the region with Russia and its main competitors was intended to initiate a systematic study of this topic. We present the readers an overview of the reports of the round table participants.

Accounting of logistics costs and their impact on pricing

In the context of a rapidly developing modern market economy, the country, represented by the military-industrial complex, is systematically faced with the problem of a global difference in pricing and the size of prices of the same product, provided that it is sold for different customers – for civilian consumers and for consumers of the military-industrial complex. In this study, an attempt is made to comparatively analyze the stages of price formation for dual-use products in the context of all items of the calculation. The costs of transportation of products are considered, as well as interaction with logistics companies. The legitimacy of the application of the regulatory framework is assessed, as well as various methods of forming the price of products. The study is carried out using the example of three fundamentally different conditions for the supply of dual-use products: 1. to the domestic market for civilian needs, 2. in the interests of the State Defense Order, 3. export sales. Based on the results of the work, it was proved that the differences in the final prices in the conditions of normative legal regulation and control by the military representative offices, set by the state, are substantiated and justified, and the pricing methods require more detailed elaboration.

Improving the efficiency of customized production for personalized engineering products at defense industry enterprises based on its configuration management

The configuration managing technology of products configuration and the production system in order to increase the efficiency of designing and manufacturing personalized engineering products is considered. A semantic model of conjugation of the product configuration and production system configuration, formed on the grounds of defense industry enterprises (DIE), is proposed. An analysis orders algorithm for the manufacture of civilian products at DIE at the stage of preparing tender documentation is developed. Keywords defense industry enterprise, configuration management, civilian and dual-use products, import substitution