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Deputy PM: Defense industry must integrate in civilian sector

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Russia's defense industry must increase its integration in the civilian sector of the economy, the defense minister said Monday.
MOSCOW, December 18 (RIA Novosti) - Russia's defense industry must increase its integration in the civilian sector of the economy, the defense minister said Monday.

Speaking at a meeting of the Military-Industrial Commission under the Russian president, Sergei Ivanov, who is also deputy prime minister, said the share of civilian production in the defense industry has been increasing too slowly - from 42.3% in 2002 to 46% in 2005.

"It is important to determine ways to develop a high-tech diversified domestic economy [in Russia]," Ivanov said. "I believe this could include the close integration of the defense industry into the civilian sector of the economy, on the basis of innovative development."

"We must ensure that at least 15-20% of all technical innovations developed in the defense industry are widely used in the civilian sector, including for commercial purposes," Ivanov said.

He said the defense industry showed an average production growth rate of 7% in the last five years, while overall industrial production grew by only 4.5% during the same period.

In addition, the defense industry accounts for 70% of all scientific and research output in the country, and employs more than 50% of all researchers, the minister said.

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