Transition of the Russian Rocket and Space Industry

Abstract

Abstract

This article is written on the threshold of a significant reform in the Russian rocket and space industry (RSI). Changes in governmental goals and industry performance have driven the need for change. Viable industry structure options for the Russian RSI differ from those in the United States and Europe for many reasons. These include the conflict between the traditional perceptions of the established industry participants and the revolutionary expectations and unorthodox practices of new entrant firms. The two industry groups are discussed and compared within the context of how the industry previously functioned and how it might function in the future. To assist with the transition, governmental change agents of industry have been created in many forms and with different levels of influence. One such change agent is the Skolkovo Foundation, a hybrid organization encouraging innovation and development of a healthy external climate for businesses to grow in important industry sectors, including space and telecommunications. Three options for an industrial structure deemed politically and culturally suitable for the current state were proposed. One of these options was selected and has established a plan for Russia's RSI transformation now in progress. The article text reflects the status of the industry transition as of the fall 2014.