Subject This study analyzes changes in performance indicators of the military-industrial complex through the expansion of civil high-tech production. The reasonable combination of military and civil production will enable defense enterprises and entire sector to increase their effectiveness. Objectives We examine practices of the countries which attained the best results in diversifying the military-industrial production. We also evaluate how the civil production and respective output influence performance indicators of the military-industrial complex. Methods Analyzing the most advanced countries’ expertise (USA among them), we study how the expansion of civil production influences performance indicators of the military-industrial complex. Results Increased output in civil production is showed to influence and improve performance indicators of the military-industrial complex. Conclusions and Relevance We prove that both expertise of the most advanced countries and Russian distinctions should be taken into account in order to successfully implement the production diversification program. As the analysis of the U.S. aerospace industry shows, an increase in civil production output contributes to performance indicators, thus providing the rationale for diversification of the Russian military-industrial complex. The military and industrial enterprises shall set up market-oriented manufacturing of civil products, majoring in high-tech lines. The civil production output will not increase without an appropriate industrial and protectionist policy focused on the priority development of domestic mechanical engineering.
Keywords: reform, military industrial complex, national security, civil production, performance indicators
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