Subject The paper considers the performance of defense industry enterprises from various perspectives. Objectives The aim is to test a number of hypotheses regarding the spillover effects on the performance of enterprises operating in the defense industry. Methods The methodology of the study rests on the concept of spillover effects, which will enable to assess the cross-flow of contracts among enterprises, taking into account public ownership. We also applied econometric modeling. Results The findings show that the greater the number of employees in the company, the more efficiently the company operates. Enterprises with high State ownership are less efficient and their revenues are lower. Contracts and banks have a spillover effect on the activity of the defense industry companies. Conclusions The current contract base also proved to be a significant factor, though in 2014 its influence decreased twofold, possibly due to over six month delay in payments on the part of Western banks as a result of sanctions. In 2014, the payment for Rosoboronexport deliveries was by 2 billion USD less than it was due, according to RBC.
Keywords: defense industry complex, innovation efficiency, operational efficiency, sanctions
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