ABSTRACT
Russian industry, and especially the defense industry, must be drastically restructured in order to revive the industrial sector of the economy. Conversion in Russia must be considered in the context of an economy with a disproportionate amount of heavy industry, centralized planning, overstaffing, obsolete equipment and methods, and a shortage of capital. The American industrial model, which is submitted as illustrative and successful but not necessarily as optimum, involves a modest number of large companies and a very large number of small to medium-sized companies. Small high-technology companies can eventually perform the functions in Russia although they are limited by the inchoate nature of the market economy and its commercial infrastructure. Intellectual property is an issue that could cause problems in the future. The Boeing Company opened the Boeing Technical Research Center in Moscow to work on experimental and analytical problems in aviation and aerospace.
