scholarly journals A Defense Industry Economy: The Concept of Dual-Use Technologies (Spin On & Spin Off) as an Effort to Accelerate the Independence of the Indonesian Defense Industry

2021 ◽  
Vol 3 (2) ◽  
pp. 135-153
Author(s):  
Endro Tri Susdarwono

The purpose of this study discusses the concept of dual-use technologies (spin on and spin off) in an effort to accelerate the economic independence of the Indonesian defense industry. This research is a qualitative research, the type of research uses a comprehensive analytical study and analytical normative approach. The development of defense technology in addition to aiming at production independence that can compete with other countries' products, must also provide a multiplier effect. The strategy is clear: optimize the added value of the defense industry. To that end, the first step that must be taken is to encourage import substitution for the defense industry and, after the industry develops, the final step is to commercialize or spin off the spillover effect or defense industry multiplier effect in the form of products that can be used for civil benefit. Defense provides a direct advantage of technology and its influence on other sectors, where the spin-off is used by the civil sector which can increase growth. In developing countries, defense spending can increase growth if some portion of expenditure is used for the provision of social infrastructure. Defense spending provides protection for citizens, where internal and external security will increase exchange in the market.

2020 ◽  
Vol 11 (5) ◽  
pp. 34
Author(s):  
Dang Thi Viet Duc ◽  
Dang Huyen Linh

This article applied the input-out table (IO) analysis to estimate the linkages of ICT sectors to the Vietnam economy. In this article, the shared output requirement of ICT sectors is analysed to the multiplier effect, inter-sector feedback effect, and spillover effect. The research also examines the induced increase of ICT's output to the final demand of ICT sectors and non-ICT sectors. The results show that although the impact of the domestic ICT sectors in the Vietnam economy increases through time, it is generally not outstanding in comparison with other sectors. The ICT manufacturing sector is rather self-sufficient, stimulating import rather than added value for the domestic economy. From both the intermediate and final demand inducement, ICT media, content and ICT services sectors reveal their significant diffusion and critical inter-sector relationship with other ICT and non-ICT sectors in the economy. The paper also provides policy implications for the future development of ICT in Vietnam.


2021 ◽  
Vol 255 ◽  
pp. 01032
Author(s):  
Denys Lisovenko ◽  
Nadiia Burdeina ◽  
Oleksandr Fedchenko ◽  
Stanislav Nikul ◽  
Viacheslav Holovan

The study is devoted to the problem of financial regulation of the defense industry and the provision of troops, as the escalation of the military conflict in eastern Ukraine has revealed shortcomings in this area. A comparative analysis of NATO and Ukraine’s defense spending was conducted and differences in the cost structure were identified. The tendency of Ukraine’s defense spending to gradually approach the structure of NATO defense spending is pointed out, but the insufficient level of this approach is also taken into account. The analysis allowed to identify problematic issues and inconsistencies in the financial regulation of the defense industry. The state of export of defense equipment and technologies as a possible source of financing of defense enterprises is analyzed. The existence of two opposite trends in the financial regulation of military logistics has been identified: both an increase in funding in absolute terms and a reduction in the share of the total amount for the implementation of the unified logistics system of the State Armed Forces Development Program. The developed mathematical model of supply of military units is suitable for use in information systems of logistical support of troops.


2020 ◽  
Vol 12 (4-2) ◽  
pp. 277-290
Author(s):  
Natalia Bozo ◽  
◽  
Ekaterina Malysheva ◽  
Nadezhda Filatyeva ◽  
◽  
...  

Machine building is a leading industry in advanced countries. It provides many industries with machines and equipment as it is the main link in the system of intersectoral linkages. Innovations in engineering create the basis for increasing production and qualitative changes in the structure of industry, that creates a synergistic effect for the economy as a whole. Thus, it secures full employment for highly skilled employees, promotes the growth of the level of educational background of the population and contributes to the development of the scientific and technological potential of the country. However, underinvestment in innovation technologies and processes, a limited character of the import substitution model and an insufficient support of the export model greatly hinder rapid and effective development of the machine-building industry. Specific peculiarities of the machine building development such as R&D intensity, labor intensity, and the intensity of metal use, the need in cooperation and consumer orientation influence their geographic location. Despite the decline in the number of enterprises and employment in the machine-building industry, the industry’s contribution to the GVA is stable. At the same time, the state’s interest in the development of all sectors with high added value will influence the future of engineering. In statistics innovative activity in mechanical engineering began to be considered relatively recently. The highest rates of innovation are high-tech engineering. The state’s share in supporting innovation in both manufacturing and engineering is increasing. The coefficients of specialization are calculated for all Federal districts and each of the 85 subjects of the Federation for the period from 2007 to 2017. Calculations were carried out for all types of economic activity, according to the classifier of OKVED. The specialization industries for each of the regions are identified. The group of regions where engineering is concentrated is defined. These 19 regions did not change their industry of specialization during the analyzed period from 2008 to 2017.


2021 ◽  
pp. 34-42
Author(s):  
Veronika Vladimirovna Zhoglicheva

Develop a strategy of import substitution in the manufacturing industry, aimed at creating a competitive hightech industries, should be implemented at the enterprises of the domestic industry at the expense of own and borrowed funds investors, with the introduction of a series of restrictive measures of state regulation of TTR in order to protect the domestic market from foreign products with high added value. Customs payments must serve as a stimulus for the development of its own domestic industry. Effective use of the tools of customs and tariff regulation should be an important factor for economic development and a necessary condition for the existence of a strong state.


2020 ◽  
Vol 1000 ◽  
pp. 447-453
Author(s):  
Hafid Abdullah ◽  
Sri Bimo Pratomo

The use of local raw materials for the manufacturing of import substitution casting products on investment casting technology has been done. Compared to the conventional casting process, investment casting has the advantage of being able to create a sophisticated casting product and produce a product that is near net shape, so it is no need machining process. The objective is as an effort to find an alternative method of making a quality casting product, has high added value with the utilization of local raw materials which available in Indonesia so that it can reduce the cost of production and dependence on imports of industrial raw materials which are very expensive in the investment casting process. The method of making casting products with investment casting process, including: pattern making, mould making, dewaxing, melting, pouring, finishing and testing. Investment casting technology has been successfully applied to the manufacture of rocker arm, impeller pump and turbine blade with the utilization of local raw materials ie: epoxy resin as a substitute for metal pattern, mixture wax of paraffin, and celo resin for the pattern of wax and zircon sand of Bangka island as coating slurry for ceramic mould. The discussion of this paper is expected to be a case of developing other casting products needed by Indonesia for industry such as: medical equipment, agricultural equipment, textile equipment, gun and small armaments, electronics, automotive and electrical components etc.


Author(s):  
N. A. Kurmanov ◽  
A. T. Uskelenova ◽  
M. M. Ospanov ◽  
A. Ye. Rakhimbekova

This article discusses the development of production processes in the context of integration, which makes it possible to increase the competitiveness of the industry, concentrate production, money and commodity capital, increase the speed of production, introduce innovations, produce products with high added value and enter the world markets. The features of the growth of the machine-building industry, which determine the energy and material consumption of the economy, labor productivity, the level of generation of innovations, the level of environmental safety of industrial production and the economic security of the country, are analyzed. Revealed and substantiated the need to focus on the “complication” of the national economy and diversification of those industries that give the maximum multiplier effect and high-quality economic growth. On the basis of the conducted research, the author proposes to activate the innovative development of mechanical engineering as a driver of industrialization in Kazakhstan. The need for the growth of domestic mechanical engineering, which provides the country's economy with means of production, promotes the development of all manufacturing industries, fuel and energy, transport and logistics, extractive sectors of the economy and agriculture is revealed and substantiated. On the basis of the study, the author proposes to highlight the multiplier effect, reflecting the degree of influence of a particular industry or sector on the growth of the economy as a whole by creating additional demand in other industries and sectors of the economy, and, consequently, jobs. The success of the development of mechanical engineering is determined in the proposed directions for increasing state support and stimulating the industry.


2021 ◽  
Vol 19 (4) ◽  
pp. 55-60
Author(s):  
T. A. Berkutova ◽  
S. S. Golubev ◽  
A. V. Makhova ◽  
B. A. Kovtun

The paper presents an overview of the problems faced by the enterprise of the military-industrial complex in the process of diversification when identifying market needs, searching for directions and opportunities for the promotion and sale of civilian and dual-use products. One of the key constraining factors of diversification is the lack of market competencies of the personnel of defense industry enterprises. In the current conditions, the skills of market segmentation and positioning of goods and enterprises, management of trademarks and brands, creation of intangible market assets, formation of business partnerships that allow entering the markets with competitive goods in a short time, ensuring the flexibility of enterprises and reducing the time to enter the markets of civil products become relevant. The condition for the successful implementation of the diversification strategy is the formation of market competencies: strategic analysis and market research, product portfolio management, the formation of product, price, service policy, the implementation of competitive strategies, the development of marketing services: the creation of divisions focused on working with the markets of civil and dual-use products, the development of new functionality for marketers, ensuring the interaction of production, technological and marketing services within the framework of meeting market needs. The development of market competencies will make it possible to realize the production and technological advantages of defense industry enterprises in the process of diversification and ensure: access to new markets for civil and dual-use products; targeted actions in existing markets; increasing the competitiveness of civil and dual-use products and defense industry enterprises in the markets; increasing the degree of adaptability and mobility of defense industry enterprises in the markets of civil and dual-use products to environmental conditions, reducing the response time to market requirements; solving socio-economic problems through broad integration with the high-tech civilian sector of industry.


Author(s):  
Keisuke Iida

The linkages between security and economics are complex and have been discussed in the literature of various fields, thus defying simple classification and integration. This chapter presents a taxonomy that divides various topics into two sets of policies: policies pertaining to military power and those related to bargaining power. For example, defense spending and burden sharing in alliance, which are standard topics in the economics of defense, are categorized under the first set of policies. Export controls, which are usually discussed in entirely different contexts, are also categorized under this set. On the other hand, economic sanctions, which are a standard fare in international relations, are categorized under the second set of policies. This chapter presents the argument that security crises and dual-use technologies tie both sets of policies together. By seeking greater autonomy, Japan is engaging in a severe trade-off between strengthening their military forces and bargaining power and other foreign and economic policy objectives.


Author(s):  
Anna S. Vikhrova ◽  

Maintaining the current model of building a business in the military-industrial complex (defense industry) does not allow concentrating the resources of enterprises producing final products on key competencies: R & D, assembly, sales and service, that is, at the main stages of the full life cycle of products that bring the most added value. On the other hand, the low load of auxiliary units of these enterprises, due to the mismatch of existing excessive production capacities with the volumes of the declining state defense order (SDO), makes the property and legal separation of such units relevant in order to optimize their economy. At the same time, the long-term orientation towards the main customer — the Ministry of Defense of Russia — as well as the peculiarities of economic legislation in the field of defense industry led to a shortage of market competencies among the personnel of defense enterprises and the inability to work in conditions of competition in the civilian product market. These circumstances limit the competitiveness of products, not only civilian, but also military. As a result, there is a contradiction between the objective need to mobilize resources to maintain the potential of the defense industry by diversifying its enterprises, increasing the competitiveness of products and the state of their production subsystems, which hinders the solution of these tasks. The article considers the main provisions of the author’s concept of reforming the production subsystems of defense enterprises based on the wide use of the principles of industrial engineering with an emphasis on the content of the procedure for their transformations, carried out using one of the modern methods for finding optimal solutions embedded in the theory of constraints(TOC).


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