Business Program Events

The high point of the second day of the International Engineering Technologies 2012 Forum was conference Role of the Defense Industry Complex in Modernization of the Country and Society held under the guidance of Dmitry Rogozin, Deputy Chairman of the Government of the Russian Federation. Speeches of managers of the largest engineering enterprises and corporations, public persons, politicians, and leading specialists reflected not only problems facing the defense industry, but also ways of solving these problems.

Speaking of the role of the defense sector in the country life, Dmitry Rogozin reminded that the necessity to diversify the country economy had been actively discussed since the nineties. “Many words were spoken that we should not be on the oil and gas addicts. But little has been done for it,” he said. In his opinion, today Russia has the chance of a lifetime to launch new industrialization. And it is the defense sector to be the engine for such industrialization.

As for development paths of the industry, Rogozin mentioned some key factors which, in his opinion, could determine the success. First of all, there is a need to determine the lines of researches and to lay the scientific and technical groundwork for them. “Today we don’t have any right to drag and blindly copy ammunitions of the West. It is not the way to catch up with them. We need to overtake them on a curve. And we should set ourselves ambitious tasks to do it,” he said. Deputy Prime Minister emphasized such potential directions for the breakthrough as supersonic technologies and artificial intellect which will make it possible to create unmanned aircraft.

Turning back to the problems in relations between the defense sector and the society, Dmitry Rogozin underlined that “today we need the support from every member of the society while the subjects at issue in the defense industry are political issues of high level.”

Vladimir Gutenev, First Deputy Chairman of the Russian Engineering Union, First Deputy Chairman of the State Duma Committee on Industry, continued the discussion. He turned the attention to a number of systematic and industry-specific issues the solution of which is required for the defense sector to acquire the necessary growth dynamics and become able to be the engine for development of the country economy.

The rise in the profitability of engineering companies is among the key issues. To attract investments in the industry and to develop private-public partnerships it is needed to increase the profitability rate to the rates in the raw materials sector. Vladimir Gutenev considers that the minimal profitability rate to be protected by law shall be at least 15%. “Otherwise we cannot make the industry efficient,” he believes.

Aleksey Alyoshin, First Deputy Director General of the Russian Technologies State Corporation, chose the program of innovation development of the state corporation as the key topic of his speech. He underlined that the innovative capacity of the Russian Technologies included more than 220 scientific research institutes and design bureau and over 200 thousand employees. He stated that aged employees accounted for an extremely high share of researchers. So, one of the main problems is the renewal of personnel and involvement of young people in research projects. “We actively establish contacts with institutions of higher education, open our specialized departments in leading educational institutions,” Alyoshin said.

Speaking of the development projects, First Deputy Director General reminded that in 2011 the total amount of financing for research and development provided by the corporation companies was 62 billion rubles. During the first year of the Innovation Development Program, the share of expenses for research and development at the corporation companies quintupled. The number of patents increased by 17 times.

Yury Koptev, Chairman of the Scientific and Technical Council of the Russian Technologies State Corporation, followed up and developed the theme of the profitability in the defense sector. He underlined that the aircraft industry had the highest profitability in the fulfilment of orders of the state defense; according to the results of 2011 it reached 6.2%. The profitability in radio electronics is somewhat lower and comes to 3.2%. The industry of common ammunitions has the profitability at the level of one per cent; ammunition production, moreover, makes losses . He turned the attention of the conference participants to the fact that the mechanism for the implementation of federal target programs provided for large volume of non-budgetary financing. “Today entrance ticket to participate in state programs comes to 40%. But it is simply not possible to build any money balance with such profitability,” he said.

The second day of the TVM-2012 Forum saw the most of business program events. Conferences and round-table discussions were held in several specially equipped rooms, particularly with participation of foreign guests.

Workshop/meeting Formation of the Workforce Capacity for High-technology Industries – Problems and Ways of Solving Them was organized by the State Duma Committee for Industry and the Russian Engineering Union. The subject of personnel reserve training was proposed in the international workshop conference State Corporations, Higher Education Institutions and Scientific Organizations – Problems and Outlooks of Cooperation in the Innovation Field which was held by the Russian Technologies State Corporation.

The business program included the round-table discussion Military-Technical Co-operation as a Factor of Capitalization of Russia-NATO Relations organized by the Federal Service for Military and Technical Cooperation of the Russian Federation and JSC Rosoboronexport. And with it, within the framework of the Forum, the Federal Service for Military and Technical Cooperation of the Russian Federation organized conference Modern Technologies for Aftersales Service of Exported Ammunitions and Military Equipment and Their Development Based on Integrated Logistics Support Information Systems.

The Federal Agency on Technical Regulating and Metrology held conference Role and Place of Modern Quality Management Tools in Enhancement of Competitive Power of the Russian Industry in the Context of Russia’s Jointing the WTO. The integration into the World Trade Organisation was also covered during round-table discussion WTO and Modernization Perspectives of the Russian Machine Building Sector organized by the Association of European Businesses.

One of the most important factors for competitive power of Russian businesses is rating evaluation of environmental and economic efficiency. It is the conclusion reached by participants of the round-table discussion organized by the Federal Service for Supervision over Natural Resources.

June 28 also saw a jubilee conference of Moscow regional branch of LLC Russian Engineering Union and a Meeting of the Business Council at the Inter-state Commission for Military and Economic Cooperation of the Collective Security Treaty Organization.

Demonstration Program

The demonstration program of June 28 included a display of samples of ammunitions, military and special-purpose equipment at the range of Russia Transport Exhibition Complex. In addition, grenade and small-arms weapons were presented to foreign official delegations at the ranges of State Research and Production Enterprise Bazalt Federal State Unitary Enterprise and TsNIITOChMASh Federal State Unitary Enterprise.

The Second Day Events

On the second day of the Forum Novikombank, a strategic partner of TVM-2012 Forum, and Expatel signed the Memorandum of Understanding and Cooperation. In accordance with this memorandum, the parties expressed their readiness to continue the cooperation in various areas of financial service. Besides, Novikombank will realize the payroll card program for OOO Expatel employees. Novikombank will also participate in design of financial mechanisms for implementation of working programs of its client.

Presentation of Tranzas Group became the one of the most remarkable events organized for media representatives. In the course of the TVM-2012 Forum, the leading manufacturer of training systems presented the package of innovative solutions for the defense industry, security agencies and oil and gas complex. Shown were integrated a navigation safety system in the areas of sea shelf development, a borer automated workstation simulator, complexes with  D-100 and Filin-2 UAVs. The company’s exposition specially features the package for creation of a single virtual battle field and training of security agencies’ units. Journalists were able to have a look at the novelties and participate in press conference; in addition, they seized the possibilities of the electronic trainer for marksmanship practice and operational coordination of units.