Russian manufacturing in the competitive electronics industry

This paper focuses on the future competitiveness of one particular industry in Russia, namely electronics production, highlighting the importance of both industry-specific and infrastructural factors in the analysis of post-Soviet performance. The paper commences with a survey of the political and economic factors which have influenced the development of the Soviet electronics industry, and then provides information on recent changes in the Russian electronics industry using case research and published materials. This information shows that as a consequence of reduced demand, the capacity of this strategically important industry has been rapidly contracted, using rationalised facilities in fewer geographical locations. The paper concludes with the view that adequate government support and inward investment will be necessary to provide a basis for survival in a radically reduced Russian market, the achievement of successful export activities in China, and sales to selected Western markets. The latter can be achieved through production and distribution agreements with Western partners.