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Issue № 71. December 2018

Digital Economy Is a Challenge for Defence Industry

Maksim Y. Mazur

Postgraduate student, School of Public Administration, Lomonosov Moscow State University, Moscow, the Russian Federation.

Information and telecommunication technologies development has led to its penetration into new spheres of life. The idea that information technologies can completely change the way the economy functions has shaped the notion of "digital economy". Digitization of individual company’s and then whole industries’ economic activities gives an opportunity to solve the fundamental economic problem of disproportionate economic development. That means the manufacturer can adjust the amount of production according to customers’ needs in real time (economic cyber system). Due to the fact, that economic cyber system must be comprehensive (cross-sectoral), only national government can deploy it in the economy with the help of large amount of resources and political will. The state which will implement economic cyber system first will gain a huge competitive advantage in international trade. At the same time, defence industry can provide protection for the created information infrastructure from the destructive actions of competing states. Defence industry enterprises have to digitize their own production process, and then integrate into digital interaction with their counterparts and government. At the same time these enterprises should arrange the production of goods that will ensure security and sovereignty of the state in the digital age. Taking into account the fact that these tasks are colossally complex, the transition to a digital economy for the defence industry is a challenge comparable to the creation of nuclear weapons or the invention of gunpowder.


Digital economy, public administration, defence industry, economic development, industrial automation

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