Innovation Management in Electrotechnology in the USSR

This working paper is one small part of IIASA's effort to study innovation in a comparative way. Dr. B.I. Fomin, Director, Electrosila Corporation*, Leningrad, and Dr. A.G. Medvedev, Leningrad Institute for Engineering Economics**, wrote the paper, which is a complement to WP-87-54, written by T.H. Lee and R.L. Loftness, on electrotechnology innovation in the USA. Dr. Fomin and Dr. Medvedev describe the role of electrotechnology in Soviet industry, and the peculiarities of its innovation environment. They illustrate that even in a maturing industry such as electrotechnology, there are strong movements in traditional product and process innovation, but also, that major effects, from new evolutionary and revolutionary changes, are being felt. The latter is caused by progress in such areas as flexible manufacturing, CAD, and materials research, including new discoveries in superconductivity. Electrotechnology, in general, and Electrosila, in particular, is now playing a significant role in testing the elements of new economic reform being implemented at present in the Soviet Union. This reform strives to incorporate several new concepts into their industrial management systems. The most important among them are the specific requirements of customers (users), and technological changes brought about by domestic and foreign research and development as well as the traditional goals derived from the needs of further development of the national economy. Inside the production system, new incentives for increased efficiency and effectiveness are being tested. This paper is certain to be of interest to those studying the changing way industry is being managed in the Soviet Union as a consequence of the restructuring program, including the problems faced and the search for solutions. Other collaborative activities related to innovation management in socialist countries are described in Lundstedt and Moss, WPS-87-89