Management of Security Related R&D Forth International Conference

1-3 November, Defence College - Bucharest

Management of Security Related R&D in Support of Defence Industrial

Transformation – Overview of the Achievement and Prospective

Prof. Dr. Tilcho Ivanov,

University of National and World Economy, Sofia

NATO SfP 982063

Part 1 Organizational Status Content

• Tasks and Research Infrastructure

• What organization of work?

• UNWE Project Team and Working Packages

• Key Meetings

• Implementation of SfP982063

Management of Security Related R&D in Support of

Defence Industrial Transformation – Tasks and Research Infrastructure

NATO SfP982063 Project 2006-2009 includes 4 tasks:

• Concept and Model for R&D Management • Scientific Co-operation Network• Security Related R&D Policy Framework• Center of Excellence for R&D Management Research Infrastructure Cluster between: UNWE-

DNRS – Sofia; IPPI, BAS – Sofia; NDC – Bucharest; EU, FSS – Skopie; ITIS, FAFU – Munich, related national organizations and consultants from old NATO countries

What organization of work?

Working groups along policy domains:STEPS 1 – 4, 6

Working groups along policy domains:STEPS 1 – 4, 6

Working groups along policy domains:STEPS 1 – 4, 6

Working group(s) on R&D Policy

Framework (R&D environment,

concept, needs,dissemination,

publication and implementation)

STEP 2

Working group(s) along technical

disciplines/ industrial sectors:

STEP 5

+ cross-check for completeness

Working group on Scientific Co-

operation Network

STEP 3

Interaction with Defence Industry and

MoD for improving governance and

coordination (security research

& coord. int./EU/nat.

institutions / programmes )

Working group on Establishing of Center

of Exelence

STEP 3

Advanced practises and

related scientific SfP ProjectsWorking group(s)

along technical disciplines/

industrial sectors:

STEP 5

+ cross-check for completeness

Working group(s) along technical

disciplines/ industrial sectors:

STEP 5

+ cross-check for completeness

Working group(s) on Concept and

Model Development (methodology,advanced

practices, industrial transformation exploration,

model development and demonstration)

STEP 1

Communicating the Network

UNWE Project Team and Working Packages

1. Prof. T. Ivanov - Framework for the study

2. Assoc. Prof. Zv. Zvetkov - Concept and Model Development

3. Assoc. Prof. D. Dimitrov - R&D Policy Framework

4. Assoc. Prof. G. Pavlov - Scientific Co-operation Network

5. Assoc. Prof. St. Hristov - Center of Exellence

6. Assist. Prof. G. Penchev - Co-ordinator and Technical infrastructure

7. Assist. Prof. K. Pudin - Publication and Organization

8. Katia -Students co-ordiantor

Key Meetings1. May 2006, Brussels - Project approval from the Science for

Peace Board2. October 13-14, 2006, Sofia – International Conference “Public

Private partnership in Defence Sector – National Practices” 3. October 16-17, 2006, Sofia – Kick-of Meeting4. June 24-30, Sofia, Working Session “Methodological Support of

Force Transformation” in support of NATO SfP 981149 Project5. June 28-29,2007, Sofia – International Conference “Policy and

Models for R&D Management in Support of Defence Industrial Transformation”

6. October 11-13, 2007, Sofia – Scenario Development Seminar in Support of NATO SfP 981149 Project

7. November 1-3, 2007, Bucharest – International Conference “management of Ecurity Related R&D”

8. November 1-3, 2007, Bucharest - Co-Directors Meeting

Implementation of SfP982063

1. National / Government Vision for R&D in Support of Defense Industry Transformation

2. Change management through development of New R&D Managerial Concept, Model and Policy Framework

3. Optionally development a separate program for R&D in Defence Program Packages

4. Building a Scientific Network in participating countries, and it’s relation to the NATO Science community

5. Defense Industry Involvement6. Education and training yang students, scientists and

practitioners 7. Organization a scientific events for attraction the public

attention for solving the related problems

Part 2 Research Prospective Content

• Global Environment• Mission of the Research and Technology Strategy for NATO• Knowledge as a Key Factor for Technological Development• Transitional Economies and Revolutionary Wealth• Old and New Education & Science Implementation• Old and New Defence Industry• Defence Policy and Army Reform• Defence Industry Transformation Research Issues• Data• Principles of New R&D Management and Policy framework• The way ahead• Could we help?• Conclusion• Key massage

Mission of the Research and Technology Strategy for NATO

“To ensure that the Alliance has at its disposal the best scientific an technical capability, underpinned by the knowledge that member nations can make available. The ultimate goal is to prepare for the future by using science and technology to develop effective new capabilities for the Alliance”

Knowledge as a Key Factor for Technological Development

• Computer and Internet

• Scientific Networks and Project Diversification

• Knowledge Escalation and Investment in Brain

• Permanent Education

• Nano Technologies

Transitional Economies and Revolutionary Wealth

• Underdevelopment and Market Economy

• Deindustrialization and Demilitarization

• Social Polarization, Tensions and Emigration

• Devolution in Education and Science

• Security and Economic Co-operation

• New Knowledge Opportunities and Future Shocks

Old Education & Science

• State Controlled, Financed not Flexible System

• Mass Involvement, Industrial Style Education, and Science based on Isolated Centers

• Disciplinary based Approach

• Theoretical Lecturing and not Practical (Empirical) based Approach

Old Defence IndustryBulgarian Case

• State Owned, and Direct Controlled• Politically and Military Dominated• High Concentrated in 4 Big Corporations• High Standardization, Specialization, and

Synchronization• State Guarantee of Quality• State Financed R&D• Russian Licenses, and National Technological

Development Capability

New Defence Industry

• Privatized with Limited Corporative Restructuring• De-concentrated in 24 Smaller Companies• Market Orientated• State Controlled Production & Export• International Quality Certification• Industrial Security State Regulation• Decreased Company Financing of R&D and

Education

Defence Policy and Army Reform

• NATO and EU Commitment and Strategic Resource (PPBS) and Force Planning

• National Ambitions to Meet New Force Goals• Decrease of Defence GDP Share (2,3 %)• Professional Army from 1 Jan 2008• Downsizing from 45 to 30/35 thousand and

Force Restructuring• Army Modernization and New Standards, ROC’s

and Acquisition Projects (Air, Navy, Land Force)

Defence Industry Transformation Research Issues

• State Policy and Ownership• Principles of Management• Product Profile• Marketing and Cost Factors• R&D Management Technology and Organization• Infrastructure in Large (Technical, Law, Finance,

Administration)• International Co-operation

R&D Expenditures (%GDP)Country/Organization 1990 1995 2000 2007 2010

US 2.7 2.5 2.72

EU Ave 1.9 1.8 1.89

EU Barcelona (2002) Strategy

3.00

Czech

Republic

1.9 0.9 1.23

Hungary 1.0 0.7 0.80

Poland 0.7 0.65 0.66

Slovakia 2.1 0.93 0.65

Bulgaria 0.46 0.30 0.19 0.37

Developed Countries R&D Expenditures (2001)

Country/Organization R&D as a Percentage of GDP

USA 2.73

Israel 4.57

Sweden 4.27

Japan 3.07

Germany 2.53

OECD Ave 2.27

France 2.23

EU 25 Ave 1.83

Bulgaria’s R&D State Defence Expenditures

Year Total

R&D/GDP

Defence Budget/

GDP

Defence

R&D/

Defence Budget

1989 1.00

1990 0.46 3.56 1.4

1995 0.30 2.89 1.9

2000 0.19 2.88 0.04

2005 0.40 2.50 0.004

2007 0.37 2.30 0.001

2010 1.50? 2.20?

Principles of New R&D Management and Policy framework

• International R&D co-operation• NATO and partner-countries Management Technology

Standardization• National Strategy and Selective Prioritization, directed to the

Defence Industry Transformation• Increased and shared financing between State (MoD, MES)

& Business• Program and Project Management and result-based

financing• European Charter for Researchers, and a Code of Conduct• Intellectual Property Rights• R&D Outsourcing in Academy and Universities, and

partnership with Industry • PPP in Defence including R&D and R&D organizations

The way ahead

• Based on Management Concept and Model:– Develop R&D policy Framework– Build Scientific Co-operation Network– Construct Database and Communication Procedures– Establish of Center of Excellence– Educate and Train Yang National Experts in R&D

Management• Support National Force Planning and Defence

Industry Transformation• Relate National (Related to Security and

Defence) R&D Community to NATO and EU Research and Technology Community

Could we help?1. Security related R&D Management Study will clarify the strategic

context and positioning of involved countries 2. Benchmarking will show the right directions for improving R&D

management, and policy3. Development of a Scientific Network will relate national

communities to the NATO R&T one4. Education and Training of yang students, scientists and

practitioners will increase the national R&D capability5. Acceptance of new management technology and style will

increase national R&D productivity.6. The study will facilitate R&D cooperation and transfer of

technologies7. The study will identify and help to solve the critical social defence

industrial problems8. If it is a successful will build the base for development of new

research projects

Conclusion

• Not Existing National Strategies for Security Related R&D

• Not Existing National Strategies for Defence Industry Transformation

• Unclear Defence Industrial Policy• Dramatic Underestimation of the R&D and R&T Role for

Economic Transition of the countries. The allocated national resources for R&D (civil and security) are insignificant, and not relevant to national and Alliance ultimate goals

• The Business is not involved and Defence Industry is isolated from the Force Planning and Modernization

Key message

1. New National Strategy for Defence R&D and R&T is critically necessary

2. New Policy Framework could mobilize national scientific and technical capability for NATO R&T Strategy support

3. Development of New allies' integrated Concept and Model for management of defence R&D will enforce the international R&D co-operation

4. Increase of budget and business R&D expenditures share to at least 1.5 % of GDP in short run (2010) will allow participation in co-operative project

5. Acceptance of parliamentarian approval and direct control of R&D projects, related to arms modernization plan will increase public confidence in Economy of Science