The Russian Federation’s defense industry provides the authoritarian regime with military power that is used for maintaining its domestic and foreign legitimacy. The industry’s top-management is a major part of Russia’s governing establishment. Nevertheless, the industry suffers from economic inefficiency, lack of human capital and advanced technologies, and governmental over-regulation. These challenges are enhanced by confrontation with the West and efforts to maintain the stability of the regime, which spur Russia’s leaders to rely on economic protectionism and self-isolation.
