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

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 SfP Project 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 Projects Working 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 Meetings 1.May 2006, Brussels - Project approval from the Science for Peace Board 2.October 13-14, 2006, Sofia – International Conference “Public Private partnership in Defence Sector – National Practices” 3.October 16-17, 2006, Sofia – Kick-of Meeting 4.June 24-30, Sofia, Working Session “Methodological Support of Force Transformation” in support of NATO SfP Project 5.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 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 SfP 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 Involvement 6.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

Global Environment Globalization and Democratization “New War” and Terrorism, and New Weapons Revolutionary Wealth (by Toffler), Digital Economy, and Economy of Science New Role of Science and Education for Economic Growth Research and Technology Strategy for NATO

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 Industry Bulgarian 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 US EU Ave EU Barcelona (2002) Strategy 3.00 Czech Republic Hungary Poland Slovakia Bulgaria

Developed Countries R&D Expenditures (2001) Country/OrganizationR&D as a Percentage of GDP USA2.73 Israel4.57 Sweden4.27 Japan3.07 Germany2.53 OECD Ave2.27 France2.23 EU 25 Ave1.83

Bulgaria’s R&D State Defence Expenditures YearTotal R&D/GDP Defence Budget/ GDP Defence R&D/ Defence Budget ?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 policy 3.Development of a Scientific Network will relate national communities to the NATO R&T one 4.Education and Training of yang students, scientists and practitioners will increase the national R&D capability 5.Acceptance of new management technology and style will increase national R&D productivity. 6.The study will facilitate R&D cooperation and transfer of technologies 7.The study will identify and help to solve the critical social defence industrial problems 8.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