is ahead
of the time

the future

О компании

Strapdown inertial navigation system (INS)

The system is based on the laser gyroscope, the world’s most precise device. INSs generate information for the purposes of navigation, flight control, aiming, preparing and homing missiles.

is ahead
вof the time

the future

О компании

Strapdown inertial navigation system (INS)

The system is based on the laser gyroscope, the world’s most precise device. INSs generate information for the purposes of navigation, flight control, aiming, preparing and homing missiles.

5.1 Innovation policy

The Concern’s innovation policy is intended to create the environment for substantial increase of innovative activities in the Concern’s companies and to effectively develop the innovative infrastructure. Such an approach is intended to ensure:

  1. creation of competitive high-tech products on the basis of latest developments of science and engineering,
  2. promotion of innovative products and services onto the market,
  3. reaching a competitive level in Avionics comparable with global counterparts.

Innovative development program

In order to determine and plan prospective research and developments under the innovative development program, the Concern’s companies use justified science and technology development forecasts, including the Forecast for Development of Science, Engineering and Technology in the Areas of Activity of Rostec State Corporation for the Period until 2025 and Beyond.

Over 2011-2015, the Concern showed positive key performance indicators under the innovative development program (for more details, see R&D). The key indicators characterizing the innovative activities are as follows:

  1. share of innovative products in the revenue,
  2. share of R&D costs in the revenue.
share of innovative products in the revenue
share of R&D costs in the revenue

Open innovations – KRET

We see more and more considerable importance in active introduction and development of “open innovations”, wide use and copying national and global experiences in creating the system of “requests for innovation” for the external innovative community and unique technological competencies.

The mechanism of “open innovations” is developed in the Concern as part of the general program of the Corporation in the appropriate area.

Open innovations
is an approach to innovations which helps employ not only internal, but also external sources.

Such an approach implies the use of target flows of knowledge to speed up internal innovative processes and to expand markets, thus facilitating a more effective use of innovations.

Key R&D customers:
  1. Russian Ministry of Defense;
  2. Russian Ministry of Industry and Trade;
  3. Aviation companies: – Sukhoi Company PJSC, – RAC MiG JSC, – Tupolev PJSC, – Irkut Corporation PJSC, – yushin Aviation Complex OJSC, – Mil Moscow Helicopter Plant JSC, – Kamov JSC

5.2 R&D

R&D in Avionics

In order to move to the next technological wave, it is necessary to conduct the appropriate research and application studies and create necessary industrial technologies in a number of areas.

The Concern systematically analyzes the onboard equipment, which is currently in serial production and operation, as to whether it meets the today’s level of technologies. It looks for possible ways to improve the performance and characteristics of Avionics products while substituting the obsolete and imported electronic component base. Further to this analysis, the Concern will prepare a comprehensive action plan to ensure technological independency in serial production and operation of information and control systems, as well as aiming, flight and navigation equipment for aircraft and helicopters, and in improving their characteristics.

As a result, the Concern will generate the optimum list of development projects to ensure guaranteed supplies of information and control systems, as well as aiming, flight and navigation equipment so that to implement the state armaments program, meet the assigned deadlines and ensure the quality of military equipment and to create new advanced and breakthrough weaponry meeting all military standards.

R&D in EW

In order to develop advanced EW complexes, it is necessary to use a new generation technology. Today, there are three main groups of technologies depending on the level of disaggregation and specifics of technical structure of the advanced electronic warfare systems (see Fig. 47).

Group 1 technologies determine the systematic architecture of EW complexes from the standpoint of their integration into higher-level radio electronic systems and complexes.

Group 2 technologies include: broadband (ultrabroadband) AESA-based antennas; broadband digital storage and signaling devices (digital radio frequency memory (DRFM)); high-performance computers with AI systems.

The Concern plans to attain technological superiority on the global market of avionics through implementation of integrated avionics system based on modular avionics (IKBO IMA 2). This development represents unmanned onboard equipment with controlled redundancy of IT environment and end systems, supporting network-centric control. IKBO IMA 2 is designed for the civil and military aviation equipment. This development project started in 2012 and will be completed in 2025.

Group 3 technologies are intended to create multifunctional broadband and ultrabroadband modules of advanced EW complexes on the basis of SHF multilayer printed boards.

As part of development and introduction of basic production technologies, the Concern’s companies engaged in development and production of EW equipment face the task to take their products to a higher technological level. For that purpose, it is planned to improve the processes of designing, modeling and manufacturing the following devices:

  1. multichip compensated SHF modules of higher integration level;
  2. harmonized analog digital broadband and ultrabroadband receive/transmit modules;
  3. harmonized semirealistic simulation and testing complexes;
  4. harmonized high-performance computers for signaling message handling and controlling EW devices.

It is also planned to create:

  1. stabilized patterns of linear active multibeam arrays,
  2. SHF microchips in ceramic dips,
  3. automated complexes of control and diagnostics of developed equipment.

P47. Main groups of EW technologies

EW Technologies Technologies at the level of EW complexes as elements of radio electronic systems and avionic complexes in aircraft Technologies at the level of main subsystems of EW complexes Electronic component base technologies for EW equipment

P48.R&Ds underway in 2015

439 41 14 20 13 Other Avionics IFF EW MI
billion RUB in Concern’s research and development costs in 2015

The critical industrial technologies will help commence production of multipath ultrabroadband active phased arrays with advanced solid-state amplifiers, and will help master the ways to generate effective coherent interference through monopulse active homing heads.

Advanced helicopter EW complex

In December 2015, a prototype model of helicopter EW complex developed and manufactured under the development project was delivered for testing. This complex is a further development of serial helicopter jamming device as part of the advanced helicopter EW complex.

The advanced EW complex has been developed on the basis of the modern helicopter Mi- 8AMTSh and, in relation to its predecessors, has the characteristics which are 2-3 times better, primarily, in terms of its operational frequencies, power margin, number of concurrently tracked targets etc. The technologies used in its intelligence and information subsystem help identify, with high degree of certainty, sources of radio signals and prioritize targets. In terms of its functionality and technical characteristics, the complex is second to none globally.

The advanced helicopter EW complex is built on the basis of harmonized modules, while most of them have been already put into production by the Concern’s companies. The full scale serial production is expected to be deployed within two next years.


The Concern has commenced production of signaling handling modules based on the Digital Radio Frequency Memory technology (DRFM). This technology enables EW complexes and devices to handle the signals they have detected in an online mode and, within nanoseconds, to generate jamming in almost any form and process such signals in an online mode.

Radio photonics – a technological breakthrough

KRET JSC and the Advanced Research Foundation signed an agreement for implementation of the project “Development of Active Phased Array Based on Radio Photons (ROFAR)”. The project is intended to create research, technical and technological groundwork for development of new generation of radio-optical phased arrays.

The total budget is RUB 680 million and the timeline is 4.5 years (2015-2019).

For project realization purposes, KRET JSC created a dedicated laboratory to conduct research in the area of radio photonics.

The radio photonic technologies will help create effective and advanced next-generation receiver-transmitters, radar systems, electronic intelligence and electronic warfare systems by 2020. This will reduce the weight of equipment 1.5-3 times, increase its reliability and efficiency up to 2-3 times, and raise the scanning speed and resolution dozens of times.

R&D costs

The Concern’s research and development costs in 2015 amounted to RUB 15.1 billion (12.7% of the revenue). Key international companies - Concern’s competitors - invest 4.9% to 16.2% of the revenue in R&Ds (see Fig. 51). Accordingly, the Concern outstrips many global leaders in the industry in terms of this figure.

P49.Share of R&D costs in 2015, % of the revenue

Thales Group HoneywellInternational Elbit Systems KRET JSC Rockwell Collins 20 10 0 4.9 5 7.8 12.7 16.2

P50. Concern’s R&D costs, million RUB

2013 2014 2015 2016 target 18,000 14,000 10,000 12,409 12,033 15,105 17,182

In terms of the R&D costs as a percentage of the revenue, the Concern outstrips many global leaders in the industry.

Key R&D providers:
  1. KRET JSC,
  4. NII Ekran JSC,
  5. VNII Gradient JSC,
  7. Frunze Nizhny Novgorod Research and Production Association JSC,
  8. V.I. Shimko Radioelectronics Scientific and Production Association JSC,
  10. RPKB JSC,
  11. RSIE JSC,
  12. RSIE JSC,
  13. UKBP JSC,
  14. TNIIS JSC,
  15. MIEA JSC.

R&D cooperation with universities

In order to level up developments of dedicated professorial chairs and personnel training, the Concern engages universities as R&D co-providers.

Such cooperation with universities helps the Concern more effectively use research and technical potential to develop its knowledge-intensive production and facilitate innovative operations to further successfully commercialize competitive technologies at the global level.

The Concern’s companies are actively involved in implementation of Resolution 218 of the Russian Government of 09 April 2010 (as amended on 12 February 2015) “On Measures of State Support to Development of Cooperation between Russian Higher Educational Institutions and Organizations Implementing Comprehensive Projects to Set up High Technology Production”. For more information about the Concern’s partner universities, see Professional training and retraining system.

Ramenskoye Instrument Engineering Design Bureau Stock Company (RPKB JSC):

In cooperation with the Bauman Moscow State Technical University (Bauman MSTU), RPKB JSC delivered a part of the development project called “Development of the Concept Design of Intellectual Subsystem of Airborne Situational Awareness System”. Under the Cooperation Agreement, the Bauman MSTU is involved in the development project “Multipurpose Testing Bench for Onboard Equipment Complex” for the purpose to create a training simulator in the joint laboratory.

RPKB JSC signed the Cooperation Agreement with the Korolev Samara State Aerospace University (National Research Institute). The analysis of promising projects is underway in order to determine the scope of joint efforts.

Moscow Institute of Electromechanics and Automatics Joint Stock Company (MIEA JSC):

Under the 2011-2015 Research Program, the Tsiolkovsky Moscow State Aviation Technological University (MATI), on commission from MIEA JSC, is now delivering a research project called “Development of Production Technological Processes and Dedicated Outfitting to Process External Surfaces of Ring-Laser Gyroscope Resonator”. The deliverables will be used in optimization of serial technological processes for sensible INS elements.

RSIE JSC, jointly with the Ryazan State Radio Engineering University (RSREU), conducted the research in the following areas:

  1. “Research into Development of Antenna Feeder System for Airborne Transmitting Equipment”. Research completed.
  2. “Further Use of Results of Application Research into Multispectral Machine Vision System”. To be completed in 2016.
KRET JSC Cooperation Board for IP Rights Management

The main consultative and competent body of the Concern on the matters of IP rights management was established in 2014.

Chairman: KRET JSC First Deputy General Director - I.G. Nasenkov.

Members: heads and employees of the Concern’s companies who are in charge of the matters of intellectual property rights.

Industrial Automatics Design Bureau Open Joint Stock Company (KBPA OJSC):

The KBPA OJSC’s key university partner is the Yury Gagarin State Technical University of Saratov (Gagarin SSTU). The cooperation is ongoing in a number of areas as part of the joint SSTU-KBPA Corporate Center of Excellence.

Phazotron Research Institute of Radio Engineering Joint Stock Company (Phazotron-NIIR Corporation JSC):

Phazotron JSC is in charge of a part of the research work for creation of a small-size radar complex under the order of the Research Institute, Educational Complex of Special-Purpose Machine Engineering, Bauman MSTU. The general customer is the Russian Ministry of Defense. To be completed on 31 October 2016.

A.I. Glukharev Engels Design Bureau “SIGNAL” Joint Stock Company (EOKB Signal JSC):

In doing the R&D work, the company actively cooperates with the following universities: Gagarin SSTU (joint Educational and Research Production Center “Automatics and Instrumentation), Chernyshevsky National Research Saratov State University, Saratov Branch of the Kotelnikov Institute of Radio Engineering and Electronics (Russian Academy of Science), Institute of Precision Mechanics and Control (Russian Academy of Science) (joint Research and Production Center “Signal-Academy”).

Ulyanovsk Instrument Manufacturing Design Bureau Joint Stock Company (UKBP JSC):

UKBP JSC cooperates with leading universities of the Volga Region - Ulyanovsk State Technical University, Korolev Samara State Aerospace University (National Research Institute), Tupolev Kazan National Research Technical University, Ulyanovsk State University. Together with them it conducts the research into the most promising areas of development of aviation equipment, specifically, diagnostics of onboard control systems, helicopter critical behavior alert systems, altitude and speed detectors.

P51.Levels of intellectual property management

Devising the strategy Monitoring and control Making managerial decisions and planning Assisting in related matters Determining how to cooperate with the Concern’s companies Level of parent company (KRET JSC) Adjusting the parent company’s common approach subject to companies’ specifics and competences in order to effectively manage intellactual property rights Streaming the adapted position of the parent company into subsidiaries Adapting and implementing the intellectual property management policies of the parent company Level of Concern’s companies

The Concern’s intellectual property is managed at several levels owing to the corporate structure of the Concern.

Incentivizing research activities

For research incentivizing purposes, the Concern takes the following measures:

  1. paying incentive allowances for the contribution to inventive activities;
  2. professional training, including in the area of intellectual property;
  3. certificates of honor;
  4. round tables and research-to-practice conferences;
  5. regional and international innovational exhibitions;
  6. involvement in innovative projects;
  7. celebration of the World Intellectual Property Day.

Results of 2015

The Concern took measures to develop the IP management system and to implement the 2020 patent strategy approved in 2014 that is the Concern’s basic document in the sphere of intellectual property management.

The Concern approved the regulations on IP rights management. This has helped structure and better control the process of IP rights management in the Concern’s companies, including regulate matters relating to compliance with the effective laws of the Russian Federation on intellectual property

billion RUB
in the total value of intangible assets (IP)
Research and Engineering Board

The collective consultative research engineering and expert body was established in 2012. Its objective is to generate the common and effective innovative and research & engineering policy of the Concern.

Chairman: KRET JSC General Director - Nikolay Kolesov.

Deputy Chairman: KRET JSC Deputy General Director, EW Chief Designer - Yuri Maevsky

The Concern approved a common standard for royalty fees and published the appropriate orders for the management company and production companies. This decision will speed up introduction and commercial use of IPs and will enable higher quality control over the appropriate expenses, and will mitigate legal risks and unreasonable financial expenditures.

At the level of the whole Concern, in 2015, the Concern commenced the stocktaking of rights to the results of R&D activities with involvement of the Federal Intellectual Property Service and federal executive authorities who act as R&D customers.

In order to strengthen its positions on the Russian and international markets of the products it produces and offers for sale, the Concern secured legal protection of KRET JSC’s trademarks which are also used by the Concern’s companies in accordance with the architecture of the Concern’s single and strong brand.

Т14.Intellectual property indicators

Indicator as of 31.12.2015
Protection documents
  1. for inventions, useful models, designs, items
  1. for software programs, databases, IC layout designs, items
Quantity of IPs actively used in production, items 538
Total value of intangible assets (IP), billion RUB 1.12