chemical, and oil refining industries. A number of 

 large POs even have research centers of all-union im- 

 portance, such as the R&D service of the KAMAZ, and 

 the scientific research and experimental design cen- 

 ter of Elektrosila , which occupies a leading position 

 in the world in turbine construction.^-* 



A distinguishing characteristic of the PO is the 

 clear emphasis on production at large-scale, effi- 

 cient rates of output. A production facility, in 

 fact, is the lead unit. Thus, while improved innova- 

 tive performance is an important objective, other 

 standard economic benefits of such larger units also 

 are expected. These include economies of large scale 

 production, specialization of subordinate units, and 

 wider application of advanced managerial practices. 

 The use of integrated planning techniques, computer- 

 ized data processing systems, and organizational de- 

 signs based on principles of purely project or matrix 

 management has allegedly been instrumental in accel- 

 erating innovation in these new structures. Accord- 

 ing to Ivanov, the research-to-production cycle has 

 been reduced for certain products by 50 to 75 percent 

 in the Uralelektrotyazhmash Production Association. 

 In the L'vov Instrument Manufacturing PO imeni V. I. 

 Lenin this cycle was cut on an average by 50 percent, 

 and the degree of interchangeability of assemblies 

 was boosted to 80 percent while their weight was re- 

 duced by half and their reliability was raised by a 

 factor of 3 or 4. In the Svetlana and Elektrosila 

 production associations almost all development pro- 

 jects reach the production stage. 



The most significant organizational development, 

 from "the long range view of scientific and technical 

 progress," is the creation of science-production as- 

 sociations. ' Set up in the late 1960s explicitly 

 to organize innovation as a distinct and major task, 

 NPOs function as special nurseries for the rapid gen- 

 eration and application of new technology. Though 

 they exist in nearly all branches of industry, they 

 are concentrated mainly in machine building, espe- 

 cially in the electrotechnical, electronics, instru- 

 ment manufacture, and aviation sectors, as well as in 

 the chemical and petrochemical industries. 



206 



