Russia consolidates its space industry into one giant government-owned corporation.
Russia consolidates its space industry into one giant government-owned corporation.
While the U.S. is working to increase the number of space companies and thus the competition to get into space, Russia is returning to its Soviet-era roots. This second story about this consolidation includes this telling quote:
The country is set to radically centralize its space industry in a bid to combat major inefficiencies and cut down on the misuse of funds under plans unveiled by Deputy Prime Minister Dmitry Rogozin, who oversees the defense and aerospace sectors.
This decision does not really bode well for Russia’s effort to compete on the open market. You never solve inefficiencies or cut costs by eliminating competition. Instead, the lack of competition encourages inefficiency and increased cost.
Russia consolidates its space industry into one giant government-owned corporation.
While the U.S. is working to increase the number of space companies and thus the competition to get into space, Russia is returning to its Soviet-era roots. This second story about this consolidation includes this telling quote:
The country is set to radically centralize its space industry in a bid to combat major inefficiencies and cut down on the misuse of funds under plans unveiled by Deputy Prime Minister Dmitry Rogozin, who oversees the defense and aerospace sectors.
This decision does not really bode well for Russia’s effort to compete on the open market. You never solve inefficiencies or cut costs by eliminating competition. Instead, the lack of competition encourages inefficiency and increased cost.