Boris Alyoshin said the volume of funding funneled to the defense industry has increased "enormously' since 2003, to 30 billion rubles ($1.1 billion) a year starting in 2006.
But he said the "entire work pattern of the Russian [defense] industry is obsolete," and that no effort should be spared to enable "Russia to complete on the world market as a full-fledged player."
A federal reform program for Russia's defense industry, adopted in 2006, aims to build additional industrial capacity and advance military-technical cooperation with other countries.
Sergei Ivanov, first deputy prime minister who also heads the Military-Industrial Commission, said Wednesday that Russian defense companies will provide 201 billion rubles ($7.7 billion), or 40% of the financing required, to reform the country's defense industry.