Abstract
The global defense industry is shifting toward a new paradigm in which an emphasis on technology-driven capability development is being undermined by disruptive innovations emanating from the commercial sector. This evolution is likely to result in important effects on the defense market, lessening barriers to entry and turning upside down the approach to innovation. For the defense sector this entails that shifts in the organizational behavior of firms and military establishments are required if the full benefits of innovation are to be captured and integrated into defense capability development processes. This article analyses this shifting paradigm with the European defense market as a departure point. Briefly exploring the shifts in defense industrial processes since the 20th century, this article outlines the benefits of integrating the defense and civilian technological and industrial bases.
Highlights
One branch of defense economics looks at defense equipment markets
The global defense industry is entering a new paradigm in which the current emphasis on technology-driven capability development is being undermined by disruptive innovations emanating from the commercial sector
The Europeanization of defense R&D efforts and a more European approach to consolidating the European defense technological and industrial base (DTIB) could help Europe adjust to the emerging Industry 4.0
Summary
The Europeanization of defense R&D efforts and a more European approach to consolidating the European DTIB could help Europe adjust to the emerging Industry 4.0. These initial defense research investments are designed to test whether EU institutions can work effectively on defense research and whether they can develop an IPR-regime that works for Europe’s defense market Should these initiatives succeed, the plan is to integrate a fully-fledged European Defence Research Programme (EDRP), worth potentially EUR3.5 billion over 2021-2027, into the EU’s Multiannual Financial Framework. As a follow-up to the EU Global Strategy published in June 2016, the High Representative/Vice President presented the Security and Defence Implementation Plan to EU member states It calls for an EU Innovation Initiative to manage potentially disruptive technologies, and foresees the creation of a Coordinated Annual Review on defense that may see closer coordination of defense planning among European countries. Industry 4.0: Schwab (2016)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
