The globalisation of defence industries

Abstract

Since the end of the nineteenth century, defence industries have been regarded as clearly defined national assets, supported by national governments. But the globalisation process is creating or accelerating the emergence of transnational defence markets and corporate structures. 'National' defence industries, especially in Europe, have already been diluted by international collaboration to develop specific projects. And the operation of international supply chains and foreign direct investment in national-defence companies is increasing the level, depth and complexity of global industrial integration. The globalisation process in defence is also driven by governments trying to maintain competition in national markets by soliciting bids for key contracts from international suppliers. Finally, in order to meet the demands of emerging technologies associated with the Revolution in Military Affairs (RMA), governments and specialist defence companies alike will have to tap a wider global stream of innovation that will probably force both to change the way they do business. Moreover, the cumulative impact of all of these changes will require governments and politicians in the core stages of the West to find new policies and attitudes that can reconcile national security with transnational industrial operation.