Defense Industrial Base Research Articles

The Development of the Bulgarian and Estonian Defence Industries Post NATO Membership: Similarities and Differences

The development of the Bulgarian Defence Technological and Industrial Base is strategically important for the state, including from an economic point of view, as it is expected to have a positive impact on various sectors of the national economy. The aim of this article is to review and analyse the experience of Estonia in the development of its defence industry, hence to highlight some good practices that Bulgaria could apply due to certain similarities in both the political and security context.

EUROPEAN DEFENCE TECHNOLOGY AND INDUSTRIAL BASE ̶ SUPPORTING ELEMENT OF COOPERATION UNDER EU COMMON SECURITY AND DEFENCE POLICY

The development of the EU’s security and defence profile has been a constant over the last two decades and one of the most dynamic projects of European integration. In this sense, last few years have recorded significant progress, illustrated both by the conduct of a significant number of civilian and military operations in different geographical perimeters, as well as by the launch of cooperation initiatives in the field of defence capabilities and defence research. The reporting framework of these developments has also undergone major changes, integrated into the process of establishment the European Defence Technological and Industrial Base (EDTIB). After an initial stage of conceptual structuring, carried out between 2007-2013, the profile of this construct has matured rapidly in recent years, offering consistent prospects in terms of supporting EU security and defence objectives. To this end, practical projects on defence capabilities and research have been developed through EDTIB in line with the Common Security and Defence Policy agenda. An extremely important role is represented by the consolidation of the financial potential associated with EDTIB to support cooperation projects and initiatives. The use of EU budget resources, stimulated in the context of EDTIB, represents a strategic paradigm shift in which European cooperation has evolved. The results recorded so far indicate the viability of the approach, supported by Member States’ interest in deepening this trend, including by consolidating investment in defence and industrial purposes.

“Unchain My Heart.” A Defense Industrial Policy Agenda for Germany’s Zeitenwende

A Zeitenwende that delivers one of Europe’s most powerful armed forces needs to correct the (non-existent) position of defense industrial issues within German political discourse. This paper therefore develops a defense industrial policy agenda based on four lines of effort: Make daringness Germany’s prime ambition; establish Germany as a defense industrial framework nation; promote German defense industrial diplomacy with foreign partners; solidify a true public-private defense partnership between the German government and the defense industrial base.

America’s Cutting Edge CNC machining and metrology training

This paper describes the workforce development activities supported by America’s Cutting Edge (ACE), a national initiative for machine tool technology development and advancement. ACE is supported by the Department of Defense Industrial Base Analysis and Sustainment (IBAS) program from the Office of Industrial Policy. Both the online and in-person components of the computer numerically controlled (CNC) machining and metrology training programs are summarized and participation information is provided.

Augustine, Costs and Defense Industries

Augustine weapons systems are presented as a new class of economic good. Their distinguishing characteristics are identified in the form of advanced technology, inter-generational cost escalation and small quantities. A distinction is made between cost increases between generations of weapons and falling unit costs within a generation of equipment. The impact of Augustine weapons on learning curves is assessed and the article concludes with an evaluation of Augustine systems for the future defense industrial base.

The EU’s hegemonic imaginaries: from European strategic autonomy in defence to technological sovereignty

ABSTRACT Discourses around “strategic autonomy” and “sovereignty”, traditionally used at the state level, have been recently circulated within the EU supranational context regarding the European defence technological and industrial base, dual-use and disruptive research and innovation, and advances in the tech and digital domains. This article explores whether a high-politics logic intrinsic to “strategic autonomy” and “sovereignty” has been transplanted at the EU-level to enhance the strategic priority of various lower-politics policy fields across tech and digital policy initiatives and instruments. This logic has the hegemonic effect of shaping collective thinking and opening windows of opportunity for EU policymaking, by mainstreaming a security imaginary into broader technological governance processes. The article examines the EU’s scaled-up rhetoric around floating signifiers such as “strategic autonomy” and “technological sovereignty”, as well as the diffusion of overlapping “sovereignty” agendas enacted transversely in the defence, tech and digital sectors. The argument is that their meaning is not yet fixed but articulated via hegemonic interventions across different interconnected policy fields. This makes for conceptual “travelling” and “stretching” with a potential impact on the future of European security integration, by creating of a more unified security imaginary of the EU as a strategically independent and technologically sovereign space.

Japan's Security Policy Evolution: The Interaction between Think Tank Proposals and Government Implementation

executive summary: This essay spotlights interactions between private think tanks' security policy proposals and the development of the Japanese government's security policies since 1995, identifies items on the current security policy agenda, and suggests the future direction of Japan's security policy. main argument Japan's defense and security policy is steadily moving in a pragmatic and proactive direction toward becoming a "normal country" through "passive realism," although the direction and speed of change is not dramatic or linear. Interactions between think tanks' policy recommendations and the government's realization of them since 1995 illustrate in part this development process. For example, following a committee's suggestions to revitalize the Japan-U.S. alliance to deal with contingencies on the Korean Peninsula, the Japanese government adopted a related law after it agreed upon the 1997 Guidelines for Japan-U.S. Defense Cooperation with its U.S. counterpart. The Abe cabinets implemented many ambitious policies suggested in think tank proposals, including permitting the exercise of the right of collective defense, creating the National Security Council, and establishing the National Security Strategy. Currently, the Japanese government is conducting a series of conversations with security experts to revise the National Security Strategy and the ruling LDP has announced a general policy proposal. The proposal recommends that the Kishida cabinet initiate the development of an indigenous counterstrike capability and increase the defense budget toward 2% of GDP. Past interactions between policy think tanks and the Japanese government suggest that the government will continue to take steps toward becoming a so-called normal country, although such steps could be gradual and incremental. policy implications • Japan should continue to implement a realistic security policy agenda, which will contribute not only to its survival but to regional stability in the new era following the post–Cold War. • The U.S. should encourage and cooperate with Japan's proactive development of its realistic and pragmatic security policy since it will be important both to regional stability and to a sustainable U.S. security strategy in the face of threats from an assertive Russia and China. • Japan and the U.S. should collaborate on research and development in defense and dual-use technology, which are critical for Japan's sustainable development of its defense capability and industrial base.

The political economy of systemic U.S. militarism

In 2021 a large number of publications appeared intent on analyzing the scope of the so-called Military Industrial Complex, none of which offered a critical analysis. We go further in this article, explaining the configurations of the Iron Triangle: The first step is to express militarism in its contemporary form. The three configurations are: 1. military keynesianism, 2. global-neoliberal militarism, 3 . the completely instrumentalist always present configuration—Corporate Militarism. We explore a variety of related themes, above all those current policies designed to restructure U.S. seapower as the U.S. spearhead in its rivalry with China. We examine the recent and past steps that have given form to an industrial policy to create and drive-forward to the technological frontiers those corporations that comprise what is known as the Defense Industrial Base, as used to maintain U.S. industrial power.

Consolidation of the U.S. Defense Industrial Base

The U.S. Government has promoted defense industry consolidation in the past decade as part of its acquisition reform policies, to help control costs and promote efficiency. But when the Department of Defense (DoD) reversed its pro-consolidation policy, defense firms were left financially less secure from the acquisitions and mergers—and the hoped-for reductions in tangible assets have been marginal. What is the best way forward?

The European defence fund: a step towards a single market for defence?

ABSTRACT The European Defence Fund (EDF) is considered a game changer for European defence. The unprecedented co-funding of research and development expenses of cutting-edge defence systems is functional to strengthen the European Defence Technological and Industrial Base (EDTIB) and the EU’s Strategic Autonomy. This paper analyses the factors that enabled a partial shift from intergovernmental to supranational governance in the European defence market, applying the lens of the new intergovernmentalism theory. The cost of non-cooperation in defence and the Brexit impact will be taken into account to explain the observed shift. The paper highlights the role of the Commission in the integration of the European Defence Agency’s activities with those of the newly created DG for Defence Industry and Space (DG DEFIS). It also examines the extent to which diverging strategic industrial interests of Member States and of industrial players seek to prevent a deeper integration of the European defence market.

Некоторые аспекты развития европейской оборонной промышленности

As a result of the analysis of defence spending in European countries for the period 1990–2022, the author reveals a trend towards underfunding of their defence-industrial base. Due to the fall in defence spending, there is a reduction in European defence companies in Europe, some companies go into the commercial sector, the other part is trying to consolidate. The armed forces of European countries conduct exercises and fight on a multinational basis, and purchase weapons on a national basis. This situation does not allow industrial enterprises to consolidate demand, which makes it possible to increase production volumes. By researching the state of the defense-industrial base of European countries, it becomes evident that there are disagreements between the states of Europe about which is better to buy samples of weapons. Some are in favor of purchases in the United States, others – for joint European projects, and others – for national ones. For example, for fighters, we are talking about choosing between the F‑35, Eurofighter Typhoon, Dassault Rafale or SAAB. A study of data on arms exports from the United States to Europe shows that Europe has lost its status as the main export destination of the United States. The results of research illustrate that the procurement of weapons is a long and complex process, the programming of the construction of the armed forces and the costs are planned, taking into account the threats of tomorrow, in advance. The research findings indicate that the prevailing conditions of peace and stability of the last 30 years have shaped the image of the defense industrial base of European countries unable to produce military products in large quantities and in a short time. The author comes to the conclusion that the ambitions of Europe exceed the available resources.

PRIORIZAÇÃO DE ACORDOS MULTILATERAIS DE CONTROLE DE EXPORTAÇÃO DE PRODUTOS DE DEFESA E TECNOLOGIAS SENSÍVEIS POR PROCESSO DE ANÁLISE HIERÁRQUICA

This paper proposes a model to support the decision to choose which multilateral export control regime of defense products and sensitive technologies in which Brazil does not yet participate, namely, Wassenaar Arrangement, Australia Group and Zangger Committee, should be prioritized for adhesion. For the development of this model, the Analytic Hierarchy Process (AHP) method was used, considered adequate for solving problems where criteria are qualitative and decisions tend to be based on personal experiences. The hierarchical structure of the problem used seven criteria (Country Legislation, Regulatory System, Licensing Structure, Enforcement Capacity, International Cooperation, Costs of Adhesion and Benefits for the Defense Industrial Base) to compare the three mentioned agreements. A questionnaire was set up and specialists related to National Defense were selected to answer them, after which their answers were collected, standardized, processed and analyzed. At the end, the agreements were ordered by preference to support decision making, illustrating the application of the proposed model.

Organisational Complexity of the Eurofighter Typhoon Collaborative Supply Chain

ABSTRACT The European Union (EU) promotes arms collaboration as a stepping-stone towards the evolution of an integrated European defence technology and industrial base. It will necessarily comprise prime contractors and their attendant supply chains, with the latter particularly important because they represent a refined regional division of labour, promoting efficiencies through skill-based specialisation. Paradoxically, however, Europe’s largest military aerospace collaborative venture, the Eurofighter Typhoon, possesses a complex supply chain subject to political and institutional strictures, as well as potential inefficiencies. Partner nations prioritise national sovereignty objectives through duplicated assembly lines and work allocation arrangements based on juste retour (fair share) rather than market-driven competitiveness criteria. The purpose of this paper, then, is to explore Typhoon’s supply chain complexity, especially the impact of juste retour policy. The findings from this analysis will highlight important policy issues influencing the future supply chain model of Europe’s successor 6th-Generation fighter programme.

New Technology and the US MIC

This article considers what could be a fundamental development in the defence industrial base (DIB) in the US, namely the increased involvement of commercial technology companies in military-related business. After an outline of the dynamics and longer-term post-Cold War developments in the international arms industry, it investigates recent changes in the Pentagon's attitudes and policies to gain access to new technologies from the commercial and academic sectors. It also considers the military, technological and political drivers that have led to these technologies being sought from commercial companies for military use. It then considers the recent engagement of the major commercial technology companies in activities for the military sector and what is driving them to take up military contracts. Finally, it considers what these developments imply for the dynamics of the arms industry and the relationships within the DIB and the military industrial complex (MIC).

Country Survey: Canadian Military Expenditure and Defence Policy

ABSTRACT This paper provides an overview of the Canadian defence sector following the Cold War. A review of Canadian defence policy in this period indicates that, though the mission of the Canadian military did not change, fiscal realities forced severe restrictions on the size and capabilities of the organization. Comparisons between Canada and other G7 NATO nations indicate that throughout this period, Canada has consistently devoted fewer resources to the military than its allies. A review of Canada’s defence industrial base and defence policy indicates that this limited funding has led to a small and uncompetitive defence sector in the Canadian economy. Lastly, a regression analysis of Canada’s defence spending is undertaken which reveals that domestic economic variables are the primary determinant of Canadian defence spending during this period.

In the EDTIB we trust(?)

ABSTRACT The European Defence Technological and Industrial Base (EDTIB) is considered as a key element in the quest for a European Security and Defence Union. The EDTIB strategy initiated in 2007 aimed to lead to greater integration of the fragmented national defence industries of EU member-states, achieve economies through the coordination of defence industrial policy, the pooling of resources in the production and acquisition of weapons systems and better serve the political objectives of European defence. The paper examines the extent to which EU27 member-states satisfy their demand for arms through the procurement of EDTIB origin defence inputs. Moreover, it explores whether a process of convergence is present in terms of the share of EDTIB origin imports in the total arms imports of the EU member-states. The presence or not of a convergence process is examined empirically using β- and club convergence methodologies. In broad terms, the findings point to a process of convergence albeit at different speeds, as indicated by the club-convergence analysis.

MBDA’s Industrial Model and European Defence

ABSTRACT Among European arms producers, MBDA represents the most advanced example of industrial integration and cross-border specialisation, thanks to a unique model of French–British centres of competence. However, it constitutes an exception inside the European defence technological and industrial base. It is therefore relevant to analyse why MBDA was able to achieve such consolidation process from fragmented competences of the European missile industry and to merge once competing companies despite the lack of a unique regulatory framework at the European level. This article presents the main features of MBDA today. It analyses the consolidation process in the European missile industry that created MBDA. It underlines how cooperative programmes provided a critical impulse in favour of industrial consolidation and the specialisation of MBDA sites across Europe. It explains how technological and industrial assets were reshuffled across European borders. It focuses on exports as a key dimension for MBDA’s model. Finally, it concludes by exploring the limits that result from the lack of a unified regulatory framework in Europe.

How to Make Butter out of Guns: The Turkish Case and the Greek Bitter Lesson

Purpose: This paper aims at assessing the links between defence expenditure and the growth of the Greek and Turkish economies. The issue appears to be of particular interest for Greece, given the increased defence priorities of today on the one hand, and the shortage of resources on the other. Design/Methodology/Approach: Using NATO and SIPRI databases we construct a system of behavioural equations for both countries. We estimate the system using GMM to assess the extent to which the development of a domestic defence industrial base (DIB) will contribute to the growth of the economy, the reduction of unemployment via the spin-offs and the import substitution of defence equipment. Findings: The results indicate that unlike the positive impact of the Turkish defence industry on economic growth, the cost imposed on the Greek economy due to the negligible contribution of its defence industry is hard to bear in view of the recent geopolitical developments in the Aegean and the Eastern Mediterranean. Practical Implications: Promoting a sound defence industrial base contributes to growth. If the industrial base is considerably defence-oriented, contributes to self-sufficiency, immediate response in cases of emergency and less dependence on foreign suppliers. Originality/Value: Unless Greece proceeds to an import-substitution policy regarding defence procurement, the increased requirements in view of the recent geopolitical developments will impose a prohibitive cost on the economy.

Exploring the Framework for Alliance Performance between Malaysia-Japan Defence Manufacturing Companies – A Conceptual Study

The defence industry is considered an important element of the overall defence capability of any country. Due to this, developing nations across the world have acknowledged the benefits of building a defence industrial base. Hence, there is rising interest in the defence sector to develop a strategic alliance for analysing the role, effect and nature of different types of cooperative behaviour among transnational companies. Hence, this paper intends to explore the antecedents that can help to assess the alliance outcomes for Malaysia-Japan defence companies. The study was based on RBV (resource based view), to discuss the alliance outcomes for both of these countries’ defence manufacturing companies that can help to gain access to their resources for the purpose of increasing their value through a suitable combination of resources. Moreover, four organizational success factors of alliance management are also discussed as a part of the framework explored in this study. This study provides meaningful insights for the defence manufacturing company managers and administrators to plan their current and future investments in building up the organizational success factors for alliance performance discussed in this study to achieve competitive advantage and sustainability in the long run.

A indústria de defesa brasileira na era da guerra irregular

The objective of this article was to understand the main contributions and technological challenges of Irregular Warfare in Brazil. Considering that this type of belligerence presents states with the rebirth of a way of fighting war, it is necessary to understand what the implications of asymmetric warfare are in a state. Since Irregular Wars make effective use of technology in their combat, it is important to discuss its impacts and challenges to the Defense Industrial Base for the Brazilian Defense Industry. Thus, through a documental research and qualitative analysis, in order to conceptualize, describe and understand Irregular Warfare, Brazilian Defense Industrial Base and its relation with the State. After understanding the challenges for the state when fighting an Asymmetric War, one can conclude that Brazil initially needs to recognize the presence of this threat in its territory, in addition to investing in effective technologies to combat this type of conflict.