Defence Procurement Policy Research Articles

Defence sector and military cooperation between Turkey and the Central Asian Republics: limitations and prospects amidst intensified regional and global rivalry

ABSTRACT Recent Turkey-Central Asian Republic integration attempts are notable. Regular visits, Turkic World summits, economic steps to build a cooperative development bank, defense procurement, and regional policy collaboration have driven this trend. China's Bridge and Road Initiative, NATO's exit from Afghanistan, the Taliban's ascent, and the Russian elite's use of the “Russkiy Mir” after the Russo-Ukrainian War make the “Turkic world” geopolitically vital. Global and regional power struggles will make the region's natural resources and strategic location more important in coming decades. Turkey-Central Asia defense cooperation may also shape the region. This study aims to determine if Turkey-region defense cooperation improves Turkic integration. The states utilize regional military ties and diverse tools for regional and global objectives. The probe will begin with “Turkic integration” and recent Turkish defense industry achievements, then regional defense ties. Finally, a comparative analysis will reveal regional integration constraints and potential, focusing on defense cooperation.

Power without a cause? Germany’s conflict avoidance and the integration of European defence procurement

ABSTRACT Germany’s state elites and general public have consistently preferred deepening integration of defence procurement at the European Union (EU) level. However, the German government has repeatedly acted against this well-established preference. First, it wanted the European Defence Agency to become a full-fledged armaments agency but tolerated its marginalization into a symbolic entity. Second, it preferred to ban protectionist defence procurement policies, such as offsets, but voted for a Code of Conduct that legitimized them. Despite Germany’s powerful position, conflict avoidance was its predominant strategy in the EU’s intergovernmental bargains. The government was unwilling to risk confronting other member states but passed the buck to the European Commission, satisficed on second-best outcomes, and thus acted as a power without a cause. By expanding the core state power (CSP) research program beyond its focus on domestic politics, we suggest re-considering CSP-integration as the art of the possible in iterative, mixed-motive situations.

Transfer of Technology in Indian Defence Manufacture - Elements and Challenges

Transfer of Technology in Indian Defence Manufacture - Elements and Challenges - JMRA- Print ISSN No: - 2394-2762 Online ISSN No:- 2394-2770 Article DOI No:- 10.18231/j.jmra.2020.003, Journal of Management Research and Analysis-J Manag Res Anal

\u2018Zero-error\u2019 versus \u2018good-enough\u2019: towards a \u2018frugality\u2019 narrative for defence procurement policy

The procurement decision-making process for complex military product systems (CoPS) has significant implications for military end-users, suppliers, and exchequers. This study examines the usefulness of adopting a fast and frugal decision-making approach for the acquisition of military CoPS. Defence procurement environment is complex. On the one hand, there are uncertainties and severe resource constraints due to regularly changing threat perceptions, limited flow of information about new technologies, and the growing demand to reduce defence related expenses. On the other hand, several stakeholders remain pre-occupied with the demand for ‘zero-error’ technologies. In such a setting, recurrent cost overruns and delays in supply are common in defence procurement programmes, across countries. Taking the illustrative examples of the missile system, fighter jet, and radar system acquisitions in India, we elucidate on ‘optimising’ versus ‘satisficing’ dynamics in the procurement decisions. The paper argues that a fast and frugal decision-making process by relying on judgement, experiential knowledge, and intuitive learning might make procurement processes, adaptively, more efficient. Such an approach would enable a ‘good enough’ technology to be inducted, and improved upon, through regular feedback from the actual environment. The study has implications for policy scholarships on innovation policy instruments under uncertainty.

A STUDY OF THE CONTRIBUTION OF MAKE IN INDIA IN INDIAN DEFENCE PRODUCTION SECTOR

Prime Minister Modi’s new campaign for “Make in India” is to increase share of manufacturing from the current level of 15 per cent of Gross Domestic Product (GDP) to 25 per cent and create additional employment opportunity of 1 crore per year. The government is putting thrust on export-led growth and should give primacy to “Make for India”. Defence manufacturing came out of the stranglehold of Public Sector Undertakings-Ordnance Factories monopoly with major liberalisation in 2001 with 100 per cent private sector participation and the recently announced 49 per cent in Foreign Direct Investment. Policy footprints such as the Defence Procurement Policy 2013 have created a level playing field for the private sector. The Defence Production Policy 2011 aims at higher self reliance in critical technology and the Offsets Policy 2012 which seeks to leverage our big arms’ acquisition to bring in state-of-art technology, and long term partnership with Original Equipment Manufacturers (OEMs). The Self Reliance Index of our defence acquisition, however, remains at a wobbly 30 per cent despite spasmodic policy posturing to improve indigenisation. KEY WORDS: GDP, Export led growth,PSU, Private Sector Participation, Foreign Direct Investment etc

Нормативно-правове супроводження процесу створення об’єктів права інтелектуальної власності в США

В статті міститься аналіз чинних в США стратегічних підходів та порядку функціонування процесу захисту об’єктів права інтелектуальної власності. Розглянуті спільні скоординовані зусилля Конгресу, Адміністрації Президента та інших гілок влади, приватного сектору США щодо інтелектуальної власності з метою досягнення успіху інноваційної політики цієї країни. В статі також наведені результати досліджень Інституту оборонного аналізу США щодо врахування в політиці оборонних закупівель вимог стосовно охорони інтелектуальної власності.

Varieties of international co-operation: France’s “flexilateral” policy in the context of Brexit

The aim of this article is to articulate conceptually the varieties of international co-operation in which states take part. In theories of international relations, international co-operation is generally analysed either through instances of multilateral collaboration (EU, UN, NATO), through bilateral alliances (Franco-German relationship), or through “minilateral” clubs (G7). Yet the literature does not offer a concept for linking these three models of international co-operation. Nevertheless, in practice, states simultaneously use varieties of international co-operation to address global public problems such as climate change, migration crises, and the fight against terrorism. To address this shortcoming, it is necessary to shift the focus from each type of international co-operation to their “interstices”, in order to identify the relations between the types of international co-operation and their reciprocal effects on decisions taken by the state. It is to do this that the concept of “flexilateralism” has been developed. This neologism describes the policy through which a state simultaneously implements varieties of international co-operation to address a public problem. A state’s “flexilateral” policy, or flexilateralism, is operationalised by revealing four varieties of international co-operation: bilateralism (co-operation between two states), minilateralism (co-operation within an exclusive group of states), multilateralism (co-operation within an inclusive group of states), and unilateralism (no co-operation). The concept of flexilateralism is applied through the case of France’s defence procurement policy in the context of the Brexit negotiations. By taking seriously varieties of international co-operation, the concept of flexilateralism goes a step further to explain the policy-making and implementation of state’s foreign policy.

Earning a Peace Dividend in a Crisis Environment: The Greek Case

AbstractIn this paper we attempt to assess the extent to which conversion policies involving the shift of resources from the defence to the non-defence sector may entail some form of peace dividend for the economy of Greece. The issue has become one of increasing importance during the past few years during which the demand for growth-supporting policies has been a top priority requirement as an antidote to the recession. The paper employs a VAR model in order to investigate the interactions among the growth rate of gross domestic product and alternative measures of defence expenditure. We find that defence spending and more so, expenditure on defence equipment, under the present circumstances in which the bulk of the procurement represents import payments is not related in any form of Granger-causal relationship with the economic growth of Greece. Our results point to the fact that there can be no possibility of a peace dividend under the circumstances prevailing, unless defence procurement policies shift to an import – substitution strategy.

Government policies for transfer of technology projects in Indian defence PSUs

Indian DPSUs are the backbone for manufacturing of defence article for our defence forces. But to compete the global market they need massive transformation which can be achieved very well by transfer of technology (TOT). Effective TOT project implementation using government policies is the main thought of this research paper. This paper points out the guideline of defence procurement policy (DPP) for TOT implementation and derive a generalised model for TOT of defence article manufacturing in Indian DPSUs. With this paper researcher defines TOT implementation via stage-gate model of TOT and generate model for TOT implementation. The two dimensional model for bid evaluation is a unique finding for selection of vendor/seller for TOT project in Indian Defence PSUs. Author conclude this research paper by pointing out use of Indian Government offset policy in TOT project in the economic benefit of Indian DPSUs and decision of TOT in different category.

Government policies for transfer of technology projects in Indian defence PSUs

Indian DPSUs are the backbone for manufacturing of defence article for our defence forces. But to compete the global market they need massive transformation which can be achieved very well by transfer of technology (TOT). Effective TOT project implementation using government policies is the main thought of this research paper. This paper points out the guideline of defence procurement policy (DPP) for TOT implementation and derive a generalised model for TOT of defence article manufacturing in Indian DPSUs. With this paper researcher defines TOT implementation via stage-gate model of TOT and generate model for TOT implementation. The two dimensional model for bid evaluation is a unique finding for selection of vendor/seller for TOT project in Indian Defence PSUs. Author conclude this research paper by pointing out use of Indian Government offset policy in TOT project in the economic benefit of Indian DPSUs and decision of TOT in different category.

ACCRUAL BUDGETING AND DEFENCE FUNDING: THEORY AND SIMULATIONS

This paper explores the impact of moving to accrual budgeting on resources allocation in defence. Standard defence budgeting and investment models are used to assess the theoretical implications of accrual budgeting. In addition, a number of simulations are conducted to assess the long-term implications of moving to accrual accounting and budgeting. The result of the simulations shows that changes to deployed operations and other operational shocks will have manageable impacts on readiness but systematic shocks associated with defence unit prices, procurement policies and defence specific inflation will put considerable strain on the defence department's flexibility.

On Defence Expenditure Reduction: Balancing Between Austerity and Security in Greece

This paper aims at contributing a literature update by assessing the impact of policies focusing on defence-procurement spending on the growth rate of the Greek economy with special reference to the recent crisis environment using artificial neural networks. The main conclusion drawn in the case of the Greek economy in general and during austerity times in particular, is that defence-procurement policy is considerably inflexible concerning both increases and reductions. In fact any further decreases will have a direct impact on the security of the country given the dramatic reduction of the defence budget and the arms race against Turkey. By contrast, any increases will only burden the balance of payments without adding to the GDP, once the bulk of the defence equipment is imported due to the inefficiency of the domestic defence industrial base. A compromise, therefore, between security and austerity would call for a gradual shift towards domestic sources procurement, assuming, of course, considerable upgrading of the Hellenic defence industrial base.

European armament co-operation and the renewal of industrial policy motives

This article explores economic patriotism within the evolution of European defence procurement policies. As European integration advances, the nature of the patrie underpinning interventions in defence industries evolves, and becomes partially post-national. That said, ‘national’ boundaries endure, and special relationship among national actors continue to exist. European co-operation in armaments production involves an ambiguous blend of partial liberalization and the implementation of industrial policy at a new level. Tensions among actors about both the nature of defence industrial policy (liberal vs protectionist) and its level of implementation (national/European/global) explain the evolution of the European prerogatives in this sector.

The emerging European defense market

The paper deals with prospects of the developing common EU defense procurement market and policy with a view to strengthening the defense identity of the European Union as well as to promoting its external profile and international role. Despite of the European Union?s overall GDP, the Union is not considered a serious military power. The EU processes of market integration and rationalization have bypassed European defense industries, which are fragmented and increasingly losing ground to their American and some Far East Asian competitors. This has prompted calls for introducing the supranational defense procurement and defense industry policies. The analysis focuses on functioning of the European Defense Equipment Market via application of the EU Code of Conduct on Defense Procurement and reviews EU prospects for establishment of a single defense market from the policy, organizational and commercial perspectives. The authors conclude that in the long run, the voluntary intergovernmental defense procurement regime established between some EU members will open prospects of cutting national defense spending, fostering the global competitiveness of the defense industries of EU member states and building up a respectable military capacity to additionally support the Common Defense and Security Policy.

BUYER‐SUPPLIER PARTNERING IN UK DEFENCE PROCUREMENT: LOOKING BEYOND THE POLICY RHETORIC

This article looks beyond the rhetoric in recent UK defence procurement policy to discuss factors that might impact on the practical implementation of buyer‐supplier partnering. Various explanations of the difficulty of creating a partnership are identified. The principal explanation explored is that the likelihood of successful partnering is a function of the power relation between a buyer and a supplier. It is argued that partnering is most likely to occur under circumstances of interdependence when each party is highly dependent upon and vulnerable to the other. A case study from naval shipbuilding is used to examine the plausibility of this power explanation. None of the power relations in the supply network discussed is primarily characterized by interdependence and there is no evidence of partnering. This suggests that while the MoD and its suppliers may use the language of partnering, they often find it difficult to translate this into meaningful action.

Finding the optimal CSP inventory level for multi-echelon system in Air Force using random effects regression model

Determining the optimal inventory level of CSP (concurrent spare parts) is crucial at the time of acquisition of new aircrafts. Most of the existing optimal CSP models do not take into account the time varying characteristics of CSP even though their demand rates are sensitive to such variation. In this paper, we introduce the CSP inventory model using a two stage approach. At the first stage, we use a random effects model to predict the expected demand of CSP in a multi-echelon system consisting of depot and bases based on CSPs varying characteristics with time. At the second stage, we find the optimal inventory level of CSP by using the optimization algorithm with various constraints under limited budget. The study is expected to contribute to the Air Force establishing the optimal national defense procurement policy for CSP of aircrafts.

Policies for developing defense technology in newly industrialised countries: a case study of Taiwan

The post-Cold War era has witnessed considerably reduced national defense budgets and a consequent decline in the international arms trade. Therefore, the world’s arms suppliers have begun to sell high-performance weapons as another means of acquiring additional foreign exchange, thus enabling newly industrialised countries (NICs) to procure relatively advanced weaponry at lower prices. This trend is driving defense procurement policies in NICs toward purchasing arms from abroad. This development is impeding the growth of independent R&D capabilities, even causing rapid deterioration, and thus hindering further defense technology development (DTD). Hence, developing a policy to counter this change is an urgent requirement for NICs. This study analyzes the characteristics of DTD and development trends in advanced nations, and then uses system dynamics theory to construct a framework for developing defense technology in Taiwan.

The impact of procurement‐driven technological change on U.S. manufacturing productivity growth

As we enter the 21st Century, technologies originally developed for defense purposes such as computers and satellite communications appear to have become a driving force behind economic growth in the United States. Paradoxically, almost all previous econometric models suggest that the largely defense‐oriented federal industrial R&D funding that helped create these technologies had no discernible effect on U.S. industrial productivity growth. This paper addresses this paradox by stressing that defense procurement as well as federal R&D expenditures were targeted to a few narrowly defined manufacturing sub‐sectors that produced high tech weaponry. Analysis employing data from the NBER Manufacturing Productivity Database and the BEA’ s Input Output tables then demonstrates that defense procurement policies did have significant effects on the productivity performance of disaggregated manufacturing industries because of a process of procurement‐driven technological change.

Defence procurement and industry policy ‐ A Singapore perspective

This paper describes Singapore's defence procurement process policy and agencies tasked with purchasing goods and services for the Singapore's Ministry of Defence and the Singapore Armed Forces. It also outlines Singapore's defence industry and technology policies.

Defence procurement as an industrial policy tool: The Spanish experience

The procurement of military systems may be used as a tool to achieve industrial objectives. Medium‐sized industrialised countries have the choice of procuring foreign systems on the best economic terms available, or instead using defence procurement as a tool to build up domestic industrial and technological capabilities. The Spanish experience illustrates the difficulties in moving from a procurement approach that only occasionally considered industrial policy issues, to procedures that systematically attempted to use defence procurement to support domestic industries. The problems that emerged suggest the limits to using defence procurement as an industrial policy tool, and provide an indication of the range of feasible objectives attainable by the defence procurement policies of a middle‐sized, industrialised country.