The Defence Industrial Base And The West

This book, first published in 1989, analyses the effect that interdependence has had on the defence industrial base, concentrating upon those defence industries situated at the hi-tech end, and paying particular attention to the procurement decisions that affect the production of sophisticated military aircraft. Interdependence raises questions of importance to international relations, strategic studies and defence economics, and Western industrialised states have an ongoing dilemma over the degree to which they should subject their defence industrial bases to the forces of economic interdependence. Despite worries over strategic vulnerability, most Western states have been showing increased interest in arms collaboration, with the aim of maximizing the amount of weaponry available for defence. As this book shows, such a goal becomes increasingly important s the technological sophistication of weapons grows.

Systematically analyzes the components and drivers of the relationships that bind a government to its defense industrial base by examining three major case studies: the UK, US and Germany, which between them account for over three-quarters of NATO defense spending. The features of their defense industrial relationships - whether common or unique - provide lessons for policy-makers, industrialists and the taxpayer.

This volume provides a policy-relevant analysis of the complex web of contemporary economic trends, political developments and strategic considerations that are shaping the contours of the new post-Cold War world market for weaponry.

Defence Industries in the 21st Century explores the transformation in the global defence industrial production through examining the interaction between international and domestic factors. With the global defence industry and arms market likely continue to expand and mature, the ways in which this progression could influence international politics remain obscure. In practice, as the contents of this book show, the defence industrial bases and arms export policies of emerging states display significant variance. This variance is the result of a unique balance between domestic and international factors that has shaped the defence industrialisation behaviour and policies of the less industrialised states. One of the most important conclusions of the book is that the interplay between domestic and international factors clearly influences the variation in the emerging states’ defence industrialisation policies, as well as their success or failure. While international factors create opportunities, they also limit the options available to emerging economies. Domestic factors also play an important role by shaping the policy choices of the states’ decision makers. Exploring the balance between international and domestic factors and the ways in which they influence defence industrialisation in emerging states, Defence Industries in the 21st Century will be of great interest to scholars of Defence Industries, Arms Manufacturing, and Defence, Strategic and Security Studies more generally. The chapters were originally published in Defence Studies, Comparative Strategy and All Azimuth.

This book makes an original contribution to our knowledge of the world’s major defence industries. Experts from a wide range of different countries – from the major economies of North America and Western Europe to developing economies and some unique cases such as China, India, Singapore, South Africa and North Korea – describe and analyse the structure, conduct and performance of the defence industry in that country. Each chapter opens with statistics on a key nation’s defence spending, its spending on defence R&D and on procurement over the period 1980 to 2017, allowing for an analysis of industry changes following the end of the Cold War. After the facts of each industry, the authors describe and analyse the structure, conduct and performance of the industry. The analysis of ‘structure’ includes discussions of entry conditions, domestic monopoly/oligopoly structures and opportunities for competition. The section on ‘conduct’ analyses price/non-price competition, including private and state funded R&D, and ‘performance’ incorporates profitability, imports and exports together with spin-offs and technical progress. The conclusion explores the future prospects for each nation’s defence industry. Do defence industries have a future? What might the future defence firm and industry look like in 50 years’ time? This volume is a vital resource and reference for anyone interested in defence economics, industrial economics, international relations, strategic studies and public procurement.

The forces of globalization present challenges, risks, and opportunities to virtually every industry in every country. One of the most important implications of globalization is its effect on the economic competitiveness of countries and particular industries. The author explores how key elements of globalization have transformed national defense industries around the world, and how these changes will affect the U.S. defense industrial base in the coming years. He focuses on elements of globalization that are relevant especially to the defense industry: the globalization of capital (finance), production, trade, technology and labor, and the changes in global governance that structure the forces of globalization. He concludes by offering ten recommendations for policymakers who have the difficult task of maximizing U.S. economic competitiveness without compromising national security.