The Defence Industrial Triptych

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.

The Defence Industrial Triptych systematically analyses the components and drivers of the relationships that bind a government to its defence industrial base by examining three major case studies: the UK, US and Germany, who between them account for over three quarters of NATO defence spending.

The relationship between government and the businesses that contribute towards the defence and security of the state is a critical one; it often underscores a modern state’s foreign policy and sense of place in the world. Yet, despite its clear importance, this subject is underexplored and rarely analysed in a rigorous manner. As a consequence, government defence industrial policies, if they exist at all, often seem somewhat contrived, ill-considered and contradictory. The Defence Industrial Triptych systematically analyses the components and drivers of the relationships that bind a government to its defence industrial base by examining three major case studies: the UK, US and Germany, who between them account for over three quarters of NATO defence spending. The features of their defence industrial relationships –whether common or unique – provide vital lessons for policy-makers, industrialists and the taxpayer. As defence cuts bite across NATO and as the UK approaches the 2015 Strategic Defence and Security Review, the relationships this Whitehall Paper considers are more important than ever.

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.

This book provides an empirical understanding of how EU-level defence industrial cooperation functions in practice. Using the Liberal Intergovernmental theoretical model, the book argues that while national economic preferences are an essential factor of government interests they only explain part of the dynamic that leads to the development of defence industrial policy at EU level. Moving beyond a simple adumbration of economic preferences, it shows how the EU’s institutional framework and corpus of law are used by governments to reaffirm their position as the ultimate arbiter and promoter of national economic preferences in the defence industrial sector. To this end, the work asks why and how EU member state governments, European defence firms, and EU institutions developed EU-level defence industrial policy between 2003 and 2009. The book also analyses significant policy developments, including the establishment of a European Defence Agency and two EU Directives on equipment transfers and defence procurement. This book will be of much interest to students of EU policy, defence studies, security studies and International Relations in general.

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.

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.

This report examines the defence industries in Central and Eastern Europe as they attempt to restructure in the wake of changes brought about by the end of the cold war and downward trends in both military expenditure and arms exports. Issues addressed include the developing military doctrines in Central and Eastern Europe; the trend in military expenditure; the nature of defence industry restructuring; the international dimensions of industrial restructuring; and the role of arms exports.