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Defence firms facing liberalization: innovation and export in an agent-based model of the defence industry

Martin Blom, Fulvio Castellacci and Arne Fevolden

MPRA Paper from University Library of Munich, Germany

Abstract: The paper presents an agent-based simulation model of the defence industry. The model resembles some of the key characteristics of the European defence sector, and studies how firms in this market will respond to the challenges and opportunities provided by a higher degree of openness and liberalization in the future. The simulation analysis points out that European defence firms will progressively become more efficient, less dependent on public procurement and innovation policy support, and more prone to knowledge sharing and inter-firm collaborations. This firm-level dynamics will in the long-run lead to an increase in the industry’s export propensity and a less concentrated market.

Keywords: Defence industry; liberalization; EU; export; innovation; agent-based simulation model (search for similar items in EconPapers)
JEL-codes: C6 F1 F5 L1 M2 O3 (search for similar items in EconPapers)
Date: 2012-01-03
New Economics Papers: this item is included in nep-cmp, nep-cse, nep-eur, nep-ino and nep-knm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Journal Article: Defence firms facing liberalization: innovation and export in an agent-based model of the defence industry (2014) Downloads
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