The European defense market: Disruptive innovation and market destabilization

Renaud Bellais () and Daniel Fiott ()
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Renaud Bellais: Ecole Nationale Supérieure de Techniques Avancées Bretagne (ENSTA Bretagne), Brest, France
Daniel Fiott: Institute for European Studies, Vrije Universiteit Brussel, Belgium

Economics of Peace and Security Journal, 2017, vol. 12, issue 1, 38-45

Abstract: The global defense industry is shifting toward a new paradigm in which an emphasis on technology-driven capability development is being undermined by disruptive innovations emanating from the commercial sector. This evolution is likely to result in important effects on the defense market, lessening barriers to entry and turning upside down the approach to innovation. For the defense sector this entails that shifts in the organizational behavior of firms and military establishments are required if the full benefits of innovation are to be captured and integrated into defense capability development processes. This article analyses this shifting paradigm with the European defense market as a departure point. Briefly exploring the shifts in defense industrial processes since the 20th century, this article outlines the benefits of integrating the defense and civilian technological and industrial bases.

Keywords: Defence; innovation; Europe; technology; disruption (search for similar items in EconPapers)
JEL-codes: O14 O32 O33 O52 (search for similar items in EconPapers)
Date: 2017
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