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

Martin Blom, Fulvio Castellacci and Arne Fevolden
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Martin Blom: Norwegian Institute of International Affairs (NUPI)

Computational and Mathematical Organization Theory, 2014, vol. 20, issue 4, No 5, 430-461

Abstract: Abstract The paper presents an agent-based simulation model of the European defence industry. The model resembles some of the key characteristics of the 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 export market.

Keywords: Defence industry; Liberalization; EU; Export; Innovation; Agent-based simulation model; C6; F1; F5; L1; M2; O3 (search for similar items in EconPapers)
Date: 2014
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Working Paper: Defence firms facing liberalization: innovation and export in an agent-based model of the defence industry (2012)
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DOI: 10.1007/s10588-014-9173-6

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