Defense Industrial Base and Network Structure: Measurement, Analysis and Public Policies for the Brazilian Case

Thiago Caliari, Luís Felipe Giesteira, Felipe Orsolin Teixeira and Cauan Braga da Silva Cardoso

Defence and Peace Economics, 2025, vol. 36, issue 3, 373-394

Abstract: This work aims to identify sectors of the Defense Industrial Base (DIB) that have the potential to generate productive and technological spillovers. We selected companies that sold to the Ministry of Defense (MD) between 2001 and 2019 from the Brazilian Federal Government’s public procurement database (ComprasNet). These companies were chosen based on their sectoral relevance according to relevant theoretical works. Our contribution lies in using economic activity co-occurrence reported by companies, using microdata in an unprecedented exercise in the field of defense studies. The main findings show that dominant sectors with higher technological intensity tend to have a closer relationship and greater diversity of relationships within the DIB compared to other sectors. By defining sectors with high potential for technological interaction based on relevant characteristics such as centrality, technological intensity, and MD budget share, we were able to identify the existence of sectoral clusters that can generate greater productive and technological spillovers, with particular emphasis on aircraft manufacture and ICT-related industrial sectors.

Date: 2025
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DOI: 10.1080/10242694.2024.2303694

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