The future of the European defense firm

Authors

  • Keith Hartley University of York

DOI:

https://doi.org/10.15355/epsj.18.1.66

Keywords:

air systems, Augustine weapons systems, European defence firms, joint European projects, mergers, naval systems, new technology, public choice, rising unit costs, space systems, Strategic Compass, tanks, threats

Abstract

The future European defense firm will be radically different, being determined by future threats, novel technology, and yet to come European defense policy. The immediate threat arises from the war in Ukraine, but longer-term European defense policy based on the Strategic Compass will provide the framework for the future European defense firm. Past developments offer some indication of the future and it is predicted that the defense firm has a future and will survive. The past trend of smaller numbers of larger defense firms will continue with firms being even more technologically-intensive—reflecting Augustine weapons systems, which are characterized by continuously rising unit costs and smaller volumes. There will be more mergers between European defense firms and more joint European projects developing and producing combat air and naval systems, tanks, and cyber systems.

Author Biography

Keith Hartley, University of York

Emeritus Professor

Economics Dept

University of York

UK

References

Augustine, N. R. 1987. Augustine’s Laws, London, UK: Penguin Books.

Bellais, R., 2022. MBDA’s Industrial Model and European Defence. Defence and Peace Economics, 33(7), pp. 876–893.

https://doi.org/10.1080/10242694.2021.1926176

DSTL. 2010. Historical Cost Data of RAF Aircraft, 1935–65, London, UK: Ministry of Defence using DSTL version.

EU. 2022. The Strategic Compass of the EU, Brussels: European Union.

Hartley, K. 2014. The Political Economy of Aerospace Industries, Cheltenham, UK: Elgar.

https://doi.org/10.4337/9781782544968

Hartley, K. 2017. The Economics of Arms, Newcastle, UK: Agenda Publishing.

https://doi.org/10.2307/j.ctv5cg7q6

Hartley, K., 2020. Rising costs: Augustine revisited. Defence and Peace Economics, 31(4), pp. 434–442.

https://doi.org/10.1080/10242694.2020.1725849

Hartley, K. and Sandler, T., 2003. The future of the defence firm. Kyklos, 56(3), pp. 361–380.

https://doi.org/10.1046/j.0023-5962.2003.00225.x

Hobday, M. 1998. Product complexity, innovation and industrial organization, Research Policy, 26, pp. 689–710.

https://doi.org/10.1016/S0048-7333(97)00044-9

Kirkpatrick, D. and Pugh, P. 1983. Towards the Starship Enterprise: Are the Current Trends in Defence Unit Costs Inexorable, Aerospace, 10(5), pp. 16–23

Markowski, S., Brauer, J. and Hartley, K. 2022. Augustine investments and weapons systems, Defence and Peace Economics. Available at: https://www.tandfonline.com/doi/full/10.1080/10242694.2022.2031691 (accessed: February 2023).

https://doi.org/10.1080/10242694.2022.2031691

Matthews, R. and Al-Saadi. 2021. Organisational complexity of the Eurofighter Typhoon collaborative supply chain, Defence and Peace Economics, online version.

https://doi.org/10.1080/10242694.2021.1987022

Pugh, P.G., 2007. Retrospect and prospect: Trends in cost and their implications for UK aerospace. Defence and Peace Economics, 18(1), pp. 25–37.

https://doi.org/10.1080/10242690600900505

SIPRI. 2022. Arms Industry Database, Stockholm, Sweden: Stockholm International Peace Research Institute.

Published

2023-04-17

How to Cite

Hartley, K. (2023). The future of the European defense firm. The Economics of Peace and Security Journal, 18(1). https://doi.org/10.15355/epsj.18.1.66

Issue

Section

Articles

Similar Articles

<< < 2 3 4 5 6 7 8 9 10 11 > >> 

You may also start an advanced similarity search for this article.