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Begin New Search Topic Defense Policy Author Fulvio Castellacci

1. Capable Companies or Changing Markets? Explaining the Export Performance of Firms in the Defence Industry

Author:
Fulvio Castellacci and Arne Fevolden
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper carries out an empirical analysis of the factors explaining the export performance of firms in the defence sector. We focus on the case of Norway, and make use of two complementary methodologies: the first is based on quantitative firm-level data analysis for the whole population of defence companies, and the second is based on qualitative case study research on the three most important defence export products (weapon stations, ammunition, electronics). Our empirical results highlight the importance of four major success factors for exporting firms: (1) the participation in offset agreements; (2) the ability to focus on their set of core competencies; (3) their R activities and interactions with the public S system; (4) demand opportunities and, relatedly, user-producer interactions.
Topic:
Defense Policy, Arms Control and Proliferation, Markets, Science and Technology, and Weapons of Mass Destruction
Political Geography:
Norway

2. Defence Firms Facing Liberalization: Innovation and Export in an Agent-based Model of the Defence Industry

Author:
Fulvio Castellacci, Arne Fevolden, and Martin Blom
Publication Date:
01-2012
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
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 firmlevel dynamics will in the long-run lead to an increase in the industry's export propensity and a less concentrated market.
Topic:
Defense Policy, Arms Control and Proliferation, Markets, Weapons of Mass Destruction, and Governance
Political Geography:
Europe

3. The trade-off between Innovation and Defence Industrial Policy

Author:
Fulvio Castellacci, Martin Blom, and Arne Martin Fevolden
Publication Date:
05-2012
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The paper investigates the trade-off between innovation and defence industrial policy. It presents an agent-based simulation model calibrated for the Norwegian defence industry that compares different policy scenarios and examines the effects of a pending EU market liberalization process. The paper points to two main results. (1) It finds that a pure scenario where national authorities focus on, and provide support exclusively for, either a) international competitiveness or b) national defence and security objectives, is more Pareto efficient than a corresponding mixed strategy where policy makers simultaneously pursue both international competitiveness and defence and security objectives. (2) Under the conditions of the new EU liberalization regime, it finds that a stronger and more visible trade-off will emerge between international competitiveness and national defence and security objectives. Policy makers will have to choose which to prioritise, and set a clear agenda focusing on one of the two objectives.international competitiveness or b) national defence and security objectives, is more Pareto efficient than a corresponding mixed strategy where policy makers simultaneously pursue both international competitiveness and defence and security objectives. (2) Under the conditions of the new EU liberalization regime, it finds that a stronger and more visible trade-off will emerge between international competitiveness and national defence and security objectives. Policy makers will have to choose which to prioritise, and set a clear agenda focusing on one of the two objectives.
Topic:
Security, Defense Policy, International Trade and Finance, and Markets
Political Geography:
Europe