Open AccessThe restructuring of the European land armaments industry: Between political incentives and economic pressures
Author(s) -
Adrien Caralp
Publication year - 2017
Publication title -
the economics of peace and security journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.181
H-Index - 1
ISSN - 1749-852X
DOI - 10.15355/epsj.12.1.12
Subject(s) - restructuring , context (archaeology) , aerospace , incentive , production (economics) , politics , sovereignty , defence industry , business , cold war , international trade , economics , economy , market economy , economic policy , political science , finance , geography , law , archaeology , macroeconomics
Within the context of the restructuring of the European defense industry since the end of the cold war, this article addresses the land armaments sector in general, and armored vehicles in particular. The industry is generally divided into the aerospace, naval, land, and electronics sectors, of which aerospace and electronic are highly internationalized while the land and naval ones remain fragmented and nationally based. Economic characteristics of the land armaments industry—lower R&D costs and longer production runs—still permit the predominance of a nationally-focused production model, yet post-cold war market changes toward lighter platforms, and resulting synergies with the civilian truck industry, imply a comparative weakening of state sovereignty and, consequently, stronger market contestability as compared to the other defense industry sectors.