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Defense Industries in Small and Medium States:Drivers and Policy Challenges

YSI Workshop on defense industries

Start time:

February 7, 2024 - February 7, 2024

EST

Location:

Khalifa University, United Arab Emirates., Abu Dhabi, Abu Dhabi

Type:

Workshop

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Description

*TOPIC *

Since the Industrial Revolution and especially after World War II, the Great Powers have invested heavily in military technology to maintain superiority and elicit innovation spin-offs. Consequently, state defense sectors have emerged as pioneers and primary drivers of global technological innovation. Innovations initially crafted for defense purposes later permeated into the civilian realm, fundamentally transforming human society. After the end of the Cold War, globalization and geopolitical shifts led to a gradual transfer of technological innovation's leadership from the defense sector to the civilian sector. Nowadays, a significant portion of innovation is driven by the private civilian domain, and the state defense sector increasingly depends on it, marking a notable shift in the center of gravity for innovation.

Notwithstanding this, the recent return of great power conflict, particularly evident in rising tensions in the South China Sea and the ongoing war in Ukraine, has sparked a resurgence of defense spending in various countries. This is compounded by economic development in the periphery, most notably Eastern Europe, the Middle East and Asia. As tensions between major powers escalate and geopolitical rivalries intensify, nations are prioritizing the strengthening of their defense capabilities to safeguard their interests and territorial integrity.

However, few states today possess the defense-industrial capabilities to produce all, or even most, of their armaments domestically. With rising costs, greater technological complexity, and intensified competition in global markets, the prospects for states aspiring to build up domestic defense industries look increasing poor. Yet

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