Innovation and Defence Industrial Policy
The research is expected to shed new light on the characteristics and dynamics of the defence industry's sectoral system of innovation and in particular the role played by public agencies and innovation policy support.In cooperation with Norwegian Defence Research Establishmen (FFI) Deltakere
Innovation and Defence Industrial Policy: Creating a Common Strategy for Institutions with Different Goals and Approaches to Policy-making (INNDEF)
Both Innovation Norway and the Ministry of Defence seek to promote a strong and viable defence industry in Norway. However, the two institutions greatly differ in terms of their policy goals, approaches and policy instruments. This begs the question whether Innovation Norway and the Ministry of Defence would better serve the defence industry by achieving a greater coordination of their objectives and strategies to support innovation, competitiveness and capabilities in this important branch of the economy.
This project addresses the following two main questions:
- To what extent are Innovation Norway's and the Norwegian Ministry of Defence's goals compatible and to what extent do their policy approaches support one another?
- In which areas could Innovation Norway and the Norwegian MoD benefit from coordinating the use of their policy instruments?
The research is expected to shed new light on the characteristics and dynamics of the defence industry's sectoral system of innovation and in particular the role played by public agencies and innovation policy support, and to provide specific recommendations on how to achieve a greater and more effective coordination between different types of policy interventions in this branch.
The topic investigated in this project may potentially have wider implications for innovation policy-making in many other sectors of the economy and for many other countries as well. The comparison between Innovation Norway's and the Norwegian Ministry of Defence's different objectives and policy approaches is in fact closely related to the more general contrast between supply-side versus demand-led innovation policies and the need to achieve a greater coordination among them. Our project is therefore expected to contribute to this recent debate that is currently attracting increasing attention at the EU level
Finansiering
The Norwegian Research Council (FORFI)
Publikasjoner
- Castellacci, Fulvio , Martin Blom, Arne Fevolden (2011). Defence Firms Facing Liberalization: Innovation and Export in an Agent-based Model of the Defence Industry. NUPI-notat: 793. 54 sider. This 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.
- Castellacci, Fulvio , Martin Blom, Arne Martin Fevolden (2012). The trade-off between Innovation and Defence Industrial Policy: A Simulation Model Analysis of the Norwegian Defence Industry. NUPI-notat: 801. 36 sider. This 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.
- Castellacci, Fulvio , Arne Fevolden (2012). Capable Companies or Changing Markets?: Explaining the Export Performance of Firms in the Defence Industry. NUPI-notat: 795. 43 sider. The paper carries out an empirical analysis of the factors explaining the export performance of firms in the defence sector of Norway.
