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Small countries and the consolidation of the European defence industry: Portugal as a case study

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  • Carlos Pestana Barros

Abstract

In this paper, we analyse the dilemma confronted by a small country in relation to the consolidation taking place in the European defence industry. Assuming that Portugal must maintain its armed forces, and must retain a minor defence industry, this industry must be competitive in small niches. Competitiveness must be based on, amongst other elements, technical efficiency and technological change. We investigate this issue, first characterizing the threats faced by the Portuguese defence industry, then investigating its present efficiency and finally, we discuss its role in the consolidation of the European Industry. We conclude that the Portuguese defence industry has no alternative but to opt for innovation and European partnership, which are complementary policies, but which require the active involvement of the stakeholder (i.e. the Government) in effecting these fundamental shifts in direction and emphasis. If this strategy does not succeed, the defence policy should be based on offsets.

Suggested Citation

  • Carlos Pestana Barros, 2002. "Small countries and the consolidation of the European defence industry: Portugal as a case study," Defence and Peace Economics, Taylor & Francis Journals, vol. 13(4), pages 311-319.
    • Handle: RePEc:taf:defpea:v:13:y:2002:i:4:p:311-319
    DOI: 10.1080/10242690212359
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    Cited by:

    1. José Solana‐Ibáñez & Manuel Caravaca‐Garratón & Ricardo Teruel‐Sánchez, 2020. "Stakeholder perception on corporate reputation and management efficiency: Evidence from the Spanish Defence sector," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2381-2399, September.
    2. C. Barros & F. Alves, 2005. "Efficiency in Crime Prevention: A Case Study of the Lisbon Precincts," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 11(3), pages 315-328, August.
    3. Christos Kollias & Nikolaos Mylonidis & Suzanna-Maria Paleologou, 2007. "A Panel Data Analysis Of The Nexus Between Defence Spending And Growth In The European Union," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(1), pages 75-85.
    4. Kollias, Christos & Manolas, George & Paleologou, Suzanna-Maria, 2004. "Defence expenditure and economic growth in the European Union: A causality analysis," Journal of Policy Modeling, Elsevier, vol. 26(5), pages 553-569, July.
    5. repec:kap:iaecre:v:11:y:2005:i:3:p:315-328 is not listed on IDEAS
    6. Carlos Barros, 2005. "Governance and Incentive Regulation in Defence Industry Enterprises: A Case Study," European Journal of Law and Economics, Springer, vol. 20(1), pages 87-97, July.
    7. Carlos Pestana Barros & Isabel Proenca & Joao Ricardo Faria & Luis Gil-Alana, 2007. "Are Usa Citizens At Risk Of Terrorism In Europe?," Defence and Peace Economics, Taylor & Francis Journals, vol. 18(6), pages 495-507.

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