Transcript Lockheed Martin Aeronautics Support to Air 6000

“TRADE & INVESTMENT OPPORTUNITIES
IN SOUTH-EAST EUROPE”
NATO MEMBERSHIP
SOFIA CONFERENCE
(1-2 July 2004)
by
Anastasios G. Tenekoudis
General Director
for Defence Industry & Research
HELLENIC MINISTRY OF NATIONAL DEFENSE
OUTLINE
 THE ECONOMICS OF DEFENCE/SECURITY & TECHNOLOGY
• OVERVIEW OF THE WORLD-WIDE & EUROPEAN DEFENCE
INDUSTRY
 THE HELLENIC DEFENCE INDUSTRY WITHIN
THE EUROPEAN COMMON DEFENCE POLICY
• BALKAN DEFENCE INDUSTRY
 LESSONS FOR A MORE EFFECTIVE BALKAN DEFENCE
INDUSTRY
• CONCLUSIONS
• RECOMMENDATIONS
THE ECONOMICS OF DEFENCE/SECURITY & TECHNOLOGY
Technology is the catalyst of human economic activity
Technological leadership drives economic development
GDP
Technology Levels
Levels of Spending of Security/Defence is a Function of Domestic
& International Geo-Political & Economic Variables.
OVERVIEW OF THE WORLD-WIDE & EUROPEAN DEFENCE INDUSTRY
 Defence Spending Reduction
 Impact to Defence Industries
 Drastic/Profound Changes in Defence Industry Environment
- Consolidations
-
Merges & Acquisitions
Industry Re-Direction & Transformation
Oligopolistic Trends
Cross Border Alliances
Dual Use Products (Civil & Military)
 Intense Competition
THE HELLENIC DEFENCE INDUSTRY WITHIN
THE EUROPEAN COMMON DEFENCE POLICY
Technological Defence Transformation Following 1990 Gulf War
Impact of Information – Communication – Network Centric
Developments.
Lisbon Summit (March 2000)
Recognition of the R&D Role in European Solidarity
R&D
Defence/Security European Integration
New Asymmetric Threats
Coalitions Dictates Interoperability & Commonality
Greece Recommended & Supported the Establishment of
European Defence Agency
BALKAN DEFENCE INDUSTRY
 Defence Industry is a Positive Contributor to National
Value Added.
 Defense Industrial Benefits from a Balkan Defence
Industry Cooperation.
 Improvement in Balance of Trade
 Improvement in Defence-Trade Relationship
 Improvement of Macroeconomic Indices
 Improvement in Bi-lateral Relations
LESSONS FOR A MORE EFFECTIVE BALKAN DEFENCE INDUSTRY
 Participation of Indigenous Industries Minimizes
National Defence Foreign Spending.
- Active Participation in NATO & EU
- Active Pursuit in Technology Acquisition
- Broad Collaboration of Balkan Nations
(Military, Industrial, Economic, Technological)
- Rationalize and Simplify Regulatory Legal Frameworks
- Common Defence Planning in R&D and Production
Activities.
- Industry Rationaiization & Minimization of Duplication
Forces Promoting Cooperation
Consolidation
Fewer larger projects
Defense technology evolution
“Dual use” technology
Growing need for interoperability
CONCLUSIONS
 European Defence is Facing Major Changes in a
Completely New Environment
-
Decline of Defence Budgets
World Defence Market Shrinking
Increased Competition
Regulatory Framework
Commercial Re-structuring
RECOMMENDATIONS
 Develop and Harmonize a Broad Defence Market for the
Nations of South-Eastern Europe and the Balkans through
Joint Long-Term Planning based on Commonly Agreed Rules
and Standards.
 Engage Public and Private Concerns, and Create Mechanisms
for Technology Transfers and Indigenous
R&D.
 Rationalize Requirements and Search for Common Ways to
Satisfy Defence/Security Needs.
THANK YOU
FOR YOUR KIND ATTENTION