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Six Decades of Consolidation in the European Defense Industry (1960-2022)

Author

Listed:
  • Mitja Kleczka

    (Social Sciences and Solvay Business School, Vrije Universiteit Brussel (VUB), Belgium)

  • Caroline Buts

    (Brussels School of Governance and Faculty of Social Sciences and Solvay Business School, Vrije Universiteit Brussel (VUB), Belgium)

  • Marc Jegers

    (Solvay Business School, Vrije Universiteit Brussel (VUB), Belgium)

Abstract

In the present security environment, the capabilities of the European defense industry and the impact of restructuring over the years have become issues of concern. Researchers have found considerable consolidation when looking at the overall industry, but have failed to consider that this might understate the loss of national capabilities in subsectors. This article investigates the effect that restructuring has had on twenty subsectors of the defense industry in thirty one European countries from 1960 to 2022. It finds that since the 1960s, the number of major European defense firms has contracted by between 29% and 80% across subsectors, implying the loss of a range of capabilities. It suggests that while Europeanization is inevitable, it is likely be accompanied by further diminishing capabilities at the national level.

Suggested Citation

  • Mitja Kleczka & Caroline Buts & Marc Jegers, 2023. "Six Decades of Consolidation in the European Defense Industry (1960-2022)," Economics of Peace and Security Journal, EPS Publishing, vol. 18(2), pages 5-28, October.
    • Handle: RePEc:epc:journl:v:18:y:2023:i:2:p:5-28
    DOI: 10.15355/epsj.18.2.5
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    File URL: https://www.epsjournal.org.uk/index.php/EPSJ/article/view/371
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    More about this item

    Keywords

    Defence industry; consolidation; industry study; European integration; mergers and acquisitions;
    All these keywords.

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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