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Plant workers at work on the F-35 Joint Strike Fighter.

Innovation Before Scale: A Better Business Model for Transnational Armaments Cooperation

Steven Grundman and James Hasik
RUSI Journal, 30 November 2016
Aerospace, United States, US Defence Policy, Defence Spending, Americas, Equipment and Acquisitions, Defence Policy, Technology, UK Defence, Europe
Governments can achieve better outcomes for major defence projects by providing incentives for innovation and competition.

The traditional business model of transnational cooperation in armaments development and production is not working. Although the model is designed for economies of scale through long production runs, the political allocation of work share hampers supplychain management. This leads to worse results than would have been attained in purely national projects. In its place, Steven Grundman and James Hasik propose a new model with fewer customers, a focus on innovation and an emphasis on developing multiple purchasing options with more competitively determined multinational content.

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