The Chair in Defence Economics of the’IHEDN spoke on Wednesday 27 November at the CoPDA (Defence and Aerospace Advanced Training Course), organised at Massy (Safran University) by the Defence & Aerospace Chair, led by General (2S) Laurent.
This event provided an opportunity to present the various projects by members of the Chair to an audience of industrialists from the defence sector.
DTIB and defence companies
Jean Belin presented an overview of the French DTIB highlighting the methodological difficulties as to its definition and measurement. On the basis of its work, it also addressed the specific characteristics of defence contractors when compared with civil sector companies. The financing issues defence companies were also presented, from the perspective of technological and financial change of the global economy.
MCO of defence equipment: economic issues
Josselin Droff presented the economic challenges of the Maintenance in Operational Condition (MCO) defence equipment. The presentation was based on the author's various works, including a discussion on the question of the’changes in costs and availability equipment. The main drivers of costs were presented, as well as various levers for action put in place by the government and industry to try to reduce reduce costs and/or improve availability. Based on a recent study of the author, the question of technological revolution at work in the MCO sector (connected objects, 3D printing, etc.).
Economic impact of defence activities
Julien Malizard presented the challenges associated with’economic impact of defence activities, emphasising the link between macroeconomic impact, regional impact and technological impact on companies. On the basis of work carried out by the author over the last ten years or so and the economic literature, it appears that defence generates positive economic impact in France, but its usefulness as a’economic policy instrument is debatable.
