Prof. Ivo Paparela University of Dubrovnik

D. R.& D. IN CEE COUNTREIS

PRESENT FRAMEWORK AND ROAD AHEAD

D.R&D within D.I.B. & D.I.S.Rethinking, reorganizing,

equipping, financing, etc…under uncertainty, market risk, scarce

resources & multilateral institutions

Defense R&D in the military supply chain

• 1) Customer/ Defense ministries or ….”ELSE”

• 2) Prime contractor /integration Contractor like Thales , BAE, etc….

• 3) Sub-contractors /equipment suppliers • 4) Sub-contractors /component suppliers

including SME5) Technology organizations independent

or within industries/ technology suppliers6) Research suppliers / University & Labs

within industry

D. R&D within D.I.B. & D.I.S.equipping MEN & MAN

equipment

• 1° Erosion of D.I.B. / physical assets , products , organization need upgrading and financial capital inflows but FOR WHAT ????

• 2° Uncertain D.I.S. • 3° [1°] & [2°] MUTUALY DEPENDANT• 4° IF a) NATIONAL STRATEGY COORDINATED WITH THE ALLIANCE

PLUS BUDGET • b) MARKETS FOR PRODUCTS & FOR KNOWLEDGE c) FOREIGN CAPITAL INFLOWS / OWNERSHIP RESTRUCTURING AND

INDUSTRIAL RESTRUCTURING/OUTSOURCING ?? d) PPP INCLUDING …. IF INTEREST

• 5° IMPORTANCE OF NOT LOOSING PREEXISTING KNOWHOW

AS FONCTIONS OF THE POWER STATUS OF A COUNTRY: what

are AF here for, their size ;”man the equipment & equip ment modernization:

preoruzanje : innovation Dangers of budgetary illusions

DIB assets are to produce & keep operational military hardware ; BUT who are

owners of assets , structure /sme:big DIS who is to conceive it & who is to implement it/partners PPP TIME

MARKET DEMANDACCES TO THE FINANCIAL CAPITAL

REQUIREMENTS

• NOT ONLY DIB/DIS BUT ALSO FINANCIAL BACKING

• PRODUCTS MARKET ORIENTED FOR EXPORT BECAUSE NATIONAL DEF BUDGETS REDUCED

• RESEARCH FOCCUSED ON MARKET NEEDS/ 3RD WORLD

Constraints

• DIB, DIS, DR&D function of power status• Caveat budgetary illusions • Up –to- date technology required for

Alliance operations for the reason of technological coherence of multinational forces [ weak link]

• Rogue states/ terrorists “countournement pâr le bas “ requires counterterrorist operations with high technology ( EUROS ? ON an infantry man ; knowledge /skills ?? ON expensive platforms

Dangers

• Industrial property rights protection

• Faked production

• Black & grey markets/ smuggling

• Tobacco industry syndromes