Which industrial strategy for European technology leadership in defence and deterrence - DIW-OECD Industrial Strategy Dialogue

With shifting geopolitical tectonics Europe is in urgent need to build autonomy in defence and deterrence. As military spending is increasing significantly, Germany and Europe need an industrial strategy that helps the continent build a stronger and more independent role in developing modern defence and dual use technologies, foster competition and innovation and expand European defence production capacities. The presentation will critically assess whether increases in defence spending in Germany are based on a strategy that fosters innovation and the development of modern defence and deterrence technologies in Europe.

The panel will discuss which types of technologies Europe needs to develop. And it will look into procurement and innovation policy options that would not only help build military capacity, but technology sectors, such as software, AI and space exploration, that can shape Europe’s industrial base for the coming decades. Issues to explore are the joint mobilisation of funds at the European level and its likely fiscal consequences along with the effectiveness of proposed public procurement and innovation policies in helping to build European capabilities as a technology leader. What are likely productivity effects at the macroeconomic level and which policies can maximise benefits for the civilian economy?