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Claude Serfati, C3ED, University of Saint-Quentin-en-Yvelines Claude.serfati@c3ed.uvsq.fr

THE ROLE OF  DEFENCE INNOVATION IN NATIONAL SYSTEMS OF INNOVATION : SOME FINDINGS BASED ON THE FRENCH CASE Second International Workshop of the BRICS Project, 25-27 April 2007, Rio de Janeiro, Brazil. Claude Serfati, C3ED, University of Saint-Quentin-en-Yvelines Claude.serfati@c3ed.uvsq.fr.

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Claude Serfati, C3ED, University of Saint-Quentin-en-Yvelines Claude.serfati@c3ed.uvsq.fr

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  1. THE ROLE OF  DEFENCE INNOVATION IN NATIONAL SYSTEMS OF INNOVATION : SOME FINDINGS BASED ON THE FRENCH CASESecond International Workshop of the BRICS Project, 25-27 April 2007, Rio de Janeiro, Brazil Claude Serfati, C3ED, University of Saint-Quentin-en-Yvelines Claude.serfati@c3ed.uvsq.fr

  2. Outline : • Main findings on the French case • Understanding of the political economy of globalisation • Some hypothesis in a comparative perspective Claude Serfati, The Role Of  Defence Innovation......

  3. A welcome idea : addressing defence innovation in relation to national system of innovation • Importance of defence, nuclear and aerospace programs in BRICS countries. Indeed, • “Military R&D will probably continue to account for most government industrial R&D spending in the United States, France, Britain, and Israël” as well as “interestingly, every one of the low-income countries [Korea, Taïwan, Brazil, Argentina, Israël, C.S.] in our study has been influenced by national security concerns” [Nelson Editor, 1993, p.508]… • …Still, an understudied field of research Claude Serfati, The Role Of  Defence Innovation......

  4. A welcome idea : addressing defence innovation in relation to national system of innovation : • Opens the ‘black box’ of State as ‘a manager of externalities’, overcomes the simplistic Market-State dichotomy, and • Gives an institutional substance to the ‘State’ (MofDefence ≠Health or environmental Ministry) Claude Serfati, The Role Of  Defence Innovation......

  5. France, a good case study : • A long historical record in military affairs : • Wars under the ‘God Sun’ (Louis XIV) • Napoleonic wars • Imperial reach (late 19th century) • Intercapitalist developed countries (20th century) mass extermination and barbarism (2 World wars)… Claude Serfati, The Role Of  Defence Innovation......

  6. A turning point at the late 1950s : • The emerging of a mighty defence industry which still plays a core role in technology policy (and beyond) , as a combination of : • The long-standing weight of military, and return of General de Gaulle to power (1958) • The role of France in international affairs (Permanent member of the UNSC, Nuclear power) • An economic context favourable : • macroeconomic domestic centered policies (cf « French school of regulation », but also LASA) • Technology policies based on large programs : • ‘linear’ : from Research, Applied, Development • ‘top-down’ : instrumental role of governments often through Technological agencies Claude Serfati, The Role Of  Defence Innovation......

  7. Claude Serfati, The Role Of  Defence Innovation......

  8. The French defence industry : a ‘Méso-systeme’ created in the late 1950s • Theoritical background : • Sectoral and Technological IS, • ‘Filières’ (or Méso-système) : • the economic structure is made up of ‘chains of production’, as well of backward and forward linkages that cut across the traditional boundaries of industrial activities • System rather than the individual units which it is composed of, is the primary unit of analysis • Importance of ‘non-market’ relationships between the components of the system • Allows for analysis of inter-sectoral relations between the Méso-system of armaments and others industrial sectors Claude Serfati, The Role Of  Defence Innovation......

  9. The French meso-system of armaments (FMSA) • Three major players with strong interactions : • French procurement agency (DGA) • Defence contractors • Technological agencies (TA) , government-owned, acting as an interface between S&T, being responsible for Large technological programs in defence, nuclear (CEA) , aerospace (CNES, ONERA) , telecommunications (CNET), .. Claude Serfati, The Role Of  Defence Innovation......

  10. Source : Author Elaboration Claude Serfati, The Role Of  Defence Innovation......

  11. Source : Author’s elaboration Claude Serfati, The Role Of  Defence Innovation......

  12. What effects on national competitiveness ? • Strong sectoral – and geographical – international specialisation with strong products • Sectoral diffusion from M to C in Aerospace and in telecommunications • Damaging effects on the engineering and equipment good (prof and households) . Similar findings in USA and UK, as opposed to Japan, Germany,Sweden, … Claude Serfati, The Role Of  Defence Innovation......

  13. Relevance for BRICs countries • A non-starter : « War is necessary for growth and innovation » • Need for contextualisation of the relations between defence and economy : Claude Serfati, The Role Of  Defence Innovation......

  14. The sweeping changes at the era of globalisation • 1) The political economy of globalisation : a new institutional pattern (and paradigm) : from defence to security* • * absence of threats • At a theoritical level : new relations between economy (markets and private property rights) and politics (power) • At the operational level : threats are pervasive : military/civilian, public/private, economic/social Claude Serfati, The Role Of  Defence Innovation......

  15. Claude Serfati, The Role Of  Defence Innovation......

  16. Acknowledgement of globalisation as a highly uneven and differenciated process • “A broad approach to Security in the 21st Century, which recognises the importance of political, economic, social and environmental factors in addition to the indispensable defence dimension " [Washington Nato Summit, 23rd and 24th April 1999]. Preserving free access to key resources central for NATO. • “The global economy is driving the haves and the haves-not further apart, including in the United States, and the backlash against globalisationmay pose a specific threat to America’s security when activities turn to riots and violence to protest multinational corporate power [Traverton, Rand Corp., U.S. House’s representative Committee on new threats emerging from globalisation, 2005, p.3] Claude Serfati, The Role Of  Defence Innovation......

  17. A Transatlantic-driven agenda • The USA sets the agenda and the new (technological) race to armaments (50% of World Milex, 75% of World Mil R&D, etc.), but • The EU has entered the race… : • Through NATO • ‘The European Security Strategy’ (European Council, December 2003) • “It is a mistake however, to think that soft power is a natural strength of Europe although the EU seems in some respects the apotheosis of soft power. Internally it operates by law; externally it uses force largely in peace- keeping mode. But soft power goes with hard power internationally as it does domestically”[Cooper*, 2004, p.xx] • *Former Diplomatic Adviser to T.Blair, now Adviser to J. Solana, Head of Foreign and Security Common Policy (CSFP) • Still,with a different role of the US : • The European Security Strategy is “the most developed example of a postmodern state’ and hence the better suited to implement a "postmodern imperialism“[ Cooper*, 2002, p. 15] Claude Serfati, The Role Of  Defence Innovation......

  18. 2) Political economy of defence innovation : • A) New strategic and technological doctrine : The network centric Warfare (NCW) based on an extensive use of ITC : • “The U.S forces must be prepared to operate ‘deeply within societies’ and in urban areas where so-called elites generating the conflict are often based [..] Cebrowski believes the basic theories of warfare behind net-centric operations apply to all forms of conflict and competition” [Hugues, 2003]. Claude Serfati, The Role Of  Defence Innovation......

  19. B) This induces a new era in relation between military and commercial technologies : • Spin-offs (or spillovers) of M to C considerably decreased from 1970s onwards; spin-in (or spin-on from C to M increased • From Plat-forms (Aircraft, Ships, Tanks …) to ‘Systems of Systems’  • Prime Contractors are moving up the value chain  ‘Lead System Integrators’ and ‘Service providers’ and • Become more internationalised and shareholder-value oriented Claude Serfati, The Role Of  Defence Innovation......

  20. C) Technological dynamics in defence : • Requires stong organisational (including relational) and financial capabilities • Not so much producers of technologies as Integrators of technologies developed elsewhere (SMEs, Public labs,…) Claude Serfati, The Role Of  Defence Innovation......

  21. Some proposals for a comparative perspective • 1) Defence innovation capabilities are (partly) driven by geopolitical, historical factors, military role in the world affairs, etc. • 2) Relations between defence innovation and NIS are not similar over time and between countries • 3) Diffusion of defence technologies in commercial sectors slowed down since the end of the 1970s • 4) State impulse remains decisive for technology development, but large environmental, health programs will have more dynamic effects (and obviously welfare effects) (warfare vs welfare effects) . • 5) Useful to address defence innovation in BRICS countries against the NIS and political economy of innovation Claude Serfati, The Role Of  Defence Innovation......

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