Cooperation in the European defense industry

In the defence industry, in addition to the novelty of the defence system and the often considerable R&D expenditure involved, the motive for cooperation is that the number of units produced is usually low. Economies of scale can be achieved in production through cooperation between companies from several countries that are procuring the corresponding weapon system. In the defence sector, the industrial advantages of cooperation are complemented by political motives; the countries involved are striving for closer military and economic cooperation among allies. This IW Report looks at the industrial goals and advantages, but also the potential problems of cooperation projects in the defence sector. It also analyses the existing alliances and political goals that form the basis of most cooperations between countries, also focusing on the most recent Franco-German cooperation projects, which are in danger of faltering. The IW Report concludes with suggestions for overcoming obstacles to cooperation and a conclusion and outlook.