Reference document

Industry Development Processes
The defence industrial development typically focuses on the promotion of a strong and innovative defence industry as well as on raising the nation’s autonomy and technological leadership in defence. Which is based on the idea that a major feature of security policy is the Defence Industrial Base. Instead of converting commercial production to manufacturing defence equipment in times of crisis and war, nations maintain their domestic defence industries, constantly evolving to respond to emerging threats. Whilst sustaining a domestic defence manufacturing capability obviously increases a nation’s self-reliance, it is an expensive attribute to maintain and many governments cannot afford to have an appropriate domestic capability in every area of defence. Governments must decide what they want to maintain as indigenous defence industrial capabilities in order to preserve skills, technologies, jobs or a guarantee of supply in times of conflict and where to use other means such as * Actively engaging in the international trade in defence equipment; and * Forming alliances and pooling resources with like-minded nations. This is why the trade in defence equipment is such a vital component of national security and defence policy. However, most governments will only trade with like-minded allies. The increasing commercialization of the defence industry, in particular, the use of COTS creates additional challenges. Hence, the trade in arms is governed or constrained by a complex network of international alliances and co-operative arrangements, addressing both economic and security issues.