1. Introduction
Defense industry and relevant research and development (R&D) and innovation have faced many challenges since the end of the Cold War. As the challenges have long stemmed mainly from increased defense budget cuts, though competition environment and technological asymmetries between dominant and emerging actors, new dynamics are added to such already complex set of factors. One factor is fast changes in global and regional strategic security environments, unpredictable threats, and technologically and cognitively rapid adaptive adversaries. In the years to come, the convergence of emerging trends in the technological, geopolitical and business environments threatens to profoundly disrupt the global defense industry (1).
Consequently, three major issues come forward in any discussion regarding the future of defense industry matters. First is to meet the urgent and future requirements of defense and security institutions in a timely and suitable manner. In the 21st Century where speed is high and quick adaptation is a must, current operational needs take the priority. Thus, defense industry, particularly defense R&D and innovation is expected to field new products in order for the military and security forces to fight the new threats. On the other hand, defense and security industry, especially long-run incremental R&D must respond to the requirements of future threats and future strategic environment in order for nations’ armies to adapt in a timely manner. In addition to these major issues, the sustainability of the defense industry as a business and its contribution to nation’s economy is increasingly questioned.
Link to the related book: New Security Ecosystem and Multilateral Cost