The main focus of the Industry Programme is on the Defence Industry as it is considered to be among the main drivers for technological innovation.

Since the end of World War II, most countries had developed the idea that a major feature of security policy was the Defence Industrial and Technology Base (DITB). Instead of converting car or bus production to manufacturing fighter aircraft or tanks in times of war, nations maintained their own defence industries, constantly ready to respond to external (and internal) threats. And nations knew where the threats were likely to arise. The Cold War period offered that kind of certainty. This helped both defence planners and defence companies develop and arrive at: clear priorities, long time horizons and relatively stable programmes.

The end of the Cold War left the defence industry at a major turning point. The nature of warfare had prompted a move away from large arsenals of traditional weapons to new innovative weapon systems promoting rapid deployment and, as an objective, extreme precision. New shared risk and reward agreements were made and strategic alliances - formed through private public and/or private consortia and joint ventures - were becoming increasingly popular to reduce the risk associated with major procurement programmes. The defence industry has evolved dramatically as a result. The companies grew larger through a series of consolidating mergers and acquisitions. A more collaborative international security community appeared has emerged to respond to what were largely regional outbreaks of war.

What now?

At the beginning of the new millennium the world has changed again, with regional conflicts joined by international terrorism as dominant factors in security planning. Defence spending is being adjusted to focus on more flexible, responsive and mobile force structures with an increasing concentration on logistics and lifecycle support. At the same time, unrelenting pressure on public funds means new methods are being used to develop, acquire, finance and support defence equipment, including a determined effort to make wider use of cheaper, non-specialised Commercial, Off-The Shelf (COTS) technology wherever possible.

The defence industry is therefore again at a crossroads. It is under enormous pressure not just to win work but also to ensure that, when it does, it delivers on time and on budget - and ensure that what it delivers remains fit for purpose throughout its intended lifetime.

What next?

Finally, we can speculate about the future and how the defence industry might look if current industry trends prevail. With the Covid-19 outbreak and the rapid development of AI-driven technologies, what will drive tomorrow’s battles and the defence industries directions.

Information warfare will likely influence and determine tomorrow’s battles. Military forces will fight on land and sea, in the sky and in space, but wars will be won by those who maintain superior situational awareness and act on it fastest - empowered by innovation in areas like big data analytics, artificial intelligence (AI), machine learning, virtual reality (VR), and edge computing.