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The purpose of this paper is to introduce cybernetic systems in defence management applications, to meet new challenges of the information society and use of system modelling for decision making.

The paper defines basic terms for understanding the complexity of the defence management applications, which is simplified using input‐output modelling.

The paper illustrates the interdisciplinary nature of cybernetics, systems and management sciences. The defence system is analysed and a general input‐output model for defence system development recommended.

New data technology and data availability provide perspective for applied research using scientific approach.

Cybernetic systems for defence provide analytical modelling for management applications.

The paper presents a concept and empirical evidence for defence system analysis and a new way of thinking that affects defence planning and defence management. A cybernetic, systemic and input‐output methodology provides solutions for defence management applications.

The British Government is driven by the concept of value for money and is seeking ways in which to fund projects in the public sector. In the defence sector, this is resulting in the formation of public‐private partnerships and a close working relationship between the Government and defence companies. As well as placing the UK’s defence capability within the context of national security, it also needs to be placed within the context of the Government’s foreign policy which is focused on international conflict prevention. The UK Government remains committed to encouraging international collaboration as this should witness technology transfer from the defence sector to the civil sector. Makes reference to nine factors which underlie collaboration in the defence sector and draws on the expertise of defence sector experts who provide insights into the defence industry. Refers to a postal survey which was undertaken in 1999 in order to establish which areas of defence management would receive increased attention in both the short term and the long term. Finally, highlights the Executive Intelligence Alliance Policy and Strategy (EIAPS) Charter which can be used by defence company personnel as a framework to develop long‐term working relationships with other defence companies, government departments and universities.

This paper aims to contribute to the literature on the changing role of the defence sector in the economy at industry and enterprise levels focusing on defence‐civilian cooperation and defence supply networking with foreign industry enterprises from complex industry‐perspective.

Measuring is based on the comparative industry data and the unique survey evidence for the Slovenian defence industry enterprises to derive managerial and policy implications.

The role of the defence industry in the economy declined, but trade deficits from arms and ammunition increased. The industry enterprises can gain from defence‐civilian cooperation and defence supply chain networking with foreign industry enterprises. Information‐coordination institutions are seen to provide opportunities for future industry development in Slovenia.

This research focuses on Slovenia. Future enhancement of the research would be to look into the possibility of applying the findings to other countries. The size of the enterprise, and even more the size of the country, does matter in the defence‐market chain activities.

The proposed industry firm‐level survey approach provides useful policy and managerial implications in the evaluation of defence industry supply and market chain cooperation and networking activities with foreign industry enterprises. The study proves the usefulness of the results, both to the future organizational development and as a decision‐making tool in the complex industry systems.

This paper adds to the industry firm‐level analyses as data management tools for evaluating the defence‐civilian cooperation and networking of complex industry market chain activities for more effective management.

Launched in the early 1990s in the United Kingdom, Public-Private Partnerships (PPPs) induced radical changes in both the public-private boundaries and the production of state-provided services. Such ‘budgetary revolution’ impacted the biggest state spender in capital expenditures, that is, the Ministry of Defence. Today many MoDs are expected to leverage on the British experience and develop their own approach of PPPs to overcome both the ineffectiveness of their defence spending and today’s stalemate in public budgets. This chapter leverages on British experiences over the past two decades to analyse the benefits and limits of PPPs in the realm of defence. Does such contractual arrangement fit defence-related investment? This chapter explores the on-going redefinition of public and private realms in military matters and it puts into relief the key dimensions of PPPs in terms of contractual arrangement.

The purpose of this paper is to investigate the internationalisation of enterprises by specific forms of foreign direct investments (FDI) and international technical cooperation in the defence sector.

The effects of defence FDI and international technical cooperation activities on the Slovenian economy are investigated using the input‐output modelling approach.

The author finds important direct and indirect effects on the Slovenian economy from the FDI and international technical cooperation inflows into enterprises. These positive effects are directly and indirectly linked to enterprises in different statistically classified industrial activities by predominance of the civil sector, which is important for the development of defence and civilian high‐technological base products in different regional parts of Slovenia.

The presented findings can be used to arrange industrial and regional development strategy and policy measures aimed at accelerating the internationalisation of enterprises and different industrial activities.

The improvement in the efficiency of public management leads to an increase in the quality of services, boosting confidence in institutions and thus generating a multiplier effect. This paper aims to update the literature on the data envelopment analysis (DEA), which uses a frontier methodology, for measuring the efficiency applied to the defence sector.

Two main research areas are related through this study: Defence Economics and Efficiency and Productivity Analysis. The frontier methods for measuring technical efficiency are grouped into parametric, non-parametric and semi-parametric. The DEA literature review in the selected sector allows to identify three main fields of work that are discussed in detail.

Existing empirical research has hardly applied bootstrapping methods to remove bias from the estimates. No empirical work has applied an analysis of efficiency determinants by the inclusion of exogenous variables.

The managerial implications of efficiency are numerous. A line of research is proposed to examine the extent to which efficiency improvements have an impact on reputation and, therefore, on the image of and confidence in institutions. The link between Defence Economics and Corruption Economics is also considered.

La mejora de la eficiencia de la gestión pública conduce a un aumento de la calidad de los servicios, impulsando la confianza en las instituciones y generando así un efecto multiplicador. El presente trabajo tiene por objeto actualizar la literatura sobre la metodología frontera de medición de la eficiencia DEA, aplicada al sector de la Defensa.

A través de este estudio, se relacionan dos áreas principales de investigación: Economía de la Defensa y Análisis de Eficiencia y Productividad. Los métodos frontera para medir la eficiencia técnica se agrupan en paramétricos, no paramétricos y semiparamétricos. La revisión de la literatura DEA en el sector seleccionado permite identificar tres campos de trabajo principales que se discuten en detalle.

La investigación empírica existente apenas ha aplicado métodos bootstrap para eliminar el sesgo de las estimaciones. Ningún trabajo empírico ha aplicado un análisis de determinantes de la eficiencia mediante la inclusión de variables exógenas.

Las repercusiones de la eficiencia en la gestión son numerosas. Se propone una línea de investigación para examinar en qué medida las mejoras de la eficiencia repercuten en la reputación y, por consiguiente, en la imagen y la confianza en las instituciones. También se considera el vínculo entre la Economía de la Defensa y la Economía de la Corrupción.

Military technology is traditionally shrouded in secrecy. Even joint research between allies can be a marriage of convenience. But with the end of the Cold War and greater European integration, the technological landscape is changing, and a closer interface is emerging between military and civilian technologies. A worldwide stagnation in defence spending is accelerating the take‐up of commercial off‐the‐shelf technologies, while in the aerospace sector, the factors of safety and the environment are becoming at least as important as cost.

Reports on research into the relationship between European defence manufacturing firms and their experience of cross‐border strategic alliances. The research takes in 135 cross‐border strategic alliances involving UK and European defence manufacturing firms, ranging from firms heavily dependent on defence contracts to firms whose defence interests make up less than 10 per cent of overall business. These firms manufacture telecommunications, transport, information, lethal platforms and components for the operation of these platforms for military organisations. A main aim is to ascertain the extent of participation in strategic alliances, the types of alliances being used and the major problems experienced by the partners.

This paper aims to provide a strategic analysis of firms at the lowest hierarchical levels of the defence industry.

This paper presents the main results of an exploratory, multiple-case study that analyses the current strategy drivers and their views about the future ones, and their impact at the lowest hierarchical levels of the defence industry in Spain.

This investigation develops and analyses a contingency model regarding the strategy impact and effects of firms’ drivers and clients, both mediated by the strategy players because of their huge impact on the defence industry. The research model focuses on the internal relations between technical and commercial activities due to the cause and effect of their capabilities. Simultaneously, pull and push mechanisms boost firms’ capabilities and requirements to provide strategic foresight.

Ministries of Defence (MoDs) and prime contractors will remain mediating players in the near future even with further implications for the competition of Defence Technological and Industrial Base (DTIB) firms. It implies that firms and MoDs must maintain a close relation and implement more flexible practices, such as open innovation, property rights or new commercialization schemes.

This study offers insights related to the specific applications and the necessity of commercial and technological areas alignment of these firms for the future.