Journal article

Defence industry and innovation policy

Defence Industries Australia

This paper reviews the defence industry and innovation policy element of the 2013 White Paper.


In addressing defence industry policy, the 2013 White Paper reaffirms well established themes that need revisiting in the light of changing economic, strategic and technological circumstances: The strategic importance of a local defence industry base; the economic constraints that preclude materiel self-sufficiency; Defence use of open and effective competition to achieve value for money in procuring goods and services; and the linkage between of local industry involvement in upstream procurement and local industry’s capacity to support ADF equipment downstream in service. Maturing initiatives like the Priority Industry Capabilities and the Australia-US Defence Trade Treaty are platforms for future defence industry policy development, which will also be affected by growing awareness of the link between innovation and productivity, and potentially far reaching changes in the Defence Science and Technology Organisation’s research priorities.

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