Initial situation/policy problem
Due to increasing geopolitical unrest, the German government and the EU have decided to significantly increase defence spending. Among other things, around EUR 500 billion (federal government) and EUR 800 billion (EU) in additional loans are to be taken out for defence investments in the coming years. SMEs could benefit from this in various ways. Higher military spending in countries such as the US and Israel creates sales potential for SMEs that drive forward corresponding innovations and participation in value chains. Both countries also have an innovative start-up scene that benefits from reliable government demand for defence equipment. Innovations in the defence sector are often the starting point for innovations and business models that benefit civil society as a whole.
Research goals/approach
The aim of the study is to clarify how Mittelstand companies in Germany can benefit from government investment and what specific challenges they face in doing so. As a first step, guidance will be provided by countries that already pursue a more active defence policy. A more in-depth analysis will focus primarily on European countries, such as Sweden and Poland, whose framework conditions are more similar to those in Germany. Through literature analysis and expert interviews, an understanding of the respective (historical) development of the framework conditions, structures, measures, and success factors will be gained. In a second step, discussions with experts from the defence industry in Germany and abroad will be used to identify the specific challenges of the German context and to evaluate the transferability of successful (elements of) measures from other countries.