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An Analysis of Defense and Adjacent Industrial Clusters in Advanced Countries and its Policy Implications for Korea

Author Jang, WonJoon et al. Date 2018.12.10 Page
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The purpose of this research is to analyze the defense industry and the adjacent industrial clusters in advanced countries and derive policy implications for balanced national development and the enhancement of industrial competitiveness in Korea.

 

The main research is organized as follows. First, we review the characteristics of the defense industry and its adjacent industrial clusters both domestic and foreign. We then propose a definition for these industries, identifying characteristics and determining what is necessary to support this industrial cluster. Second, the study analyzes advanced countries’ policies, statutes, and actual case studies related to the development of their defense industry and adjacent industrial clusters, outlines some important implications for Korea. Finally, we conduct an in-depth survey of more than 300 firms and individuals in the defense, aerospace and MRO industries and relevant experts to measure the improvement of Korean defense-related industry clusters. 

 

The main results of this research are described as follows. First, we explain the concept and characteristics of the defense industry and its adjacent industrial clusters. In this study we also present findings of defense-related cluster policy, statutes and case results in the U.S., France, Israel and Turkey, which are benchmarks for Korea as they relate to the development of defense-related industrial clusters in the near future. 

 

In particular, this study conducted a survey on the defense industry and its adjacent industrial clusters targeting over 300 experts from defense and civilian industries for the first time in Korea. 

 

In conclusion, the basic direction for balanced national development and industrial cluster development is as follows. First of all, we should establish a masterplan to develop the defense industry and its adjacent industrial clusters in the near future. Second, the governance of defense-related clusters should be supported by both the central government and local governments soon. Third, we should facilitate industry-university-think tank collaboration for the development of defense-related industrial clusters. Fourth, we must also strengthen the relationship between local government and military forces stationed within its boundaries. Finally, it is imperative to focus on building infrastructure and deregulation related to the development of defense-related clusters. 

 

We hope that this study contributes to the enhancement of balanced national development and strengthens the industrial competitiveness of the Korean defense industry and its adjacent industrial clusters in the near future.