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EDA Central and Eastern Europe Report Technical Annex Central and Eastern European countries: measures to enhance balanced defence industry in Europe and to address barriers to defence cooperation across Europe Technical Annex: Country Profiles and Appendixes James Black, Dan Jenkins, Giacomo Persi Paoli, Marta Kepe, Alexandros Kokkoris, Jakub Hlavka The work described in this report was done under the EDA contract. Responsibility for the contents resides in the author or organisation that prepared it. RAND Europe Annex to RR-1459-EDA April 2016 Prepared for the European Defence Agency EDA contract reference: 15.ESI.SC.254 This document has been formally reviewed, edited, or cleared for public release. It may not be cited, quoted, reproduced or transmitted without the permission of the RAND Corporation. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors. is a registered trademark . Preface This technical annex supplements RAND’s Report to the EDA on Balanced Defence Industry in Europe. It is intended to provide additional information in support of the main report presented to the EDA in relation to barriers to and opportunities for enhancing competitiveness and cooperation across the European defence industry, with a particular focus on identifying measures to facilitate the effective participation of Central and Eastern European (CEE) countries in cooperative programmes and cross- border supply chains, improving the visibility and effectiveness of the defence sector in those countries. The 11 EDA participating member states (EDA MS) that form the subject of this study and annex are: Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia. As part of this study, the team at RAND Europe have conducted a systematic literature review, as well as engaging relevant stakeholders in CEE Ministries of Defence (MODs), national defence industry associations (NDIAs) and academia. For each CEE EDA MS, this annex presents the following supplementary information: an overview of the historical, economic and policy context of the national defence industry; a high-level assessment of industrial capabilities, including key local industry players and niche technical areas; and identification of barriers and obstacles to international cooperation, opportunities and capacity-building needs. For more information please contact: Dan Jenkins Research Leader, Defence, Security and Infrastructure RAND Europe Westbrook Centre, Milton Road Cambridge CB4 1YG United Kingdom Tel. +44 1223 353 329 [email protected] ii Table of contents Preface ....................................................................................................................................................... i Table of contents...................................................................................................................................... iii Tables ..................................................................................................................................................... vii Abbreviations ........................................................................................................................................... ix 1.1.1. Introduction ................................................................................................................................................................................... ................................................................................................ ................................... 111 1.1. This technical annex supplements RAND’s study of barriers to, and opportunities for, balanced defence industry in Europe ............................................................................................ 1 2.2.2. Country profile: Bulgaria ................................................................................................................................................................................... ..................................................................................... ........ 333 2.1. Country at a glance ...................................................................................................................... 3 2.2. Defence industrial capabilities ...................................................................................................... 5 2.3. Barriers and obstacles ................................................................................................................... 9 2.4. Opportunities and programmes .................................................................................................. 11 2.5. Capacity-building needs ............................................................................................................. 13 3.3.3. Country profile: Croatia ................................................................................................................................................................................... ..................................................................................... ........ 151515 3.1. Country at a glance .................................................................................................................... 15 3.2. Defence industrial capabilities .................................................................................................... 18 3.3. Barriers and obstacles ................................................................................................................. 21 3.4. Opportunities and programmes .................................................................................................. 22 3.5. Capacity-building needs ............................................................................................................. 23 4.4.4. Country profile: Czech Republic ................................................................................................................................................................................... ................................... 252525 4.1. Country at a glance .................................................................................................................... 25 4.2. Defence industrial capabilities .................................................................................................... 29 4.3. Barriers and obstacles ................................................................................................................. 32 4.4. Opportunities and programmes .................................................................................................. 34 4.5. Capacity-building needs ............................................................................................................. 37 iii 5.5.5. Country profile: Estonia ................................................................................................................................................................................... ..................................................................................... ........ 393939 5.1. Country at a glance .................................................................................................................... 39 5.2. Defence industrial capabilities .................................................................................................... 42 5.3. Barriers and obstacles ................................................................................................................. 44 5.4. Opportunities and programmes .................................................................................................. 46 5.5. Capacity-building needs ............................................................................................................. 48 6.6.6. Country profile: Hungary ................................................................................................................................................................................... .................................................................................. ............... 515151 6.1. Country at a glance .................................................................................................................... 51 6.2. Defence industrial capabilities .................................................................................................... 55 6.3. Barriers and obstacles ................................................................................................................. 56 6.4. Opportunities and programmes .................................................................................................. 59 6.5. Capacity-building needs ............................................................................................................. 63 7.7.7. Country profile: Latvia ................................................................................................................................................................................... ....................................................................................... .......... 656565 7.1. Country at a glance .................................................................................................................... 65 7.2. Defence industrial capabilities .................................................................................................... 67 7.3. Barriers and obstacles ................................................................................................................
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