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CDIB and Competitiveness. Binyam Solomon Centre for Operational Research and Analysis (CORA)-DRDC February 27, 2012 NEW PARADIGMS FOR DEFENCE PROCUREMENT AND INDUSTRIAL POLICY? Queens University.
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CDIB and Competitiveness Binyam Solomon Centre for Operational Research and Analysis (CORA)-DRDC February 27, 2012 NEW PARADIGMS FOR DEFENCE PROCUREMENT AND INDUSTRIAL POLICY? Queens University The views expressed in this presentation /paper are the views of the speaker and do not necessarily reflect the views or policies of the Canadian Forces or the Department of National Defence.
OUTLINE • Background • Past Literature • Recent Developments • CDIB (The Scope and definition) • Scope in the study • Rationale and Discussing Differences • Selected Characteristics • General Profile • International Comparison • Research and Development • Economic Significance
CDIB Studies in the Past • Rosenbluth, G. (1967) • The CSDRM/RMC work • Treddenick (1982) until Caron (1994) and Deschênes (1998) • Grover (1997) • Solomon (2000) Stone and Solomon (2005) and Solomon (2009) Current Situation • Tzeferakos (2010) • Industry Census conducted using 2007 data • Defence Economics in Canada • Macro-economy on defence • Defence on macro economy • Industrial Preparedness
Scope- Quadrant Military Use Why these quadrants are important High Low High Defence/Total Revenue % Low
Statistics Canada Census of CDIB Note that the remaining are not necessarily foreign
CDIB NAICS 2007 Based Foreign portion actually lost $ in 2009
International Comparisons • Niche Players • Remote Sensing, Simulators • Space Application • SIPRI Top 100 • Only Three Firms over the last 15 years • Bombardier, CAE, GM Disel (GD Land Systems)
R&D Highlights $1.5T
Input-Output Simulations #1 Defence Spending in FY 2008-09 Note also induced impacts due to consumption is estimated to generate 326 jobs Jobs
Input-Output Simulations #2 Revenue and GDP Multiplier
Implications • Informed Discussions on Policy • Requires reliable data • Industry Census is a huge step • Scoping the sector equally important • CDIB Characteristics • Niche Player • No primes or large system integrators • Export Oriented (Competitive?) • Economic Significance • I-O Simulations and Limitations • Fiscal Implications • Premium