Alliances and the arms industry in small states
Abstract
• In asymmetric alliances, the nature of decisionmaking (coercive or liberal), shapes the possibilities
for smaller states to develop their own defense
industry.
• Liberal asymmetric alliances such as NATO create
structural incentives for smaller states to invest in
domestic arms industries by emphasizing interoperability, collaboration, and shared standards.
Smaller states seeking to develop arms industries
must navigate a complex interplay of international
and domestic factors, balancing the opportunities
provided by alliance membership with the challenges of competing in a globalized defense market.
• Smaller states must align domestic policies with
alliance objectives to maximize the benefits of membership.