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.