Context and policy

A driving force behind the defence industry

DGA, the French armament procurement agency, taps the resources of a broad industrial fabric to accomplish its primary task, which is to provide the French armed forces with the defence systems they need at the best possible cost and within the required lead times.

This industrial fabric is composed of several thousand small and medium-sized businesses (SMBs), both French and foreign. These businesses are not so heavy as large firms and this makes them quick to respond, innovative and competitive, three qualities that stimulate progress in defence programmes.

However, the trend towards increasing industrial concentration and the rationalisation of government requirements observed as European defence policy moves forward, has gone hand in hand with vertical integration within major corporations, sapping the strength of small and medium-sized businesses.

Specific policy and actions allowing DGA to learn more about the capabilities of SMBs and to draw on them more extensively. Particular effort goes into making defence contracts more easily accessible to French SMBs to strengthen their position within the defence industrial and technological base.

To this end, DGA focuses on the following actions in particular:

  Drawing attention to technological innovations proposed by SMBs, especially in the field of disruptive technologies, to integrate them into defence systems (in particular through innovation support programmes such as Exploratory research and Innovation(REI) and the DGA/OSEO INNOVATION Partnership),

  Maintaining a healthy, well-balanced spirit of competition in subcontracting between the subsidiaries of major groups and independent SMBs in procurement programmes (particularly through Procurement Plans),

  Encouraging SMBs to become less dependent on defence contracts by helping them to develop and confirm their strategy.

DGA is keen to support the long-term future of high-tech industries and has therefore focused its efforts more particularly on innovative and independent SMBs with capabilities showing good potential for defence programmes.