581 Antonio Juan Briones Peñalver The economics of security and defence. Transfer of knowledge and innovation related to the defence industry 3. greater precision for said localisation and area of surveillance. 9. CONCLUSIONS Over the course of the last few decades, a series of developments in the field of defence have substantially altered the operational framework of the armed forces. The European Security and Defence Policy, the objectives set in the National Defence Directives and the Strategic Defence Review are courses of action relating to defence, and discussed in this text, which have had an impact on the transfer of knowledge and innovation associated with the defence industry. In this respect, in order to respond to the challenges that they faced, and where new commitments and operational requirements arose, all agents involved, defence industry firms, institutions, universities and research institutes, readied themselves for R&D&I activities coupled with technology goals that would open international borders to them and boost their socio-economic activity. This text considers that the defence sector forms its own economic structure as regards the allocation of resources and agents with which it interacts, knowledge transfer processes and the technological research that it itself generates. For this reason, and since academic literature has neglected to conceptualise the economics of security and defence, the author has endeavoured to propose a definition of this. The paper outlines this using the Knowledge-Innovation System and indicates that this “is an economy of revenue generated by the restructuring taking place within the armed forces and by collaboration between military and civil R&D, based on the coupling of innovation and technology in the defence sector, which facilitates this discipline of “socio-economic well-being”. Moreover, we conceptualise the “economics of security and defence” as “the result of partnership between the security and defence means and resources that find their origin in the state, whereby they are made available to society and serve to benefit a region’s well-being”. Tied into this consideration of “science”, the defence sector strategy is intended to underpin research and innovation and the creation of inter-company cooperation networks. General Ballesteros34 prompts one to view the role of the economics of security and defence as one, which, as part of its forward-looking capacity-based strategy, generates knowledge of a high economic and scientific value, with remarkable application in the defence industry. This brings us closer to the initial definitions used 34 BALLESTEROS, M.A., 2010, op.cit.
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