Research seminar: Pontus Braunerhjelm

Title: The Economics of Rearmament. The case of fighter aircrafts.

Speaker: Pontus Braunerhjelm, Professor Emeritus Royal Institute of Technology, Professor Blekinge Institute of Technology, Research Director Swedish Entrepreneurship Forum. 

Abstract: Russia’s invasion of Ukraine in 2022 have prompted a sudden reassessment of the security risks faced by Europe. The deteriorating geopolitical environment has caused Sweden and other EU countries to ramp up their defense spending significantly, the so-called peace dividend has expired. Sweden (and other Nato-countries) has committed to increase its defense spending to 5 percent of GDP, where 3,5 percent is allocated military purposes and 1.5 percent targets civil defense. The question is how such dramatic increases will impact the Swedish economy? Is it wiser to procure defense items from foreign suppliers than expand indigenous capacity? How can production for military purposes be organized to benefit society at large? Can expanded military production become a dynamo for innovation, industrial dynamics and growth? What role can – and should – the government play and how should policies be designed?

Host: Emma.