MILITARY MODERNIZATION THROUGH TRANSFER OF TECHNOLOGY

Abstract

The last two decades of the 21st century more than ever have been marked by a contradictory, uncertain and dynamic global security environment accompanied by unpredictable risks and threats (EEAS, 2023). Humanity is currently bearing the negative effects of globalization facing serious challenges and threats. Subsequently, new military alliances are emerging on the global stage (EDIDP, 2024) combined with defense industry expansion in those countries highlighting the need of future transfers of military technology (Vergun, 2023). The demand for new technologies is present, enabling technological transfers between defense industry enterprises domestically and abroad a goal that most countries strife for (Ankit, 2024). According to OCIO (2021) there is a growing need for digital technology adaptation programs due to an expanding need for being prepared against threats such as cybersecurity attacks and military digitalization. Furthermore, most armies must adapt a data-driven mindset and embrace digital transformation to successfully respond to the threat of great power competition and win decisively in a larger scale confrontation. On the other hand, some countries are facing manufacturing difficulties to support current national demand due to current conflicts around the world and their dependency on foreign suppliers (GAO, 2024). One of the three main objectives of NATO (2023) till 2030 is improving understanding which according to their strategic approach is based on “Leveraging innovation and connectivity between Nations, Academia, and Industry, Allied Command Transformation focuses on shaping the environment, ensuring the Alliance is prepared to handle emerging trends, opportunities and threats.” Consequently, transfer of technology is needed not only to keep up to date with new technologies but also to adapt already proved products in order to achieve supply independence from foreign forces. This in turn, presents new unexplored fields for scientific thought, reflection and discussion which defines the relevance of this publication. In line with this, the main research question is what a transfer of technology is and how to successfully carry it out between defense industry enterprises in order to achieve military modernization. The study will explore acquiring technology from a foreign provider in order to understand what barriers a company can face. The goal of this publication is to explore the theoretical foundations of technology transfer. The following factors were decided to be crucial in order for this study to aid the company in a successful transfer of technology: clear definition of transfer, absorptive capacity, desorptive capacity, barriers for transfer of technology, management stability, cultural factors, and legal perspective. Future work would continue with an analysis of the state and problem areas of technology transfer and the definition of strategic solutions for effective technology transfer. Due to the space limitations of this publication, the focus will primarily be on the theory, preceding a more detailed analysis.