2. RELATIONS WITH THE NORWEGIAN DEFENCE INDUSTRY
While Norway's defence industry is focused primarily on the needs of the
Norwegian Armed Forces in terms of the provision of weapons and other equipment,
exports are an essential requirement for its continuing viability. Access to the
international armaments market is not easily obtained and in order to maintain a
national defence industry, the Ministry of Defence wishes to emphasise its
continuing commitment to the establishment of offset agreements when placing
major contracts abroad.
If the Armed Forces' requirements for high quality, advanced technology
systems and equipment at competitive prices are to be met also in the longer
term, Norway's defence investment must as far as possible be designed to promote
Norwegian industry and the advancement of technology through research and
development (R & D). Investment in the development of high technology
products has contributed to the healthy growth and increased levels of
competence to be found in Norwegian industry in general. The national policy is
therefore to continue to encourage this positive development through measures
including the placing of research and development contracts with Norwegian
defence companies.
Exports of defence equipment will be essential to the future well-being of
the Norwegian defence industry. The defence authorities encourage Norwegian
companies to compete in the international defence market not least because this
helps to maintain a robust technological and industrial environment. In this way
the Norwegian defence industry can sustain its ability to meet the future needs
of the Armed Forces for technologically advanced systems and equipment. It is
likely that the current strict regulation of armament exports, based on a
parliamentary bill which dates back to 1959, will be maintained. This means
inevitably that armaments exports will continue to involve some difficult
choices between conflicting interests and objectives.
The trend towards more technologically advanced equipment requiring
substantial R&D investment means that the procurement of defence equipment
from abroad is likely to remain at a high level. The Ministry of Defence will
continue to require offset purchase arrangements in the case of major contracts
with foreign suppliers. It will be emphasised that offset contracts must be such
as to bring new technology to Norwegian industry. Emphasis will also be placed
on the establishment of strategic alliances aimed at long-term cooperation
between Norwegian and foreign companies both in the field of R&D and in the
production of high technology equipment.
In order to realise maximum benefit from Norwegian defence expenditure, and
to strengthen existing expertise in areas where Norwegian industry already has a
competitive edge, the policy will be to coordinate the development of expertise
in the defence industry with the efforts being made to promote levels of
expertise throughout the civil industrial sector as well.
Specific areas of particular interest in this context include:
- Hardware and software for communication, command,
control and information (C3I) systems
- Radio, satellite and line communications
- Electro-optical (optronic) systems
- Fire control systems
- Missile technology
- Ammunition and military explosives
- Submarine technology and sonar systems
- High-speed vessel technology
- Space technology
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