Citation

Nouail MNL, Sauvin T. Def. Peace Econ. 1996; 7(1): 61-73.

Copyright

(Copyright © 1996, Informa - Taylor and Francis Group)

DOI

10.1080/10430719608404842

PMID

unavailable

Abstract

The aim of this article is to introduce “territory” into the process of conversion of military activities into civilian ones. The companies engaged in this process find themselves more exposed to international competition. They must therefore accept competitive imperatives. The existence of a sense of belonging to the Local Productive System (LPS) would allow, on the one hand, companies to renforce their competitive advantages through the positive externalities created by the LPS and, on the other hand, branches and subsidiaries to increase their degree of autonomy with regards to the mother company, autonomy which is necessary for the establishment of a strategy of diversification or conversion of activity. The first part stresses the necessary adaptation of companies of the armaments industry to the new economic context (reduction of economic deficit, fall in demand, keeness of international competition). Having pointed out the main sources of efficiency of the LPS, the second part reveals the quasi-absence of a feeling of belonging on the part of the companies of the Brest LPS. Although insufficient, the intervention of public institutions is necessary to revitalise the “Brest LPS” and to thus facilitate the process of conversion of military activities.