ABSTRACT
In recent years, the Norwegian defence industry has seen a substantial growth, particularly abroad, though it is still a small industry by most standards. The industry specializes in targeting niche markets that emphasize high quality and performance, rather than competing on costs. The government defence industrial strategy largely determines the direction of the defence industry, such as the government setting eight strategic areas of competence, within which the vast majority of the Norwegian defence industry operates. Also important to the industry is a triangular collaboration between the defence industry, the Norwegian Defence Research Establishment, and the Armed Forces, which reduces industry risk and costs. Here, short decision lines, frequent interaction, end-user focus and secure funding are all considered important components of successful innovation.
