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18 Feb 12. Norwegian Homeland Security Expenditure is Expected to Record a CAGR of 8.0%. Driven by the increased perceived threat from radical and foreign terrorist organizations such as al-Qaeda. The country is also expected to invest in the modernization and strengthening of its home guard. The defense expenditure of Norway registered a CAGR of 7.22% during the review period (2007–2011) and is expected to record a CAGR of 2.51% over the forecast period (2012–2016). The primary reasons for this expectation of increased spending include Norway’s involvement in international peacekeeping missions, border disputes with Russia and the expected expansion of home guard training activities. Furthermore, as a percentage of GDP, Norwegian defense expenditure stood at an average of 1.4% during the review period, a figure expected to increase to an average of 1.5% during the forecast period as a result of stronger economic growth. Norwegian homeland security expenditure is expected to record a CAGR of 8.0% during the forecast period, driven by the increased perceived threat from radical and foreign terrorist organizations such as al-Qaeda. The country is also expected to invest in the modernization and strengthening of its home guard over the forecast period. In Norway, offsets are mandatory for all defense procurements equal to or exceeding US$82.2m, with foreign investors required to invest 100% of the contract value back into the Norwegian economy. The offset project must also cater to defense related, security related or dual use products. If an investor is unable to fulfill their offset obligation within 10 years of the agreement, they are liable to pay a penalty of at least 10% of the outstanding value. Furthermore, the country’s offset program has offset multipliers, which vary from 1 to 5, depending upon the sector the offset agreement caters to. Foreign OEMs predominantly enter the Norwegian defense industry through the formation of joint ventures or strategic alliances with domestic defense firms. During the last 25 years, firms such as Thales Australia, BAE Systems and Raytheon have entered the market through these routes, with such methods favored as they allow both companies to capitalize on each other’s capabilities. Additionally, the government also encourages investors to enter the market by collaborating on research and development programs, as this involves the extensive transfer of technology and therefore enhances the capabilities of the domestic defense industry. Although Norway allows foreign investors to enter its defense industry, and foreign and domestic investments are treated equally by law, regulations, standards, and practices often favor Norwegian, Scandinavian and European Economic Area (EEA) investors. This makes the entry of non-European investors more challenging. Furthermore, as the country completed the modernization of its armed forces during the review period, market opportunities are now limited for future investors. (Source: ASD Network)

14 Feb 12. Companies running computer networks essential to US economic and national security would be required to better defend their systems from spies, hackers and terrorists under a comprehensive cybersecurity bill unveiled by leading senators. The bill, drafted by senators John Rockefeller and Dianne Feinstein, both Democrats; Susan Collins, a Republican, and Joe Lieberman, an independent, combines elements of several cybersecurity bills introduced over the past three years into one measure. Under it, the Homeland Security Department would have the power to identify systems that could cause mass casualties or catastrophic economic damage if attacked. The agency would then set regulations requiring operators of critical networks to improve security and companies would have to show that their networks are secure or face penalties. Harry Reid, a Nevada Democrat and Senate majority leader, has said he wants to bring the bill to the chamber’s floor for a vote

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