European Policies and the Space Industry Value Chain (Note 1)

Vasilis Zervos


The economics of contracting have received rather limited attention insofar as the implications for efficiency from the selection of types of contracts employed in the aerospace and defence sector are involved. The paper analyzes the challenges confronting the cost-plus/cost-reimbursement type of contracts of European Commission and intergovernmental organizations like the European Space Agency (ESA), who are involved in security and defence projects with significant multiplier effects within defence and security networks. The analysis indicates how institutional limitations result in contractual choice inefficiencies and anti-competitive practices that may affect the whole of the aerospace industrial base, including subcontractors. The paper concludes with policy implications and further research recommendation.

Full Text:




  • There are currently no refbacks.

Copyright (c) 2018 Vasilis Zervos

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright © SCHOLINK INC.   ISSN 2377-1038 (Print)    ISSN 2377-1046 (Online)