INER - Institute of Northern-European Economic Research
Department of Security & Defence Economics
Researching the economic foundations of resilience, deterrence, industrial capacity and strategic autonomy.
The Department of Security & Defence Economics examines the relationship between economic strength, defence-industrial capacity, critical infrastructure, technological sovereignty and strategic resilience. Its work focuses on defence economics, dual-use technologies, economic security, critical infrastructure protection, industrial readiness, supply-chain resilience, maritime security and the institutional foundations of deterrence and preparedness.
Security is no longer separable from economics. Industrial capacity, energy systems, logistics networks, digital infrastructure, technological competence, public finance and supply-chain reliability increasingly determine whether societies can remain resilient under pressure. INER analyzes these developments from a Northern-European, European and transatlantic perspective.
Department at a Glance
Department: Security & Defence Economics
Research scope: Defence economics, economic security, defence-industrial capacity, dual-use technologies, critical infrastructure resilience, supply chains, maritime security, civil preparedness and strategic autonomy
Strategic focus: The economic foundations of Northern Europe’s security, resilience and industrial readiness
Primary audiences: Policymakers, public institutions, industry leaders, defence-industrial stakeholders, infrastructure operators, researchers, media and strategic decision-makers
Research formats: Policy analysis, research papers, strategic briefings, security-economic intelligence notes, data notes, expert commentary, roundtables and institutional dialogue
Understanding Security as Economic Capacity
Security depends on economic foundations. Deterrence, resilience, preparedness and strategic autonomy cannot be sustained by political declarations alone. They require industrial capacity, technological competence, resilient supply chains, secure infrastructure, fiscal endurance, institutional coordination and the ability to mobilize resources under conditions of uncertainty.
For Northern Europe, this relationship is particularly significant. The region’s security environment is shaped by maritime connectivity, energy infrastructure, advanced industry, logistics networks, digital systems, transatlantic cooperation and proximity to strategic areas of the North Sea and Baltic Sea. These factors make economic resilience a central condition of security policy.
The Department of Security & Defence Economics studies this relationship from an economic, industrial and strategic perspective. Its purpose is to clarify how economic systems support security, where vulnerabilities arise and how Northern Europe can strengthen the institutional and industrial foundations of resilience and deterrence.
Our Mission
The mission of the Department of Security & Defence Economics is to analyze the economic foundations of security and to assess how Northern Europe can strengthen resilience, industrial readiness and strategic autonomy.
The department examines security and defence not only as political or military questions, but as economic systems shaped by industry, infrastructure, technology, finance, logistics, law and institutional capacity. We analyze how societies generate the material, technological and organizational capabilities required to withstand disruption and preserve strategic freedom of action.
Our research is designed to support decision-makers who must understand the economic conditions of preparedness. This includes the analysis of defence-industrial capacity, dual-use innovation, critical infrastructure resilience, supply-chain dependencies, maritime security, energy security, public finance, procurement systems and the relationship between economic competitiveness and national as well as European security.
Why Security and Defence Economics Matter
The boundary between economic policy and security policy is becoming increasingly porous. Supply-chain disruptions, energy dependencies, cyber risks, infrastructure vulnerabilities, industrial bottlenecks, technological dependencies and geopolitical coercion can all create strategic risks for open economies. Security is therefore not only a matter of armed forces, alliances or diplomacy. It is also a matter of economic structure.
Northern Europe’s ability to remain secure depends on the strength and adaptability of its industrial base, the resilience of its infrastructure, the reliability of its logistics systems, the availability of critical technologies and the capacity of public institutions to coordinate under pressure. These conditions cannot be built at short notice. They require long-term analysis, investment, institutional discipline and strategic foresight.
The Department of Security & Defence Economics was established to analyze these conditions with clarity and methodological seriousness. Its work helps institutions understand how economic strength becomes security capacity and how strategic vulnerabilities can emerge from industrial, infrastructural or technological weakness.
Research Agenda
The department’s research agenda is organized around the economic foundations of resilience, deterrence and strategic autonomy. It examines how industrial systems, infrastructure, technology, finance and institutions shape the security environment of Northern Europe.
How does economic capacity shape security and deterrence?
We analyze how industrial production, technological competence, public finance, logistics, energy systems and institutional capacity contribute to resilience, preparedness and credible deterrence.
Which economic dependencies create security vulnerabilities?
We examine dependencies in critical raw materials, energy, technologies, logistics systems, industrial inputs, digital platforms, maritime routes and strategic supply chains.
What role do dual-use technologies play in strategic autonomy?
We study technologies that affect both civilian and security-relevant systems, including artificial intelligence, robotics, sensors, autonomous systems, cybersecurity, advanced materials and digital infrastructure.
How do maritime security and economic security interact?
We analyze the economic importance of maritime routes, ports, seabed infrastructure, offshore energy systems and maritime-industrial capacity for Northern Europe’s security environment.
How can Northern Europe strengthen its defence-industrial base?
We study defence-industrial capacity, supplier ecosystems, production scalability, workforce requirements, innovation systems, dual-use technologies and the relationship between commercial industry and strategic readiness.
How should critical infrastructure resilience be understood?
We analyze the economic and institutional importance of ports, energy systems, undersea cables, transport corridors, digital networks, industrial facilities and logistics platforms.
How can public institutions prepare for systemic disruption?
We examine civil preparedness, continuity planning, economic mobilization, crisis coordination, public-private cooperation and the institutional requirements of resilience.
How can Europe reconcile openness, competitiveness and economic security?
We study how open economies can preserve innovation and market connectivity while reducing exposure to coercion, disruption and strategic dependency.
Core Research Areas
The Department of Security & Defence Economics works across several interconnected research areas. Together, they provide a comprehensive view of how economic systems shape security, resilience and strategic autonomy.
Defence Economics and Industrial Capacity
Defence economics examines the material and institutional foundations of security. The department analyzes how defence expenditure, industrial production, procurement systems, supplier networks, technological development and public finance interact to determine strategic readiness.
This research area focuses on the economic conditions under which societies sustain credible security capabilities. It studies defence-industrial capacity not as an isolated sector, but as part of a broader industrial ecosystem that includes advanced manufacturing, logistics, digital systems, skilled labour, innovation and supply-chain resilience.
Key Topics
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Defence economics
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Defence-industrial capacity
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Industrial readiness and scalability
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Supplier ecosystems
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Procurement systems and institutional capacity
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Public finance and defence expenditure
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Advanced manufacturing for strategic sectors
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Workforce and skills requirements
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Commercial industry and defence-relevant production
Critical Infrastructure Resilience
Critical infrastructure is the material foundation of societal and economic continuity. Ports, energy grids, transport corridors, digital networks, undersea cables, logistics hubs, industrial facilities and water systems are increasingly exposed to physical, cyber, climatic and geopolitical risks.
The department examines how infrastructure systems can remain functional under stress and how public and private actors can strengthen resilience without undermining openness, efficiency or economic dynamism.
Key Topics
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Critical infrastructure protection
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Infrastructure resilience and redundancy
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Ports and logistics systems
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Energy infrastructure security
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Undersea cables and seabed infrastructure
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Digital network resilience
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Cyber-physical infrastructure risk
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Continuity of essential economic functions
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Economic consequences of infrastructure disruption
Civil Preparedness and Economic Resilience
Civil preparedness is an economic question as well as an institutional one. Societies must be able to maintain essential services, supply critical goods, coordinate public and private actors and preserve economic continuity during crises.
The department examines the economic systems that support preparedness, including logistics, stockpiling, continuity planning, industrial surge capacity, emergency coordination, energy resilience and institutional decision-making under stress.
Key Topics
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Civil preparedness
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Economic continuity planning
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Public-private coordination
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Emergency logistics
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Strategic reserves and stockpiling
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Industrial surge capacity
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Continuity of essential services
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Crisis governance and institutional resilience
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Preparedness in open economies
Supply Chains, Industrial Readiness and Critical Inputs
Security-relevant systems depend on reliable supply chains. Critical inputs, specialized components, advanced materials, electronics, energy supplies, logistics services and skilled labour determine whether industrial capacity can be sustained under pressure.
The department studies supply-chain resilience from a security-economic perspective, focusing on dependencies, bottlenecks, supplier concentration, production scalability and the economic conditions of industrial readiness.
Key Topics
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Security-relevant supply chains
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Critical industrial inputs
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Supplier concentration and bottlenecks
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Production scalability
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Strategic reserves and redundancy
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Advanced components and electronics
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Industrial logistics and supply continuity
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Workforce availability and skills
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Resilience of defence-relevant industrial ecosystems
European and Transatlantic Security-Industrial Cooperation
Northern Europe’s security environment is embedded in European and transatlantic structures. Defence-industrial cooperation, technology partnerships, procurement frameworks, standardization, sanctions coordination, energy security and critical infrastructure protection all depend on institutional cooperation beyond national borders.
The department analyzes the economic and industrial dimensions of European and transatlantic security cooperation. It examines how cooperation can strengthen resilience, interoperability, technological capacity and strategic alignment.
Key Topics
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European defence-industrial cooperation
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Transatlantic security economics
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Technology partnerships
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Industrial interoperability
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Security-related trade and investment
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Sanctions and economic security coordination
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Joint capability development
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Standardization and industrial cooperation
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Northern Europe within European and transatlantic security structures
Economic Security and Strategic Dependencies
Economic security concerns the ability of societies to preserve essential functions under conditions of disruption, coercion or systemic pressure. The department analyzes how dependencies in resources, technologies, infrastructure and value chains can become strategic vulnerabilities.
This research area connects security policy with foreign trade, industrial strategy, energy systems, digital infrastructure and critical supply-chain analysis.
Key Topics
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Economic security policy
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Strategic dependency analysis
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Critical raw materials
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Energy and resource security
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Technology dependencies
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Supply-chain exposure
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Economic coercion and resilience
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Strategic sectors and critical goods
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Risk exposure in open economies
Dual-Use Technologies and Strategic Innovation
Dual-use technologies increasingly shape the relationship between civilian innovation and security capacity. Artificial intelligence, robotics, advanced sensors, autonomous systems, cybersecurity, space-based services, quantum technologies, advanced materials and digital infrastructure can affect both commercial competitiveness and strategic readiness.
The department studies how Northern Europe can strengthen innovation ecosystems that support economic growth while contributing to resilience, preparedness and technological sovereignty.
Key Topics
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Dual-use innovation
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Artificial intelligence and security-relevant systems
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Robotics and autonomous technologies
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Advanced sensors and monitoring systems
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Cybersecurity technologies
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Space-based services and economic resilience
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Advanced materials
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Technology transfer and innovation ecosystems
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Governance of dual-use capabilities
Maritime Security and Sea-Based Economic Resilience
Northern Europe’s security is deeply connected to the maritime domain. Ports, shipping routes, offshore energy installations, seabed infrastructure, undersea cables, maritime logistics and naval-industrial capacity are central to both economic prosperity and strategic resilience.
The department examines maritime security as an economic issue. It analyzes how sea-based systems support trade, energy, logistics, industrial capacity and critical infrastructure continuity.
Key Topics
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Maritime security and economic resilience
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Port security and strategic infrastructure
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Shipping route vulnerability
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Offshore energy infrastructure
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Seabed infrastructure and undersea cables
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Naval-industrial capacity
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Maritime logistics continuity
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North Sea and Baltic Sea security economics
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Civil-military coordination in maritime resilience
Cybersecurity, Digital Infrastructure and Economic Continuity
Digital infrastructure has become a core condition of economic and institutional functioning. Cyber risks can affect energy systems, ports, logistics networks, financial services, public administration, industrial production and critical communication systems.
The department examines cybersecurity from an economic and institutional perspective. Its focus is not technical intrusion methods, but the economic consequences of digital disruption and the governance conditions required for resilience.
Key Topics
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Cybersecurity economics
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Digital infrastructure resilience
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Cyber-physical systems
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Operational continuity under digital disruption
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Industrial cybersecurity governance
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Platform dependencies
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Data infrastructure and strategic autonomy
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Digital supply-chain risk
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Economic impact of cyber incidents
Public Finance, Defence Spending and Long-Term Capacity
Security requires sustained economic commitment. Defence spending, infrastructure investment, research funding, industrial policy, public procurement and fiscal capacity all influence whether societies can build and maintain resilience over time.
The department examines the long-term economic implications of security-related spending and the institutional choices that determine whether financial resources translate into real capacity.
Key Topics
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Public finance and security capacity
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Defence expenditure analysis
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Long-term investment requirements
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Budgetary sustainability
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Procurement efficiency
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Research and innovation funding
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Infrastructure investment for resilience
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Economic trade-offs in security policy
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From spending to capability
Our Analytical Approach
The department approaches security and defence economics as an interdisciplinary field in which economic systems, industrial capacity, technology, infrastructure, public finance and institutional coordination determine strategic resilience. We do not treat security as separate from the economy. We examine security as one of the conditions under which economic life remains possible.
Our analytical work combines economic research, industrial analysis, policy assessment, infrastructure evaluation, technology interpretation and strategic risk analysis. This allows the department to examine not only where vulnerabilities exist, but why they matter and what institutional consequences may follow.
Security with Economic Foundations
We analyze security through the economic systems that sustain preparedness, deterrence, resilience and strategic autonomy.
Capacity Before Symbolism
We focus on material, industrial, financial and institutional capacity rather than rhetorical commitments or short-term political signaling.
Resilience Before Efficiency Alone
We examine whether systems can remain functional under disruption, stress, coercion, infrastructure failure or geopolitical pressure.
Dual-Use Understanding with Governance
We analyze dual-use technologies in relation to innovation, regulation, ethical responsibility, institutional oversight and economic value creation.
Systems Before Sectors
We study defence industry, infrastructure, logistics, technology, energy and public finance as interconnected systems rather than isolated policy fields.
Strategic Foresight Before Crisis Reaction
We focus on long-term preparedness and structural vulnerabilities before they become immediate crises.
