The American missile shield project: what economic and industrial implications for Europe?

Summary In 2001, the US Department of Defense (DOD) decided to develop a "system of systems" defence, referred to as the Ballistic Missile Defense System (BMDS), designed to protect the United States against limited ballistic missile attack from uncertain states and the proliferation of weapons of mass destruction. The Missile Defense Agency (MDA) will progressively develop an integrated multi-layered ballistic missile defense (BMD) system to intercept all ranges of missiles in their various phases of flight-initial, midcourse, and terminal. We will explore a geostrategic and economic approach to the new threats and we will examine the American responses, which are based on the reaffirmation of their hyperpower status through technological mastery in the face of an absence of European response. Europe is content to develop mainly incremental innovations and follows a Smithian growth policy, whereas the United States gives priority to radical innovations and a Schumpeterian growth policy.