Group Wants Tech Transfer To Define Strategies of French Arms Companies

PARIS — A defense study group recommends that French arms companies factor in the transfer of technology to the core of their strategy in order to win export deals.

"If our companies do not accept transfer of technology, this refusal will systematically lead to the destruction of value in France," Mariane Renaux, speaker for a study group, said Thursday at a conference on defense, weaponry and the global balance of power.

It is essential to put "technology transfer at the heart of the corporate strategy" and constantly pursue innovation with help from the government, she said.

Technology transfer is a key competitive element for French companies to win export clients, all the more so as the US does not generally approve a handover of know-how, she said. An initial transfer of maintenance, then production in the export country, helps lead to further contracts.

Renaux said the six European countries that signed a letter of intent for cooperation — France, Britain, Germany, Italy, Spain and Sweden — should adopt a single policy for granting a general arms export licence, she said.

To support export deals where there is cross-border European cooperation, the country in which a prime contractor is based is the one that should grant a single export licence, she said.

There has been slow and disappointing progress on talks between France and Germany to update a bilateral arms export agreement, Nexter chairman Stéphane Mayer told the National Assembly defense committee on Feb. 15. Nexter specializes in land weapons and has created a joint venture with German partner Krauss-Maffei Wegmann.

A high level of prudence among banks, which play a key role in export contracts, "is hurting our companies," Renaux said.

The government "has a duty" to support the arms industry by helping regional authorities, she said. She added that the state should support the innovation that companies must pursue to stay ahead.

Alain Bentéjac, chairman of CNCCEF, a national committee of advisers for foreign trade, said companies wished the export clearing procedure was "simpler and faster.". Banks are "very important," but regulatory compliance and ethical consideration have made it harder to raise loans, he said.

A lack of staff at CIEEMG, the interministerial committee for authorizing arms exports, slows down the procedure, he said.

Didier Malet, an official with head of ​the international development department at the Direction Générale de l’Armement procurement office, said meetings had been held every day on the Mistral helicopter carrier and the Russian government before the decision was taken at the highest level.

The interministerial committee, which takes into account strategic and diplomatic factors, reports to the prime minister’s office, he said.

The conference, held at the military staff college, was organized by AACHEar and IHEDN, the two study centers backed respectively by the defense procurement office and prime minister’s office.