Defence industry development and innovation capacity

How can national ambitions be realised?

In the national strategy for the defence industry (White Paper) no. 9 (2015-2016), the Government describes objectives for safeguarding national security policy interests through maintaining and further developing an internationally competitive Norwegian defence industry. These are objectives that will now be further developed and operationalised in cooperation between the actors in the defence industry – known as Triaxial collaboration.

FFI provides knowledge-based advice to the Ministry of Defence in the work on further developing Norwegian defence industry policy. This work involves cooperating with key decision-makers in the sector, operational user environments in the Armed Forces, and maintaining good contact with various industry actors. It also entails extensive international cooperation in order to assert the Norwegian industry’s position in relation to international markets. 

We conduct analyses, prepare statistics and make assessments relating to development aspects for the Norwegian and international defence industry and defence markets. This is subsequently used as a basis for advising the Ministry on the continued development of Norwegian defence industry strategy – including regarding the use of various tools to secure market access and equal framework conditions for the Norwegian defence industry in the American and European defence markets. 

On assignment, FFI also conducts defence industry assessments and analyses as a basis for the Ministry of Defence’s choice of procurement strategy for development or purchases of new materiel. We shall contribute to enabling the Ministry to make well-founded and consistent choices on the use of suppliers. National security needs and considerations for national emergency preparedness capabilities are especially considered. 

In recent years, there has especially been a focus on strengthening the defence sector’s capacity to manage needs and opportunity-driven innovation – and being able to rapidly develop new solutions by also utilising commercially available technology. FFI published a report on the Triaxial collaboration model in autumn 2018, with recommendations for measures to be implemented in order to strengthen this model and innovation capacity.

In 2019, FFI then commenced its own work on innovation in the defence sector in order to enhance the understanding of how we can further develop innovation efforts in the defence sector.

Among other things, we wish to increase our competence on how incentives and other tools can increase the likelihood of more rapid development, commercialisation and implementation of new solutions and materiel. This will enable us to serve as better advisers, both for the Armed Forces and for the defence industry.

We are therefore collaborating with national and international innovation communities to map trends, identify development opportunities and learn from other strong innovation actors both within and outside the defence sector. The project will then aggregate the knowledge and experience that is gained in the various areas of research at the Division for Innovation and Industrial Development, and present recommendations on this basis.

Annual report: Norwegian defence industry

FFI produces an annual report that described the activities of the Norwegian defence industry. These reports serve as a barometer of the industry’s development and are found primarily in the report series Defence Industry in Norway, which has been produced since 2009, and where selected financial target figures are reviewed. 

The purpose is to provide information about the industry’s structural and financial development. The statistics are commissioned by the Ministry of Defence. In addition, the Norwegian Defence and Security Industries Association (FSi) supports the work of retrieving and processing the material.

Research reports and scientific articles

The titles may be in Norwegian, but you can read an English summary of the report if you click the read more link.

FFI-Report 2025

Forsvarsindustrien i Norge – statistikk for 2024

We have studied key figures for 2024 from companies in the Norwegian defense industry. The industry has collectively reported a continued growth in defense-related revenue of 34 %. Revenue from the Armed Forces, other Norwegian customers, and foreign customers all increased. The four largest companies accounted for 70 % of the total defense-related revenue. Revenue from foreign customers grew by 34 % from 2023 to 2024. This consists of exports and revenue from foreign subsidiaries, which increased by 40 % and 27 %, respectively. Defense-related research and development (R&D) increased by 87 % from 2023 to 2024. This includes both self-financed R&D and R&D funded by others, which increased by 77 % and 92 %, respectively. The defense-related order backlog continued to grow—by 71 % in 2024. The order backlog was more than three times the total defense-related revenue. The number of defense-related full-time equivalents (FTEs) in the companies was 42 % higher than in the previous measurement. Norwegian FTEs and FTEs in foreign subsidiaries contributed roughly equally to the increase. The statistics are based on data from 91 companies, 21 more than in 2023.
FFI-Report 2024

Forsvarsindustrien i Norge – statistikk for 2023

The Norwegian defence industry – main figures for 2023
FFI-Report 2023

Forsvarsindustrien i Norge – statistikk for 2022

The Norwegian Defence Industry – main figures for 2022
FFI-Report 2022

Forsvarsindustrien i Norge – statistikk for 2021

The Norwegian Defence Industry – main figures for 2021
FFI-Report 2021

Forsvarsindustrien i Norge – statistikk 2020

The Norwegian Defence Industry – main figures for 2020
FFI-Report 2020

Forsvarsindustrien i Norge - statistikk 2019

The Norwegian Defence Industry – main figures for 2019
FFI-Report 2019

Forsvarsindustrien i Norge – statistikk 2018

The figures for 2018 show a decline in the number of defence-related companies, from 116companies in 2017 to 104 companies in 2018. The decline is primarily related to the smallestcompanies.There are decreases in all of the indicators on defence-related revenue, with the exception offoreign subsidiaries. The decline is greatest in the Norwegian market, which indicates increasingcompetition in the domestic market for 2018 as well.Export figures show a decline of 8% compared to 2017. However, the figures for 2017 were atthe highest level since 2010, and seen in a historical light, the figures for 2018 are 32% higherthan the average since 2010. All business categories have increased in comparison to theaverage since 2010. The large companies have the most increase with exports that are 41%higher than the average since 2010.Research and development (R&D) is down 11% in 2018, with the category of self-funded R&Ddown 35%. This decline can be related to the smallest companies (46% decline) and mediumsizedcompanies (28% decline).The number of defence-related full-time equivalent (FTE) increases by 2%. The increase is dueto activities abroad, while the FTEs in Norway are declining.
FFI-Report 2018

Forsvarsindustrien i Norge - statistikk 2017

Main figures for the Norwegian defence industry 2017 Table 0.1Main figures for the Norwegian defence industry 2017. The total revenue figures show an increase from 2% to 5%. However, the increase is lower than the defence equipment expenditures of 2017. This indicates increased levels of competition for the Norwegian defence companies in the domestic market. There is a significant increase in exports (31% from 2016), which also increases the share of export in relations to total revenue (from 35% in 2016 to 44% in 2017). All the export categories increase, but dual-use shows the highest increase (43%). It should be noted that the small businesses have increased their exports with over 51%. Part of the growth can be explained by the fact that some materiel produced for stock in 2016 was exported in 2017. However, the increase is also a strong indicator of the industry's enhanced competitiveness in foreign markets. Research and development (R&D) was also significantly strengthened in 2017 with an increase of 31%. The category of co-financed R&D increases the most (by 42%). Within this category, the increase is also the highest among micro companies. Defence-related full-time equivalent (FTE) has an increase of 5%. The increase is due to activities abroad, while the FTEs in Norway are declining. There is a 20% increase in value creation since 2016. This is due to increase in both labour costs and operating results. In combination with a decline in cost of goods, the margin trend is also slightly positive.
FFI-Report 2017

Forsvarsindustrien i Norge – statistikk 2016

With the exception of "cost of goods" the overall figures shows an increase compared to 2015. Itshould be noted that it is a decline in "revenue from the Norwegian defence" by 5 percent. Onthe other hand, there is a 10 percent increase in "revenues from foreign customers." The latter isdue to increased export (increased by 18 percent).Overall, there is a slight increase in R & D, but there is a significant shift in funding from cofinancedR & D to self-financed R & D.It is assumed that these observations can be related to an "F-35 effect" where it is expectedincreased competition in the domestic market but also increased access to other markets. In thelong run it will be interesting to observe whether and how the industry compensates for areduced home market.
FFI-Report 2016

Forsvarsindustrien i Norge - statistikk 2015

With the exception of "research and development" the overall figures shows an increasecompared to 2014. It should be noted that it is a decline in "revenue from the Norwegiandefence" by 11 %. On the other hand, there is a 20 % increase in "revenues from foreigncustomers." The latter is due to increased sales in foreign subsidiaries.There is a decrease in "research and development" (R & D). The decrease relates to the cofinancedR & D. The decline appears to be a periodical adjustment relative to 2014, but reducesthe level of R & D to the lowest we have recorded since we started our investigations.It is assumed that these observations can be related to an "F-35 effect" where it is expectedincreased competition in the domestic market but also increased access to other markets. In thelong run it will be interesting to observe whether and how the industry compensates for areduced home market.
FFI-Report 2015

Forsvarsindustrien i Norge - statistikk 2014

In terms of defense-related revenue from foreign customers, the decline is primarily related to thelargest businesses. Further, seen in conjunction with the export numbers, this indicates that thedecline in revenues is marginally higher in foreign subsidiaries.This year's figures also show a marked decrease in all the principal figures for the smallestbusinesses. Seen in conjunction with a decrease in overall operating profits for the defenseindustry, this suggests that the largest companies are in the process of changing market focus infavor of the defense market.