Saab looks to new horizons

Press quote (Defense News)
Clara Marina O'Donnell
01 March 2010

The global defence market could become tougher for Europe in the future, said Clara O'Donnell, an analyst at the Centre for European Reform, a London think tank. O'Donnell said she believes it will become more difficult for EU countries to compete for sales of high-end technology products, given the 7-to-1 ratio in research and development spending between the United States and the European Union. She said Europe and European companies should focus on innovative solutions that are not so high-tech. In the longer term, O'Donnell said, Sweden's reliance on complicated offsets to secure export sales could be a potential problem, given the EU code of conduct on offsets. The EU policy may force companies like Saab to change their business model, O'Donnell said.