The EU civil security industry presents opportunities for Irish businesses, writes TOM CLONAN
WITH THE Lisbon Treaty now ratified, the EU finds itself better-equipped to rationalise its considerable defence and civil security industries. Until now, these industry sectors – with civil security alone worth an estimated €100 billion annually – have consisted of highly fragmented and competing interests across continental Europe and the UK, with much duplication in the research, development and supply of defence and security products and services among EU member states.
This lack of coherence has led to the situation where the EU defence and security spend is approximately 40 per cent that of the United States. However, in terms of “bang for your buck”, it does not enjoy anything approaching 40 per cent of the defence and security capability of the US.
To address this situation, the EU established the European Defence Agency (EDA) in 2004. The agency audits the defence industry sector in each member state and seeks to co-ordinate and maximise efficiencies across Europe.
Apart from a few notable exceptions, Ireland has not been a strong player in the traditionally heavy defence industry of Europe.
On the civil security side – which supplies the hardware and information technology requirements of the police, civil aviation, maritime and emergency services sectors throughout Europe – there is huge potential for Irish SMEs to pitch for business in Europe.
Arising from new security concerns post-9/11 and the requirement for enhanced disaster management infrastructure, the EU civil security industry is now worth approximately €36.5 billion annually.
In 2007, the EU established the European Security Research and Innovation Forum (Esrif) to phase out duplication in this sector and to foster efficiencies and synergies among relevant SMEs in member states.
Esrif has conducted extensive research into the investment and growth potential for businesses within this sector. It makes for compelling reading for Irish business.
The agency adopted a tripartite approach to the issues explored under its terms of reference. It consulted with key stakeholders from the supply side, principally large industry players and emerging SMEs throughout Europe supplying products and services to the police, critical infrastructure and emergency services sectors within the EU.
Esrif also consulted with the demand side – end users such as police forces, anti-terrorist and organised crime agencies, along with maritime and aviation cargo operators. End users also include critical infrastructure operations – both state and commercial sector – with a requirement for secure communications, protective clothing or biometric or security screening processes.
Finally, Esrif consulted with interest groups and lobby groups including non-governmental organisations, lobby groups, academics and other interested parties to assess the social and civil liberty implications of emerging civil security technologies and processes.
The research identified a number of key requirements for the sector that dovetail neatly with the expertise and research and development profiles of many Irish SMEs.
These include the development of niche services and products in the maritime and aviation security and cargo areas, where IT-driven processes and solutions, one of the RD strengths of Irish companies, are at a premium.
There are also considerable IT opportunities for Irish businesses in the critical infrastructure protection areas including ICT and telecoms “backbone” security.
Interestingly, in terms of natural and man-made disaster management, Esrif also identifies significant opportunities for businesses with expertise in the pharma, agri-business and biomedical sectors, all areas within which Irish businesses have a strong track record, with considerable ability and experience.
The potential in these areas for European and Irish SMEs identified in the Esrif and EU reports are also in tune with Ireland’s 2008 Framework for Sustainable Economic Recovery and are consistent with Ireland’s aspirational view of itself as a developing “smart economy”.
To this end, InterTrade Ireland last week week launched an innovation connections programme to facilitate Irish SMEs that might wish to exploit the market opportunities in Europe’s growing civil security market.
Other organisations are also keen to realise Ireland’s fullest participation in this growth area. According to Sadbh McCarthy of the Centre for Irish and European Security (CIES): “CIES is committed to linking Irish SMEs into direct contact with potential partners, investors and customers within the civil security sector in order to develop sustainable and profitable Irish businesses in this area.”
With the State at an economic crossroads, the civil security sector – one not traditionally associated with Irish business – might yet prove to be a surprise contender for a sustainable, ethical and highly profitable industry within which Ireland might establish a reputation as a major player.
Dr Tom Clonan is The Irish TimesSecurity Analyst
