The PESCO Paradox Applied to EDIP: Preventing a Second Delivery Valley in European Defence Industrial Policy
From Cooperative Design to Procurement Reality: Assessing Whether EDIP Can Convert EU Defence Integration into Industrial Scale
20 pages · PDF · 23 March 2026 · Licensed single-user copy, watermarked to the buyer
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About this report
The European defence policy framework has, since 2017, demonstrated a consistent ability to generate cooperative structures, governance mechanisms, and project portfolios at scale, most visibly through Permanent Structured Cooperation.
However, the available institutional evidence indicates that this capacity has not been matched by a comparable ability to convert cooperative design into serial production, sustained procurement, and fielded capability. This gap, described in this report as the “delivery valley,” reflects a structural misalignment between upstream cooperation and downstream demand certainty.
Key questions this report answers
- What is the 'delivery valley' and why has PESCO cooperation since 2017 not converted into serial production and fielded capability?
- How is the EMS layer defined in the European manufacturing taxonomy and how fragmented is its structure?
- How does demand reallocation toward defence and aerospace, and the electronics intensity of readiness, shape industrial readiness measurement?
- What consolidation and supply-chain constraints determine domain differentiation and investment relevance?
Inside this report
- Defining the EMS layer in the European manufacturing taxonomy
- European EMS structure and fragmentation
- Demand reallocation toward defence and aerospace
- EU defence demand architecture and the electronics intensity of readiness
- EMS-based industrial readiness measurement
- Consolidation and supply-chain constraints
- Domain differentiation and investment relevance
- Conclusion
Who it's for
Strategy, corporate-development and investment teams that need an ecosystem-level view — budgets, industrial capacity and technology landscapes — before committing capital or capacity.
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Methodology, format & delivery
DFM reports are built from primary and official sources — TED procurement notices, CORDIS and the EU Funding & Tenders Portal, EIB operations, the NATO Innovation Fund portfolio, SIPRI data, official budget documents and company disclosures — read together with the underlying legal texts. Sources are cited in the document; it reflects them as of its publication date (23 March 2026). You receive a 20-page PDF, watermarked to you on every page, delivered on the confirmation page and by e-mail immediately after checkout (personal link valid 72 hours, up to 5 downloads). Guest checkout, single-user licence — Terms of Sale.
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