CEPR-重建欧洲防务_人力资本是关键（英）-2025.5_10页_450kb

Summary

The article argues that rebuilding Europe's defense capabilities requires investing in both physical and human capital, moving beyond the traditional "guns vs. butter" trade-off. It draws on evidence from Israel's defense sector and high-tech industry to highlight the benefits of investing in skilled personnel.

Israel's Unit 8200, specializing in signals intelligence and cyber operations, serves as a model. Young recruits undergo rigorous training and gain experience in advanced technologies, skills they carry over to successful civilian start-ups upon discharge. Factors contributing to 8200's effectiveness include a competitive selection process, supportive organizational culture, and an "error of omission" regarding intellectual property rights, allowing talent to flow freely into the civilian sector.

Moreover, the article emphasizes that 21st-century warfare relies heavily on digital and AI technologies, making high-level military personnel crucial for economic spillovers. By recruiting talented individuals and fostering their transferable skills, Europe can build robust defense capabilities while stimulating economic growth. A gradual, long-term approach, avoiding premature technology investment and fostering organic human capital growth, is recommended for sustainable defense building.

Economists can play a vital role by providing economic rationale for defense investment, designing efficient procurement mechanisms, and informing policy by highlighting the human capital dimensions of defense build-ups.