he defence industrial base is examined as a key component of the defence potential of a country or an alliance. The lecture presents the trends in the evolution of the defence industries in the Euroatlantic area, along with national examples covering other countries. It provides analysis of the emergence of a ‘security industry’ in a defence-security continuum, supporting modern defence and security policies. It informs on major organisations, programmes, and procedures for multinational development and procurement of weapon systems, examines roles and opportunities of the state to impact defence industrial developments in a market economy, and the modalities of defence companies and their perspectives. A particular atention is paid to recent deveopments in the "European defence," including EDAP's reseearch and capability windows and the establishment of the European Defence Fund.