The study analyses defence industry restructuring at the national and regional level in post Cold War Hungary and Slovakia. 

The sector has suffered serious setbacs in both countries, particularly in Slovakia, where traditional, largely heavy weapon production had a crucial role in the country’s economy and dominated entire regions. The two countries opted for different strategies : Hungary followed a rather laissez-faire strategy, accepting the collapse of the majority of its traditional firms & spur remaining producers towards export-oriented development. In Slovakia, where the state preserved a dominant role in decision-making, companies continued to receive support in order to meet the needs of the modernized national armed forces and to boost exports to new markets. The study highlights the advantages of integrated regional development strategies that have the potential to diminish losses and create positive synergies.