The French defence industry underwent major transformations from 1961 onwards, laying the foundations for today's defence industrial and technological base. A new organization, known as the DMA (Délégation Ministérielle pour l′Armement11Now DGA, Direction Générale de l’Armement (Directorate General of Armaments). In this paper, “DMA” refers to the 1961–1977 period. The term “directorate” designates this administration after 1977.), directed all research, design and production processes for new equipment. However, the transformation was incomplete, and government owned defence production facilities were not transformed into companies until after the end of the Cold War. The DMA lost control of most defence production facilities, and refocused its activities on expertise and project management. Today, it must meet the challenges of innovation in a changing institutional context.