Defense innovation at any (out of control) cost? The stalemate of today’s R&D policy, and an alternative model
AbstractTechnological superiority is a key element to achieve defense effectiveness, and R&D spending is crucial to access leading-edge technologies. Nevertheless, the current defense R&D model seems to reach its limits, leading to an out-of-control burden: in spite of spending almost i70 billion yearly, defense R&D in NATO countries does not produce the expected results. This low effectiveness leads to criticism about today’s model of defense R&D, especially the channeling of credits by large incumbents through the Lead System Integrator model. Spurring disruptive technologies and path-breaking innovation requires an alternative approach. It is then interesting to analyze the possible use of venture-capital mechanisms to complement the mainstream approach to defense R&D. Even though the article does not develop a full analysis of the relationship between defense R&D and the principles of venture capital, it identifies criteria for such an alternative approach.
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Bibliographic InfoArticle provided by Economists for Peace and Security (UK) in its journal Economics of Peace and Security Journal.
Volume (Year): 4 (2009)
Issue (Month): 1 (January)
defense burden; defense technology; R&D; disruptive innovation; lead-system integrator; venture capital;
Find related papers by JEL classification:
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
- H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
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