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Military Spending and Innovation: Learning from 19th Century World Fair Exhibition Data

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  • Danzer, Alexander M.

    (Catholic University of Eichstätt-Ingolstadt)

  • Danzer, Natalia

    (Free University of Berlin)

  • Feuerbaum, Carsten

    (Catholic University of Eichstätt-Ingolstadt)

Abstract

We provide quantitative evidence on the relationship between military spending and innovation in the 19th century. Combining innovation data from world fairs and historical military data across Europe, we show that national military spending is associated with national innovation towards war logistics such as food processing, but less towards war technology such as guns. This pattern reflects differences in the historical markets for war supplies. European patent data of 1990-2015 suggest a long-term correlation between historical and con- temporaneous innovation patterns.

Suggested Citation

  • Danzer, Alexander M. & Danzer, Natalia & Feuerbaum, Carsten, 2023. "Military Spending and Innovation: Learning from 19th Century World Fair Exhibition Data," IZA Discussion Papers 16034, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16034
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    1. Gan Jin & Günther G. Schulze, 2024. "The Long-Term Effect of Western Customs Institution on Firm Innovation in China," CESifo Working Paper Series 10967, CESifo.

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    More about this item

    Keywords

    military spending; innovation; war logistics; food processing; military supply; 19th century;
    All these keywords.

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • N43 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: Pre-1913

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