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The World War II Crisis Innovation Model: What Was It, and Where Does It Apply?

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  • Daniel P. Gross
  • Bhaven N. Sampat

Abstract

World War II was one of the most acute emergencies in U.S. history, and the first where mobilizing science and technology was a major part of the government response. The U.S. Office of Scientific Research and Development (OSRD) led a far-ranging research effort to develop technologies and medical treatments that not only helped win the war, but also transformed civilian life, while laying the foundation for postwar innovation policy after it was dissolved. Scholars and policymakers have appealed to the wartime model as a template for other problems, often invoking the Manhattan Project rather than OSRD, which initiated and managed the broader effort of which atomic fission and dozens of other programs were a part. In this paper we bring OSRD into focus, describe how it worked, and explore what insights its experience offers today. We argue that several aspects of OSRD continue to be relevant, especially in crises, while also cautioning on the limits to generalizing from World War II to other settings.

Suggested Citation

  • Daniel P. Gross & Bhaven N. Sampat, 2020. "The World War II Crisis Innovation Model: What Was It, and Where Does It Apply?," NBER Working Papers 27909, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:27909
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    References listed on IDEAS

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    1. Daniel P. Gross & Bhaven N. Sampat, 2022. "Crisis Innovation Policy from World War II to COVID-19," Entrepreneurship and Innovation Policy and the Economy, University of Chicago Press, vol. 1(1), pages 135-181.
    2. Daniel P. Gross, 2023. "The Hidden Costs of Securing Innovation: The Manifold Impacts of Compulsory Invention Secrecy," Management Science, INFORMS, vol. 69(4), pages 2318-2338, April.
    3. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    4. Keith Pavitt, 2000. "Why European Union funding of academic research should be increased: a radical proposal," Science and Public Policy, Oxford University Press, vol. 27(6), pages 455-460, December.
    5. Mowery, David C., 2010. "Military R&D and Innovation," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1219-1256, Elsevier.
    6. Mowery, David C. & Nelson, Richard R. & Martin, Ben R., 2010. "Technology policy and global warming: Why new policy models are needed (or why putting new wine in old bottles won't work)," Research Policy, Elsevier, vol. 39(8), pages 1011-1023, October.
    7. Nelson, Richard R & Wright, Gavin, 1992. "The Rise and Fall of American Technological Leadership: The Postwar Era in Historical Perspective," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 1931-1964, December.
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    Cited by:

    1. Giovanni Dosi, 2021. "Policy Lessons From Medical Responses to the COVID-19 Crisis," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 56(6), pages 337-340, November.
    2. Dosi, Giovanni & Marengo, Luigi & Staccioli, Jacopo & Virgillito, Maria Enrica, 2023. "Big Pharma and monopoly capitalism: A long-term view," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 15-35.
    3. Giovanni Dosi, 2021. "Some policy lessons from medical/therapeutic responses to the COVID-19 Crisis: A rich research system for knowledge generation and dysfunctional institutions for its exploitation," LEM Papers Series 2021/19, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    4. Sofia Patsali, 2021. "University Procurement-led Innovation," GREDEG Working Papers 2021-13, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    5. Naudé, Wim, 2020. "Industrialization under Medieval Conditions? Global Development after COVID-19," GLO Discussion Paper Series 704, Global Labor Organization (GLO).

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    More about this item

    JEL classification:

    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • N42 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: 1913-
    • N72 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: 1913-
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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