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Box A: The Slow Diffusion of UK Defence Research into Productivity

Author

Listed:
  • Antonio Haro Banon

Abstract

Britain cut its defence research budget sharply after the Cold War. Research of this kind can raise aggregate productivity, but only slowly: the evidence here points to a peak around four years out, and to a modest gain. The government's new Defence Investment Plan runs for four years, which is barely long enough to see the return begin.

Suggested Citation

  • Antonio Haro Banon, 2026. "Box A: The Slow Diffusion of UK Defence Research into Productivity," National Institute Economic Outlook, National Institute of Economic and Social Research, issue Summer, pages 33-37.
    • Handle: RePEc:nsr:niesre:i:summery:2026p:33-37
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    File URL: https://niesr.ac.uk/wp-content/uploads/2026/07/Economic-Outlook-Summer-2026.pdf?ver=bRIlAI8jRfszmPEN5DHs
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    More about this item

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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