Defense R&D In The Anti-Terrorist Era
This paper analyzes the terrorist threat following 9/11, and explores its implications for defense R&D. First, it reviews the composition of defense R&D since 9/11: big weapon systems still command 30% of defense R&D spending (legacy of the Cold War), vis-a-vis just about 13% for intelligence and anti-terrorism. The second part examines the nature of the terrorist threat, and develops a simple model of terrorism, cast in a nested discrete choice framework. Two strategies are considered: fighting terrorism at its source, and protecting individual targets, which entails a negative externality. Intelligence emerges as the key aspect of the war against terrorism and, accordingly, R&D aimed at enhancing intelligence capabilities is viewed as the cornerstone of defense R&D.
Volume (Year): 17 (2006)
Issue (Month): 3 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/GDPE20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/GDPE20|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kobi Kagan & Asher Tishler & Avi Weiss, 2005. "On The Use Of Terror Weapons Versus Modern Weapon Systems In An Arms Race Between Developed And Less Developed Countries," Defence and Peace Economics, Taylor & Francis Journals, vol. 16(5), pages 331-346.
- Ian Ayres & Steven D. Levitt, 1998.
"Measuring Positive Externalities From Unobservable Victim Precaution: An Empirical Analysis Of Lojack,"
The Quarterly Journal of Economics,
MIT Press, vol. 113(1), pages 43-77, February.
- Ian Ayres & Steven D. Levitt, 1997. "Measuring Positive Externalities from Unobservable Victim Precaution: An Empirical Analysis of Lojack," NBER Working Papers 5928, National Bureau of Economic Research, Inc.
- Lichtenberg, Frank R., 1995. "Economics of defense R&D," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 15, pages 431-457 Elsevier.
- 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.
- Molas-Gallart, Jordi, 1997. "Which way to go? Defence technology and the diversity of 'dual-use' technology transfer," Research Policy, Elsevier, vol. 26(3), pages 367-385, October.
- Manuel Trajtenberg, 2004. "Crafting Defense R&D Policy in the Anti-Terrorist Era," NBER Chapters, in: Innovation Policy and the Economy, Volume 4, pages 1-34 National Bureau of Economic Research, Inc.
- Cowan, Robin & Foray, Dominique, 1995.
"Quandaries in the economics of dual technologies and spillovers from military to civilian research and development,"
Elsevier, vol. 24(6), pages 851-868, November.
- Cowan, R. & Foray, D., 1995. "Quandaries in the Economics of Dual Technologies and Spillovers from Military to Civilian Research and Development," UWO Department of Economics Working Papers 9509, University of Western Ontario, Department of Economics.
- Enders, Walter & Sandler, Todd, 1995. "Terrorism: Theory and applications," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 9, pages 213-249 Elsevier.
When requesting a correction, please mention this item's handle: RePEc:taf:defpea:v:17:y:2006:i:3:p:177-199. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.