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Defense innovation at any, out-of-control cost? Stalemates of today's R&D policy and a possible alternative model

Author

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  • Renaud Bellais

    (ENSTA Bretagne_SHS - Département Sciences Humaines et Sociales ENSTA Bretagne - ENSTA Bretagne - École Nationale Supérieure de Techniques Avancées Bretagne)

Abstract

Technological 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 USD70 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.

Suggested Citation

  • Renaud Bellais, 2009. "Defense innovation at any, out-of-control cost? Stalemates of today's R&D policy and a possible alternative model," Post-Print hal-01018527, HAL.
    • Handle: RePEc:hal:journl:hal-01018527
    as

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