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Technology and Trade: Does Military R&D Make a Difference?

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The Relations between Defence and Civil Technologies

Part of the book series: NATO ASI Series ((ASID,volume 46))

Abstract

Our interest in the links between civil and military research and development (R&D) arises largely from the importance attached to technological change in explanations of economic growth and in military force planning. The new knowledge and products developed in formal R&D programmes are an important element in the process of technological change, and in both the civilian and military sectors technological change has been a dynamic force for improved performance and structural change. Studies of economic growth in the United States, for example, attribute more than half of the total economic growth since World War I to technological change rather than to simple increases in factor inputs over time(1). On the military side, technological change has, in the years since World War II, transformed force structure and military strategy and fuelled a qualitative arms race.

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Notes and References

  1. John W. Kendrick, Postwar Productivity Trends in the United States,1948–1969 (New York: National Bureau for Economic Research, 1973), p.4.

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  2. See Adam B. Jaffe, “Technological Opportunity and Spillovers of R&D,” American Economic Review vol.76, No.5, 1986, pp.984–1001

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  3. and F.M. Scherer, “Using Linked Patent and R&D Data to Measure Interindustry Technology Flows” in R&D, Patents and Productivity, Zvi Griliches, ed., (Chicago: University of Chicago Press, 1984).

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  4. The government retains “march-in” rights for patents of technology developed with government funds. In many cases the government is the only plausible customer for the new technology, so that there is little incentive to patent.

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  5. Frank R. Lichtenberg, “The Relationship between Federal Contract R&D and Company R&D,” American Economic Review, vol.74, no.2, 1984, pp.73–78.

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  9. Ibid., pp.35–6.

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  18. The two measures differ in the time periods covered and in the base to which the R&D spending is compared. These differences are not important for our basic purpose, which is to identify those hightechnology industries that have a strong military component in their technology intensity.

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  21. Calculated from data in the International Trade Statistics Yearbook (New York: United Nations, 1983).

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  28. See Judith Reppy, “Military Research and Development and International Trade Performance,” Paper presented at the Annual Meeting of the International Studies Association, April 15, 1987 (mimeo).

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  30. Kirsty Hughes, Exports and Technology, (ref. 11 above).

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© 1988 Springer Science+Business Media Dordrecht

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Reppy, J. (1988). Technology and Trade: Does Military R&D Make a Difference?. In: Gummett, P., Reppy, J. (eds) The Relations between Defence and Civil Technologies. NATO ASI Series, vol 46. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-7803-5_6

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  • DOI: https://doi.org/10.1007/978-94-015-7803-5_6

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-90-481-8312-8

  • Online ISBN: 978-94-015-7803-5

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