Economics of defense R&D

Frank Lichtenberg ()

Chapter 15 in Handbook of Defense Economics, 1995, vol. 1, pp 431-457 from Elsevier

Abstract: This chapter examines a number of aspects of defense R&D, including: mechanisms -- design competitions, and independent R&D subsidies -- used by the US government to encourage firms to invest their own funds in defense R&D; theory and evidence concerning both the private and social benefits of, or returns to, R&D conducted by defense contractors; the effect of defense R&D on nondefense R&D investment; the response of government decision-makers to cost information yielded by defense R&D; and the dynamic optimality of R&D projects.

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