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Defence investment and the transformation national science and technology: A perspective on the exploitation of high technology

Tariq H. Malik

Technological Forecasting and Social Change, 2018, vol. 127, issue C, 199-208

Abstract: Whether and how defence investment in the industrialised economies contributes to high technology transfer by moderating national science and technology into high economic products is the exploratory question posed in this paper as part of a comparative analysis of OECD economies. Based on defence dollar investments, we perform two analyses. For the first analysis, we assess moderating effects of defence dollars dedicated to national science (articles) and technology (patents) on high technology exports. For the second analysis, we assess the moderating role of defence dollars on individual economies regarding their comparative advantages/disadvantages relative to the US as the leading economy of the OECD. A panel analysis covering 23years (1993 to 2015) presents three sets of findings. First, defence dollars positively correlate with national science productivity in articles but are not correlated with national patents. Second, defence dollars positively moderate patent technologies but negatively moderate the application of scientific articles for the development of economic products. Third, in the moderation analysis of defence dollars, the US appears to be at a comparative disadvantage relative to the most developed OECD economies. This finding may imply that (a) there is a plurality of institutions in national innovation systems and that (b) not all economies are equally emulating American institutional development. We propose several avenues for future research and policy-making.

Keywords: Military-civilian technology transformation; Defence dollar and high technology exports; Comparative advantages of NSI in military technology (search for similar items in EconPapers)
Date: 2018
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Handle: RePEc:eee:tefoso:v:127:y:2018:i:c:p:199-208