The trade-off between innovation and defense industrial policy: A simulation model analysis of the Norwegian defense industry

Martin Blom, Fulvio Castellacci and Arne Fevolden

Technological Forecasting and Social Change, 2013, vol. 80, issue 8, 1579-1592

Abstract: The paper investigates the trade-off between innovation and defense industrial policy. It presents an agent-based simulation model calibrated for the Norwegian defense industry that compares different policy scenarios and examines the effects of a pending EU market liberalization process. The paper points to two main results. (1) It finds that a pure scenario where national authorities focus on, and provide support exclusively for, either a) international competitiveness or b) national defense and security objectives, is more Pareto efficient than a corresponding mixed strategy where policy makers simultaneously pursue both international competitiveness and defense and security objectives. (2) Under the conditions of the new EU liberalization regime, it finds that a stronger and more visible trade-off will emerge between international competitiveness and national defense and security objectives. Policy makers will have to choose which to prioritize, and set a clear agenda focusing on one of the two objectives.

Keywords: Innovation policy; Industrial policy; Defense industry; EU liberalization; Agent-based simulation model (search for similar items in EconPapers)
JEL-codes: C6 F1 F5 L1 M2 O3 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0040162513000061
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The Trade-off between Innovation and Defence Industrial Policy: A Simulation Model Analysis of the Norwegian Defence Industry (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:80:y:2013:i:8:p:1579-1592

DOI: 10.1016/j.techfore.2013.01.005

Access Statistics for this article

Technological Forecasting and Social Change is currently edited by Fred Phillips

More articles in Technological Forecasting and Social Change from Elsevier
Bibliographic data for series maintained by Catherine Liu ().