Collaborative projects and the number of partner nations

Keith Hartley and Derek Braddon

Defence and Peace Economics, 2014, vol. 25, issue 6, 535-548

Abstract: Collaborative defence projects have been a distinctive feature of European defence industrial policy. This article focuses on whether the number of partner nations in international collaborative defence and aerospace programmes is a source of inefficiency. It appears that there is not a simple linear relationship. Two nation collaborations can be efficient, but conventional wisdom assumes that inefficiencies emerge with more than two partner nations. Inevitably, data problems made what appears to be a simple hypothesis difficult to test. The major result is that there is no evidence that efficiency as measured by development times is adversely affected by the number of partner nations. A limited sample regression and a comparison of Airbus vs. Boeing shows a similar conclusion.

Date: 2014
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DOI: 10.1080/10242694.2014.886434

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