Open AccessDefense innovation at any (out of control) cost? The stalemate in today's R&D and an alternative model
Author(s) -
Renaud Bellais
Publication year - 2009
Publication title -
the economics of peace and security journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.181
H-Index - 1
ISSN - 1749-852X
DOI - 10.15355/epsj.4.1.6
Subject(s) - stalemate , complement (music) , mainstream , key (lock) , economics , capital (architecture) , venture capital , business , industrial organization , computer science , finance , political science , politics , computer security , law , history , biochemistry , chemistry , archaeology , complementation , gene , phenotype
Technological superiority is a key element to achieve defense effectiveness, and R&D spending is crucial to access leading-edge technologies. Nevertheless, the current defense R&D model seems to reach its limits, leading to an out-of-control burden: In spite of spending almost USD70 billion yearly, defense R&D in NATO countries does not produce the expected results. This low effectiveness leads to criticism about today's model of defense R&D, especially the channeling of credits by large incumbents through the Lead System Integrator model. Spurring disruptive technologies and path-breaking innovation requires an alternative approach. It is then interesting to analyze the possible use of venture-capital mechanisms to complement the mainstream approach to defense R&D. Even though the article does not develop a full analysis of the relationship between defense R&D and the principles of venture capital, it identifies criteria for such an alternative approach.