From components to Integrated Systems: Technological Diversity and Interactions between the Military and Civilian Sectors

Studies of the broad effects of military expenditure on industrial performance have tended to follow a common course. They open by drawing attention to an association between indicators of performance, such as rates of economic growth or movements in trade shares, and national commitments to military procurement. The strength of this association (usually negative in recent times) suggests causation, which is usually explained by the opportunity costs of committing scarce resources to military R&D and production, the complexity of military technology, and the bad industrial practices fostered by reliance on protected markets. These explanations are supported by drawing upon case-studies, circumstantial evidence, and the collective wisdoms of the day.