THE EFFECT OF DEFENCE R&D ON MILITARY EQUIPMENT QUALITY

Abstract

Studies into the output of R&D generally take a qualitative view of case histories and do not provide a quantitative template for the analysis of 'cause and effect' suited to investment management. This study describes the development of a quantitative model of the relationship between defence R&D and equipment capability. Using open source data, the military equipment quality of 10 nations has been evaluated from 1971 to 2005 and time-dependent correlation with R&D investment back to 1951 analysed. We find that the nations studied 'got what they paid for', with their R&D expenditure positively correlated with equipment capability. The observed variability in equipment quality was most highly correlated with R&D spend 10-25 years earlier.Defence R&D, Military equipment quality,

Collaboration and European Defence Industrial Policy

“…For example, over the period 1991-2001, US military equipment was some 6 years ahead of that of the UK, about 7 years ahead of France, about 9 years ahead of Germany and some 13 years ahead of Sweden. But the US time advantage is achieved at a cost: its defence R&D spending in 2001 was some five times greater than that for the UK (Middleton et al, 2006). Table II shows the US scale advantage in defence R&D expenditure.…”

Investment problems of an innovation pause in the economy

“…It is found out that the level of spending on military R&D deter 7 For the complementarity of inventions in the sphere of informa tion technologies, see [38]. mines the quality of the country's military equipment and ammunition in 25 years [40]. This conclusion was made after an analysis of 69 categories of military equipment across ten countries starting from 1971.…”

Country Survey Xxi: The United Kingdom

“…No references were made to new government funding: MoD research funds were to be re-allocated from other less important programmes and industry was expected to provide greater funding of defence R&D. Evidence was also presented showing a positive relationship between annual government investment in defence R&D and the quality of military equipment (time advantage in years) with the relationship subject to diminishing returns. For example, in 2001, the UK had a one year advantage over France, a three-year advantage over Germany and a seven-year advantage over Sweden; but the USA had a 4-5 year advantage over the UK (DTS, 2006: 17;Middleton et al, 2006).…”