TY - JOUR
T1 - A brave leap or a gradual climb? the dynamics of investment in R&D of integrative technologies
AU - Setter, Oren
AU - Tishler, Asher
PY - 2006/6
Y1 - 2006/6
N2 - Our paper explores the optimal investment in integrative technologies (such as command and control systems), which are a major part of defense R&D at the beginning of the 21st century. Employing a dynamic optimization framework, we find that under linear development costs, it may be optimal or nearly optimal to build military forces using a myopic, short-termed, approach. In such cases, it would be optimal to transform an armed force into a network-centric environment within just a few years. When development costs are convex however, early investment in technological infrastructure is required, extending the transformation period over more than a decade.
AB - Our paper explores the optimal investment in integrative technologies (such as command and control systems), which are a major part of defense R&D at the beginning of the 21st century. Employing a dynamic optimization framework, we find that under linear development costs, it may be optimal or nearly optimal to build military forces using a myopic, short-termed, approach. In such cases, it would be optimal to transform an armed force into a network-centric environment within just a few years. When development costs are convex however, early investment in technological infrastructure is required, extending the transformation period over more than a decade.
KW - Defense R&D
KW - Dynamic optimization
KW - Technology
UR - http://www.scopus.com/inward/record.url?scp=33745568266&partnerID=8YFLogxK
U2 - 10.1080/10242690600645100
DO - 10.1080/10242690600645100
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AN - SCOPUS:33745568266
SN - 1024-2694
VL - 17
SP - 201
EP - 222
JO - Defence and Peace Economics
JF - Defence and Peace Economics
IS - 3
ER -
