Opening up military innovation: causal effects of reforms to US defense research

Howell, Sabrina T., Rathje, Jason, Van Reenen, John ORCID: 0000-0001-9153-2907 and Wong, Jun (2021) Opening up military innovation: causal effects of reforms to US defense research. CEP Discussion Papers (CEPDP1760). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

For governments procuring innovation, one choice is whether to specify desired products (a "Conventional" approach) or allow firms to suggest ideas (an "Open" approach). Using a U.S. Air Force R&D grant program, where Open and Conventional competitions were held simultaneously, we find that Open awards increase both commercial innovation and technology adoption by the military. In contrast, Conventional awards have no positive technology effects, but do create more program lock-in. The Open program attracts new types of applicants (e.g. start-ups), but openness also has a differential impact beyond inducing selection. These results suggest benefits from open approaches to innovation procurement.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information:	© 2021 The Authors
Divisions:	Economics
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O31 - Innovation and Invention: Processes and Incentives O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O32 - Management of Technological Innovation and R&D O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O38 - Government Policy H - Public Economics > H5 - National Government Expenditures and Related Policies > H56 - National Security and War H - Public Economics > H5 - National Government Expenditures and Related Policies > H57 - Procurement
Date Deposited:	22 Mar 2022 12:21
Last Modified:	12 Mar 2024 16:00
URI:	http://eprints.lse.ac.uk/id/eprint/114430

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