The impact of procurement-driven technological change on U.S. manufacturing productivity growth

Saal, David S. (2001). The impact of procurement-driven technological change on U.S. manufacturing productivity growth. Defence and Peace Economics, 12 (6), pp. 537-568.

Abstract

As we enter the 21st Century, technologies originally developed for defense purposes such as computers and satellite communications appear to have become a driving force behind economic growth in the United States. Paradoxically, almost all previous econometric models suggest that the largely defense-oriented federal industrial R&D funding that helped create these technologies had no discernible effect on U.S. industrial productivity growth. This paper addresses this paradox by stressing that defense procurement as well as federal R&D expenditures were targeted to a few narrowly defined manufacturing sub-sectors that produced high tech weaponry. Analysis employing data from the NBER Manufacturing Productivity Database and the BEA' s Input Output tables then demonstrates that defense procurement policies did have significant effects on the productivity performance of disaggregated manufacturing industries because of a process of procurement-driven technological change.

Publication DOI: https://doi.org/10.1080/10430710108405002
Divisions: Aston Business School > Economics finance & entrepreneurship
Aston Business School
Uncontrolled Keywords: productivity,R&D,procurement,manufacturing,United States,technological change
Full Text Link: http://www.tandfonline.com/10.1080/10430710108405002
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Published Date: 2001
Authors: Saal, David S.

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