Patents and Dual-use Technology: An Empirical Study of the World's Largest Defence Companies

Abstract

This paper examines the generation of technological knowledge by leading companies in the defence industry. In particular, we test whether the characteristics of large defence companies are related to both the production of different types of patents (civilian, military and mixed), and the generation of dual-use technologies. To explore these links, we rely on economic data for the top 100 defence companies from the Stockholm International Peace Research Institute database, and patent information from the Worldwide Patent Statistical Database. Our results show that the relationship between the production of civilian patents and the size of the company is positive and significant. However, this relationship does not hold for the production of military patents. Furthermore, the military commercial profile is unrelated to the generation of military patents. Regarding the involvement in dual-use technologies, firms engaged in dual-use are those with higher military sales, a greater number of employees and a larger number of patents (civilian, military and mixed) than those not engaged in dual-use. Furthermore, we found a skill effect (more involvement in dual-use per employee) in European firms compared to US firms. These findings help to identify which firms should be targeted by government policies if increasing dual-use technologies becomes a political objective.     

Technical note: Worst‐case performance of power‐of‐two policies for serial inventory systems with incremental quantity discounts

This study presents power‐of‐two policies for a serial inventory system with constant demand rate and incremental quantity discounts at the most upstream stage. It is shown that an optimal solution is nested and follows a zero‐inventory ordering policy. To prove the effectiveness of power‐of‐two policies, a lower bound on the optimal cost is obtained. A policy that has a cost within 6% of the lower bound is developed for a fixed base planning period. For a variable base planning period, a 98% effective policy is provided. An extension is included for a system with price dependent holding costs. © 2007 Wiley Periodicals, Inc. Naval Research Logistics, 2007     

Military expenditure,economic growth and structural instability: a case study of South Africa

This paper contributes to the growing literature on the milex-growth nexus, by providing a case study of South Africa and considering the possibility of structural breaks by applying newly developed econometric methods. Using full sample bootstrap Granger non-causality tests, no Granger causal link is found between military expenditure and GDP for 1951–2010, but parameter instability tests show the estimated VARs to be unstable. Using a bootstrap rolling window estimation procedure, however, finds evidence of bidirectional Granger causality in various subsamples. This implies standard Granger non-causality tests, which neither account for structural breaks nor time variation may be invalid.     

Efficiency of equilibria in restricted uniform machine scheduling with total weighted completion time as social cost

In the last decade, there has been much progress in understanding scheduling problems in which selfish jobs aim to minimize their individual completion time. Most of this work has focused on makespan minimization as social objective. In contrast, we consider as social cost the total weighted completion time, that is, the sum of the agent costs, a standard definition of welfare in economics. In our setting, jobs are processed on restricted uniform parallel machines, where each machine has a speed and is only capable of processing a subset of jobs; a job's cost is its weighted completion time; and each machine sequences its jobs in weighted shortest processing time (WSPT) order. Whereas for the makespan social cost the price of anarchy is not bounded by a constant in most environments, we show that for our minsum social objective the price of anarchy is bounded above by a small constant, independent of the instance. Specifically, we show that the price of anarchy is exactly 2 for the class of unit jobs, unit speed instances where the finite processing time values define the edge set of a forest with the machines as nodes. For the general case of mixed job strategies and restricted uniform machines, we prove that the price of anarchy equals 4. From a classical machine scheduling perspective, our results establish the same constant performance guarantees for WSPT list scheduling. © 2012 Wiley Periodicals, Inc. Naval Research Logistics, 2012     

Economic impact of the ministry of defence’s budget: methodological design and results for the Spanish economy

This article analyses the economic impact of the expenditure budget of the Spanish Ministry of Defence (MoD) and its Autonomous Agencies (AA), distinguishing direct, indirect and induced effects. The input–output methodology is used to find intersectoral effects on the rest of the economy. The article quantifies the economic impact in terms of production, gross value added (GVA), employed population, tax revenue, and also in terms of its contribution to the gross domestic product (GDP) of Spain in 2010. The results show that the activity of the MoD and AA generates 1.2% of the country’s GDP and 1.7% of total employment in that year.     

Cinematic representations of the Mexican Narco War

This essay provides an overview of the eras of Mexican cinema followed by an analysis of 10 Spanish-language narco cinematic representations, an overview of the eras of American cinema followed by an analysis of 10 English language narco cinematic representations, and a conclusion that compares and contrasts the Mexican and US narco war cinematic experience. Due to divergent national trajectories – Mexico is engulfed in narco violence and corruption while the United States is not – more differences than similarities exist between these national cinematic genres. Dark spirituality themes are also increasingly evident in more recent narco war films.     

Country survey XII: South Africa

This article examines the relationship between defence expenditure and economic performance in South Africa, both prior to and after that country's first fully democratic election in 1994. Prior to 1994 defence expenditure decisions were largely dominated by non‐economic factors; since then defence spending has declined in reaction to, inter alia, the need to address a number of socio‐economic inequities.

After 1975 in particular, military industrialisation in South Africa placed a disproportionately high burden on the country's industrial resources and natural economic and technical capabilities. However, although this suggests that the opportunity cost of domestic arms production has been fairly high, the country's poor economic and development performance since the mid‐1970s is a function of underlying structural deficiencies and institutional constraints rather than the consequence of inordinately high defence spending levels.     

Defence spending and economic growth in South Africa: A supply and demand model*

This paper provides a contribution to the growing corpus of knowledge and understanding of the interaction between economic growth and defence spending in South Africa by specifying a Keynesian simultaneous equation model and estimating the system for the period 1961 to 1997. The model contains a growth equation, a savings equation, a trade balance equation and a military burden equation and when estimated by single equation and systems estimation methods is relatively well specified. There is evidence of an overall negative effect of military spending on the economy over this period, though the significance of individual coefficients is low. There is certainly no evidence of any positive impact, suggesting that cuts in military spending do present an opportunity for improved macroeconomic performance.     

Technical note: Characterization of binomial semivalues through delegation games

Semivalues are allocation rules for cooperative games that assign to each player in a given game a weighted sum of his marginal contributions to all coalitions he belongs to, where the weighting coefficients depend only on the coalition size. Binomial semivalues are a special class of semivalues whose weighting coefficients are obtained by means of a unique parameter. In particular, the Banzhaf value is a binomial semivalue. In this article, we provide an axiomatic characterization for each binomial semivalue. © 2007 Wiley Periodicals, Inc. Naval Research Logistics, 2007