MILITARY RESEARCH-AND-DEVELOPMENT - THE ECONOMIC-IMPLICATIONS OF DISARMAMENT AND CONVERSION

The recent evolution of expenditures in military R&D is analyzed. The causes for the downward rigidity of expenditures in military R&D in th e U.S. are examined, as well as the possible impact of a reduction in the medium- and long-term. The issues of productivity growth, spin-off s and crowding-out are considered. In general terms, it is not possibl e to justify high levels of military R&D expenditures on purely econom ic reasons. Finally, prospects and obstacles to conversion of resource s devoted to military R&D are examined. Conversion is a process requir ing resources, time and government intervention. The experience of sci ence and technology policy can be applied fruitfully in this area.