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

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  • Manuel Acosta
  • Daniel Coronado
  • Esther Ferrandiz
  • M. Rosario Marin
  • Pedro J. Moreno

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.

Suggested Citation

  • Manuel Acosta & Daniel Coronado & Esther Ferrandiz & M. Rosario Marin & Pedro J. Moreno, 2018. "Patents and Dual-use Technology: An Empirical Study of the World's Largest Defence Companies," Defence and Peace Economics, Taylor & Francis Journals, vol. 29(7), pages 821-839, November.
    • Handle: RePEc:taf:defpea:v:29:y:2018:i:7:p:821-839
    DOI: 10.1080/10242694.2017.1303239
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    Cited by:

    1. Zhiwen Li & Oswin Aganda Anaba & Zhiqiang Ma & Mingxing Li, 2021. "Ghanaian SMEs Amidst the COVID-19 Pandemic: Evaluating the Influence of Entrepreneurial Orientation," Sustainability, MDPI, vol. 13(3), pages 1-27, January.
    2. Mohammad Nourani & Wen‐Min Lu & Irene Wei Kiong Ting, 2020. "Vicarious warfare and dynamic efficiency of companies in the aerospace and defence industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(4), pages 641-650, June.

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