IDEAS home Printed from https://ideas.repec.org/a/taf/defpea/v35y2024i7p883-907.html
   My bibliography  Save this article

Military Technology, Defense Spending and Modernization of the Armed Forces: The Case of Spain, 1891-1935

Author

Listed:
  • José M. Ortiz-Villajos
  • José J. Martos-Gómez

Abstract

A central aspect of the modernization of the armed forces is innovation in military technology, which in turn has been closely linked to defense spending. However, the connection between these variables has hardly been analyzed quantitatively. This is due, in part, to the scarcity of statistical data on military technology. This paper has constructed this indicator for the case of Spain based on patents registered in the country. This has allowed us to conduct a VAR model analysis to explore the relationship between defense spending and military technology and between the latter and the modernization of the armed forces from the late 19th century to the eve of the Civil War. Estimates have revealed that defense spending did not have a causal effect (in the Granger sense) on military patents, but there was a relationship in the opposite direction; that is, technological innovation preceded spending. In addition, it has been found that the patents that most influenced spending were foreign patents. On the other hand, there is evidence of a positive effect of military patents on the modernization of the armed forces, with foreign patents being the most influential in this case as well.

Suggested Citation

  • José M. Ortiz-Villajos & José J. Martos-Gómez, 2024. "Military Technology, Defense Spending and Modernization of the Armed Forces: The Case of Spain, 1891-1935," Defence and Peace Economics, Taylor & Francis Journals, vol. 35(7), pages 883-907, October.
    • Handle: RePEc:taf:defpea:v:35:y:2024:i:7:p:883-907
    DOI: 10.1080/10242694.2023.2198912
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10242694.2023.2198912
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10242694.2023.2198912?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nuvolari, Alessandro & Tartari, Valentina & Tranchero, Matteo, 2021. "Patterns of innovation during the Industrial Revolution: A reappraisal using a composite indicator of patent quality," Explorations in Economic History, Elsevier, vol. 82(C).
    2. Manuel Acosta & Daniel Coronado & Rosario Marín & Pedro Prats, 2013. "Factors affecting the diffusion of patented military technology in the field of weapons and ammunition," Scientometrics, Springer;Akadémiai Kiadó, vol. 94(1), pages 1-22, January.
    3. B. Zorina Khan, 2018. "Human capital, knowledge and economic development: evidence from the British Industrial Revolution, 1750–1930," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 12(2), pages 313-341, May.
    4. Ruttan, Vernon W., 2006. "Is War Necessary for Economic Growth?: Military Procurement and Technology Development," OUP Catalogue, Oxford University Press, number 9780195188042.
    5. Leo Blanken & Jason Lepore, 2011. "Slowing Down To Keep The Lead In Military Technology," Defence and Peace Economics, Taylor & Francis Journals, vol. 22(3), pages 317-334.
    6. Abu-Bader, Suleiman & Abu-Qarn, Aamer S., 2003. "Government expenditures, military spending and economic growth: causality evidence from Egypt, Israel, and Syria," Journal of Policy Modeling, Elsevier, vol. 25(6-7), pages 567-583, September.
    7. Tom Nicholas, 2011. "Independent invention during the rise of the corporate economy in Britain and Japan," Economic History Review, Economic History Society, vol. 64(3), pages 995-1023, August.
    8. Naomi R. Lamoreaux & Kenneth L. Sokoloff, 2005. "The Decline of the Independent Inventor: A Schumpterian Story?," NBER Working Papers 11654, National Bureau of Economic Research, Inc.
    9. J. Paul Dunne & Ron P. Smith, 2020. "Military Expenditure, Investment and Growth," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(6), pages 601-614, August.
    10. Schankerman, Mark & Pakes, Ariel, 1986. "Estimates of the Value of Patent Rights in European Countries during the Post-1950 Period," Economic Journal, Royal Economic Society, vol. 96(384), pages 1052-1076, December.
    11. Toda, Hiro Y. & Yamamoto, Taku, 1995. "Statistical inference in vector autoregressions with possibly integrated processes," Journal of Econometrics, Elsevier, vol. 66(1-2), pages 225-250.
    12. Andrew James, 2009. "Reevaluating the role of military research in innovation systems: introduction to the symposium," The Journal of Technology Transfer, Springer, vol. 34(5), pages 449-454, October.
    13. Victor Gómez & Agustín Maravall, 1996. "Programs TRAMO and SEATS, Instruction for User (Beta Version: september 1996)," Working Papers 9628, Banco de España.
    14. repec:bgu:wpaper:163 is not listed on IDEAS
    15. Jordi Molas-Gallart, 1997. "Country survey IX: Spain," Defence and Peace Economics, Taylor & Francis Journals, vol. 8(3), pages 267-306.
    16. Alessandro Nuvolari & Michelangelo Vasta, 2015. "Independent invention in Italy during the Liberal Age, 1861–1913," Economic History Review, Economic History Society, vol. 68(3), pages 858-886, August.
    17. Hoffman, Philip T., 2012. "Why Was It Europeans Who Conquered the World?," The Journal of Economic History, Cambridge University Press, vol. 72(3), pages 601-633, August.
    18. Renaud Bellais, 2013. "Technology and the defense industry: real threats, bad habits, or new (market) opportunities?," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 59-78.
    19. John Paul Dunne & Eftychia Nikolaidou, 2012. "Defence Spending And Economic Growth In The Eu15," Defence and Peace Economics, Taylor & Francis Journals, vol. 23(6), pages 537-548, December.
    20. Jochen Streb & Jörg Baten & Shuxi Yin, 2006. "Technological and geographical knowledge spillover in the German empire 1877–1918," Economic History Review, Economic History Society, vol. 59(2), pages 347-373, May.
    21. Kollias, Christos & Manolas, George & Paleologou, Suzanna-Maria, 2004. "Defence expenditure and economic growth in the European Union: A causality analysis," Journal of Policy Modeling, Elsevier, vol. 26(5), pages 553-569, July.
    22. J. Paul Dunne & Ron Smith & Dirk Willenbockel, 2005. "Models Of Military Expenditure And Growth: A Critical Review," Defence and Peace Economics, Taylor & Francis Journals, vol. 16(6), pages 449-461.
    23. Mark Broude & Saadet Deger & Somnath Sen, 2013. "Defence, innovation and development: the case of Israel," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 37-57.
    24. Keith Hartley, 1998. "Defence procurement in the UK," Defence and Peace Economics, Taylor & Francis Journals, vol. 9(1-2), pages 39-61.
    25. Dritsakis, N., 2004. "Defense spending and economic growth: an empirical investigation for Greece and Turkey," Journal of Policy Modeling, Elsevier, vol. 26(2), pages 249-264, February.
    26. Eftychia Nikolaidou, 2012. "Defence Spending, Economic Growth, Corruption And Inequality," Defence and Peace Economics, Taylor & Francis Journals, vol. 23(6), pages 533-535, December.
    27. Liam Brunt & Josh Lerner & Tom Nicholas, 2012. "Inducement Prizes and Innovation," Journal of Industrial Economics, Wiley Blackwell, vol. 60(4), pages 657-696, December.
    28. Fu, Xiaolan & Pietrobelli, Carlo & Soete, Luc, 2011. "The Role of Foreign Technology and Indigenous Innovation in the Emerging Economies: Technological Change and Catching-up," World Development, Elsevier, vol. 39(7), pages 1204-1212, July.
    29. Jos� M. Ortiz-Villajos, 2014. "Patents, what for? The case of Crossley Brothers and the introduction of the gas engine into Spain, c. 1870-1914," Business History, Taylor & Francis Journals, vol. 56(4), pages 650-676, June.
    30. Peter Hall & Andrew James, 2009. "Industry structure and innovation in the U.K defense sector," Economics of Peace and Security Journal, EPS Publishing, vol. 4(1), pages 23-29, January.
    31. Magee, Gary Bryan, 1999. "Technological Development and Foreign Patenting: Evidence from 19th-Century Australia," Explorations in Economic History, Elsevier, vol. 36(4), pages 344-359, October.
    32. Eloranta, Jari, 2007. "From the great illusion to the Great War: Military spending behaviour of the Great Powers, 1870–1913," European Review of Economic History, Cambridge University Press, vol. 11(2), pages 255-283, August.
    33. Manuel Acosta & Daniel Coronado & Rosario Marin, 2011. "Potential Dual-Use Of Military Technology: Does Citing Patents Shed Light On This Process?," Defence and Peace Economics, Taylor & Francis Journals, vol. 22(3), pages 335-349.
    34. Christine MacLeod & Jennifer Tann & James Andrew & Jeremy Stein, 2003. "Evaluating inventive activity: the cost of nineteenth‐century UK patents and the fallibility of renewal data," Economic History Review, Economic History Society, vol. 56(3), pages 537-562, August.
    35. Jordi Molas-Gallart, 1998. "Defence procurement as an industrial policy tool: The Spanish experience," Defence and Peace Economics, Taylor & Francis Journals, vol. 9(1-2), pages 63-81.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dimitrios Karamanis, 2022. "Defence partnerships, military expenditure, investment, and economic growth: an analysis in PESCO countries," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 173, Hellenic Observatory, LSE.
    2. Andr�s Navarro-Galera & Francisco Mu�oz-Leyva & Rodrigo Iv�n Ortúzar Maturana & Juan Lara Rubio, 2014. "Factors influencing the modernization of military-investment economic appraisal systems," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(6), pages 577-604, December.
    3. Tsitouras Antonis & Tsounis Nicholas, 2024. "Military Outlays and Economic Growth: A Nonlinear Disaggregated Analysis for a Developed Economy," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 30(3), pages 341-391.
    4. Kyriakos Emmanouilidis & Christos Karpetis, 2020. "The Defense–Growth Nexus: A Review of Time Series Methods and Empirical Results," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(1), pages 86-104, January.
    5. Ranjan Kumar Mohanty & Sidheswar Panda & Biswabhusan Bhuyan, 2020. "Does Defence Spending and its Composition Affect Economic Growth in India?," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 14(1), pages 62-85, February.
    6. Charles Shaaba Saba & Nicholas Ngepah, 2019. "Military expenditure and economic growth: evidence from a heterogeneous panel of African countries," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 3586-3606, January.
    7. Nicholas, Tom, 2011. "Cheaper patents," Research Policy, Elsevier, vol. 40(2), pages 325-339, March.
    8. Alessandra Cepparulo & Paolo Pasimeni, 2024. "Defence Spending in the European Union," European Economy - Discussion Papers 199, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    9. Duygu Yolcu Karadam & Jülide Yildirim & Nadir Öcal, 2017. "Military expenditure and economic growth in Middle Eastern countries and Turkey: a non-linear panel data approach," Defence and Peace Economics, Taylor & Francis Journals, vol. 28(6), pages 719-730, November.
    10. Nuvolari, Alessandro & Tortorici, Gaspare & Vasta, Michelangelo, 2023. "British-French Technology Transfer from the Revolution to Louis Philippe (1791–1844): Evidence from Patent Data," The Journal of Economic History, Cambridge University Press, vol. 83(3), pages 833-873, September.
    11. David Andersson & Thor Berger & Erik Prawitz, 2023. "Making a Market: Infrastructure, Integration, and the Rise of Innovation," The Review of Economics and Statistics, MIT Press, vol. 105(2), pages 258-274, March.
    12. Alessandro Nuvolari & Michelangelo Vasta, 2015. "Independent invention in Italy during the Liberal Age, 1861–1913," Economic History Review, Economic History Society, vol. 68(3), pages 858-886, August.
    13. Liming Zhao & Liang Zhao & Bing-Fu Chen, 2017. "The interrelationship between defence spending, public expenditures and economic growth: evidence from China," Defence and Peace Economics, Taylor & Francis Journals, vol. 28(6), pages 703-718, November.
    14. Mohamed Maher & Yanzhi Zhao, 2022. "Do Political Instability and Military Expenditure Undermine Economic Growth in Egypt? Evidence from the ARDL Approach," Defence and Peace Economics, Taylor & Francis Journals, vol. 33(8), pages 956-979, November.
    15. Garfinkel, Michelle R. & Skaperdas, Stergios (ed.), 2012. "The Oxford Handbook of the Economics of Peace and Conflict," OUP Catalogue, Oxford University Press, number 9780195392777.
    16. Alexander Donges & Felix Selgert, 2019. "Technology transfer via foreign patents in Germany, 1843–77," Economic History Review, Economic History Society, vol. 72(1), pages 182-208, February.
    17. Kyriakos Emmanouilidis & Christos Karpetis, 2022. "Cross–Country Dependence, Heterogeneity and the Growth Effects of Military Spending," Defence and Peace Economics, Taylor & Francis Journals, vol. 33(7), pages 842-856, October.
    18. Manamperi, Nimantha, 2016. "Does military expenditure hinder economic growth? Evidence from Greece and Turkey," Journal of Policy Modeling, Elsevier, vol. 38(6), pages 1171-1193.
    19. Yang, Heewon & Hong, Chanyoung & Jung, Sungmoon & Lee, Jeong-Dong, 2015. "Arms or butter: The economic effect of an increase in military expenditure," Journal of Policy Modeling, Elsevier, vol. 37(4), pages 596-615.
    20. Pieroni, Luca & d'Agostino, Giorgio & Lorusso, Marco, 2008. "Can we declare military Keynesianism dead?," Journal of Policy Modeling, Elsevier, vol. 30(5), pages 675-691.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:defpea:v:35:y:2024:i:7:p:883-907. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/GDPE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.