The Strategic Management of Defence Industry: A Science and Technology Based Configuration

Abstract

Different kinds of conflicts are increasing day by day in the world. The increase of disputes and mutual conflicts cause countries continue to devote high amounts of resources to the defence industry for national security. In order to obtain the maximum benefit from defence spending, the defence industry needs to be based on science and technology. Developed countries trying to build an effective defence industrial strategy based on science and technology to stay in peace. As a result of strategic management of science and technology based defence industry; faster, more talented, distinctive and unique defence systems and equipment production have gained importance. The ability for the production of defence systems and equipment needs to produce knowledge in different scientific fields and that knowledge requires to be converted into the application by research and development. It has high potential to provide technological progress and development in the long run, when getting into account the high amount of defence spending. Developed countries such as US, managing their defence industries based on science and technology to develop technological infrastructure, improving the level of industrialization, developing education in basic sciences and developing research and development in applied sciences. In this context, the aim of this research is to discuss the importance and impact of science and technology among the strategic management of defence industry under the different practices of US, the world’s most defence spending country. It is also possible for further studies to put forward a new science and technology based defence industry model within the framework of evaluation concluded at the end of study.

Keywords: defence industry, defence spending, science and technology, strategic management, defence production

JEL Classification: A12, F14, F59, H57, H72, L52, O14, O32