Visible Costs and Invisible Benefits

Military Procurement as Innovation Policy

  • Gunnar Eliasson

Part of the Economics of Science, Technology and Innovation book series (ESTI)

Table of contents

  1. Front Matter
    Pages i-xlvii
  2. Customer Competence, Military Technology and Civilian Industry

  3. Spillover Measurement from Cases to Macro

  4. Theory and Empirical Method

  5. Part IV

    1. Front Matter
      Pages 381-383
    2. Gunnar Eliasson
      Pages 385-404
  6. Back Matter
    Pages 405-461

About this book


This book examines the historic role of professional and demanding military customers in industrial development. Particular emphasis is paid to public procurement of military equipment as a catalyst for innovation; and the civilian commercialization of military technologies (from gunpowder and cannons to submarines, missiles and aircraft) is documented by many case illustrations that show how macro-level productivity advance has been generated. A complementary volume to Advancing Public Procurement as Industrial Policy (2010), which focused on the spillover effects of the Swedish combat aircraft, Gripen, in this book Gunnar Eliasson widens the perspective to cover product development across the Swedish defense industry, with an emphasis on regional economic development and macro-economics, inter alia through the involvement of Saab (aircraft) and Kockums (submarines) in partnership ventures in Australia, Norway and Brazil. 

The volume is organized into four parts. Part one examines the historical transformation of the Swedish economy over the past three centuries from agriculture and raw materials to an advanced industrial economy. Part two presents detailed case studies to illustrate the spillover effects of procurement projects and military-industrial partnerships. Part three explains the spillover phenomenon theoretically within a dynamic micro- to macro-economic perspective. Particular emphasis is placed on the empirical credibility of model-based economy-wide and dynamic cost-benefit calculations. The book concludes with a section on fostering industrial development through public procurement. The result is a book that will appeal to economists in the industrial economics and management fields; to technical, marketing and purchasing executives in business; and to policy makers in public procurement concerned with innovation and long-run industrial development.


Civilian Industrial Evolution Military Public Procurement Defense Procurement Marco Productivity Entrepreneurial Competition Regional Economics Commercialization Theory Regional Industrial Cluster Formation Military Aircraft Industry Military Technology Weapons Development

Authors and affiliations

  • Gunnar Eliasson
    • 1
  1. 1.Department of Industrial EconomicsRoyal Institute of Technology (KTH)StockholmSweden

Bibliographic information