The impact of technological innovations on military spending
Subject Areas :
hassan Naghizadeh Khurjastan
1
(PhD Student in Financial Economics, Department of Economics, Zanjan Branch, Islamic Azad University, Zanjan, Iran)
Keywords: ", Iran", Defense Spending", Research and Development", Technological Innovation", Economic Growth",
Abstract :
Innovation is a very important issue for all industries, especially the defense industry. Because these industries need technological innovations to support defense power. Of course, innovation is a very complex process that should be used purposefully and planned in industries. In the field of defense, innovation plays a fundamental role in improving equipment, processes and providing advanced services to military forces. Because it can be the basis for the growth of productivity and efficiency in this sector, which ultimately leads to cost reduction. Therefore, in this research, the relationships between the variables of technological innovations, research and development costs, economic growth, effective real exchange rate and military costs were investigated in the period of 1378-1398 were investigated by conducting the ARDL test. The results indicate that the effect of technological innovation and research and development costs on military costs is negative both in the short term and in the long term. While the impact of GDP and exchange rate on defense costs is positive. But the results of this research clearly show that investment in research and development and the use of technological innovations can be effective in producing new military goods and services and improving quality, and by creating new equipment and advanced products and reducing dependence on foreign countries, productivity and efficiency in increase military organizations and even help the economic growth of the country by creating employment for educated and talented people.
_||_