Opening Up Military Innovation: Causal Effects of Reforms to US Defense Research

S-Tier
Journal: Journal of Political Economy
Year: 2025
Volume: 133
Issue: 11
Pages: 3605 - 3651

Authors (4)

Sabrina T. Howell (not in RePEc) Jason Rathje (not in RePEc) John Van Reenen (London School of Economics (LS...) Jun Wong (not in RePEc)

Score contribution per author:

2.011 = (α=2.01 / 4 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

For governments procuring innovation, one choice is whether to specify desired products (a conventional approach) or allow firms to suggest ideas (an open approach). Using a US Air Force R&D grant program where open and conventional competitions were held simultaneously, we find that open awards increase both commercial innovation and technology adoption by the military. In contrast, conventional awards have no positive effects on new technology but do create more program lock-in. We present evidence that openness matters over and above inducing differential selection, for example, of less well-established firms. These results suggest benefits from open approaches to innovation procurement.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/737235
Journal Field
General
Author Count
4
Added to Database
2026-01-29