Opening up Military Innovation: Causal Effects of Reforms to U.S. Defense Research
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 U.S. 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 independently from inducing differential selection, for example of less well-established firms. These results suggest benefits from open approaches to innovation procurement.
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Copy CitationSabrina T. Howell, Jason Rathje, John Van Reenen, and Jun Wong, "Opening up Military Innovation: Causal Effects of Reforms to U.S. Defense Research," NBER Working Paper 28700 (2021), https://doi.org/10.3386/w28700.Download Citation
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Published Versions
Sabrina T. Howell & Jason Rathje & John Van Reenen & Jun Wong, 2025. "Opening Up Military Innovation: Causal Effects of Reforms to US Defense Research," Journal of Political Economy, vol 133(11), pages 3605-3651.