Font Size:
Site Colors:
Accesskey
S - Skip navigation
1 - Home page
4 - Search
Accessibility Statement

Investment Policies in Defense R&D Programs

Researchers
Dr. Oren Setter , Prof. Asher Tishler
Cite As:
Setter Oren , Tishler Asher . Investment Policies in Defense R&D Programs Haifa Israel: Samuel Neaman Institute, 2007. https://www.neaman.org.il/EN/Investment-Policies-Defense-RD-Programs
Download files:
ens6.pdf(480KB)

Investment in advanced defense technologies is a prominent characteristic of modern armed forces. The paper examines the optimal investment policy in developing such technologies, accounting for their S-shaped progress profile and the stochastic nature of the R&D process. We show that the optimal investment is a discontinuous function of the available budget, and that its dependence on technological uncertainty is non-monotonous. We further show that maintaining the flexibility to adjust investments along the R&D program is beneficial.

Publications that might interest you