{"id":37114,"date":"2007-01-01T00:00:00","date_gmt":"2006-12-31T22:00:00","guid":{"rendered":"http:\/\/neaman.s390.upress.link\/investment-policies-defense-rd-programs\/"},"modified":"2026-07-05T18:30:00","modified_gmt":"2026-07-05T15:30:00","slug":"investment-policies-defense-rd-programs","status":"publish","type":"post","link":"https:\/\/www.neaman.org.il\/en\/investment-policies-defense-rd-programs\/","title":{"rendered":"Investment Policies in Defense R&amp;D Programs"},"content":{"rendered":"<p>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&amp;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&amp;D program is beneficial.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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&amp;D process. We show that the optimal investment is a discontinuous function of the available budget, and that its [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10201,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","wpcf-doi":"https:\/\/doi.org\/10.82514\/investment-policies-defense-rd-programs","wpcf-pdf-report":"\/wp-content\/uploads\/2024\/02\/ens6.pdf","wpcf-publication-date":1167609600,"wpcf-add-current-post-to-the-home-page":"0","authors":["56308"],"footnotes":""},"categories":[28],"tags":[71,86,1584,56,1912],"post_category":[],"class_list":["post-37114","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-report","tag-71","tag-national-security","tag-national-security-economy","tag-research-and-development","tag-1912"],"wpml_translations":{"en":{"id":37114},"he":{"id":35117}},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Investment Policies in Defense R&amp;D Programs - Samuel Neaman Institute<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.neaman.org.il\/en\/investment-policies-defense-rd-programs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Investment Policies in Defense R&amp;D Programs - Samuel Neaman Institute\" \/>\n<meta property=\"og:description\" content=\"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&amp;D process. We show that the optimal investment is a discontinuous function of the available budget, and that its [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.neaman.org.il\/en\/investment-policies-defense-rd-programs\/\" \/>\n<meta property=\"og:site_name\" content=\"Samuel Neaman Institute\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/NeamanInstitute\" \/>\n<meta property=\"article:published_time\" content=\"2006-12-31T22:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-07-05T15:30:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.neaman.org.il\/wp-content\/uploads\/2024\/02\/8141919138_20170426144832.646.JPG\" \/>\n\t<meta property=\"og:image:width\" content=\"265\" \/>\n\t<meta property=\"og:image:height\" content=\"369\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"neamansu_admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@samuelneaman1\" \/>\n<meta name=\"twitter:site\" content=\"@samuelneaman1\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"neamansu_admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.neaman.org.il\\\/en\\\/investment-policies-defense-rd-programs\\\/#article\",\"author\":{\"name\":\"neamansu_admin\",\"@id\":\"https:\\\/\\\/www.neaman.org.il\\\/en\\\/#\\\/schema\\\/person\\\/155ac65e4b9b82054e81afac61772007\"},\"headline\":\"Investment Policies in Defense R&amp;D Programs\",\"datePublished\":\"2006-12-31T22:00:00+00:00\",\"dateModified\":\"2026-07-05T15:30:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.neaman.org.il\\\/en\\\/investment-policies-defense-rd-programs\\\/\"},\"publisher\":{\"@id\":\"https:\\\/\\\/www.neaman.org.il\\\/en\\\/#organization\"},\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.neaman.org.il\\\/en\\\/investment-policies-defense-rd-programs\\\/\",\"url\":\"https:\\\/\\\/www.neaman.org.il\\\/en\\\/investment-policies-defense-rd-programs\\\/\",\"name\":\"Investment Policies in Defense R&amp;D Programs - Samuel Neaman Institute\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.neaman.org.il\\\/en\\\/#website\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.neaman.org.il\\\/en\\\/investment-policies-defense-rd-programs\\\/#breadcrumb\"},\"inLanguage\":\"en-US\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.neaman.org.il\\\/en\\\/investment-policies-defense-rd-programs\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home Page\",\"item\":\"https:\\\/\\\/neaman.org.il\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Investment Policies in Defense R&amp;D Programs\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.neaman.org.il\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/www.neaman.org.il\\\/en\\\/\",\"name\":\"Samuel Neaman Institute\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.neaman.org.il\\\/en\\\/#organization\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.neaman.org.il\\\/en\\\/#organization\",\"name\":\"Samuel Neaman Institute\",\"url\":\"https:\\\/\\\/www.neaman.org.il\\\/en\\\/\",\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/NeamanInstitute\",\"https:\\\/\\\/x.com\\\/samuelneaman1\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/samuel-neaman-institute\\\/\",\"https:\\\/\\\/open.spotify.com\\\/show\\\/1YnzZbAoYXqGJHQnNoFZA2?si=33a94d09083a41a4&nd=1&dlsi=a0b2b819d9ac4876\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Investment Policies in Defense R&amp;D Programs - Samuel Neaman Institute","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.neaman.org.il\/en\/investment-policies-defense-rd-programs\/","og_locale":"en_US","og_type":"article","og_title":"Investment Policies in Defense R&amp;D Programs - Samuel Neaman Institute","og_description":"Investment in advanced defense technologies is a prominent characteristic of modern armed forces. 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