An Initial Look at Technology and Institutions on Defense Industry Consolidation
Abstract
Conventional wisdom holds that defense industry consolidation resulted from decreased defense spending. However, we maintain that understanding dynamic changes in key defense institutions helps provide a more complete explanation for observed consolidation. Specifically, we examine the interaction of evolving technology and changing institutions. Institutions reviewed include procurement policies, the weapons requirements process, and procurement organizations. We take an initial look at the industry, and highlight how these changes influenced transaction costs in the defense industry, more fully explain the forces driving consolidation, and provide greater insight to policy makers seeking to improve the performance of the defense industry. Further research is needed to build a robust institutional framework of the defense industry and the related government agencies to allow better policy prescriptions.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 2004
- Accession Number
- ADA423534
Entities
People
- David R King
- John D. Driessnack
Organizations
- Defense Acquisition University