National security and national innovation systems

The “national systems of innovation” (NSI) framework for analyzing innovative performance and policy has been an important and influential area of scholarship for nearly 20 years, since the first articulation of the concept in Freeman (Technology policy and economic performance: lessons from Japan, 1987). Surprisingly, however, the large literature on national systems of innovation has devoted little attention to the role of defense-related R&D investment and innovation. This paper surveys the role of national defense within national innovation systems, focusing in particular on the United States during and after the Cold War, including a brief description of post-9/11 trends in defense-related and national security investments in R&D. I also summarize some of the abundant literature on the role of defense-related R&D and procurement within specific sectors of U.S. industry, including aircraft, machine tools, and information technology.