Firm growth and knowledge flows: comparative analysis between defence and civil areas

Par François-Xavier Meunier, Célia Zyla
In this paper, we seek to understand how technological duality influences the growth of companies. Since the end of the Cold War, defense budgets are strongly discussed. In this context, the dual policy (convergence between civil and military areas) is presented as an optimization strategy of the defense budgets. Nevertheless, the 1990s are also characterized by a wave of defense restructuring in the United States around large private companies. Therefore, we choose to study the results of duality for these groups as they are more at stake. In order to do so, we use structural analysis tools as a way of understanding duality as the relocation of defense activities in the innovation system center. As a result, we show that the duality of defense activities is specific because it has an opposite effect on centrality of civil activities on firms’ growth.
JEL Codes: B52, C55, L64, O33, O51
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