Abstract

Historically, investments in innovation for military purposes have been presented as having a positive impact on economy development as whole. In this vein, the end of the Cold War is presented as an inflection point. The reduction in the number of international conflicts would have negatively affected investments in defense-related products, as the former was considered the driver of the latter. It argues that the decision of whether investing in the military or the civil sectors as the driver of economic development depends first and foremost on historic and socio-economic contexts in which decisions are taken.

JEL Classification: O3.