Knowledge that Transforms

We elaborate a supply chain innovation matrix that can be applied to both commercial and military supply chains. By shifting the analysis from a focal firm to industry structure, we argue that the market structure of the entire supply chain functions as a major moderating variable in determining both the timing and adoption of innovations, both for commercial and military markets. We extend work on supply chain resource dependency by drawing a distinction between market-structure-induced resource dependency and supplier over-reliance on a customer in a competitive market. This has policy implications for the organization of military industrial research and development (IR&D). Joint service research and development (Jointness) will certainly bring about innovation, but it will be incremental, reinforcing established military hierarchies. Policy makers may need to add this probable consequence when comparing Jointness and inter-service rivalry. The cost savings inherent in Jointness may unwittingly sustain a military force unready for fighting the next war.

I. Introduction. - II. Evolution of the Theory of International Trade: Attitudes towards the Technology Factor and the Schumpeterian Viewpoint as a Rationale for Studies at the Firm-Level. - III. A Survey of Firm-Level Studies on the Determinants of Export Performance with an Emphasis on Technology Factor. - IV. Technological and International Competitveness of the Turkish Manufacturing Industry. - V. Determinants of International Competitveness: Estimation Results. - VI. Concluding Remarks.