This book examines the historic role of professional and demanding military customers in
industrial development. Particular emphasis is paid to public procurement of military equipment
as a catalyst for innovation and the civilian commercialization of military technologies (from
gunpowder and cannons to submarines missiles and aircraft) is documented by many case
illustrations that show how macro-level productivity advance has been generated. A
complementary volume to Advancing Public Procurement as Industrial Policy (2010) which focused
on the spillover effects of the Swedish combat aircraft Gripen in this book Gunnar Eliasson
widens the perspective to cover product development across the Swedish defense industry with
an emphasis on regional economic development and macro-economics inter alia through the
involvement of Saab (aircraft) and Kockums (submarines) in partnership ventures in Australia
Norway and Brazil. The volume is organized into four parts. Part one examines the historical
transformation of the Swedish economy over the past three centuries from agriculture and raw
materials to an advanced industrial economy. Part two presents detailed case studies to
illustrate the spillover effects of procurement projects and military-industrial partnerships.
Part three explains the spillover phenomenon theoretically within a dynamic micro- to
macro-economic perspective. Particular emphasis is placed on the empirical credibility of
model-based economy-wide and dynamic cost-benefit calculations. The book concludes with a
section on fostering industrial development through public procurement. The result is a book
that will appeal to economists in the industrial economics and management fields to technical
marketing and purchasing executives in business and to policy makers in public procurement
concerned with innovation and long-run industrial development.
