ABSTRACT
Defense equipment procurement policy is determined by economics and politics. The economic determinants are reflected in rising equipment costs in real terms and budget constraints. Political factors are reflected in a nation’s desire for independence and its willingness to pay for such independence. As a result, nations have a set of choices about the industrial policy implications of their defense equipment procurement policy, ranging from complete independence to importing foreign equipment directly “off-the-shelf.” Between these extremes, there are various international collaborative industrial policies, each involving different degrees of work sharing.
