Trends in the costs of weapon systems and the consequences

Abstract

This paper notes that the outcome of military operations is determined largely by the relative performance of the equipment deployed by rival forces. In this competitive situation, the performance and unit cost of key weapon systems tend to increase rapidly and persistently. Furthermore, developments in military technology are increasing the fixed/variable cost ratios of individual weapon projects and of national force structures. These two trends in weapon costs will, in coming decades, affect the development of national defence procurement strategies, of the globalized defence industry, and of geopolitical alliances.

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