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http://dx.doi.org/10.6109/jkiice.2021.25.9.1234

Forecasting the Diffusion of Participating Countries with the Introduction of the "International Defense Industry Cooperation Program of Korea"  

Nam, Myoung-Yul (Korea University Graduate School of Management of Technology)
Kang, Seok-Joong (Korea University Graduate School of Management of Technology)
Abstract
This study intends to provide a forecast of the diffusion of countries participating in a newly proposed G to G mechanism named as the "International Defense Industry Cooperation Program of Korea", modeled after the U.S. Foreign Military Sales(FMS). For this purpose, the study analyses 40 years of statistical data of U.S. FMS customers to find two parameters, coefficient of innovation and imitation, which explain the diffusion in FMS customers. Furthermore, the study forecasts the diffusion in international participation to the proposed mechanism taking account of the differences in the level of government competitiveness and the strength of defense industrial base of Korea and the U.S. This study also provides recommendations for accelerating the desired outcomes under the new program. While Korea is likely to have relative advantages over 'imitators' in the international market, it will need to gain competitiveness in high-level capabilities going beyond the realm of medium-high level systems, and present attractive alternatives for offsets.
Keywords
Defense export; Diffusion model; FMS; International defense industry cooperation program of korea;
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