The Transformation of the American Defense Industry: Corporate Perceptions and Preferences

Abstract

In the last few years, the end of the Cold War and the increasing emphasis on economic rather than military competitiveness have significantly eroded the special position the American defense industry has played in the U.S. government's pursuit of national security. In response, this industry has initiated controversial moves to diversify into nondefense production and to expand into foreign markets. Using data from annual reports and survey questionnaires, this article analyzes these moves and the corporate perceptions and preferences associated with them, providing one of the first systematic and comprehensive looks at the defense industry's adjustment to the changing context of national security.