Abstract
Civil-military integration enables the symmetry development of dual-use technologies in the defense and civilian areas. In this paper, we used stochastic differential game theory to build theoretical models of the dual-use technology conversion between a military firm and a civilian firm. The models include three directions of dual-use technology conversion, namely, spin-off, spin-in, and mix. In particular, we incorporate the dynamic development of dual-use technology into the research framework. Our results show that the order of the Pareto optimality results is mix, spin-in, spin-out, including the best effort, the highest revenue, and the most technology value-added. The results also indicate that: (1) Some random interference factors can affect the transfer efforts, such as the coefficient of technological innovation capability and cost coefficients. (2) The military subsidies factor is an inventive mechanism that can promote dual-use transfer from the civilian firm to the military. (3) The military enterprise only earns more than the civilian firm in spin-in. (4) The growth of models in the dual-use technology conversion process faces increased technology uncertainty.
Highlights
As a sustainable development policy, civil-military integration was listed in China’s national strategy by the Chinese government in 2015
The paper’s structure is organized as follows: we provide the dual-use technology conversion’s stochastic differential game formulation for military and civilian firms
To simplify the dual-use technology conversion between defense and economics innovation systems in civil-military integration (CMI), we divide them into two economic groups: military firms
Summary
As a sustainable development policy, civil-military integration was listed in China’s national strategy by the Chinese government in 2015. If one firm specializes in military and civilian room for an experimental variety [1], and the differences in objectives often tend to reduce the potential operational modes simultaneously, high efficiency and high cost will co-exist [22] We aimed to analyze the dual-use technology conversion between military and civilian firms, including the three models of dual-use technology transfer and dynamic development during the CMI process. Stochastic differential game theory can address the military and civilian firms’ characteristics, identify the uncertainty of their relationships, and analyze the dynamic development of dual-use technology in one mode.
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