Abstract

A long period of economic and industrial development has allowed developing countries to evolve into newly industrialised countries (NICs). Simultaneously, the development of their major weapon systems has evolved from foreign weapons acquisition to independent development due to establishing research and development (R&D) capabilities. However, competitive pressures in the international arms market has finally led these countries to return to foreign acquisition, consequently rapidly eroding their R&D capability. Balancing foreign acquisition and independent development is a long-term strategic problem for NICs. This study applies the system dynamics methodology to construct a weapon systems development model for Taiwan. This model is used to analyse the impact of acquisition policy. The results here indicate three major possible growth curves for weapon systems R&D capability based on alternative weapon systems acquisition policies.

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