Abstract
As the most knowledge-intensive industrial sectors, China’s defense industries are developing very fast. The present paper will explore the contribution of China’s defense innovation to its economic growth. Cobb–Douglas production function, integrating defense and non-defense stock in knowledge, is applied during the course. In addition, an input–output analysis of defense equipment procurement was done. Positive effect of China’s defense innovation on economic growth has been revealed by comparing the results from the two methods. And some suggestions are made to strengthen the effect.
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