Research Policies and Military Innovation: Schumpeter vs. Smith in the US and Europe
By Dimitri Uzunidis, Michel Alexandre Bailly
Although Europe has a very strong scientific base, it is content with mainly making incremental innovations and following the Smith growth model. In contrast, the United States gives priority to radical innovations and follows a Schumpeter growth model built on defense industries. While the European Union is content with the traditional means of wealth creation, the United States understands that innovation is the key to economic power and to maintaining their hegemonic domination in the new millennium.