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With many of the most important new military systems of the past
decade produced by small firms that won competitive government
contracts, defense-industry consultant James Hasik argues in "Arms
and Innovation" that small firms have a number of advantages
relative to their bigger competitors. Such firms are marked by an
entrepreneurial spirit and fewer bureaucratic obstacles, and thus
can both be more responsive to changes in the environment and more
strategic in their planning. This is demonstrated, Hasik shows, by
such innovation in military technologies as those that protect
troops from roadside bombs in Iraq and the Predator drones that fly
over active war zones and that are crucial to our new war on
terror.
For all their advantages, small firms also face significant
challenges in access to capital and customers. To overcome such
problems, they can form alliances either with each other or with
larger companies. Hasik traces the trade-offs of such alliances and
provides crucial insight into their promises and pitfalls.
This ground-breaking study is a significant contribution to
understanding both entrepreneurship and alliances, two crucial
factors in business generally. It will be of interest to readers in
the defense sector as well as the wider business community.
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