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ISSN : 2005-0461(Print)
ISSN : 2287-7975(Online)
Journal of Society of Korea Industrial and Systems Engineering Vol.41 No.4 pp.111-122

Economical & Technological Ripple Effects in Acquiring New Weapon System : Focused on Ground․Sea․Air Weapon System

Sang-Wook Shin*,Cheon-Kyun Oh**,Dong-Soon Yim*,Bong-Wan Choi*†
**Hannam University Department of Industrial and Management Engineering
****LIGNex1, Korea
†Corresponding Author :


The private sector is currently reviewing the feasibility of the project or deciding economic policies by analyzing the economic ripple effects. However, the arms acquisition project focuses on the need for the national defense weapons system by analyzing the costs and the effectiveness of the analysis and reviewing the necessity and feasibility of the project. In order to analyze the economic ripple effects, KB (the Bank of Korea) prepares and publishes an analysis table of industrial associations in a given unit. IAAR (the industrial association analysis report) is difficult to apply directly to the defense weapons system. Therefore, research on the economic ripple effects applicable to the defense arms procurement project was needed. In this study, we propose the generic methodology for estimating economical and technical ripple effects resulted in acquiring new weapon systems. Based on the analysis of inter-industrial relations, economical ripple effects are estimated with production inducing effects, value-induced effects, employment-induced effects and export-induced effects. Also, the technological ripple effects are estimated with technological intensity represented by investment cost in research and development. To show the validity of proposed methodology, a case study of acquiring new weapon systems such as GR (guided rocket), destroyer, and helicopter is accomplished. From the case study, it is concluded that these economical & technological ripple effects can be used as a reference to decision making in the course of acquiring major future defense weapons systems.

국방무기체계 연구개발 기반 경제적․기술적 파급효과 : 지상․해상․공중 무기체계를 중심으로

**한남대학교 산업경영공학과
**LIGNex1, Korea