| Abstract [eng] |
The rising complexity of international security features and the rising financial pressures have made governments consider innovative funding for the process of modernization of the defense. Among them, the model of Public–Private Partnerships (PPP) has also become a very important one to unite the regulation of the state with the innovation, efficiency, and financial resources of the private sector. This research explores the success of PPPs in financing defense, the relationship that exists between these types of partnerships in relation to cost- efficiency, innovation, and governance in defense systems. The research is based on a mixed- method research design that incorporates quantitative analysis on secondary data on defense projects and performance indicators and qualitative research through case studies. The study is conducted based on the Resource Dependence Theory (RDT),Principal Agent Model, the Transaction Cost Theory (TCT), and the Public Value Theory (PVT) through which interaction between the public accountability, technological improvement, and institutional cooperation are analyzed. Results show that PPPs are effective in increasing innovation and operational flexibility. The research concludes that adaptive governance structure and clear-cut contract models are a necessity in ensuring the success of the long-term defense PPPs. These results lead to theoretical enhancement and provide policy insights to defense ministries and commercial developers who want to balance the innovation, cost-effective and national security imperatives. However, conflicts may arise between the desires of private companies to go for proprietary innovation and military need for secure and sovereign control. |
