Innovation and Alliances

Explanations for national success in science and technology typically focus on domestic institutions and policies. However, that line of research has yet to identify any particular set of institutions or policies that explain variation in national innovation rates across cases or over time. This article offers new evidence that the problem with domestic institutions approaches stems from their failure to consider international security factors. Specifically, this article finds a positive effect for U.S. security alliances on innovation. This finding is robust across different specifications and periods of analysis. While countries that ally militarily with the United States are found to realize benefits in economy‐wide, indigenous innovation, such an effect is not observed in military technologies. This suggests that alliances may substitute for being on the frontier in military technologies. Therefore, this article contributes not just to debates over S&T competitiveness, but also to alliance formation.