Nucleus and Network Policy, from Dream to Reality: Analyzing Outward-looking Policies of Defense Industries in Recent Decade

Document Type : Original Article


Faculty of Management & Soft Technologies, Malek Ashtar University of Technology, Tehran, Iran


In the late 1370s, Iran Defense firms confronted the reality that they cannot answer all their customers’ needs with their then-existing capacities. As a result, policy makers changed the inward-looking policies by adopting a new policy called “nucleus and network”. Now, after more than a decade, the question is whether this policy has been successful in increasing innovation performance and whether factors like history of firms before Islamic revolution has influenced this performance. To answer these questions, orientation toward the nucleus and network policy, openness, absorptive capacity, history of cooperation with foreign firms, size, and innovation performance of 114 defense firms were analyzed using multiple regression Technic. Results showed that history and size had no effect and openness and absorptive capacity had significant positive effect on innovation performance of the firms. Based on these results, combining the nucleus and network policy with policies for strengthening absorptive capacity of firms, a significant change in firms’ performance will be achieved.


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