The role and impact of the components of the institutional and motivational economic regime on the index of knowledge economics in the defense industry

As of world Bank's methodology, the four most important areas in building a knowledge based economy are: institutional economy, education and human resources, innovation and finally information and communication infrastructures.In this concept the defense industry is no different than the other sectors since it is one of the most active sectors of the economy.Some experts believe the institutional regime and economic incentives are more effective in comparison to the other factors when it comes to knowledge based economy.In the defense industry - which is usually a pioneer in production of science and innovation- the institutional regime can play an even more important role. Thus in this research we want to first identify the effective areas in the concept of the knowledge based economy and then discuss the important components of the institutional regime and economic incentives wich can affect the defense industry as well.In doing so, we use 73 other experts opinions by designing a survey and then classified the most important elements by means of non-parametric statiscal method.Finally our results have shown that defense based exports, private sector investment in the defense industry and commercializing the results of the research and development in this field are the most important and most effective elements in the field of institutional economics and economic motivation respectively.