Implementing dynamic capability driven innovation model: A case study of South Korea’s defence industry

This study investigates the evolution of South Korea’s defence industry from a technology importer to a global innovation leader, proposing a dynamic capability-driven innovation model. The model integrates dynamic capability theory with innovation perspectives to explain how systematic capability development supported strategic transformation across five key stages from 1945 to 2024. Using a mixed-methods approach, the study combines quantitative analysis of military expenditure, exports, and innovation metrics with qualitative assessment of strategic choices and institutional structures. The findings highlight how targeted national investment, strategic autonomy, and institutional alignment enabled steady technological advancement and export competitiveness. The study develops theoretical propositions linking institutional policy, international collaboration, R&D intensity, global market entry, and advanced weapons demand to innovation-led industry growth. This research contributes to the literature on dynamic capabilities in technology-intensive sectors and provides strategic insights for countries seeking to strengthen their defence industrial bases. These findings are especially relevant in today’s shifting geopolitical landscape, where defence innovation is increasingly critical to national security and industrial competitiveness.