The Economic Consequences of Investing in Shipbuilding

This report assesses the economic impacts that a shipbuilder has on its local community and region. The authors utilize a case study methodology to examine two U.S. shipbuilders and the Saab Aeronautics Gripen program in Sweden. While each shipbuilder has had beneficial effects on its local economy, neither shipbuilder has given rise to the ecosystem of favorable spillovers and spin-offs that the Gripen program seems to have created.