Study: Pentagon should monitor industry

WASHINGTON, May 31 (UPI) -- The Pentagon should closely monitor the U.S. defense industry's foreign production lines and suppliers, a new study recommends.

The monograph, written by Terrence Guay, clinical assistant professor of international business at Pennsylvania State University's Smeal College of Business for the U.S. Army War College, tackles the effects of globalization on the U.S. defense industry and in turn its effect on national security.

Guay makes 10 recommendations meant to both strengthen industry and protect national security, including that the Pentagon should tighten up on technology transfers and encourage the study of math and science.

He also suggests that the Defense Department "monitor international production patterns of leading U.S. defense industrial companies" to determine whether the international activities of the defense industry have the potential to threaten national security.

"The federal government and U.S. universities should rebalance security concerns with economic competitiveness in areas of scientific research," states his report.

He recommends that the 30 largest defense contractors submit an annual report describing the extent of their international production and research and development including a list of their leading suppliers. He says defense industries should diversify into non-defense areas.

Guay recommends that the Pentagon give preference in awarding contracts to foreign companies that produce their wares in the United States. At the same time, he believes the United States should ease immigration restriction on foreign high-skilled workers.