Abstract for: Research on make or buy decision making strategy using system dynamics: Focused on Koreaís military improvement project

Strategic decision on the execution of national security improvement project is greatly important for the present and future national security. Though, the importance of strategic decision, decision making process has been executed under one-way thinking framework. This research provides a decision-making tool with make-or-buy approach for the national security improvement policy execution methods: foreign purchase and military R&D project, and, via simulation, confirms dynamic change of military capability index respect to change in ratio of foreign purchase and military R&D. Results of research are as follows. If the ratio of military R&D investment is under 38%, military capability index from military R&D investment canít overtake increasing effect from foreign purchases in the whole life cycle, so easy to be restricted by another country. Applying the model from this research provides an appropriate ratio for short term and long term defense strategy and policy goal, and consequent result of increase in national security capability. Thus, this research model can be effectively utilized for national security improvement project.