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Title page 1
Contents 2
Abstract 1
1. Introduction 3
2. How US military procurement has changed to improve access for new firms 5
2.1. The Defense Innovation Unit (DIU) 6
3. Data collection and descriptive statistics 8
4. Data matching 11
5. Regression methodology: difference-in-difference with staggered adoption time 14
6. Empirical results 16
7. Robustness checks 18
8. Conclusions 20
References 20
Annex 23
Figure 1. Number of proposals received by the DIU 7
Figure 2. Number of products published in the DIU's catalogue by technological area 8
Figure 3. Location of treated and untreated DoD vendors by US metropolitan area 11
Figure 4. Absolute SMD before and after propensity score matching 12
Figure 5. Dynamic effects of the augmented specification, awarded contracts 18
Figure A1. Distribution of unit-placebo tests, intensive margin of DoD awarded contracts 27
Figure A2. Distribution of unit-placebo tests, extensive margin of awarded contracts 27
Figure A3. Leave-one-out replications, baseline specification 28
Figure A4. Leave-one-out replications, augmented specification 28
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