Podcast: R&D Investment Crisis

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A squeeze on U.S. defense spending has caused Pentagon investment in research, development, test and evaluation spending to decline 28% since its peak in 2009, adjusting for inflation. The problem is the defense contractors aren't stepping in to make up the difference. In fact, their R&D spending has headed downward as well. Northrop Grumman invested the equivalent of just 2.1% of sales in R&D last year -- and that was enough to outspend peers such as Lockheed Martin (1.5%) and General Dynamics (1%).

In this week's Check 6 podcast, Senior Business Editor Michael Bruno and I delve into this disturbing trend and the many nuances associated with it. No doubt defense contractors are focusing too much of their resources on keeping Wall Street happy in the near term. But are there also other reasons driving the decline? You bet. 

Click below to hear this week's episode, and consider subscribing to the podcast via iTunes or your favorite PED podcast app.

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