R&D Dollars Drop for Major Contractors

Research and development funding for the big five defense contractors has fallen as overall Defense Department R&D has dropped, though small vendors have seen an increase in their share of the funding, according to a Center for Strategic and International Studies report released Monday. The share of R&D funds to the five contractors—Lockheed Martin, Boeing, Northrop Grumman, Raytheon, and General Dynamics—has fallen from 57 percent of total R&D funding in 2009 to 33 percent in 2015, while funding for small vendors has risen from a 10 percent share in 2009 to 17 percent in 2015. While there has been a dip in total R&D funding recently, more funding is expected as the services invest in large contracts, such as the Air Force’s B-21 bomber. (Read the report)