Independent Research and Development (IR&D): the Challenges Continue

Abstract

We have developed three central recommendations: promote stability and consistency in the IR&D program; promote creative solutions to strategic threats; and improve IR&D inputs and outputs. 1) Promote Stability and Consistency in the IR&D Program: a) Maintain current legal interpretations, b) Alleviate industry's IP concerns and c) Ensure security of contractor-provided data. 2) Promote Creative Solutions to Strategic Threats: a) Communicate a unified technology strategy, b) Ensure independence of IR&D efforts and c) Minimize reporting requirements. 3) Improve IR&D Program Inputs and Outputs: a) Incentivize firms to increase IR&D spending, b) Invest in the acquisition workforce and c) Develop metrics. Innovation is essential to our military's continued technological superiority. However, the growing capabilities of our adversaries, defense budget reductions, and low levels of R&D spending by government and the private sector have conspired to weaken our military advantage. For over 80 years, IR&D policy has recognized the integral role played by private industry in creating innovation a role that has grown significantly relative to that of government. However, there are clear indications that current policy is not optimized to fully leverage the innovative capacity of the private sector.