Competition and innovation: in the U.S. fixed-wing military by J. L. Birkler

By J. L. Birkler

Responds to Senate's comcerns that extra consolidation within the military-aircraft undefined, which has dropped from eleven major contractors in 1960 to the present 3, dwill pose dangers to innovation and value via restricted or no festival in contracting for army airplane and comparable weapon structures for the dep. of Denfense.

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Extra info for Competition and innovation: in the U.S. fixed-wing military aircraft industry, Issue 1656

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7 16 An Evolving Military Aircraft Industry 29 Because funding has become more concentrated in fewer programs, the affordability of such programs has become an increasing concern. DoD has been trying to elevate cost considerations to the same level as system performance, evidenced most visibly by the Cost As an Independent Variable (CAIV) policy, which mandates that cost concerns receive greater attention. 13 While affordability has clearly been a formal program goal in recent aircraft programs, the effects of this goal on industry’s competitive posture and innovation have not yet been determined.

These changes have led us to conclude that the definition and characteristics of a minimum viable organization have changed. We now characterize a minimum viable design team as a team that may be composed of individuals drawn from several firms. It is difficult to define the size and composition of this new team precisely; however, we have identified several general characteristics this team must have: • Facilities and equipment to develop new technologies • Projects that lead to exploration of advanced design concepts • Opportunities to periodically build and flight-test prototypes or demonstrators.

F-15 and F-16), the data suggest a significant amount of ongoing production activity. Since profit earned on production contracts forms the basis for the pool of available private investment in new technologies, the high level of production activity that has been sustained relative to the 1980 level does not directly explain the accompanying consolidation in the industry that occurred during the 1990s. Note, however, that between 1990 and 2000 the number of active production lines shrank by a third, and the number of new designs slated for near-future production also shrank substantially.

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