1. 2/13/2014 1 AIAA Delta Forum AIAA Engineering & Technology Management Industry and Government Response to Transportation R&D Budget Levels Edward J. Peak, P. E. Technical Committee on Management

2. 2/13/2014 2 AIAA Delta Forum AIAA Engineering & Technology Management Transportation R&D Budgets Looking narrowly at aerospace as transportation…the first A in NASA Transportation as key to success –In business –In war –E-business?

3. 2/13/2014 3 AIAA Delta Forum AIAA Engineering & Technology Management Overview Transportation Development Railroads Railroads Highways Highways Air routes Air routes National Transportation Infrastructure National Transportation Infrastructure The federal role in transportation

4. 2/13/2014 4 AIAA Delta Forum AIAA Engineering & Technology Management Aerospace R&D Effective models –Skunk Works –Phoenix Works –Buoy Communications Project

5. 2/13/2014 5 AIAA Delta Forum AIAA Engineering & Technology Management Buoy Communications Station

6. 2/13/2014 6 AIAA Delta Forum AIAA Engineering & Technology Management BCS

7. 2/13/2014 7 AIAA Delta Forum AIAA Engineering & Technology Management BCS

8. 2/13/2014 8 AIAA Delta Forum AIAA Engineering & Technology Management R&D Intensity R&D expenditures as a percentage of annual sales 3.5% across many companies

9. 2/13/2014 9 AIAA Delta Forum AIAA Engineering & Technology Management Internal R&D Funding Most industries use 80% or more –Pharmaceuticals – 99 –Industrial Machinery - 90 –Plastics/Synthetics – 97 –Aerospace - 27%

10. 2/13/2014 10 AIAA Delta Forum AIAA Engineering & Technology Management FEDERAL R&D FUNDS All Industries – 4% Electronic & Electrical – 5% Industrial Machinery & Equip – 7% Aerospace & Automotive – 34%

11. 2/13/2014 11 AIAA Delta Forum AIAA Engineering & Technology Management The Challenge Strategic planning for reduced federal dependence –Commercial –Foreign sales The lesson of Tigershark –Other modes, Grumman buses, New Orleans street cars at $10M

12. 2/13/2014 12 AIAA Delta Forum AIAA Engineering & Technology Management Conclusions As a transportation mode, aerospace is funded differently With dependence on federal R&D funding comes feast or famine Partnering in production, sure…but how about in R&D?