Federally funded, high-risk, capital-intensive research and development is critical to ensure the flow of innovation that provides the basis for a sustainable competitive advantage for U.S. vendors. The modern industry structure of aeronautics places a significant element of the vitality of the R&D enterprise with supply chain vendors. This issue paper describes changes in the commercial aircraft industry that have lead to an increased role of the supply chain in the R&D of aircraft components. It evaluates the allocation of federal R&D funding to the supply chain relative to the increased role of the supply chain in performing R&D. It also examines the roles that federal R&D agencies can play in overcoming inefficiencies in R&D that are inherent to a distributed supply chain.
Sherry, Lance and Liam P. Sarsfield, Redirecting R&D in the Commercial Aircraft Supply Chain. Santa Monica, CA: RAND Corporation, 2002. https://www.rand.org/pubs/issue_papers/IP212.html.
Sherry, Lance and Liam P. Sarsfield, Redirecting R&D in the Commercial Aircraft Supply Chain, RAND Corporation, IP-212-OSTP, 2002. As of October 1, 2023: https://www.rand.org/pubs/issue_papers/IP212.html