Corporations funding defense R&D called an 'unrealistic' business model.

• Author: Beidel, Eric
• Position: Defense Insider

Defense industry executives are voicing concerns about the Pentagon increasingly expecting contractors to pick up research-and-development costs.

In the helicopter industry, particularly, companies worry that they are being asked to risk billions of dollars worth of research and testing efforts, with no assurances that the military will buy new aircraft.

At least four companies are independently developing replacement options for the Army's armed scout helicopter.

James R. Moran, vice president of Boeing's Army Systems National Security and Space Group, said industry might not be able to front development dollars for military programs forever. "There are a lot of programs in the [Defense Department] now where they expect industry to do all the [research and development] ... and deliver the initial product for testing all on industry's dollar with no expectation that we will get a production contract" said...