The United States spends $145 billion on research and development every year—more than the gross domestic products of approximately three-quarters of the world's countries. In order to retain this position as a global leader and innovator, the United States should be working to pull more from its investment, according to an article written by John Walker, leader of the Defense Industries practice at Navigant, and published in Defense News.
“While there once seemed to be a limitless amount of available funding for research, that bounty led to waste—the rate for labs that turn ideas into useful capabilities is usually approximately 30 percent,” says Walker, meaning that only three of every 10 dollars spent produces a new capability.
Maintaining its position will require the United States to focus on areas that are in demand from other societies, placing smarter investments in science and technology (S&T). However, effective management of S&T portfolios means taking political, organizational and cultural issues into consideration, not the technical aspects.
Walker suggests program managers prioritize the non-research issues, such as political context, customers' price sensitivity and plans for making a capability operational. Considering that investment transition rates are hovering around 30 percent with continued pressure on budgets, managers will need to change the way they do business.
Walker adds that there are five main things S&T laboratory leaders can do to create higher-quality portfolios, including adopting the same competitiveness seen in the private sector. Leaders should align their portfolios with strategic and tactical needs: What is important to the staff? What is the overarching goal, apart from customer service?
Additionally, senior managers should utilize logic and common sense when making portfolio decisions, and resist automating the process with an IT systems approach.
There are many priorities vying for our attention, and the cold reality is that there is not enough money going around to fund research for all of them, Walker says. In order to address the most pressing issues, we need to seek areas that provide a competitive advantage for investment. "We need to encourage the leadership of our nation's critical research assets to be bold and persistent. Some already are. But we need a full quorum," says Walker.