31 May '18, 3pm

US defense firms are at risk being passed by new rivals

WASHINGTON ― Despite a growing defense budget, U.S. defense and aerospace companies are at risk to be superseded by emerging competitors, a new PwC sector trends report cautions. Not only are established companies receiving domestic pressure from emerging innovators like Elon Musk’s SpaceX , but also Chinese and Russian companies backed by state funding. The PwC report notes “China is making a big push to develop military artificial intelligence technologies, and China and Russia are developing sophisticated air-to-air missile systems that use advanced imagery and sensors to thwart enemy intrusions before they pierce the skies.” The defense sectors reluctance to take risks by investing their own funds in research and development also is a major impediment. Despite their large budgets, aerospace and defense companies spend less on R&D than nearly every other industry. That’...

Full article: https://www.defensenews.com/industry/2018/05/31/us-defens...

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