Byron Callan: 5 Defense Firms Collectively Spent $4B on R&D Projects in 2013

researchData compiled by Capital Alpha Partners analyst Byron Callan shows that five U.S. defense firms collectively spent $800 million more on research and development last year than they did in 2012, C4ISR & Networks reported Wednesday.

The publication reports that Boeing (NYSE: BA), L-3 Communications (NYSE: LLL), Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC) and Raytheon (NYSE: RTN) invested $4.1 billion combined in R&D during 2013.

William Lynn, DRS Technologies‘ chief executive, said the company is working to sustain its R&D programs, according to the article.

“You can’t spend too much, but we try to balance protecting our margins and protecting our future, and we try not to stray too far in one direction or the other,” Lynn added.

“We’re willing to take some short-term decline in margins, modest, to protect our longer-term competitiveness.”

Callan believes that the Defense Advanced Research Projects Agency should bolster its technology programs to encourage private-sector investment in the area.

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