NEW YORK, Dec. 1, 2015 /PRNewswire/ -- Aerospace and Defense (A&D) innovation funding has declined sharply since 2009 with independent research and development (IRAD) spending down 26.5 percent and Department of Defense (DoD) innovation spending down 21.1 percent.[i]
However, according to Deloitte's Aerospace innovation – a new dawn report, despite the challenging environment in today's sector, A&D companies are taking new approaches to innovation. By incorporating new partnerships, rapidly commercializing core technologies and collaborating with thought leaders in ideation, companies are forging ahead in innovation, resulting in increased revenues and the avoidance of disruption from new technologies.
"Companies in A&D – the leading industry known for game-changing technology innovations including commercial aircraft, human space flight, the Internet, GPS navigation and satellites – have seen the sharpest decline but should not feel discouraged," said Tom Captain, vice chairman, U.S. Aerospace and Defense leader at Deloitte LLP and Global Aerospace and Defense leader at Deloitte Touche Tohmatsu Limited. "The key to winning in an environment like this is rethinking the traditional approach to innovation and doing things never before done."
Deloitte's report also outlines Ten Types of Innovation, a framework to assist A&D companies in thinking about the type of innovation applicable to their company and situation. The framework focuses on evaluating innovation across 10 types of options in three different categories including configuration, offering and experience.
"Developing an innovation agenda offers a broader approach to generating and implementing new ideas," said John Coykendall, principal, Deloitte Consulting LLP and consulting leader for Aerospace & Defense. "A good framework is useful for innovators whether they are an entrepreneur at a startup or an industry leader at a global company. It's time to think outside of the box when it comes to innovation."
For more information about Aerospace innovation – a new dawn, please visit the webpage here.
About Deloitte's Aerospace & Defense Group
Deloitte's A&D sector focuses on the top issues facing the industry. Deloitte A&D practitioners have deep industry experience and are actively involved in various segments of the industry, including: M&A, advanced technology programs, airplane program launches, and acquisition reform and economic assistance packages. For more information about Deloitte's Aerospace & Defense group, please visit: www.deloitte.com/us/a&d.
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world's most admired brands, including 80 percent of the Fortune 500. Our people work across more than 20 industry sectors to deliver measurable and lasting results that help reinforce public trust in our capital markets, inspire clients to make their most challenging business decisions with confidence, and help lead the way toward a stronger economy and a healthy society.
As used in this document, "Deloitte" means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
[i] IRAD spending data based on Deloitte analysis of aerospace and defense sector company annual reports and 10-k statements from 2008 to 2014; Department of Defense innovation spending based on data from the National Science Foundation http://www.nsf.gov/statistics/