1. National Defense Budget History Total Defense Budget Research, Development, Test, & Evaluation

2. General Science, Space, & Technology Budget History General Science & Basic Research Space Flight, Research, & Support Activities

3. Federal Research & Development Spending Billion’s Gov’t Fiscal Year

4. Recent Federal Research & Development Spending 1999 2000 2001 DefenseNASANational Science Foundation DOE (DOT) Basic Research (Billion $) $1.1 $1.2 $1.9 $1.8 $2.3 $2.5 $3.0 $2.2 ($.04) $2.2 ($.05) $2.3 ($.07) Applied Research (Billion $) $3.0 $3.3 $3.1 $4.9 $5.7 $5.9 $.15 $.16 $.19 $1.8 ($.36) $1.9 ($.38) $2.1 ($.48) Development (Billion $) $34.4 $33.9 $5.1 $4.9 $ 0 $2.0 ($.16) $2.0 ($.14) $2.1 ($.17)

5. General R & D Funding Perspective Private Industry –Expanded Support For Bringing New Products To Market  Profitability Focus -- Short Term Return On Investment –Most Aerospace Companies Do NOT Fund Basic Research That Leads To Break-Through Applications In A Wide Range Of Fields! –Commercial Industry Facilities Like Those At Bell Labs & IBM Heavily Funded BASIC Research Activities The Transistor -- Bell Labs The Federal Government Recognizes The Importance Of Timely, Planned BASIC Research!The Federal Government Recognizes The Importance Of Timely, Planned BASIC Research!

6. General R & D Funding Perspective (Cont) Today’s Federal Government R & D Plan –Catalyst For Break-Through Technology (Basic Research) –45% Increase from 1993 til 2000  Mostly Health Emphasis –University Basic Research Special Role In Development Of Scientific Advances  53% Increase Since 1993 Funding Academia Through A Peer-Reviewed, Merit-Based Competitive Process ($28.2 Billion in 2001 Funds)

7. General R & D Funding Perspective (Cont) Today’s Federal Government R & D Plan (cont) –Research at National Labs & Non-Profit Companies National Labs - DoD & DoE Funded But Operated By Someone Outside To Make, Test, & Prove Technology. Non-Profit Companies –Research at Federally Funded Research & Development Centers (FFRDCs - Think Tanks) RAND (AF), Institute Of Defense Analysis (IDA - SecDEF), Lincoln Lab (MIT), etc

8. Astronautics or Aeronautics R & D ? NaSA - Little “aeronautics” BIG “Space” Focus!NaSA - Little “aeronautics” BIG “Space” Focus! Note: A Lot Of Research Is Going To Space Related Projects – Astronautics………... Aeronautics R& D (Aircraft) Mostly Dried UpAeronautics R& D (Aircraft) Mostly Dried Up –Few New DoD Starts (10 Year Design Cycle vs Traditional 2 Year Design Cycle) Little Flight Testing Of Each New Technology Try To Integrate Many New Technologies At Once Loss Of Grey-Beard Knowledge Base For Lessons Learned –New Commercial Airliners & General Aviation Still Vintage Science Aerodynamically Still Maintaining The Flight Design Philosophy- “Faster & Higher” Historically, No Significant Funding Available For “Low Speed Aerodynamics Research”Historically, No Significant Funding Available For “Low Speed Aerodynamics Research”

9. New Aeronautics R & D Trend Need Exists For Low Speed Aerodynamics Research Funding To Establish A Commercial Market For STOL Vehicles! Need Exists For Low Speed Aerodynamics Research Funding To Establish A Commercial Market For STOL Vehicles! Large Society Benefit For Safe & Slow Speed STOL Aircraft Large Society Benefit For Safe & Slow Speed STOL Aircraft –Increase The Number Of Airports –Better Locality Access Land People and Cargo Next To Their Immediate Destination –Reduced Number Of Semi’s On Highways More Efficient Cargo Transportation Less Inter-State Road Wear Less Highway Congestion & “Road Rage” –Less Airport Congestion & Transportation Delays