Air Force Micro- and Nanotechnology Programs and Opportunities - Implications of Emerging Micro-and Nanotechnologies - page 176

Commercial industry remains dependent on the federal government for in-
vestments in long-term, higher-risk research. Historically, DoD has provided
almost half of the total federal investment. 9 In FY2002, estimated expenditures
by all of the Services account for about $11 billion in basic and applied research
and advanced technology development (6.1-6.3). 10 The amount represents more
than 36 percent of all federal investment in engineering. 11 The concentration in
information technology hardware is undoubtedly much greater. The worrisome
trends in DoD and Air Force funding noted above therefore imply an even greater
percentage reduction in funding in these vital areas that will impact progress for
both DoD and commercial applications.
U.S. industry has become increasingly dependent on government-funded
research conducted at universities and federal laboratories. DoD's research invest-
ment has remained relatively stable in constant dollars because its relationship
with industry has served the needs of all parties—the DoD, the research community,
and the commercial sector. The imperatives of national defense have enabled
DoD to invest directly in important new ideas, providing adequate resources to
make a difference. Although this focused approach has not led to success in every
project, it has nonetheless fostered enormous progress in new technologies for
both the military and the commercial sectors, with the early stages of new tech-
nologies almost always being applicable to both sectors. Examples include devices
and systems such as microwave sources, the transistor, the laser, fiber optics, and
the many new materials used in aircraft technologies. By investing wisely, DoD
can influence the directions of research and subsequent development and guaran-
tee an adequate research base for technologies to meet its future needs.
DoD can also leverage its investments by coordinating teams drawn from
federal laboratories, industry, and universities for demonstration projects to de-
velop new defense applications based as much as possible on commercially avail-
able hardware and software. The advantage of U.S. forces will increasingly de-
pend on adaptations of commercial products with a defense overlay, rather than
on expensive military-specific products.
AIR FORCE INVESTMENT STRATEGY AND CHALLENGES
Micro- and nanotechnologies extend over a large area that will present many
opportunities for Air Force missions. At the same time, the vast expanse and
diversity of these technologies presents a significant challenge—namely, main-
taining sufficient coverage in newly advancing areas while focusing investments
to impact the most critical long-term missions. In this section the committee
discusses the general issue of devising and maintaining the Air Force investment
strategy for micro- and nanotechnologies.
There are many challenges for the Air Force. First, which of the many
nanotechnologies should be supported, given a limited budget, and how can the
Air Force's return on investment be maximized? Second, how should those efforts