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List of Figures 2.1 Defense budgets, 1946 to 2006 10 2.2 The composition of the defense industrial base 16 2.3 The DoD budget as a percentage of gross domestic product 21 2.4 Rough comparisons: Defense spending as a percentage of gross domestic product 22 2.5 Annual military personnel costs, 1945 to 2009 24 2.6 Defense investment: Procurement and research, development, test, and evaluation 26 2.7 Defense-industry consolidation, 1986 to 2001 33 2.8 Defense appropriations, 2000 to 2007 47 2.9 Existing U.S. and European suppliers: Platform level 63 4.1 The president’s budget projections vs. actual defense budgets, fiscal years 1980 to 2005 160 4.2 Defense budget cycle, 1950 to 2006 162 4.3 Spiral development of systems 164 4.4 Cost growth in major military and civilian projects 203 4.5 Average total cost per F-22 aircraft, 1991 to 2006 207 4.6 Procurement quantities of F-22s, 1986 to 2005 208 4.7 Average cost growth for three DoD programs 209 4.8 Portal-based architecture 231 4.9 Continuous improvement: Maintenance-cycle days for F-404 engine repairs 232 5.1 Total defense-related employment 236 5.2 Time taken to fill the top 500 jobs in presidential administrations, 1961 to 2009 239 5.3 DoD acquisition workforce declined as procurement budgets increased 240 5.4 Undergraduate degrees in natural science and engineering in five countries, 2004 248 6.1 Research and development expenditures, 1947 to 2006 (adjusted for inflation) 254 x List of Figures 6.2 National R&D expenditures, by funding sector, 1953 to 2007 257 6.3 Accelerating advances in technology, 1900 to 2020 258 6.4 Budget request for research, development, test, and evaluation, fiscal year 2006 259 6.5 Science and technology investments, 2000 260 6.6 Estimated worldwide R&D expenditures, 1990 to 2002 269 7.1 The effects of production-phase competition 289 7.2 The Tomahawk competition experience, fiscal years 1979 to 1989 290 7.3 Shifting the production efficiency curve to adjust to smaller quantities 294 7.4 Comparison of government workforce bids (under OMB CircularA-76) with original positions, fiscal years 1997 to 2001 302 ...

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