Cost Growth and Productivity in European Aerospace Development Programs,
INSTITUTE FOR DEFENSE ANALYSES ARLINGTON VA
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The paper reports on an exploratory study to obtain tentative estimates about two aspects of European aerospace systems development costs in comparison to the U.S. experience the percentage cost growth occurring during the program, and the absolute costs in dollar terms of foreign projects relative to costs of comparable U.S. projects. Eight major European commercial and military aerospace programs were investigated during the 1962-1969 period, and the cost outcomes of these programs were compared to the overall U.S. experience. The tentative findings suggest that proposals to adopt foreign organization, such as nationalization, to improve U.S. military technology development performance are unlikely to solve U.S. difficulties, and that applying U.S. cost models to evaluate foreign military RDT and E efforts is not recommended for estimating the outputs and size of foreign programs.
- Economics and Cost Analysis