June 1, 1990
This paper investigates the dynamic nature of the Navy's Research and Development (R&D) budget by examining the Navy's budget in the aggregate and by functional activity (i.e., manpower, operation and maintenance, procurement, and research and development). Qualitative conclusions about trends in each functional area are made using constant-dollar plots for the period 1955-88. The percentage of the aggregate Department of the Navy (DON) budget that is allotted to R&D has been remarkably consistent at 10 percent over the last 30 years. A forecast for the R&D budget percentage is made for the next 5 years using statistical techniques. Thus, independent forecasts of the aggregate DON budget can be used to generate alternative R&D budget forecasts.
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