Department of Defense (DOD)
Research and development (R&D) has been a significant part of DOD’s work since 1949 when military departments were consolidated under the Secretary of Defense and the newly named “Department of Defense.”1 Today, DOD is the biggest recipient of federal research funds (46% of all federal R&D as of FY25) through its Research, Development, Test, and Evaluation (RDT&E) account, which supports the development of specific weapons systems; management support for RDT&E facilities; and health care for DOD personnel and their families and medical research on issues deemed important to Congress, among other research activities.
The findings and products supported by DOD research entities shape modern civilian life of those outside the military as well, including the development of small GPS receivers that shape how everyday Americans navigate from work, home, and school, and discover new experiences in their home community and beyond (DARPA 2025). In addition, DOD-supported research and development activities support jobs and economic growth in local communities across the country.
- A 2024 study commissioned by the Florida Defense Support Commission, a subsidiary of the Florida State Government, found that military and defense related activities – including, but not limited to R&D – comprised 7.3% of the state’s total economy, directly and indirectly supporting 865,937 jobs annually, and $102.6 billion in economic impact.
- According to a DOD study, from 1995-2018, the Department’s SBIR/STTR Program had a 22:1 return on its investment, producing $347 billion in economic activity, and supported 1,508,295 full-time jobs averaging $73,461 in annual income. 58% of Phase II SBIR/STTR contracts resulted in sales of new products and services based on innovations developed through the program’s contract, including $28 billion in sales of new products to the U.S. Military.
See Spending In Your Community
Communities in all 50 states receive the economic benefits of defense research spending. Track RDT&E awards in your home state at USAspending.gov: Defense-wide; Navy; Army; Air Force & Space Force; and Operational Test and Evaluation, Defense.