Chapter 2 discusses the issue of the level of S&T and R&D devoted to advancing technology. Chapter 3 contains a discussion of the quality and motivation of the defense aerospace work force and an assessment of planned aerospace modification, development, and acquisition programs in terms of S&T investments and whether they will support an innovative work force. Chapter 4 addresses the financial health of the aerospace industry. Chapter 5 covers the effects of policies on the allocation and management of resources, DoD’s relationship with defense industries, the export of military items, and issues related to test facilities. Chapter 6 summarizes the committee’s conclusions and recommendations.