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Impact of Independent R&D Spending on Firm Success Examined in Fairmont Consulting Group Report

New analysis encourages project prioritization within the Aerospace and Defense Industry

BOSTON, Feb. 26, 2013 /PRNewswire/ — Fairmont Consulting Group LLC is pleased to announce the release of a new study examining internal research and development (IR&D) spending across tiers and segments of the aerospace and defense industry.  "Industry R&D: How Much Is Enough? You're Asking The Wrong Question" analyzes up to 40 years of prior IR&D spending and firm performance data for 25 companies across the aerospace and defense spectrum, and explores the power of IR&D spending to explain future firm performance.  The report also previews future research and development directions in both the commercial aerospace and defense markets, and provides a framework for thinking strategically about IR&D investment.

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"Industry R&D: How Much Is Enough? You're Asking The Wrong Question" addresses concerns frequently expressed by Fairmont's clients, and is of interest to any business in the aerospace and defense industry that is pursuing organic growth through innovation.  Notable findings addressed in the report include the high variability of IR&D spending across firms and years, differences in IR&D spending trends between primes and suppliers, the ability of certain firms to achieve higher correlation between their IR&D spending and future firm performance, and the inability of the size of IR&D investments to predict firm performance.

Dr. Annalisa Weigel, Fairmont Consulting Group Director and principal author of the report, observed, "We think that the question of 'How much IR&D spending is enough?' is arguably the wrong one.  Our analysis demonstrates that there are no hard and fast rules, and that a simple benchmarking assessment against a company's peers may not provide the answers leaders need. In the report, we suggest a framework that can be used to prioritize among projects and optimize the strategic impact of IR&D spending."

Jay Wynn, Fairmont Consulting Group Managing Director and co-author of the report, commented, "Successful IR&D budgeting really requires a deliberate, systematic analysis that contemplates the role of IR&D investment as one element of an integrated growth strategy.  Such a growth strategy should evaluate IR&D priorities in the context of the company's existing strengths and weaknesses, near-term opportunities and long-term demand trends, competitive positioning, and emerging technologies with the potential to drive market transformation."

Click here to register to receive a copy of the full report. Fairmont welcomes your thoughts and feedback on this analysis and, as always, looks forward to helping you create value, drive growth, and overcome your toughest challenges.

About Fairmont Consulting Group LLC
Fairmont Consulting Group is a Boston-based firm focused on due diligence and strategic advisory services for clients active in commercial aerospace, defense and government services. Fairmont's rigorous analysis and unique insights help drive higher return on investment for financial sponsors and higher shareholder value for corporate clients. For more information about Fairmont Consulting Group, please visit

Media Contact:
Ben Harper