WHY DOES R&D COST MORE?

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP71B00185A000100020001-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 12, 2016
• Document Release Date: February 11, 2002
• Sequence Number: 1
• Publication Date: June 13, 1967
• Content Type: MF

25X1A
Approvti'al For 139Jen?se 2002I06I14L.iMDP7lB00185A0,00100020001-0
%stem
MEMORANDUM SOP.:
SUBJECT
13 June 1967
Why Does R&D Cost More
1. At last Thursdsys staff meeting, Carl requested that
we pass on to you any ideas we might have on the subject of
rising R&D costs. Here are three items you might like to
consider:
a. The opposition's capabilities to counter our efforts
continue to improve; therefore yesterday's audio equipment
won't do the job and neither will the U-2 in today's environ-
ment. I suspect the cost of the U-2 aircraft vs. the OXCART
would make this point reasonably dramatic. The message is
that more increasingly expensive R&D is required just to
maintain our position.
b. New types of targets are developing: new weapons, etc.
The laser is a good example. We don't have any really good
means of monitoring laser weapons applications or develop-
ment, and to do so is going to require some ingenious thinking,
and no doubt equally ingenious (costly) R&D.
c. The technology has spread - and we need R&D to uiore
efficiently cope with that spread. I
can no longer remain focused on kassta onay tor example, ana
when you have to deal with that problem under a number of
different circumstances the need for appropriate types of
equipment (and the R&D to develop that equipment) also
broadens. Doing more of the same thing is not always an
acceptable solution: the spread requires the development of
ways to do the job differently.
d. The types of targets in
more and more frequently techni
i1J4:1
!.1
Approved For?]rteieas 2002/06/14 : CIA-RDP71600185A0001000200,0170.;
,
interest is greatest re
targets that require
25X1A
25X1A
25X1A
25X1A
Ci:;::;:d System
25X1A
App ciiiR,?.lease 20
Coarel %stein
25X1A
)2/06/14 tiotylk' 14716001854400100020001-0
Page
technical probes to get the required answers. As an
example, audio is Just great. but wouldn't it be nice now
to listen to computers which for all intents and purposes
didn't even exist ten years ago. The answer to listening
to computers, of course, is not to hire more people with
bigger ears -- and this illustrates the type of change in-
volved.
Z. Although the foregoing pertains primarily to R&D for
Intelligence collection, analysis, etc., there are parallel cost
increases for R&D in Industry which might be useful to consider
in the presentation:
a. Technology is wider today, I. e. . many new fields
develop each year;
b. Technology is deeper. I. e.., we do indeed know ore
and more about more and more;
c. The cost of failure is multiplied because substantial
investments are required just to determine feasibility, I. e.
all the $2.00 and $5.00 windows are closed.
25X1A
3. I have a few batches of statistics put out by National Science
Foundation, etc.. that might be useful, and would be happy to review
these with you. For example, in FY 66 the Don cost for printing,
distributing, etc., scientific and technical information was 25X1A
Distribution:
Orig. - Addressee
1 - DD/S&T
1 - RCS File
2 - DD/S&T Registry
25X1A
Approved For Release 2002/06/14: CIA-RDP71B00185A0001009019
CfnrOi Sys xi)
25X1A
25X1A
Approved For Release 2002/06/14: CIA-RDP71600185A000100020001-0
Approved For Release 2002/06/14: CIA-RDP71600185A000100020001-0