Why the shift of billions from procurement to development funding? Funding for American military materiel is set to shift from buying to designing. If the US Congress more-or-less adopts the Pentagon’s fiscal year 2017 budget request, spending on research, development, test, and evaluation (RDT&E) would increase by 5 percent—$6.4 billion—over fiscal 2016 , and procurement would … Continue reading Economics of the Third Offset, part 1