WASHINGTON \u2015 Despite a growing defense budget, U.S. defense and aerospace companies are at risk to be superseded by emerging competitors, a new PwC sector trends report cautions. <\/p>\n\n\n\n
Not only are established companies receiving domestic pressure from emerging innovators like Elon Musk\u2019s SpaceX<\/a>, but also Chinese<\/a> and Russian<\/a> companies backed by state funding. The PwC report notes \u201cChina is making a big push to develop military artificial intelligence technologies, and China and Russia are developing sophisticated air-to-air missile systems that use advanced imagery and sensors to thwart enemy intrusions before they pierce the skies.\u201d<\/p>\n\n\n\n The defense sectors reluctance to take risks by investing their own funds in research and development <\/a>also is a major impediment. Despite their large budgets, aerospace and defense companies spend less on R&D than nearly every other industry.<\/p>\n\n\n\n