The proposition that innovation is critical in the cost-effective design and development of successful military aircraft is still subject to some debate. RAND research indicates that innovation is promoted by intense competition among three or more industry competitors. Given the critical policy importance of this issue in the current environment of drastic consolidation of the aerospace defense industry, the authors here examine the history of the major prime contractors in developing jet fighters since World War II. They make use of an extensive RAND database that includes nearly all jet fig