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As the economy has been heating up recovering from recession the Fed has been forced to continue to increase the Fed Funds Rate to keep inflation in check. Rising interest rates trying to hold back inflation has caused the cost of money in the U.S. economy to increase. The only incentive for the companies to borrow money to develop new technology is if they have some guarantee from the government to buy it when it is completed, but if the government keeps up its spending habit inflation will only get worse which simply compounds the problem of rising investment costs.
Private Sector. If we look to the private sector to see the effects of the economy of the last few years we'll find that Boeing and Airbus, the only two major producers of commercial aircraft, both saw orders decline by 45% and 28% in 2001 as well as falling deliveries of 28% and 7% respectively (Yahoo! Finance)...
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