Elbit Systems Ltd.

We invest in research and development (R&D) according to a long-term plan based on estimated market needs. Our R&D efforts focus on anticipating operational needs of our customers, achieving reduced time to market and increasing affordability. We emphasize improving existing systems and products and developing new ones using emerging or existing technologies.

We perform R&D projects to produce new systems for the IMOD and other customers. We also are engaged in R&D activities with academic and governmental research institutions. These projects give us the opportunity to develop and test emerging technologies. We develop tools for fast prototyping for both the design and development process. Fast prototyping permits the operational team members to effectively specify requirements and to automatically transfer them into software code.

Our R&D projects relate to defense, homeland security and commercial applications. Examples of our ongoing R&D projects include those for advanced sensors and sensing arrays; unmanned platforms and automation; connectivity, including information extraction and processing, data fusion capabilities and cutting edge radios and communication systems; advanced avionics; helmet mounted systems; cyber-related systems; and real-time training and simulation systems. We also are engaged in long-term investments in science and technology infrastructure and building blocks, often in collaboration with academic bodies. This includes activities in areas such as miniturization, specialized materials, digital signal processing, image processing, machine learning and Big Data. We employ thousands of software, hardware and systems engineers. In addition, most of our program and business line managers have engineering backgrounds. More than 50% of our total workforce is engaged in research, development and engineering.

Our customers, the Israel Ministry of Economy’s Office of the Chief Scientist and other R&D granting authorities sometimes participate in our R&D funding. We also invest in our research and development activities. This investment is in accordance with our strategy and plan of operations. The table below shows amounts we invested in R&D activities for the years ended December 31, 2013, 2014 and 2015.