I believe our disconnect is how we define innovation.
I do basic R&D, not engineering. I view fabricating a new airframe design out of existing materials as not as "innovative" as developing an O2-burn resistant alloy. That's just my bias
Nor are most development costs "artificially inflated". Someone has to pay for the failed efforts, the support facilities (you'd be amazed how much power and LN2 I go through...), the accounting for complying with all the gov regulations, etc....
Remember the $900 coffee pot for the AF? Outrageous right?
Well, yes but:
- It was not Mr. Coffee. The gov specified it had to comply with mil spec
- Production was limited (maybe 100-200 to be produced total)
- Tooling and production lines had to be maintained for 40+ years (ie life of the airframe)
Expensive, yes. But it's not like someone pocketed $880 and bought Mr. Coffee at WalMart.