Major R&D contract opportunities in 2025 span multiple federal agencies, with DoD investing heavily in artificial intelligence, quantum computing, and cybersecurity initiatives. Small businesses can access funding through SBIR/STTR programs, starting with Phase I awards up to $250,000. DARPA continues to lead breakthrough innovation through challenge competitions and solicitation programs. Defense contractors like Ericsson are advancing secure 5G communications, while emerging technologies present additional pathways for innovative solutions across agencies.
Department of Defense R&D Opportunities for 2025

As the Department of Defense prepares to allocate increased funding for research and development in 2025, innovative companies will find expanded opportunities across multiple defense technology sectors. The DoD’s strategic focus emphasizes advanced technologies like artificial intelligence, quantum computing, and cybersecurity, creating significant opportunities for contractors who can deliver dual-use solutions for both commercial and military applications. The projected critical investments in cybersecurity and digital defense initiatives totaling over $14 billion demonstrate the scale of opportunity in this sector.
Small businesses and startups can leverage the SBIR and STTR programs, which offer structured funding paths starting with Phase I awards of $50,000 to $250,000 for feasibility studies. Successful Phase I recipients can then compete for Phase II funding ranging from $750,000 to over $1.5 million for prototype development, with Phase III enabling direct sole-source contracts for technologies meeting DoD requirements.
SBIR and STTR programs create vital pathways for small innovators to secure defense funding, from initial feasibility studies through full-scale military deployment.
DARPA continues to lead breakthrough innovation through various solicitation programs, challenge competitions, and technology shift efforts. These opportunities specifically target high-risk, high-reward research that can rapidly transform defense capabilities, engaging innovators from industry, academia, and government laboratories throughout the year. The program’s emphasis on interdisciplinary collaboration ensures comprehensive solutions to complex technological challenges.
Major defense contractors, including Ericsson North America, are advancing secure 5G communications and establishing R&D centers focused on artificial intelligence, cybersecurity, and surveillance systems. These industry leaders actively participate in partnerships with government agencies to accelerate technology adoption and modernization efforts in tactical communications and unmanned aerial vehicle support infrastructure. The National Institutes of Health and Department of Energy offer additional partnerships for cross-sector innovation development.
Cross-agency collaboration has become increasingly important, with strategic partnerships forming between the DoD, academic institutions, and private industry. These relationships enable rapid technology development and create pathways for applying commercial innovations to defense challenges.
Innovation summits planned for 2025 will facilitate knowledge sharing and promote excellence in both process and product development across sectors.
Emerging technology areas receiving substantial R&D funding include artificial intelligence and machine learning applications, enhanced cybersecurity measures for critical infrastructure protection, and advanced telecommunications systems beyond 5G. The defense sector is particularly interested in autonomous systems and unmanned platforms, creating opportunities for innovators who can deliver cutting-edge solutions in these domains.
Innovation-focused contractors can maximize their success by aligning proposals with defense strategic priorities and demonstrating capabilities in rapid technology development and deployment. The increased budget allocation for 2025 supports modernization initiatives and strengthens national security capabilities, making it an opportune time for technology providers to engage with defense R&D programs.