The three most common categories of people to make it to the top of the defense acquisition system civil servants, military officers and politically-appointed academics generally have less experience with the business world than just about any other group of adults you could name.
The 863 Program took much of its shape from the American research system used by the National Institutes of Health and the Department of Defense: the government appointed panels of experts, who drew up research priorities, called for bids, and awarded contracts.