Would Military Budget Cuts Affect Technology Innovation?S

In case you haven't noticed, the military test craze these days is amazing.

Last week it was Boeing's Airborne Laser first full trial, then the anti-missile rocket launched at Vanderberg Airforce Base, and now it is the—quite amazing, I've to admit—Multiple Kill Vehicle hovering test, a system designed to neutralize Inter-Continental Ballistic Missiles, flying into falling warheads and decoys to eliminate them, one by one, with mini-vehicles. As President-elect Obama gets ready to cut unnecessary military programs, Lockheed Martin, Boeing, Northrop Grumman, and the Pentagon are hurrying to demonstrate their ongoing projects. The question is: Would cutting such programs—which generate highly-skilled employment and advance technology—actually help the economy? Would military cuts make the US irrelevant in the long run or could we transition to a more peaceful aerospace industry?