Pros
Plenty of opportunity to work across a broad range of technologies and to learn new skills. Ph.D. scientists are encouraged to develop their own technical programs, usually based on their doctoral or postdoctoral work. Career advancement is achieved by winning significant numbers of contracts, hiring new staff, and eventually building a business area. The company is employee-owned so benefits are excellent. Most contracts are funded by the Federal government, many through the SBIR program. Management has significantly increased internal investment in promising technologies in recent years.
Cons
If government funding priorities change it may be necessary to reinvent yourself technically. It can be very difficult to transition technologies to commercial products.