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Historically, without a doubt, California benefited more from military expenditure than any other state, particularly southern California - Los Angeles and San Diego - the Navy and Marines biggest bases are there. Without WWII and the Cold War California would never have been what it is.
Next, probably Virginia - Norfolk, Virginia Beach, Falls Church with Lockheed Martin, General Dynamics, Newport News shipyards, etc... and Maryland with Northup Grumman. The Washington D.C. area obviously benefits nicely being the HQ for the military and the nexus of the major defense tech contractors.
Seattle, WA with Boeing getting all those Air Force contracts has also benefited nicely.
I'd like to see numbers on which places benefit the most proportionally. My sense is that places like Wichita Falls, TX or Anchorage, AK owe much of their economy to defense. While the military is obviously important to places like San Diego and Seattle, they at least have stronger economies in general.
Lawton, OK, owes so much of its income to Ft Sill that they actually changed the signs to "Lawton-Ft Sill."
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