Making Innovation Great
January 11, 2017
President-elect Donald Trump, upon taking office, will be confronted immediately with a profoundly complex and rapidly changing global security environment. Under his leadership the United States will face conventional, and also decidedly unconventional, national security challenges. Both conventional and unconventional challenges will emanate from nation-state competitors and non-government actors alike. Just as Al Qaeda, the Taliban, and ISIS have already done, these challengers will continue to leverage an increasingly global and commercial innovation environment in order to generate new capabilities that undermine or overcome U.S. warfighting advantages.
DoD has historically provided as much as 100 percent of the investment capital needed to develop the systems that meet its specialized needs. However, in return for this generosity, it sharply limits its suppliers’ potential profits and imposes substantial administrative burdens. These burdens operate not only as barriers to entry to the defense market, but also as barriers to exit, meaning that only the most committed and specialized suppliers are interested in entering the defense market.
Photo credit: U.S. Department of Defense