In a rapidly shifting geopolitical landscape, the United States must recalibrate its approach to defense technology innovation to stay ahead of evolving global threats. As nations like China, Russia and Iran ramp up their defense capabilities across domains — from nuclear and hypersonic weapons to space and cyberspace — we must accelerate the development of mission-critical solutions. While the U.S. military has made strides in integrating cutting-edge technologies — particularly artificial intelligence — into its operations, the pace of innovation remains insufficient to counteract the advanced capabilities of adversaries.
The Defense Department has made efforts to enhance its AI capabilities through the AI Adoption Strategy, aimed at equipping warfighters with advanced tools to maintain battlefield superiority. However, a key factor in the U.S.’ ability to innovate more effectively is often overlooked: the outdated approach to government contracting. The current system hinders rapid technological advancement and impedes the integration of novel solutions into the defense industrial base. To better compete on the global stage and address modern warfare challenges, it is crucial to rethink and overhaul our approach to defense contracting; breaking away from old norms and embracing new methodologies will drive forward-looking innovation.
Harnessing data for innovation
The federal government is flooded with data but struggles to process it efficiently. With the integration of AI and other emerging technologies, there is a real opportunity to analyze this data more swiftly and comprehensively, providing a holistic picture of the evolving threat landscape. Data fabrication — the ability to generate and simulate data — can enhance mission-critical solutions and supercharge military operations. By leveraging these technologies, the government can make decisions more rapidly and effectively, turning military operators into super operators equipped for mission success.
Overcoming the innovation bottleneck
The U.S. remains a global leader in innovation, with vast resources and talent capable of addressing complex defense challenges. However, translating this innovation into actionable solutions is hindered by a contracting process that favors large, established firms over nimble, inventive, smaller companies. Since the end of the Cold War, the U.S. defense industry has contracted and become dominated by large prime defense companies, leading to reduced competition and stifled innovation. This is not helped by the costly and convoluted nature of government contracting, which deters many innovative firms from entering the sector, exacerbating the problem.
A troubling trend is the prevalence of “innovation theater,” where large defense contractors partner with smaller, more innovative firms to create the illusion of technological advancement while retaining control over major contracts. This approach undermines the potential contributions of truly innovative companies and limits the diversity of solutions available. The historical success of Silicon Valley in addressing military challenges underscores the value of integrating diverse perspectives and approaches. To harness this potential, the government must overhaul its proposal and acquisition processes to make it easier for smaller, agile firms to contribute. So how do we do that?
Flipping the model for greater good
To address these challenges, we need to fundamentally rethink our approach to government contracting. Instead of rebuilding systems from scratch, a “buy what you need,” modular model allows for faster solution delivery and better alignment with specific needs. Companies that approach problems with precision and creativity, exemplify this new way of thinking. By placing trust in agile, specialized firms, rather than relying solely on legacy contractors, we can foster a more dynamic and effective defense sector to counter new and emerging global threats.
Workforce development
Equally important is addressing workforce shortages and developing the talent to implement and advance these strategies to propel technological advancement. The current administration has taken steps to address workforce needs across industries critical to national security, including cybersecurity. The National Cybersecurity Strategy emphasizes investing in a diverse and robust cyber workforce to ensure a resilient future. To stay competitive, the U.S. needs super humans who want to innovate and solve complex problems, leveraging out-of-box thinking to advance public-sector modernization and counter adversaries on the global stage.
The U.S. is making efforts to embrace outside innovators through programs like the Replicator and the Defense Innovation Unit. However, these initiatives alone are insufficient. A more profound transformation is needed to accelerate the pace of innovation across government sectors. To avoid merely engaging in “innovation theater,” we must prioritize companies with unique and bespoke solutions as primary contractors, with larger firms providing support. This shift will significantly enhance the U.S.’ ability to remain competitive in the next generation of warfare and ensure that our defense capabilities keep pace with evolving global challenges.
Rethinking defense technology: A blueprint for US success in a complex global landscape
The Defense Department has made efforts to enhance its AI capabilities through the AI Adoption Strategy.
In a rapidly shifting geopolitical landscape, the United States must recalibrate its approach to defense technology innovation to stay ahead of evolving global threats. As nations like China, Russia and Iran ramp up their defense capabilities across domains — from nuclear and hypersonic weapons to space and cyberspace — we must accelerate the development of mission-critical solutions. While the U.S. military has made strides in integrating cutting-edge technologies — particularly artificial intelligence — into its operations, the pace of innovation remains insufficient to counteract the advanced capabilities of adversaries.
The Defense Department has made efforts to enhance its AI capabilities through the AI Adoption Strategy, aimed at equipping warfighters with advanced tools to maintain battlefield superiority. However, a key factor in the U.S.’ ability to innovate more effectively is often overlooked: the outdated approach to government contracting. The current system hinders rapid technological advancement and impedes the integration of novel solutions into the defense industrial base. To better compete on the global stage and address modern warfare challenges, it is crucial to rethink and overhaul our approach to defense contracting; breaking away from old norms and embracing new methodologies will drive forward-looking innovation.
Harnessing data for innovation
The federal government is flooded with data but struggles to process it efficiently. With the integration of AI and other emerging technologies, there is a real opportunity to analyze this data more swiftly and comprehensively, providing a holistic picture of the evolving threat landscape. Data fabrication — the ability to generate and simulate data — can enhance mission-critical solutions and supercharge military operations. By leveraging these technologies, the government can make decisions more rapidly and effectively, turning military operators into super operators equipped for mission success.
Overcoming the innovation bottleneck
The U.S. remains a global leader in innovation, with vast resources and talent capable of addressing complex defense challenges. However, translating this innovation into actionable solutions is hindered by a contracting process that favors large, established firms over nimble, inventive, smaller companies. Since the end of the Cold War, the U.S. defense industry has contracted and become dominated by large prime defense companies, leading to reduced competition and stifled innovation. This is not helped by the costly and convoluted nature of government contracting, which deters many innovative firms from entering the sector, exacerbating the problem.
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Breaking free from innovation theater
A troubling trend is the prevalence of “innovation theater,” where large defense contractors partner with smaller, more innovative firms to create the illusion of technological advancement while retaining control over major contracts. This approach undermines the potential contributions of truly innovative companies and limits the diversity of solutions available. The historical success of Silicon Valley in addressing military challenges underscores the value of integrating diverse perspectives and approaches. To harness this potential, the government must overhaul its proposal and acquisition processes to make it easier for smaller, agile firms to contribute. So how do we do that?
Flipping the model for greater good
To address these challenges, we need to fundamentally rethink our approach to government contracting. Instead of rebuilding systems from scratch, a “buy what you need,” modular model allows for faster solution delivery and better alignment with specific needs. Companies that approach problems with precision and creativity, exemplify this new way of thinking. By placing trust in agile, specialized firms, rather than relying solely on legacy contractors, we can foster a more dynamic and effective defense sector to counter new and emerging global threats.
Workforce development
Equally important is addressing workforce shortages and developing the talent to implement and advance these strategies to propel technological advancement. The current administration has taken steps to address workforce needs across industries critical to national security, including cybersecurity. The National Cybersecurity Strategy emphasizes investing in a diverse and robust cyber workforce to ensure a resilient future. To stay competitive, the U.S. needs super humans who want to innovate and solve complex problems, leveraging out-of-box thinking to advance public-sector modernization and counter adversaries on the global stage.
The U.S. is making efforts to embrace outside innovators through programs like the Replicator and the Defense Innovation Unit. However, these initiatives alone are insufficient. A more profound transformation is needed to accelerate the pace of innovation across government sectors. To avoid merely engaging in “innovation theater,” we must prioritize companies with unique and bespoke solutions as primary contractors, with larger firms providing support. This shift will significantly enhance the U.S.’ ability to remain competitive in the next generation of warfare and ensure that our defense capabilities keep pace with evolving global challenges.
Shubhi Mishra is founder and CEO of Raft.
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