The Slow Destruction of the Defense Industrial Base

Abstract

The National Security Innovation and Industrial Base (NSIB) is becoming detached from the greater U.S. economic base. Specifically, in a departure from most of U.S. history, much of the domestic economic engine—private industry—is choosing not to work with the federal government in general, and the Department of Defense (DoD) in particular. At the same time the federal government is losing access to leading commercial solutions, those companies who are committed to remaining in the NSIB are hamstrung by statutes and government policies that inhibit innovation and adaption. Until the federal government looks inward and matches policies to the realization that it cannot dictate to industry the terms of contracts, the DoD will often get what it pays for: less innovation, less access to leading commercial companies, fewer commercial capabilities incorporated into national security capabilities, and a loss of ground in the race for technology overmatch. This article identifies some of the policies and regulations driving these trends and proposes areas ripe for legislation and policy changes that could begin to inject more vitality and innovation into the NSIB.