Defense technology at a crossroads: can the Pentagon regain its innovation mojo?

• Author: Erwin, Sandra I.
• Position: Homeland Security News

* The Defense Department may never become the technological juggernaut it once was, but with the groundbreaking innovation happening in the private sector, the challenge for the Pentagon is to tap emerging technology.

When this topic is discussed by senior defense leaders, there is a palpable sense of urgency that is stoked up by the realities of a dangerous world.

Current and potential enemies of the United States are exploiting technology at breakneck speed. They are launching cyber attacks that one day could cripple military operations or compromise secret weapon designs; they are manufacturing advanced drones at bargain prices; and they are constantly developing novel tactics to hide from U.S. surveillance systems.

"We fully expect to wake up one morning and hear of a terror attack on some important military or civilian asset, like aircraft parked at airfields by drones equipped with explosives," observed defense industry analyst Byron Callan of Capital Alpha Partners. "These systems are globally available and were used in the Libyan civil war of 2011 for surveillance."

Although the Pentagon pours nearly $200 billion a year into weapons research, development and procurement, it is not clear whether it has answers to these emerging challenges. And the traditional cluster of contractors that make today's weapon systems might not have answers either, Callan said. "These threats will spawn new defense demands that may not necessarily be readily met by heritage defense firms."

Of similar thinking is former Deputy Defense Secretary Bill Lynn, currently the CEO of defense contractor Finmeccanica North America. "Today's military-industrial complex consists of a small group of conglomerates that are coping with declining Pentagon sales, investing less money in new technology and increasingly depend on the global market for innovation," he said in a December interview. "A more open market would benefit the Pentagon by spurring competition."

Defense Secretary Ashton B. Carter is fully aware of the Pentagon's technological shortcomings, and has signaled that this issue will be a priority of his agenda. He intends to support a "defense innovation initiative" started by his predecessor Chuck Hagel and is asking Congress to fund these efforts.

Carter also is of the belief that the conventional roads to innovation will not take the Pentagon where it needs to go. "We must be open to global, commercial technology as well, and learn from advances in the private sector," Carter told the House defense appropriations subcommittee.

The defense chief is familiar with the sources of groundbreaking technology, as Carter worked in Silicon Valley before taking the Pentagon's top job. In his previous stint as undersecretary of defense for acquisitions, Carter was the architect of "Better Buying Power," a policy guide for how to spend defense dollars more wisely. The theme of the latest iteration, Better Buying Power 3.0, is to "achieve dominant capabilities through technical excellence and innovation."

The innovation initiative officially kicked off Oct. 29 when Pentagon acquisitions chief Frank Kendall signed a memo directing the launch of a "long range research-and-development plan" with specific instructions to reach out for help to the private sector, and with emphasis on nontraditional players. Kendall said the Defense Department should "identify...