Innovation requires more than corporate slogans.

• Author: Wood, Robert F.
• Position: Viewpoint

Defense innovation is often constrained by industry perceptions of what government wants rather than being spurred by what is possible.

Federally funded research opportunities are limited and the defense budget as a whole faces uncertainty leading into the 2020s. Defense firms cannot rely on Defense Department funding to support innovation, nor can they risk shareholder discontent stemming from the risky decision to fund innovation using internal corporate investment dollars with no clear end customer.

Further, the department's recent push to bridge the relationship between innovative commercial companies and its needs have had mixed results. Yet the need for innovation is clear--security threats aren't getting any simpler and government budgets will remain pressured.

As defense firms sort through how to best take on technological innovation, they should promote innovation throughout other parts of their business. Many defense firms are not being proactive in promoting a culture of innovation, limiting their ability to be bold and take calculated risks. According to a PA Consulting survey of 800 senior executives, only half of senior management in the defense sector felt their leadership teams displayed vision and passion to drive innovation, and about a third did not feel that their firms were good at rapidly deploying innovation and technology to meet customer needs.

By combining a more robust understanding of a firm's potential market with leadership and team development, executives can steer their organizations to be more agile in their targeting and application of innovation.

A culture of innovation starts at the top, and is strongest when companies put it at the heart of the organization and create a continual dialogue with leadership, employees and customers.

Innovation takes great leadership. However, companies operate in a time when many senior executives feel increasingly disconnected with the advancement of technology that drives business change. This is often the case in the U.S. defense industry, where the acquisition process and timelines of government bureaucracy can stifle innovation. But the research has shown that many organizations are pleading for strong and inspirational leadership. In many organizations the key individuals that can ensure innovation, such as the CEO and executive leadership team, are not leading from the front.

Some aerospace and defense industry executive teams have successfully led innovative...