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E5 - Military Tech Spending is Broken

The Merge

CHAPTER

Is Private Equity Investing in Defense Relevant R&D?

The Sivre list is basically a shopping list for China. Most of that money, even though it goes to the Pentagon through the budget, the Pentagon actually gives it to colleges, universities,. nonprofits and FFRDCs. And so that's not really incentivized to solve necessarily a problem. It's just to advance the body of knowledge in industry. That's kind of the incentives for that part of the budget. But at the end of the day, the bumper sticker is that federal R&D transition rate, that means it leaves the lab and it actually goes somewhere is terrible. There is no actual way to track it. There's never been any reporting on it.

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