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Statecraft
How to Rebuild the Arsenal of Democracy
Nov 6, 2024
Trae Stephens, a general partner at Founders Fund and co-founder of Anduril, teams up with Michael Kratsios, former U.S. Chief Technology Officer, to tackle pressing issues in the defense sector. They reveal the shortcomings of the defense industrial base and discuss innovative strategies to maintain competitiveness against China. With a focus on revitalizing American manufacturing and leveraging new technologies, they explore how modern warfare demands a shift in defense spending. The conversation also highlights the challenges of attracting tech talent for public service.
38:14
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Quick takeaways
- The U.S. defense sector struggles due to fragmented funding approaches that favor established companies, impeding innovation from emerging defense tech startups.
- To enhance military readiness, the U.S. needs to innovate manufacturing techniques and establish scalable production lines to address critical supply deficiencies.
Deep dives
Challenges in Defense Innovation Spending
The defense spending process is hampered by an overly cautious approach to investment, leading to what is seen as suboptimal allocation of funds. Despite good intentions, the government divides funds into numerous small portions, preventing significant development of new technologies. This method inadvertently mimics a university research model rather than focusing on scalable manufacturing processes. As a result, the current system favors established companies, stifling innovative entrants from making substantial impacts in defense technology.
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