Divot #10 Part 2: How the U.S. Can Win the Innovation Race with Startup Thinking
May 14, 2025
Steve Blank, a serial entrepreneur and educator known for his insights into startups and government innovation, shares his experiences on America’s innovation decline. He highlights how outdated systems and risk aversion prevent the Department of Defense from innovating. Blank discusses China's integrated approach to technology and warns of the U.S. falling behind. He promotes the Office of Strategic Capital as a model for advancing defense tech and stresses the importance of fact-based decision-making in leadership and government.
AI Snips
Chapters
Transcript
Episode notes
Acquisition Lags Rapid Tech Change
- DOD acquisition is misaligned with modern tech driven by startups and scale-ups.
- Writing static requirements fails because technology and battlefield needs change faster than procurement cycles.
Design With Deployment In Mind
- When building solutions for DoD, plan how to deploy at scale through the acquisition system.
- Understand budgets, 'color of money,' and who will buy the capability.
China's Whole‑Of‑Nation Advantage
- China adopted a whole-of-nation approach integrating commercial and military innovation.
- The U.S. historically never coordinated all national capital and startups for defense.