The Defense Innovation Unit: Former DIU Director Mike Brown on Leveraging Commercial Enterprise for National Security
Jan 4, 2023
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Former DIU Director Mike Brown discusses the Defense Innovation Unit (DIU) and its unique role in the Department of Defense. Topics include DIU's use of commercial enterprise to accelerate acquisition, challenges facing defense innovation, enabling access to longer-term contracts for smaller businesses and startups, perceived accessibility issues in partnering with DoD, and the state of defense innovation today.
The Defense Innovation Unit (DIU) accelerates the adoption of leading commercial technology into the military by streamlining contracts and utilizing other transaction authority, enabling faster decision-making and a more commercial-based process compared to traditional defense acquisition methods.
To further enhance defense innovation and procurement, more resources, streamlined procurement processes, and closer collaboration with end-users are needed, as accessing end-users and navigating clearance and classification challenges can be roadblocks for smaller businesses in the defense innovation space.
Deep dives
Defense Innovation Unit and the Importance of Innovation
The Defense Innovation Unit (DIU) accelerates the adoption of leading commercial technology into the military. DIU focuses on bringing commercial technologies to bear on urgent military problems, recognizing that much of the innovation the Defense Department seeks is happening outside of the traditional defense establishment. The DIU utilizes other transaction authority to streamline contracts and make it more attractive for innovative companies to work with the DOD. The DIU's unique structure allows for faster decision-making and a more commercial-based process compared to traditional defense acquisition methods. The DIU works across various technology areas, including space, autonomy, AI, human systems, cyber, and energy, and has successfully transitioned numerous capabilities to the warfighter. While the DIU provides a qualifying service for companies, accessing end-users and navigating clearance and classification challenges can still be roadblocks for smaller businesses. More resources, streamlined procurement processes, and closer collaboration with end-users are needed to further enhance defense innovation and procurement.
Challenges and Next Steps in Defense Innovation
The defense innovation space faces challenges related to the defense procurement process, budgeting, and access to end-users. The traditional defense acquisition process, built around requirements and long budget cycles, does not align well with commercial technology. To foster more defense innovation, there is a need to shift to a capability-of-record approach, where the focus is on the capability needed rather than specifying requirements upfront. Speeding up the budgeting process and providing more flexibility are also crucial to keep up with rapidly evolving commercial technology. Access to end-users is facilitated by the DIU, which involves warfighters in the selection and testing processes. However, clearance and classification hurdles can still impact smaller businesses. The defense innovation space shows promise with increased investment in defense-oriented and dual-use technology companies, but continued support, resource allocation, and streamlined processes are essential to further drive defense innovation.
Defense Innovation and Global Competition
China and Russia are also investing in defense innovation, although the level of progress and success is harder to determine for China. China has adopted a national strategy called civil-military fusion to ingrain commercial innovation into its armed forces. The US should recognize the need to adopt commercial technology faster and leverage its own strengths in innovation and competitiveness. By encouraging more investment in defense-oriented startups and dual-use technologies, the US can enhance its national security and economic resilience. However, the US should also maintain a sense of urgency and keep up with adversaries to ensure that commercial technologies are not accessible only to its competitors.
The Future of Defense Innovation
The future of defense innovation lies in continued investment, resource allocation, and collaboration between government, academia, and businesses. Engaging in defense innovation does not necessarily mean being in government, as the private sector plays a vital role in driving innovation and supporting national security. Shield Capital, for example, aims to help defense-focused companies succeed commercially and secure government contracts. To further advance defense innovation, there is a need for increased collaboration, shorter procurement cycles, and the ability to quickly adopt commercial technologies. Encouraging more companies to invest in defense innovation and supporting their success in both commercial and government markets will strengthen the overall defense innovation ecosystem.
This week, A'ndre talks to Mike Brown, who recently served as Director of the Defense Innovation Unit (DIU) between 2018 and 2022, on what DIU is and why the organization is unique within the Department of Defense, his time as Director, and the challenges facing the defense innovation space in the 2020s. We begin the podcast with a conversation on the term innovation itself, before moving into how DIU works with commercial enterprise to dramatically accelerate timelines of acquisition. Mike reflects on his own leading the organization, discussing how he made decisions of prioritization and lessons learned for others evaluating innovation. Mike also provides his take on the biggest challenges facing commercial enterprise in partnering with DoD, and what can be done within procurement to enable access to longer-term contracts for smaller businesses and start-ups. He addresses perceived accessibility issues and concerns around classification that may give business leaders pause when partnering with DoD, and whether DIU is being adequately supported by current DoD funding and if the organization has the roots to keep going as the defense innovation space matures. We round out the conversation by getting Mike's reflections on the state of defense innovation today, and his thoughts on the advent of the many new national security centric tech companies that are out there.
Disclaimer: The opinions expressed in this episode are those of the hosts. They do not purport to reflect the opinions or views of any host’s employer.
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