National Security Innovation Base Summit 2024 – Reagan Foundation Institute

Panel 1: Lessons Learned from New Innovation Initiatives 

Speakers

• Hon. Douglas R. Bush, U.S. Assistant Secretary of the Army for Acquisition, Logistics, and Technology

• Mr. Raj Shah, Managing Partner, Shield Capital

• Gen. James C. Slife, Vice Chief of Staff, U.S. Air Force

• Hon. Mac Thornberry, Former Chairman, House Armed Services Committee

• Moderator: Mr. Aaron Mehta, Editor in Chief, Breaking Defense

This panel features prominent figures from the defense sector to discuss the state and future of innovation within the field. This panel provided valuable insights into the complexities of fostering innovation in a sector that is both crucial for national security and notoriously challenging due to its size and regulatory environment. 

Key Takeaways:

Collaborative Efforts: A significant focus was on the need for better collaboration among key stakeholders such as Congress, the Pentagon, and other defense entities. Effective partnership and shared objectives are essential for advancing innovation in defense.

Overcoming Obstacles: The panel addressed the cultural and procedural barriers that currently slow down innovation, including risk aversion and bureaucratic red tape. Identifying and navigating these challenges are key steps toward a more agile and innovative defense sector.

The Role of Transparency: Leveraging technology for greater transparency in defense projects was discussed as a means to build stakeholder confidence and streamline the innovation process.

Defense Innovation Unit (DIU) Contributions: The DIU was highlighted for its successful role in connecting the tech industry with military needs. Its efforts in engaging with non-traditional tech companies and employing innovative contracting methods have been pivotal in speeding up the adoption of new technologies.

Budgeting for Innovation: Structural challenges within the budgeting process that limit the Department of Defense’s ability to quickly integrate new technologies were examined. The conversation underscored the need for a more flexible and responsive budgeting approach to facilitate innovation.

Optimism for the Future: Despite the acknowledged challenges, there was a consensus among the panelists on the potential for meaningful improvement in the defense sector’s innovation capabilities. Strategic enhancements in areas such as collaboration, risk management, and communication were identified as avenues for future progress.

Space Innovation and Security: The dialogue also touched upon the critical importance of innovation in space technology, especially in light of emerging threats. The reliance on and potential collaborations with the commercial sector for space innovation, alongside the necessity for advanced manufacturing processes for military capabilities, were discussed as critical elements for national security.

Overall: The panel provided a comprehensive overview of the current landscape of defense innovation, highlighting both the challenges and opportunities that lie ahead. The discussions conveyed a sense of urgency for systemic changes to enable a more innovative, responsive, and secure defense sector, emphasizing the collaborative effort required from all involved stakeholders.

Panel 2: The Farthest Frontier: Innovation in Space

Speakers 

• Gen. Michael A. Guetlein, Vice Chief of Space Operations, U.S. Space Force

• Sen. Mark Kelly, U.S. Senate, Arizona

• Mr. Joe Laurienti, Founder and CEO, Ursa Major

• Dr. Christopher Scolese, Director, National Reconnaissance Office

• Moderator: Ms. Jacqueline Feldscher, Managing Editor, Payload

This panel brought together leaders from the U.S. Space Force, Senate, and private sector to delve into the challenges and opportunities facing space innovation today. The discussion was a comprehensive exploration of how innovation is shaping the future of space operations, defense modernization, and national security. 

Key Takeaways:

Rising Space Threats: The panel underscored the growing threats in space, particularly from geopolitical rivals. There was a consensus on the imperative for the United States to advance its space technology to stay ahead of these threats, emphasizing the strategic importance of maintaining superiority in space.

Commercial Sector Engagement: The significant role of the commercial sector in driving innovation in space was a highlight. Speakers pointed out the increased capabilities and innovative solutions emerging from the industry, stressing the need for strong partnerships between the government and private sectors to leverage these advancements.

Innovative Manufacturing and Munitions: Discussion on novel manufacturing processes for space technology and munitions underlined the necessity for innovation in this area. The emphasis was on the importance of developing efficient, cost-effective manufacturing methods to ensure the U.S. remains competitive and capable in space.

Recruitment and Talent Acquisition: Talent acquisition strategies for the National Reconnaissance Office (NRO) and technical careers in the space force were discussed. The NRO’s approach to recruiting interns and senior personnel with a focus on space and advanced technologies highlighted the ongoing efforts to attract and retain top talent in the sector.

NASA and National Security: The role of NASA in commercial spaceflight and national security was examined, with insights into how national security agencies could invest in and support the growth of commercial space providers like SpaceX.

Utilizing Commercial Technology: The shift towards employing commercial systems in space was discussed, including NASA’s reliance on commercial satellites. This shift underscores the potential for the Space Force and NRO to enhance their capabilities through commercial technologies.

Collaboration and Legislation: The importance of industry-government collaboration was a key theme, with examples such as SpaceX illustrating the benefits of such partnerships. However, challenges like the struggle to pass budgets and authorization bills in Congress were noted as obstacles to signaling demand to the industry effectively.

Strategic Initiatives and Programs: Updates on strategic initiatives, such as the state space jam program with the Space Force, showcased ongoing efforts to innovate and reduce risks through prototypes and new technologies.

Summary: This panel session provided valuable insights into the state of innovation in space, highlighting the collaborative efforts needed between the government, private sector, and international partners to address the challenges and seize the opportunities in this rapidly evolving frontier. The discussions reflected a collective understanding of the importance of staying at the forefront of space technology and security to ensure national and global security.

Panel 3: Fireside Chat with Sen Joni Ernst & Ms Neuberger

Speakers

• Sen. Joni Ernst, U.S. Senate, Iowa

• Ms. Anne Neuberger, Deputy National Security Advisor for Cyber and Emerging Technology

• Moderator: Ms. Ellen Nakashima, National Security Reporter, The Washington Post

Sen. Joni Ernst and Ms. Anne Neuberger offered in-depth discussions on national security, the evolving landscape of emerging technologies, and the collaborative efforts between the government and the private sector. 

Key Takeaways:

Budgetary Challenges and Defense Modernization: The chat highlighted concerns regarding the impact of continuing resolutions on the pace of defense modernization. The need for timely budget approvals by Congress was underscored, emphasizing its importance in supporting the Department of Defense’s innovation initiatives and maintaining national security standards.

Navigating Emerging Technologies and Global Competition: The dialogue shed light on the competitive challenges posed by nations such as China, especially in the development and deployment of emerging technologies like 5G and 6G. Successful international collaborations aimed at promoting trusted telecom solutions were discussed, showcasing efforts to balance technological advancements with security considerations.

Cybersecurity and Protecting Critical Infrastructure: The importance of strengthening cybersecurity measures to safeguard critical infrastructure was a key topic of discussion. The role of government regulation and the proactive engagement of the private sector in enhancing cyber resilience were highlighted as critical components in defending against sophisticated cyber threats.

Collaboration Between Government and the Private Sector: The conversation reiterated the significance of robust collaboration between government agencies and private industry in addressing the multifaceted challenges of national security and technological innovation. This partnership is vital for leveraging private sector advancements and ensuring the effective protection and modernization of critical infrastructure.

The Role of AI in Defense Strategies: Potential uses and the ethical considerations of artificial intelligence in defense contexts were explored. Discussions included AI’s capabilities in operational efficiency and target identification, with a focus on ensuring its responsible use and the ethical implications of AI in military operations.

Overall: encapsulates the nuanced discussions from the “Fireside Chat,” providing insights into the critical areas of budgetary constraints, global technological competition, cybersecurity resilience, the pivotal role of government-industry collaboration, and the thoughtful integration of AI in defense strategies. These themes highlight the ongoing efforts and challenges in securing national security in an era of rapid technological change.

Panel 4: Fireside Chat with Hon. Heidi Shyu & Rep. Rob Wittman

Speakers:

• Hon. Heidi Shyu, U.S. Under Secretary of Defense for Research and Engineering

• Rep. Rob Wittman, Vice Chairman, House Armed Services Committee

• Moderator: Mr. Oren Liebermann, Pentagon Correspondent, CNN

Hon. Heidi Shyu, U.S. Under Secretary of Defense for Research and Engineering, and Rep. Rob Wittman, Vice Chairman of the House Armed Services Committee, offered a comprehensive discussion on the interplay between national security, technological innovation, and the legislative environment. The session provided insights into the current challenges and potential strategies for advancing the United States’ defense capabilities. 

Key Takeaways:

Budget Uncertainties Impact: The panel addressed the impact of budget uncertainties, such as continuing resolutions and the threat of government shutdowns, on the defense sector’s ability to innovate. These financial challenges are particularly acute for smaller companies dependent on government contracts, affecting their development timelines and innovation processes.

Overcoming Continuing Resolutions: Discussion focused on identifying strategies to mitigate the dependency on continuing resolutions for government funding. The panelists suggested structural reforms to establish more stable and predictable funding mechanisms, which could enable better planning and execution of defense projects.

STEM Talent and Workforce Development: The conversation highlighted the national challenge of a STEM talent shortage, essential for maintaining technological leadership. Strategies discussed for addressing this issue included enhancing internship programs and expanding scholarship opportunities to attract and retain a skilled workforce.

Promoting Agile Development: The importance of adopting agile and risk-tolerant approaches to technology development was discussed as a means to improve the Department of Defense’s (DoD) efficiency in introducing innovative solutions. Embracing flexibility in development processes was highlighted as a way to better respond to emerging technological needs.

Overall: These highlights from the fireside chat underscore the critical relationship between fiscal management, talent development, and technological innovation in shaping the future of national security and defense capabilities. The panel’s insights reflect the complexities involved in maintaining and enhancing the strategic advantages of the United States amidst evolving global security dynamics.

Panel 5: Conversation on Innovation from within the Defense Industrial Base 

Speakers

• Ms. Toni Townes-Whitley, CEO, SAIC

• Moderator: Ms. Rachel Hoff, Policy Director, Ronald Reagan Institute

Key Takeaways:

Strategic Capital for Onshoring and Innovation:

Advocacy for an Office of Strategic Capital to facilitate loans for small companies, aiming to strengthen onshoring capabilities and support innovation within the defense industry.

The emphasis on the necessity of risk-taking in innovation, with the OSI model highlighted as a successful example.

Broadening the Innovation Ecosystem:

Discussion on the diversity of experiences and backgrounds at the event, deemed essential for fostering meaningful innovation and collaboration within the national security innovation base.

Challenges in integrating small companies and startups into the defense industrial base, underscoring the need for capital, coaching, and a coherent strategy across both government and private sectors.

Talent and Workforce Development:

Addressing the signal and funding challenges faced by defense and security companies, highlighting the importance of clear government directives to inform financial and operational strategies.

Concerns regarding talent acquisition and retention, emphasizing the significance of inspiring students about applied innovation and its potential impact across sectors.

Commitment to National Security Imperatives:

SAIC’s dedication to long-term national goals, such as undersea dominance and next-generation space capabilities, illustrating the importance of industry commitment to broader national security objectives.

The call for companies to demonstrate a willingness to prioritize national imperatives, potentially requiring a move beyond proprietary interests to achieve common goals.

Overall: This panel provided insights into the current state of innovation within the defense industrial base, highlighting the critical roles of strategic capital, risk-taking, talent development, and industry-wide collaboration in advancing national security objectives. The discussion underscored the complexities of integrating innovation into the defense sector and the collective efforts needed to maintain technological superiority and address emerging challenges.

Panel 6: Keynote and Conversation with Hon. Kathleen Hicks, U.S. Deputy Secretary of Defense

Moderator: Mr. Roger Zakheim, Director, Ronald Reagan Institute

Hon. Kathleen Hicks, provided insights into the defense industrial base and innovation within the Department of Defense (DoD). The conversation covered a range of topics, emphasizing collaboration, funding stability, and the imperative of innovation for national defense. 

Key Takeaways: 

Enhanced Collaboration in the Defense Sector: The importance of fostering partnerships between emerging companies and established defense contractors was underscored. Such collaboration is essential for driving innovation and strengthening the national security innovation base.

Need for Stable and Predictable Funding: The discussion highlighted the negative impact of budget uncertainties, including continuing resolutions and the threat of shutdowns, on the military’s capacity for innovation. Stable funding is critical for maintaining and enhancing the U.S.’s competitive edge.

Innovation and Departmental Transformation: Efforts by the DoD to encourage innovation and adapt to future challenges were discussed. This includes integrating new market entrants and leveraging the expertise of traditional defense primes to develop new capabilities.

Strategic Action Items:

• Advocacy for the prompt passage of the FY24 DoD appropriations to avoid delays that have been described as “devastating.”

• Calls for the enactment of the FY24 budget request to align with the National Defense Strategy’s goals.

• Highlighting the importance of reducing barriers for private and non-traditional companies to engage with the DoD more effectively.

Focus on Modernization and Supporting the Workforce: The conversation touched upon the DoD’s investments in procurement and the significance of supporting service members and their families. Embracing innovations, particularly in software and technology integration, is viewed as crucial for future readiness.

Addressing Integration Challenges: The session acknowledged the difficulties in incorporating new technologies and solutions within the DoD. Programs aiming to accelerate the development and deployment of innovative capabilities, such as the “replicator program” for autonomous systems, were discussed as key initiatives.

Notable Quotes from this panel:

On the Importance of the Defense Industrial Base

-“The military and the industrial base are mutually dependent… without warfighter demand and taxpayer dollars, the US defense industry as we know it could not exist.”

-“Wars are fought by militaries, but they are won by nations.”

On Dynamic of Free and Open Systems

-“Ingenuity and creativity thrives the most when they’re enabled and surrounded by free minds, free markets, and free people, not when they’re forced to tow the party line.”

On Embracing New Entrants and Competition

“A new generation of defense tech startups and scale-ups is welcomed… competition is good for the taxpayer and good for the warfighter.”

On Challenges of Budget Uncertainty

-“One of the most serious obstacles to [innovation] has been the lack of stable, predictable, timely funding.”

-“It’s impossible to compete and outcompete the PRC with one hand tied behind our back or six months of every fiscal year.”

On The Future of Defense Innovation

-“Our procurement budget has been consistently more than our R&D budget. We buy a lot of things.”

-“Production is deterrence.”

This discussion shed light on the ongoing efforts and challenges in enhancing the U.S. defense industrial base. The emphasis on collaboration, stable funding, and innovation highlights the DoD’s commitment to ensuring national security through strategic investment and partnerships.