Recommendation

The administration should create a network of acquisition-oriented DOD labs based in regional technology clusters.

Details

To increase the breadth of R&D-based procurement, the administration should create a network of applied defense R&D facilities around regional technology clusters. The network would be similar to the Manufacturing USA program but with numerous smaller centers that are highly focused around the virtuous cycle of firms working with DOD labs and creating products and services that meet military needs. DOD is already moving in this direction, in accordance with former Secretary of Defense Ash Carter’s Third Offset strategy, which seeks to counter declining force sizes with the development of novel capabilities and concepts. For example, the Defense Innovation Unit Experimental (DIUx) seeks to create bridges between the Pentagon and the commercial technology sector. While DIUx is a good start, its budget is tiny compared to the changing demands for new technologies within the military. Accordingly, DOD should invest $500 million to develop similar centers as technology platforms across the country. Given that DOD already operates dozens of laboratories across nearly two dozen states, in many cases existing labs could shift their research and commercialization strategies to better align with adjacent technology clusters. In other regions, the department would need to develop new assets.

Keep reading:

▪ Stephen Ezell and Scott Andes, “Localizing the Economic Impact of Research and Development: Policy Proposals for the Trump Administration and Congress” (ITIF and Brookings, December 2016), https://itif.org/publications/2016/12/07/localizing-economic-impact-research-and-development-policy-proposals-trump.