Bridging the gap: what the defense industrial base can learn from the tech industry
The Defense Industrial Base (DIB) is, in the words of the Cybersecurity and Infrastructure Security Agency (CISA), the worldwide industrial complex that enables research and development, as well as design, production, delivery, and maintenance of military weapons systems, subsystems, and components or parts, to meet U.S. military requirements. In January 2024 the Department of Defense published its first National Defense Industrial Strategy, which sets four priorities for that base: resilient supply chains, workforce readiness, flexible acquisition and economic deterrence. In our view, the pace and adaptability of the tech industry offer lessons that map onto several of them.
Here are five lessons, each set against what DoD and the Government Accountability Office (GAO) have published. The lessons are our view; the record behind each is cited.
1. Embrace rapid iteration and agile development
GAO has testified that DoD remains entrenched in a traditional linear acquisition structure, in which cost, schedule and performance baselines are fixed early, and that the expected time for major defense acquisition programs to deliver even an initial capability is now almost 12 years from program start. GAO contrasts this with leading companies, which use iterative cycles to design, validate and deliver complex products, with continuous user engagement and testing. DoD's own software acquisition pathway (DoD Instruction 5000.87) aims at rapid and iterative delivery of software capability to the user. Iterative practice favors:
- Shorter development cycles
- Frequent iteration based on feedback
- Early and continuous delivery
Why it matters: In our view, iterative development gets prototypes into the hands of operators sooner, so real-world feedback shapes the next version.
In our view, perfection is not the goal of a first version. Responsiveness is.
2. Prioritize talent recruitment and culture
The National Defense Industrial Strategy names workforce readiness as one of its four priorities. In our view, defense firms can take a page from the tech playbook:
- Compete for highly skilled engineers, coders, and designers
- Promote mission-driven innovation
- Create collaborative, decentralized work models
Why it matters: In our view, people are the lifeblood of innovation, and an environment where people can propose and test ideas speeds up new work.
3. Break down silos through open collaboration
DoD already has channels for working with firms that are new to defense. Federal law defines a nontraditional defense contractor as an entity that, for at least the year before a DoD solicitation, has not performed a DoD contract or subcontract subject to full coverage under the cost accounting standards. The Defense Innovation Unit (DIU) says it uses Other Transaction authority to award prototype agreements to commercial companies. In our view, lessons here include:
- Establishing more open communication channels
- Creating integrated teams across disciplines
- Building partnerships with nontraditional defense contractors
Why it matters: In our view, collaboration brings together military, civilian and private sector talent, and that is where new solutions tend to come from.
4. Leverage data and automation
DoD's Data, Analytics, and Artificial Intelligence Adoption Strategy, published in November 2023, sets out how the Department intends to use high-quality data, advanced analytics and AI for decision making, and lists resilient sustainment support among the outcomes it seeks. The National Defense Industrial Strategy calls for data analytics to improve visibility into sub-tier suppliers. In January 2026 it published a further strategy under its secondary name, the Artificial Intelligence Strategy for the Department of War; both names refer to the same department.
Strategies to adopt, in our view:
- Use data analytics to see logistics and supply chains below the first tier
- Use digital models to simulate systems before building them
- Automate repetitive acquisition and reporting tasks
Why it matters: In our view, automating routine work frees people for decisions that need judgement.
5. Adopt a user-first mindset
GAO's description of leading companies puts continuous user engagement and testing inside each iterative cycle. In our view, the DIB should apply this to military gear, platforms, and systems by:
- Engaging operators throughout design and testing
- Prioritizing usability, maintenance, and field compatibility
- Gathering continuous feedback from the front lines
In our view, when tools are intuitive and practical, people use them as intended. User experience is not a luxury.
Charting a new course for defense innovation
DoD's own strategy and GAO's testimony point the same way: faster, iterative delivery, a ready workforce, new entrants, and better use of data. In our view, the tech industry's habits of rapid adaptation and user focus are a useful model for getting there.
To go further, explore our Resources and Support & Knowledge sections. To look up a supplier, search the company directory: a company's record shows which public source confirmed each field and when it was read.
Sources
- CISA, Defense Industrial Base Sector (read 2026-10-01)
- U.S. Department of Defense, DOD Releases First Defense Industrial Strategy (January 2024) (read 2026-10-01)
- U.S. Department of Defense, National Defense Industrial Strategy (PDF) (read 2026-10-01)
- GAO, Defense Acquisition Reform: Persistent Challenges Require New Iterative Approaches to Delivering Capability with Speed (GAO-25-108528) (read 2026-10-01)
- DoD Instruction 5000.87, Operation of the Software Acquisition Pathway (October 2020) (read 2026-10-01)
- 10 U.S.C. 3014, Nontraditional defense contractor (govinfo) (read 2026-10-01)
- Defense Innovation Unit, Solutions to make defense contracting easier (read 2026-10-01)
- U.S. Department of Defense, 2023 Data, Analytics, and Artificial Intelligence Adoption Strategy, fact sheet (read 2026-10-01)
- U.S. Department of War, Artificial Intelligence Strategy for the Department of War (January 2026) (read 2026-10-01)