Defense Secretary Ashton Carter is Off to a Good Start
Newly installed Defense Secretary Ashton Carter comes to his job with a combination of uncommon skills and experiences. Not only is Carter well acquainted with the major strategic and policy challenges the nation faces, but having a degree in theoretical physics—and having worked closely with former Defense Secretary William Perry—he also is intimately aware of the emerging opportunities and challenges of technology. None of his predecessors previously have served as the under secretary for acquisition, technology and logistics—where the Pentagon interacts with the development and acquisition communities—and then as the deputy secretary, where one has to oversee contemporary defense management practices. Carter knows the strategic environment, the technological world and the management regime.
With his recent Drell Lecture delivered at Stanford University titled, “Rewiring the Pentagon: Charting a New Path on Innovation and Cyberspace,” Carter provided a much needed acknowledgement to the U.S. technology community as well as to the defense industrial base that he understands changes are needed to connect the Pentagon better to its major providers and innovators. But as useful as this effort was, additional steps will be needed for numerous reasons.
As Carter noted at Stanford, select areas such as cybersecurity have a high degree of overlap and similarity of interests between the government and the private sector. Pacesetting Silicon Valley technology companies such as Facebook, Google and Apple have a natural interest in cybersecurity, and these firms have invested large amounts of their own funds on developing defensive, restorative and forensic approaches to cyber incursions and attacks. Carter called for “renewing and strengthening” the partnership between the U.S. technology sector and the government, and he noted that in the past, many of the major technological advances achieved in Silicon Valley and elsewhere came from research funding originating in the Pentagon.
What was not addressed, at least in this speech, is the need for renewing and strengthening the partnership that exists between the Pentagon and its traditional industrial partners, those producing products that have little to no overlap with the commercial world. As the secretary acknowledged, areas such as stealth technology and undersea warfare do not have now, and likely never will have, any commercial interest in such technologies, much less a commercial market.
Seeking greater cooperation from Silicon Valley is a very worthy goal, but it must be approached with the realization that it is unlikely these firms will jump into the defense market in a major way. Why? Because basically, Silicon Valley companies reflect a culture that largely is at odds with the culture—and pace—of the defense acquisition process. No company in Silicon Valley would subject itself willingly to the frequent audits, supply-chain intrusions, reporting burdens, hiring restrictions and—perhaps of greatest significance—profit limitations that are inherent in defense acquisition.
In his comments, Carter referenced one item of common concern by commercial and defense companies: the protection of intellectual property. By addressing intellectual property concerns, Carter signaled he is sensitive to the positions of the companies making cutting-edge, sophisticated technologies; but for the major defense industry suppliers who reside outside of Silicon Valley, many other concerns await serious attention. However, the odds are good that Carter will be exactly the right person to address them.
M. Thomas Davis is a former corporate vice president with General Dynamics Corporation and a past assistant professor of economics at West Point.
