Why DOD Should Get Out of the R&D Business: Mislav Tolusic

With interest rates increasing and persistent inflation, the federal government is going to have to do more with less. This is a huge opportunity for the Department of Defense to rethink how it finances innovation. The DOD should tap into the strong investor interest in dual-use technologies and the record amount of venture capital waiting to be deployed.

To do that, the DOD will need to radically adjust its funding priorities.

In 2001, for every procurement dollar, the DOD spent another 66 cents on its own Research, Development, Testing, and Evaluation (RDT&E). By 2023, the ratio increased to 84 cents. ...