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8 August 2024

Defense Department incentives need to change if the Mavericks are to survive

Mike Mullen

The Department of Defense (DoD) faces a critical challenge: Broken incentive structures prevent the swift adoption of new technologies. Immediate reform is needed. The right incentives drive talent to take risks, think critically, and quickly develop capabilities for the warfighter. Without a cultural shift in how the DoD incentivizes innovation, national security is at risk, and adversaries will advance and surpass the United States.

During the Cold War, bold risk-taking and rapid research were key to national security. While today’s challenge demands a similar commitment to pushing boundaries, fostering creativity, and rapidly advancing technology, the department is instead exasperated by hesitance, cumbersome processes, misaligned rewards, lack of top cover, and maintenance of the status quo. Our adversaries are quickly enhancing their capabilities and closing the technological gap. To maintain our position as the world’s strongest fighting force, we must overhaul our incentive structure.

This urgency is underscored in a recent report by the Defense Innovation Board (DIB) revealing several critical findings that highlight the need for comprehensive overhaul of how the DoD approaches innovation.

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