{"id":23288,"date":"2020-05-04T16:00:16","date_gmt":"2020-05-04T16:00:16","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2020\/05\/04\/the-defense-industry-needs-new-entrants-and-a-supportive-government-during-crises\/"},"modified":"2026-08-07T22:00:08","modified_gmt":"2026-08-07T22:00:08","slug":"the-defense-industry-needs-new-entrants-and-a-supportive-government-during-crises","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/commentary\/2020\/05\/04\/the-defense-industry-needs-new-entrants-and-a-supportive-government-during-crises\/","title":{"rendered":"The defense industry needs new entrants, and a supportive government during crises"},"content":{"rendered":"\n

The COVID-19 health crisis is quickly leading to an economic meltdown, throwing millions of Americans out of work and forcing strategic reevaluations across industries. The defense industry is no exception. We are praying for a swift end to the crisis, but its effects will linger, shaping the Pentagon\u2019s priorities, organizational structure, military operations, logistics, supply chains and interactions with the defense-industrial base for years to come.<\/p>\n\n\n\n

In the past few weeks, we have had numerous conversations with government officials about our venture and growth equity investments in the defense sector. These discussions have centered on the eligibility rules of the CARES Act\u2019s<\/a> Paycheck Protection Program and the risk of foreign capital seeking entry into defense technology startups desperate for investment in these trying times.<\/p>\n\n\n\n

But these are secondary questions. The primary question is this: How can the Pentagon best preserve its innovation base and develop the most competitive and advanced technologies?<\/p>\n\n\n\n

The answer is simple: Buy commercial. New and emerging defense startups \u2014 and our men and women in uniform \u2014 don\u2019t need symbolic gestures. What they need is concerted action to bring the latest and most advanced technologies \u2014 many of which are routinely used in industry \u2014 to dangerously antiquated defense weapons systems and internal IT infrastructure. This was true before COVID-19, it is true now and it will be true when the next crisis strikes.<\/p>\n\n\n\n

All too often the government has responded to crises by circling wagons around incumbent firms \u2014 the large prime contractors, whose political connections afford them bailouts in the name of \u201censuring ongoing competition.\u201d This process is already underway. After announcing its hope<\/a> for a $60 billion relief package for the aerospace manufacturing industry, Boeing successfully lobbied<\/a> for $17 billion worth of loans for firms \u201ccritical to maintaining national security.\u201d<\/p>\n\n\n\t