Original broadcast 6/29/25
Jeb Nadaner, former Deputy Assistant Secretary of Defense for Industrial Policy and now Senior Vice President of Government Relations at Govini, shares his insights on the evolution of innovation initiatives within the Department of Defense. His focus: how organizations like Army Futures Command and the Defense Innovation Unit (DIU) are redefining how the military accesses and adopts emerging technology.
Nadaner recalls the launch of DOD’s innovation ecosystem a decade ago. Today, Army Futures Command and DIU stand out as the most effective organizations in bridging the gap between commercial tech firms and the defense community. Army Futures Command, in particular, has streamlined its acquisition practices—keeping requirements minimal, opening up competition, and emphasizing rapid outcomes for the warfighter. “They’ve shown it is possible to really shorten the acquisition life cycle,” Nadaner said.
He also credits DIU’s progress, noting that the organization achieved meaningful results even before it had a full budget. Its new funding and elevated stature suggest that even more can be expected from DIU in the years ahead.
A central challenge remains: the infamous “valley of death” for non-traditional companies trying to survive between prototyping and production. Nadaner makes an important distinction between types of non-traditionals. Some are grant- or contract-dependent and need government funding to sustain operations. Others are fully commercial, venture-backed firms that don’t rely on government dollars—but need consistent procurement to justify continued defense engagement. Without firm orders, these companies will turn to the commercial sector instead, which Nadaner warns would be a “big loss for national defense.”
To bridge the gap between promise and fielded capability, Nadaner calls on DOD leaders to fully embrace existing acquisition laws and guidance. “Congress has made all the acquisition streamline laws that one could ask for… it’s a question of following them,” he said. He also urges the Pentagon to follow the President’s and Secretary of Defense’s instructions to move quickly and break through bureaucratic inertia.
Drawing a compelling parallel to the Israeli defense ecosystem, Nadaner describes how Israeli startups and defense primes work in concert to deploy modern capabilities at speed. He points to the Israeli Air Force’s F-35s, which operate at nearly double the availability rate of their American counterparts thanks to modern commercial software used in sustainment.
To match that kind of agility, Nadaner believes the Pentagon must focus relentlessly on outcomes and speed—not just process.
Key Takeaways:
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Army Futures Command and DIU have proven agile models for defense innovation.
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Many non-traditional firms need real procurement, not just interest, to stay engaged.
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Following existing acquisition laws and leadership guidance can unlock faster outcomes.