Reimagining the Defense Industrial Base

Original broadcast 10/7/25

Presented by Carahsoft

The U.S. defense industrial base has long been the backbone of America’s military strength, producing the technologies and capabilities needed to fight and win wars. But in an era of rapid technological change and shifting global threats, many experts argue that the system built for the wars of yesterday is ill-prepared for the conflicts of tomorrow. At the AFCEA and INSA Intelligence and National Security Summit, A.J. Bertone, Managing Partner at In-Q-Tel, made the case for fundamentally rethinking how the defense industrial base operates.

Bertone described today’s environment as a “burning platform.” Technology is advancing at breakneck speed, across domains that are directly relevant to national security—artificial intelligence, quantum computing, biotechnology, and advanced materials, among others. These changes are not incremental; they are transformative, reshaping the nature of warfare itself. At the same time, adversaries are adapting quickly, leveraging both state and commercial innovation to close the gap with U.S. capabilities. The cycle of innovation and adaptation is spinning faster than ever before, leaving traditional defense procurement processes struggling to keep up.

Compounding the challenge is the evolving threat landscape. For the past two decades, U.S. forces were heavily engaged in counterterrorism and counterinsurgency campaigns in the Middle East. Those missions, while demanding, did not require the kind of industrial-scale mobilization seen in great power competition. Today, the strategic focus has shifted toward potential conflicts with peer adversaries, particularly China. Such a contest would require not only advanced capabilities but also the ability to field them at scale and sustain them over time.

For Bertone, the defense industrial base must adapt to this reality by becoming more agile, resilient, and sustainable. Resilience means more than just having the latest technology. It requires ensuring that the supply chains supporting those technologies are secure, diversified, and capable of scaling in crisis. The war in Ukraine provided a sobering example. Stockpiles of munitions were depleted quickly, and replenishment proved difficult due to bottlenecks in the industrial base. Worse still, many supply chains traced back to China, raising the prospect of reliance on an adversary in the event of conflict.

Addressing these vulnerabilities requires more than incremental reform. Bertone argued for a wholesale reimagining of the defense industrial base. That includes integrating emerging technology startups into the system, ensuring they can contribute their innovations without being stymied by bureaucracy. In-Q-Tel plays a key role in this process, investing in startups and helping them navigate the complexities of working with government. But Bertone emphasized that systemic changes are needed to create a more welcoming environment for commercial innovators.

Policy reforms have begun to move in the right direction. Recent executive orders and directives have streamlined certain processes, making it easier for private companies to do business with the government. But Bertone noted that while policies can set the playing field, practice is harder to change. Many government professionals have spent decades operating under established norms, and risk aversion is deeply ingrained. Overcoming this cultural inertia will be one of the greatest challenges in reimagining the industrial base.

From the industry side, Bertone observed, companies often lack visibility into the real problems government is trying to solve. Requirements documents and formal solicitations do not always capture the urgency or nuance of operational needs. He pointed to the recent decision to retire the Joint Capabilities Integration and Development System (JCIDS), a requirements-heavy process that had long frustrated both government and industry. Moving instead toward problem-driven approaches—asking “what are you trying to do?” rather than “what specification do you need?”—will better align innovation with mission outcomes.

Resilience also means building capacity that can be sustained over time. This involves not only diversifying supply chains but also ensuring domestic manufacturing capacity exists to produce critical inputs at scale. The lesson from Ukraine was clear: if industrial capacity is hollowed out, no amount of technological superiority will suffice in a prolonged conflict. Building resilience will require investments in infrastructure, workforce development, and long-term planning—areas where government and industry must coordinate closely.

Bertone concluded that the most important step the government can take is to clarify its demand signal. Private companies, especially startups, orient around profit opportunities. If government priorities are vague or inconsistent, industry cannot align effectively. But if government articulates clearly where it is headed, where resources will be invested, and what outcomes it seeks, industry will follow. “Clarity of demand signal is what commands and sustains industry’s attention,” Bertone said.

The future of the defense industrial base will depend on whether these reforms and cultural shifts take root. A system designed for yesterday’s wars cannot carry the nation into tomorrow’s. By embracing emerging technologies, securing supply chains, fostering collaboration with commercial innovators, and clarifying priorities, the U.S. can build an industrial base that is not only more resilient but also more responsive to the realities of modern conflict.

Key Takeaways

• The defense industrial base must evolve from a Cold War–era model to one that is agile, resilient, and capable of sustaining operations in great power competition.

• Policy reforms are easing barriers for private companies, but cultural change and risk tolerance within government remain critical challenges.

• Resilience requires secure supply chains, sustainable capacity, and a clear demand signal from government to industry.