Search

Begin New Search Topic Defense Industry Political Geography North America

1. March of the Four–Stars: The Role of Retired Generals and Admirals in the Arms Industry

Author:
William D. Hartung
Publication Date:
10-2023
Content Type:
Policy Brief
Institution:
Quincy Institute for Responsible Statecraft
Abstract:
The revolving door between the U.S. government and the arms industry, which involves hundreds of senior Pentagon officials and military officers every year, generates the appearance — and in some cases the reality — of conflicts of interest in the making of defense policy and in the shaping of the size and composition of the Pentagon budget. This report looks at the post–government employment records of a subset of the larger flow of “revolvers”: four–star generals and admirals who retired between June 2018 and July 2023. Among the findings are the following: 26 of 32 four–star officers who retired after June 2018 — over 80 percent — went to work for the arms industry as board members, advisors, executives, consultants, lobbyists, or members of financial institutions that invest in the defense sector. The biggest category of post–retirement employment for four–stars, by far, was as board members or advisors for small and medium–sized arms contractors, with 15 choosing that option. This compares to five who became board members, advisors or executives for one of the top 10 arms contractors. Five retired four–stars became arms industry consultants, five became lobbyists for weapons companies, and four joined financial firms that make significant investments in the defense sector. This brief recommends a number of measures designed to limit undue influence and potential conflicts of interest on the part of retired four–star generals and other retired Pentagon officials and military officers who pass through the revolving door. Bar four–star officers from working for firms that receive $1 billion or more in Pentagon contracts per year. Extend “cooling off” periods before retired Pentagon officials and military officers can go to work on behalf of the arms industry. Increase transparency over post–government employment and activities on the part of retired Pentagon and military officials working on behalf of arms contractors, including reporting on their interactions with Congress and the executive branch. The most comprehensive current proposal to address the revolving door issue is Senator Elizabeth Warren’s Department of Defense Ethics and Anti-Corruption Act. 1 The bill would encompass many of the recommendations put forward in this report.
Topic:
Foreign Policy, Defense Industry, Military, and Military-Industrial Complex
Political Geography:
North America and United States of America

2. The Pillars Necessary for a Strong Domestic Semiconductor Industry

Author:
Sujai Shivakumar, Charles Wessner, and Thomas Howell
Publication Date:
05-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
All major U.S. defense systems and platforms rely on semiconductors for their performance, and the erosion of U.S. capabilities in microelectronics is a direct threat to the United States’ ability to defend itself and its allies. The COMPETES and USICA legislation, currently being reconciled in Congress, represents a national strategy to secure U.S. competitiveness and national security in the twenty-first century. Both the House and Senate legislation call for $52 billion to support U.S.-based semiconductor research and production. They also authorize several programs to both expand U.S. semiconductor fabrication capacity and support the continued research and development (R&D) of advanced chips. The key question is how these intentions can best be turned into reality. There are several challenges that the domestic semiconductor industry confronts, such as international competition, capital investment requirements, workforce needs, gaps in the supply chain, and the shortfall in venture capital funding and technical support needed to enable commercialization of promising technologies.
Topic:
Security, Military Strategy, Innovation, Industrialization, and Defense Industry
Political Geography:
North America and United States of America

3. Beyond Foreign Military Sales: Opportunities to Enhance Japan-U.S. Defense Industrial Cooperation

Author:
Takashi Kodaira
Publication Date:
03-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
The security environment in the Indo-Pacific region is becoming increasingly severe due to China’s growing military power. Further cooperation between the Japanese and U.S. defense industries will strengthen deterrence, although Japan’s defense industry is currently in a difficult situation, with domestic procurement stagnating. For Japan to fully take advantage of its role in the U.S.-Japan alliance, it must maintain and strengthen the defense industry through defense industrial cooperation with the United States. This report examines trend lines in Japan’s defense industrial strategy and potential avenues for bilateral cooperation to enhance capabilities critical to managing complex security challenges facing the U.S.-Japan alliance.
Topic:
Defense Policy, Industrial Policy, Military Strategy, Defense Industry, and Civil-Military Relations
Political Geography:
North America and United States of America

4. Measuring Congressional Impact on Defense Acquisition Funding

Author:
Seamus P. Daniels and Todd Harrison
Publication Date:
03-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Congress exercises its oversight authority on the executive branch’s defense policy via the appropriations process and can choose to match, modify, or eliminate the Department of Defense’s (DoD) requested funding levels for acquisition programs primarily funded by the procurement and research, development, test, and evaluation (RDT&E) accounts. Congress’s decisions in this process can have a significant impact on the executive branch’s defense plans by making adjustments to acquisition projects’ program of record. This in turn can force DoD program management teams to alter schedules and contracting actions, causing second-order effects on private sector partners in the acquisition process. To measure Congress’s impact on defense acquisition funding, this study compares the actual funding level for procurement and RDT&E accounts with the original level proposed in the administration’s budget request and identifies patterns in which accounts are regularly adjusted by Congress. It assesses procurement and RDT&E accounts between fiscal year (FY) 2001 and FY 2020 and conducts data cuts of acquisition funding at the account, category, military department, and budget activity levels. This analysis ultimately aims to inform defense planners, acquisition officials and program managers, and industry partners of trends in congressional appropriations for defense so they can better anticipate Congress’s impact on defense acquisition funding.
Topic:
Defense Policy, Military Strategy, Legislation, Defense Industry, and Civil-Military Relations
Political Geography:
North America and United States of America

5. U.S. Military Forces in FY 2022: Peering into the Abyss

Author:
Mark F. Cancian
Publication Date:
03-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
CSIS senior adviser Mark Cancian annually produces a series of white papers on U.S. military forces, including their composition, new initiatives, long-term trends, and challenges. This report is a compilation of these papers. It takes a deep look at each military service, as well as special operations forces, DOD civilians, and contractors in the FY 2022 budget. This report also discusses the debate about legacy equipment, the interaction of the budget and force size, and the decline in force size that the services face with retiring older systems without adequate replacements.
Topic:
Defense Policy, Military Strategy, Defense Industry, and Civil-Military Relations
Political Geography:
North America and United States of America

6. Opening Up Military Innovation: Effects of Bottom‐​Up Reforms to U.S. Defense Research

Author:
Sabrina Howell, Jason Rathje, John Van Reenen, and Jun Wong
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The U.S. economy’s productivity growth has slowed down in recent decades. This slowdown appears due in part to declining innovation, especially among high‐​growth new firms, making the design of innovation incentives particularly important. One overlooked but crucial decision a government or private‐​sector research funder must consider is whether to take a centralized top‐​down approach, tightly specifying the desired innovation, or a more open bottom‐​up approach, giving more latitude to firms to define their research proposals. The bottom‐​up approach may be useful if the research funder is uncertain about what opportunities exist. We compare these two strategies by studying a major reform to the Small Business Innovation Research (SBIR) program at the U.S. Air Force.
Topic:
Reform, Economy, Research, Innovation, Defense Industry, and Military
Political Geography:
North America and United States of America

7. The Impact of COVID-19 on the U.S. Defense Industrial Base

Author:
Nayantara D. Hensel
Publication Date:
01-2022
Content Type:
Journal Article
Journal:
PRISM
Institution:
Institute for National Strategic Studies (INSS), National Defense University
Abstract:
The COVID-19 pandemic has imposed a number of challenges on countries and industries, some of which have been partially mitigated by government efforts, medical developments, and corporate strategies. Nevertheless, COVID-19, which, in March 2020, was identified as a pandemic by the World Health Organization and was declared by the U.S. government as a national emergency,1 will likely continue to have after-effects in the coming years. The defense sector, as has been the case with many other sectors, has faced challenges in declining production at manufacturing plants, difficulties with key inputs from sole source suppliers, concerns regarding the financial viability of small businesses within the supply chains, and the impact of different variants of COVID-19 within the global supply chains. Companies which had diversified between commercial and military clients often faced a greater negative impact on their financial strength than companies with largely defense-focused products. This was partially due to the decline in demand within the commercial aerospace sector as a result of COVID-19. The financial health of companies across industries suffered due to COVID-19; indeed, this was reflected in the almost 30 percent increase in commercial chapter 11 filings in 2020 compared to 2019, with bankruptcies reaching their highest levels since 2012.2 The sectors with the greatest number of bankruptcies in 2020 were real estate, oil and gas, restaurants, entertainment, and retail.3 While bankruptcies were lower among firms in the defense sector due to stability in multi-year contracts with the government, as well as support of smaller suppliers by larger suppliers and by the government, defense firms with a greater focus on commercial clients suffered more. Consequently, although funding from the federal government under the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, as well as funding from the Department of Defense (DOD), provided support for companies within the defense sector and other sectors, defense firms continue to face challenges in the short-term and, potentially, in the longer-term. Moreover, the impact of COVID-19 relief funding could have long-term effects on government deficits and debt, which may reduce defense spending in future years. Indeed, the potential atrophy in the defense industrial base due to the impact of COVID-19 on the financial health of defense companies and on future government spending could lead to national security risks. Production of key defense products—aircraft, ships, tanks, cybersecurity technology, etc.—is vital in supporting national security strategies in various regions and through various types of warfare.
Topic:
Economy, Manufacturing, Pandemic, Industry, Defense Industry, and COVID-19
Political Geography:
North America and United States of America

8. Enhancing US-Japan cooperation on global supply chains

Author:
Miyeon Oh and James Hildebrand
Publication Date:
05-2021
Content Type:
Special Report
Institution:
Atlantic Council
Abstract:
Mounting US-China tensions and the COVID-19 pandemic have led to growing calls in the United States and among its allies and partners, including Japan, to address the vulnerabilities in global supply chains critical to national security and economic competitiveness. Strategic uncertainty has led stakeholders to pose the following questions. What role should government play, and to what extent can, or should, governments require firms to operate more in line with national security interests? How can firms manage short-term and long-term risks to balance national security requirements and commercial interests? How should trusted partners be defined, and what is a desirable allied and multilateral approach to enhancing security and resilience of global high-tech supply chains? With new administrations in both the United States and Japan, the two countries have an opportunity to consider these questions and rethink coordination of their efforts to establish secure and resilient supply chains. This issue brief analyzes recent developments in US and Japanese supply-chain policy, explores the importance of closer coordination through case studies of the semiconductor and rare-earth minerals industries, and provides a set of recommendations for the Joseph R. Biden Jr. and Yoshihide Suga administrations to enhance US-Japan cooperation in the years ahead. These recommendations include actions to operationalize the April 2021 US-Japan Joint Leaders’ Statement by creating a bilateral interagency Supply Chain Steering Committee that includes sector-specific working groups to enhance public-private-partnerships in high-technology industries, and by expanding bilateral supply-chain cooperation into multilateral efforts through flexible and informal frameworks.
Topic:
Science and Technology, Bilateral Relations, Economy, Innovation, Trade, Defense Industry, and Supply Chains
Political Geography:
Japan, Asia, North America, and United States of America

9. National Security Upate 13: Accessing the Technologies and Capabilities of the U.S. Commercial High-Tech Sector: A Defense Department Priority

Author:
Jack Kelly
Publication Date:
03-2020
Content Type:
Special Report
Institution:
Institute for Foreign Policy Analysis (IFPA)
Abstract:
Our thirteenth IFPA National Security Update examines the growing need of the Department of Defense to access and leverage the advanced dual-use technologies increasingly being developed in the commercial high-tech sector to maintain U.S. technological and military superiority. It focuses on the impediments facing the U.S. government and Defense Department in accessing commercial high-tech technologies, strategies and policies to remove these impediments, specific programs and initiatives to address the problem, and the concerns about the growing technological and military capabilities of China. Topics addressed in our National Security Update series include the FY2020 National Defense Authorization Act, hypersonic missiles, military applications of artificial intelligence, missile defense priorities, the Trump Administration’s Executive Order on Electromagnetic Pulse, the status of the Space Force, and China’s actions in the South China Sea and U.S. options.
Topic:
Foreign Policy, Defense Policy, Government, Science and Technology, Strategic Competition, and Defense Industry
Political Geography:
China, North America, and United States of America

10. Evaluating Consolidation and the Threat of Monopolies within Industrial Sectors

Author:
Andrew Philip Hunter
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Economics scholars and policymakers have rung alarm bells about the increasing threat of consolidation within industrial sectors. This paper examines the importance of industrial concentration in U.S. defense acquisition in two ways: first, a direct relationship between concentration and performance outcomes; and second, a mediating relationship, where concentration influences performance through reduced competition for defense acquisition. The study created a large contract dataset incorporating economic statistics on industrial sectors and analyzed it using multilevel logit models. The study finds that subsector concentration correlates with greater rates of termination. Contrary to the hypothesis, competition is associated with higher rates of termination, and only single-offer competition is significantly associated with lower rates of cost ceiling breaches. Taken together, the results are consistent with the literature on the risk of concentration’s connection with market power but also suggest that the mechanisms of competition are worthy of future study.
Topic:
Monopoly, Private Sector, Industry, and Defense Industry
Political Geography:
North America and United States of America