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DIU Presentation to Stanford TIGPC Class 10.19.21

DIU, Defense Innovation Unit, Steve Blank, Mike Brown, Joe Felter, Technology, Innovation and Great Power Competition, TIGPC, Gordian knot Center

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Accelerating Commercial Technology for National Security 1
DIU Overview
October 19, 2021
Michael Brown, Director
Michael Madsen, Director of Strategic Engagement
Accelerating Commercial Technology for National Security 2
TECH DOMINANCE IS THE
NEW GLOBAL BATTLEGROUND
Success no longer goes to the country
that develops a new technology first, but
rather to the one that better integrates it
and adapts its way of fighting.
2018 National Defense Strategy
Accelerating Commercial Technology For National Security 2
“
Image Source: Center for a New American Security
Game Changing Technologies
● AI
● Quantum
● Hypersonics
● Cyber
● Biotechnology
● 5G
● Space
● Autonomy
Accelerating Commercial Technology for National Security 3
U.S. AND DEFENSE SHARE OF GLOBAL R&D FUNDING IS DECREASING
Data Source: Congressional Research Service
Technologies funded by USG
and transitioned to
commercial sector:
■ Microelectronics
■ Touch screen
■ GPS
■ Space launch
■ Satellite imagery
1960s
1960
GLOBAL R&D
EXPENDITURES
2016
GLOBAL R&D
EXPENDITURES
U.S. Defense Related (36%)
Other U.S. & USG (33%)
Rest of the World (31%)
U.S. Defense Related (4%)
Other U.S. & USG (24%)
Rest of the World (27%)
Technologies from
commercial sector and
transitioning to USG:
■ 5G
■ AI
■ Biotechnology
■ Mobile payments
■ Quantum computing
■ Batteries & Power
Systems
2010s-Now
Accelerating Commercial Technology for National Security 4
WHY COMMERCIAL U.S. R&D Expenditures by Source: 1953 - 2019
Source: National Science Foundation, National Patterns of R&D Resources
Top Tech
Companies
Outspend
Primes 11x
in R&D
$70.5B
$6.2B
Facebook
Alphabet
Microsoft
Amazon
Apple
Lockheed Martin
Raytheon
Northrop Grumman
General Dynamics
Boeing
$U.S.
Billions
(current)
Accelerating Commercial Technology for National Security 5
DIU is a fast-moving, cross-DoD organization
focused exclusively on commercial companies
to solve national security problems.
CORE DIU, NSIN, & NSIC MISSIONS
5
Accelerating Commercial Technology For National Security
ACCELERATE
TRANSFORM
DoD adoption of commercial technology
Military capacity and capabilities
STRENGTHEN
The national security innovation base
National Security Innovation Network:
Builds networks to generate solutions
National Security Innovation Capital:
Stimulates private investment in dual-use tech
Accelerating Commercial Technology for National Security 6
INCREASING ADOPTION OF COMMERCIAL TECH
AND GROWING THE NSIB
EARLY STAGE
COMPANIES
VENTURE CAPITAL
INVESTORS
INCUBATORS
RESEARCHERS
NONTRADITIONAL
VENDORS
NSIB
ECOSYSTEM
CONCEPT
STAGE
DEVELOPMENT
STAGE
PROTOTYPE
STAGE
PRODUCTION
STAGE
NATIONAL SECURITY
INNOVATION
NETWORK
● Source new talent
● Commercialize tech from DoD labs,
incubators, and accelerators
● Develop novel solutions for DoD
challenges with startups & academia
NATIONAL SECURITY
INNOVATION CAPITAL
● Invest in critical hardware
● Provide early customer
demand signals to the
market
CORE DEFENSE INNOVATION UNIT
● Provide companies early revenue
● Prototype and transition commercial tech to DoD
within 12-24 months
TRADITIONAL
VENDORS

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DIU Presentation to Stanford TIGPC Class 10.19.21

  • 1. Accelerating Commercial Technology for National Security 1 DIU Overview October 19, 2021 Michael Brown, Director Michael Madsen, Director of Strategic Engagement
  • 2. Accelerating Commercial Technology for National Security 2 TECH DOMINANCE IS THE NEW GLOBAL BATTLEGROUND Success no longer goes to the country that develops a new technology first, but rather to the one that better integrates it and adapts its way of fighting. 2018 National Defense Strategy Accelerating Commercial Technology For National Security 2 “ Image Source: Center for a New American Security Game Changing Technologies ● AI ● Quantum ● Hypersonics ● Cyber ● Biotechnology ● 5G ● Space ● Autonomy
  • 3. Accelerating Commercial Technology for National Security 3 U.S. AND DEFENSE SHARE OF GLOBAL R&D FUNDING IS DECREASING Data Source: Congressional Research Service Technologies funded by USG and transitioned to commercial sector: ■ Microelectronics ■ Touch screen ■ GPS ■ Space launch ■ Satellite imagery 1960s 1960 GLOBAL R&D EXPENDITURES 2016 GLOBAL R&D EXPENDITURES U.S. Defense Related (36%) Other U.S. & USG (33%) Rest of the World (31%) U.S. Defense Related (4%) Other U.S. & USG (24%) Rest of the World (27%) Technologies from commercial sector and transitioning to USG: ■ 5G ■ AI ■ Biotechnology ■ Mobile payments ■ Quantum computing ■ Batteries & Power Systems 2010s-Now
  • 4. Accelerating Commercial Technology for National Security 4 WHY COMMERCIAL U.S. R&D Expenditures by Source: 1953 - 2019 Source: National Science Foundation, National Patterns of R&D Resources Top Tech Companies Outspend Primes 11x in R&D $70.5B $6.2B Facebook Alphabet Microsoft Amazon Apple Lockheed Martin Raytheon Northrop Grumman General Dynamics Boeing $U.S. Billions (current)
  • 5. Accelerating Commercial Technology for National Security 5 DIU is a fast-moving, cross-DoD organization focused exclusively on commercial companies to solve national security problems. CORE DIU, NSIN, & NSIC MISSIONS 5 Accelerating Commercial Technology For National Security ACCELERATE TRANSFORM DoD adoption of commercial technology Military capacity and capabilities STRENGTHEN The national security innovation base National Security Innovation Network: Builds networks to generate solutions National Security Innovation Capital: Stimulates private investment in dual-use tech
  • 6. Accelerating Commercial Technology for National Security 6 INCREASING ADOPTION OF COMMERCIAL TECH AND GROWING THE NSIB EARLY STAGE COMPANIES VENTURE CAPITAL INVESTORS INCUBATORS RESEARCHERS NONTRADITIONAL VENDORS NSIB ECOSYSTEM CONCEPT STAGE DEVELOPMENT STAGE PROTOTYPE STAGE PRODUCTION STAGE NATIONAL SECURITY INNOVATION NETWORK ● Source new talent ● Commercialize tech from DoD labs, incubators, and accelerators ● Develop novel solutions for DoD challenges with startups & academia NATIONAL SECURITY INNOVATION CAPITAL ● Invest in critical hardware ● Provide early customer demand signals to the market CORE DEFENSE INNOVATION UNIT ● Provide companies early revenue ● Prototype and transition commercial tech to DoD within 12-24 months TRADITIONAL VENDORS
  • 7. Accelerating Commercial Technology for National Security 7 BEST COMMERCIAL TECH TO DOD DIU, with DoD partners, competitively selects the best technology to prototype, transition, and scale solutions. ● Knowledge of and access to leading technologies ● Competitive prototype process-->proven solutions ● Delivery of capabilities in 12-24 months ● Solutions at commercial cost to save taxpayer $ ● Simple process and fast time to award ● Access to large volume defense contracts ● Opportunity to solve high-impact national security problems Commercial Technology Department of Defense
  • 8. Accelerating Commercial Technology for National Security 8 UNIQUE PROJECT LIFECYCLE - FAST & COMPETITIVE Problem Curation & Diligence ● Receive, understand, and evaluate DoD partner problem ● Confirm commercial market exists to address problem Commercial Solutions Opening (CSO) Phase 1 ● Solicit digital proposals in response to a problem statement Phase 2 ● Evaluate proposals and invite a short list of bidders to pitch Phase 3 ● Select contract awardee/s and negotiate agreement Prototyping ● Execute prototype project Transition ● Award non-competitive follow-on agreement to successful performers ● Deliver and scale solution to transition partner/s and beyond 5-100+ 5-20 1-5 1-5 1-2 Approximate Number of Vendors Participating ~10 business days 60-90 days to contract award (goal) 12-24 months
  • 9. Accelerating Commercial Technology for National Security 9 STRENGTHENING THE NATIONAL SECURITY INNOVATION BASE 2300+ companies in 46 states & DC competed for DIU contracts 180+ companies in 24 states awarded DIU contracts ● 65 to first-time DoD vendors ● 165 to non-traditional vendors DIU Locations
  • 10. Accelerating Commercial Technology for National Security 10 TECHNOLOGY FOCUS AREAS AI/ML Autonomy Cyber Human Systems Space Advanced Energy & Materials Where the Commercial Sector is in the Lead
  • 11. Accelerating Commercial Technology for National Security 11 AI FOR PREDICTIVE MAINTENANCE Improving Mission Readiness Solution ● Integrate all relevant data: sorties, operator comments, maintenance logs, oil samples, etc. Impact ● Transitioned to production contract with $95M ceiling to enable access across DoD ● Increased readiness by anticipating equipment failures, ensuring available supply, and optimizing maintenance schedules ● Projected 3-6% mission capability improvement and up to 40% unscheduled maintenance reduction DoD/USG Partners Commercial Vendors ● USAF (U-2, F-16) (F-35 PO) ● Undersecretary of the Army ● Army Aviation PMO ● NAVSEA 05 ● Bradley PMO ● USMC ● NEXLOG ● C3.ai (transitioned) ● Uptake (prototyping) Problem Curation Diligence CSO Process Prototyping Transition Problem ● Distributed global logistics operations ● Legacy systems with maintenance challenges ● Performance data volume E-3 Sentry C-5 Galaxy F-16 Fighting Falcon Black Hawk Apache Bradley M88 Hercules F-35 Lightning II Aircraft Carriers
  • 12. Accelerating Commercial Technology for National Security 12 xVIEW 3 Synthetic Aperture Radar (SAR) for Dark Vessel Detection Partners Open Source ● USG: USCG, DHS, NOAA, NRL, NIWC, NMIO, DoS, SOUTHCOM, INDOPACOM ● Nonprofit: Global Fishing Watch ● Open Source Competition ● Government Purpose Rights ● Evaluation Only Competition ● Award IAW 10 U.S.C. § 2371b Problem: Malicious actors in maritime domains operate dark vessels (DVs) that do not broadcast AIS or VMS signals, which makes it difficult to rapidly detect these vessels that support illegal activities such as drug smuggling, illegal, unreported, and unregulated (IUU) fishing, and human trafficking. 115 m, 12 kts, 179° Solution ● Host a public prize competition to develop machine learning models that automatically detect DVs’ location, size, and speed. ● Source data from persistent, space-based synthetic aperture radar (SAR) satellite images. Impact ● Validate commercial SAR detection for DVs despite cloud cover or bad weather. ● Decrease response time to intercept DVs. ● Optimize deployment of U.S. and partner country assets. Planning Prize Competition Downselect Select Winner(s) Deploy Solution
  • 13. Accelerating Commercial Technology for National Security 13 STAY UP TO DATE www.diu.mil