How Defense and Military Industries Commercialize Technologies for Civil Use By http://aiforsecurity.com

1. How Defense and Military Industries
Commercialize Technologies for Civil
Use
Military Technologies
and Commercial
Applications
Vitaliy Goncharuk
“AI For Security”
http://aiforsecurity.com

2. Contents
• Top 10 Defense Budgets
• R&D Military Spending in Europe and USA
• Development and Commercialization Agencies
• IP/Technology Commercialization Process
• Homeland Security: Commercialization Process
• Technology Transfer Process Map
• DARPA Innovations: ARES, BOLT, Blood Pharming, Super-strong Fiber
• 6 Popular Technologies That Came From The Military
• Trends in World Military Expenditure
• References
• Contacts
1

3. Top 10 Defense Budgets 2016 ($, billion)
USA
604
China
145
Russia
58
Saudi Arabia
56
UK
52
India
51
Japan
47
France
47
Germany
38
South Korea
33
3
Ref: [1], [2]

4. R&D Military Spending in Europe and USA
3
• France and the UK each spend
several billions on R&D
investments [3];
• In 2016 Germany spent $910
million on defense R&D [4];
• In 2017 South Korea spent
$124.3 million on defense R&D
[5];
• For example, USA spent $49.1
billion on defense R&D in 2017
[6];
Ref: [3]

5. Development and Commercialization Agencies
4
Europe USA Canada India
China
Military Science
Research
Steering
Committee

6. IP/Technology Commercialization Process
5
Research
Invention
Disclosure
IP Protection IP
Assessmen
t
IP Development
Commercial
route
(licensing or
spin off)
Ref: [8]

7. Homeland Security: Commercialization Process
Phase
I
Phase II
Phase III
Phase IV
Phase V
Legend
EHC – Enabling Homeland
Capability
CG – Capability Gap
ORD – Operational Requirements
Document
CONOPS – Concept of Operations
PAM - Potential Available Market
COTS – Commercial Off The Shelf
Assess
Capability
Gap
Formulate
EHCs
Develop
Operational
Requirements
& CONOPS
Perform
Technology/System
Feasibility Study
Technology
Scan/Market
Survey
Publish ORD,
System Studies &
PAM on website
Mkt.Comm./PR
Efforts
Assess & Choose
Strategic Private
Sector Partners
Technology
Transfer/Grants
(if required)
New COTS product marketed by
Private
Sector with DHS support:
- SAFETY Act
- Standards
- Public Relations
- Marketing Communications
Capstone IPT
Sponsor and S&T
Sponsor and S&T
Sponsor and S&T
CG/EHC
ORDs
System
Studies
Responses
from
Private
Industry Executed Agreement
with
Private Sector and DHS
Outreach
Program
Activities
6
Ref: [9]

8. Technology Transfer Process Map
8
• The pathway for every innovation may be
significantly different, depending on the
presumed commercial versus research value
of an innovation;
• Whether the innovation was made in the
course of a sponsored research agreement;
• Whether the inventor and innovation are
likely to be successful small business
innovation research (SBIR)/small business
technology transfer research (STTR) grant
candidates;
• Whether the innovation falls into the “niche”
of a venture capital (VC) investment firm or
commercial entity [10];
7
Ref: [10]

9. DARPA Military – Civil Use Case: ARES
• The ARES program, a Skunk Works
extension of DARPA's Transformer
program, is an attempt to develop an
actual flying car [11];
• DARPA hopes that the ARES will be
especially resistant to IEDs — while also
being able to evade aerial threats, like
air-to-air missiles;
• It’s currently a military project but can
be potentially used in civil market [13];
8
https://www.darpa.mil/program/aerial-reconfigurable-embedded-
system

10. DARPA Military – Civil Use Case: BOLT
• The Broad Operational Language Translation
(BOLT) program is exploring ways to allow
translation and linguistic analysis for both
online and in-person communications [12];
• The initial phases of the program are aimed at
aiding soldiers and officials with active
translation of English into a listener's native
language and vice versa;
• DARPA plans on eventually expanding BOLT
into a tool that could allow everyone to
communicate fluidly without having to learn
each other's language [14];
9
https://www.darpa.mil/program/broad-operational-language-
translation

11. DARPA Military – Civil Use Case: Blood Pharming
• When soldiers are wounded, one of the most
important things to accomplish medically is to
bring the red blood cell count back to
survivable levels;
• Unfortunately, the difficulties of transporting all
of that blood and keeping the supply up is a
major challenge for the military — not to
mention civilian — medical system [11];
• DARPA's Blood Pharming program seeks to
develop novel technologies to enable
production of red blood cells that are ready to
go on the spot [15];
10
https://www.wired.com/2010/07/darpas-blood-makers-start-
pumping/

12. DARPA Military – Civil Use Case: Super-strong Fiber
• The military uses carbon fiber on rocket
motors, aircraft wings, and missile
technology;
• DARPA's Advanced Structural Fiber program
is developing a fiber with a 50% increase in
strength and stiffness. DARPA is looking at
the atomic level in this projects [11];
• This would mean lighter and more effective
planes and missiles, and could have a huge
impact on the commercial fields of aerospace
and manufacturing [16];
11
https://www.designboom.com/technology/skyon-carbon-fiber-
spaceship-synergistic-air-breathing-rocket-engine-mach-25-08-
11-2014/

13. 6 Popular Technologies That Came From The Military
12
• Internet. The World Wide Web originally started life back in 1977 in the form of its
forefather the Advanced Research Projects Agency Network (ARPANET) [11];
• GPS. GPS use satellites to triangulate the latitude and longitude of an exact location. In the
early 1990s, the U.S. Air Force launched the first GPS satellites;
• Drones. The humble drone began life as an unmanned aerial vehicle (UAV). Since the
1990s, UAVs have been used to launch Predator and Hellfire missiles to attack ground
targets during a range of conflicts. Now the skies are full of drones, many with cameras for
capturing leisure activities;
• Radars. Originally an acronym for Radio Detection and Ranging, this system uses radio
waves to find speed, altitude, range, and direction of moving objects like planes, ground
vehicles, missiles, etc. While developed before World War II, research and development for
military purposes;
• Digital cameras. Digital camera technology originally started life in early spy satellites
where they were used to capture high-resolution aerial images of enemy installations;
• Night vision. During WWII, the German Army was the first to develop military night vision
devices. Night vision is now making its way into the civilian world in cameras [12];

14. Trends in World Military Expenditure
13
• World military expenditure was $1686 billion in 2016, an increase of 0.4% in real terms;
• Total military spending accounted for 2.2% of the global GDP in 2016;
• Military expenditure in the USA grew by 1.7% to $611 billion in 2016, the first increase
after five consecutive years of decline. Despite this slight increase, US military spending
remains 20% lower than the peak of 2010;
• The fall and continued slump in world oil prices has had a substantial effect on military
spending in a majority of oil-export dependent countries [17];

15. References
14
1. https://www.statista.com/statistics/298883/united-kingdom-uk-public-sector-expenditure-r-and-d-defense/
2. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/652915/UK_Defence_in_Numbers_2017_-
_Update_17_Oct.pdf
3. http://ec.europa.eu/eurostat/statistics-explained/index.php?title=File:Total_general_government_expenditure_on_defence,_2016_(%25_of_GDP).png
4. https://www.iiss.org/en/militarybalanceblog/blogsections/2018-f256/february-1c17/europe-defence-spending-0695
5. http://english.yonhapnews.co.kr/news/2018/02/23/0200000000AEN20180223002100320.html
6. https://www.whitehouse.gov/wp-content/uploads/2018/02/ap_18_research-fy2019.pdf
7. http://europa.eu/rapid/press-release_MEMO-17-1476_en.htm
8. https://www.slideshare.net/AmjadShaikh/commercializing-industrial-property-24530226
9. http://slideplayer.com/slide/6202779/
10. http://basictranslational.onlinejacc.org/content/2/2/197
11. https://www.pocket-lint.com/gadgets/news/143526-27-military-technologies-that-changed-civilian-life
12. http://www.businessinsider.com/15-advanced-military-research-projects-that-will-change-your-life-2012-7?op=1#something-to-replace-complicated-and-
often-useless-internet-passwords-1
13. https://www.darpa.mil/program/aerial-reconfigurable-embedded-system
14. https://www.darpa.mil/program/broad-operational-language-translation
15. https://www.darpa.mil/news-events/2013-11-12
16. http://www.federalgrants.com/Advanced-Structural-Fiber-20058.html
17. https://www.sipri.org/sites/default/files/Trends-world-military-expenditure-2016.pdf

16. Questions?
Vitaliy Goncharuk
“AI For Security”
http://aiforsecurity.com