There are few catalysts for innovation as powerful as War ⬇️
The first proxy War of Cold War II has hastened the evolution of warfare. Both Ukraine and Russia have mobilised all aspects of the state to raise and sustain military and industrial output. For Ukraine, fostering a world leading innovation ecosystem and a lean procurement approach has been essential to defend against a Superpower.
Center for Strategic and International Studies (CSIS) recently released ‘How Ukraine Rebuilt Its Military Acquisition System Around Commercial Technology’.
“Long reliant on Soviet-era legacy technology and monopolistic state entities, the Ukrainian military-industrial complex struggled to respond effectively to the sudden and intense demands of modern warfare. Yet this crisis also served as a catalyst, prompting Ukrainian policymakers, defense officials, and private sector actors to undertake a sweeping transformation of the country’s defense acquisition and technology ecosystem.”
A couple of the findings stood out:
1️⃣ Ukraine has radically pivoted its approach to military innovation, moving from a wholly state-owned research and development (R&D) model to one in which innovation is outsourced to the commercial sector.
2️⃣ Acquisition of commercial technology has allowed for deployment of readily available, off-the-shelf products, thereby eliminating the long wait for custom-developed systems by the traditional military-industrial base.
3️⃣ Ukraine now bases its strategic priorities and requirements for military equipment and weaponry development on actual battlefield demands, rather than on speculative top-down visions.
The success of Ukraine’s defense industry expansion has been built on rapidly expanding the supplier base – going from one state-owned supplier to about 500 defence companies of various sizes, most of which are new businesses established after 2022.
One of the ways the Ukraine government has fostered this expansion of the industrial base has been with Brave1 defence-tech cluster. You may have heard of the ‘Army of Drones’ initiative they previously ran. The benefit of Brave1 is described by TechUkraine as follows:
“Any individual with an innovative solution in the field of defense and security can register their application within the cluster, gaining access to expert opinions from esteemed entities such as the General Staff of the Armed Forces of Ukraine, the Ministry of Defense, or the Ministry of Strategic Industries. Additionally, applicants may secure grants, government contracts, or external investments to support their products.”
Lots of food for thought for Australia as we look to revitalise our Industrial base and enhance the readiness of our Defence procurement and acquisition process.