"During WWII, President Franklin D. Roosevelt called the private sector 'the arsenal of democracy.' This is still true, but our military’s capacity to integrate that arsenal into its operations needs modernizing and fortifying."

Two titans, Michael R Bloomberg and Gen (Ret.) David H. Bloomberg state the obvious and call for more agile procurement: "the Defense Department should create an alternate pipeline for innovative technologies that operates outside the traditional procurement system. Our report recommends shifting 15 percent of current spending to such a pipeline, which would bypass bureaucratic inertia and legacy programs to deliver capabilities directly to service members."

As noted in a January 2024 DND memo, "Canada is one of the only space-faring nations without a sovereign launch capability. It has relied on other countries including, in the past, Russia to launch spacecraft."

Yet Maritime Launch Services have yet to receive any funding from CAF/DND, despite this same memo noting that, "Canada adding a launch capability on the east coast of North America will allow access to a range of key orbits of interest to the U.S. and would add to Canada’s relevance and credibility in the international space community by also offering additional launch options to other allies and partners.”

Space is a pure dual-use play that will benefit Canada's security and prosperity. It's time to get serious.

"'Why are you not convinced by trillions of dollars? What has happened to your business instinct? Are you stupid? And that’s what I say to pension funds as well. Are you stupid? ... If you are looking at return on investment . . . there’s so much money to be spent over the next 20 years.'"

As Admiral Bauer rightly points out, "[t]he lack of strategic thinking is sometimes astonishing ...  For a large number of business people, [the security threat] is still a sort of far away thing. But it’s not.'"

"To keep up with America’s economic growth, and get Canadians out of their funk, we must show more confidence in our entrepreneurs and researchers."

Harley Finkelstein, Shopify President, and LP in Special Mission Fund I, has been advocating for this since day 1.

To wit, "[o]ver the 10-year period ending in 2023, U.S.-based entrepreneurs raised an average of $156 billion (U.S.) a year from venture capital funds and institutional investors. A great year in Canada would see $7 billion (Can) of similar investments. America has about eight times our population but invests at least 22 times the capital in its startups (ignoring exchange rates). Every year."

"The message from President Biden’s national security adviser [in fall 2023] was startling. Chinese hackers had gained the ability to shut down dozens of U.S. ports, power grids and other infrastructure targets at will."

But it was even worse - they were already into the telecoms.

"Some national security officials involved in the investigation said they believe the telecom hack is so severe, and the networks so compromised, that the U.S. may never be able to say with certainty that the Chinese hackers have been fully rooted out."

The threats are serious. What about our responses?

"The technologies that can serve both military and civilian purposes are so wide that as a category, dual-use has a diminishing meaning. In reality, early stage founders build a capability and, as good entrepreneurs, consider the best market fit across commercial and military markets as necessary and with a clear focus. In other words, dual-use is a market strategy that might be deployed defense-first, commercial-first, or both (when economically effective due to scale constraints in some niche defense markets)."

Capability > Technology.

"[W]e have an ecosystem without a marketplace. The Department of Defense won’t buy commercial capability at scale from Silicon Valley. The result is fighting with one arm behind our back."

We sincerely hope Western governments don't waste the free R&D dollars the private sector has been pouring in since 2021. Time to become a better customer!

Read it and try not to weep. America, and the West, have yet to fully digest the Last Supper.

The West is not currently capable of replicating its industrial success of WWII. In a world where small and cheap beats big and expensive, and to "counter the effects of the Last Supper, it means emphasizing shorter-term contracts with a more numerous variety of smaller companies, thereby encouraging both competition and innovation."

It also means fully leveraging private capital to take the necessary bets on these new "small and cheap' entrants, who are the wellspring of innovation.

Glenn Cowan, ONE9 founder, general partner, and Operator-in-Chief, has been spreading this message for more than five years: "Venture capital investing in dual-use tech isn’t new, but its value proposition varies. Most venture capital firms claiming defense tech expertise only provide financial backing, while just a select few truly drive strategic value for both startups and the Department of Defense."

"[V]enture firms ought to make both strategic hires and hyper-focused military specification hires to add value to their portfolio. These hires are individuals with deep Department of Defense experience who understand mission needs, know the acquisition process, have the connections to champion the technology and ultimately have served on the ground downrange and have encountered first-hand the problems to address — also known as 'Operators.'”

"Tell your banks and pension funds it is simply unacceptable that they refuse to invest in the defence industry. Defence is not in the same category as illicit drugs and [other vices]. Investing in defence is an investment in our security. It’s a must!”

What say you, EDC and BDC?

"Like Freedom’s Forge during World War II, US mobilization in the 21st century should rely on fundamental American economic strengths like technological innovation, product adaptability, and market-driven solutions. The Pentagon can field a new generation of weapons that leverage these attributes. The question is whether requirements officials and program managers can start behaving like titans of industry rather than art connoisseurs before it is too late."

Modular. Digital. Adaptable. Decentralized.

"[T]he prime minister should consider ... splitting military funding from other budgetary items. Geopolitics has become more unstable at a time when the Canadian Forces are struggling because of decades of underinvestment. The Liberals deserve full credit for announcing billions for new equipment, but they likely won’t be in power when the follow through on these investments is necessary."

"[F]inding consensus in Parliament would place pressure on any incoming government to uphold the promises already made in the Commons.'

As we're known to say, defence MUST be non-partisan, and even though this might not be the best political move, it would certainly be best for public policy, and Canadians.