McKinsey February 22, 2024
Jesse Klempner, Christian Rodriguez, Dale Swartz

Nontraditional sources of innovation are transforming the defense sector with powerful capabilities—but they must overcome obstacles on the path to scalable success.

In response to a new era of geopolitical uncertainty and a rapidly shifting national security environment, countries across the world are transforming their military capabilities. And, as new mission needs in this transformation take shape across multidomain operations, different tools are in demand—increasingly supplied by a range of new entrants to the defense industry.

National security customers are showing demand for technologies sourced by firms outside the traditional defense industrial base. This dynamic is not new but has materialized in three distinct waves of defense tech start-ups over the past 20 years (exhibit).

For example, in the United...

Today's Sponsors

Venturous
Got healthcare questions? Just ask Transcarent

Today's Sponsor

Venturous

 
Topics: AI (Artificial Intelligence), Provider, Technology, VA / DoD
‘The Hardest Thing Is Separating the Wheat from the Chaff’: 5 Leaders on the State of Healthcare AI
Chinese medical devices are in health systems across U.S., and the government and hospitals are worried
The distressed HealthTech M&A landscape in 2025
The New Healthcare CIO Role
Doximity - the 'Linkedin for Doctors' is the best performing healthcare stock in 2025

Share This Article