Defence is a paradox. It is clear to see that it is simultaneously tougher than the tanks it makes, and reliant on R&D funding and project extension.
The industry keeps that which we hold dear safe in a manner that is likely more efficient than if the responsibility were to purely be on the government. At the same time, that toughness doesn't mean it can't be optimised, and that increased efficiency doesn't mean that the industry isn't putting undue pressure on government finances (and thus the taxpayer.)
Defence has to deal with some of the largest capitalisation, highest complexity deals, with some of the most risky (from a financial and a research point of view) projects in the world. It has to deal with difficult supply chains, enormous organisational requirements (inter-firm in consortia, and intra-firm,) impossible innovation and stringent regulation. Arguably even more impressive, with the public image problems it has, it still manages to exist with massive overhead. Yet...the industry does more than survive, it is profitable.
Simultaneously, the defence industry has become comfortable with bureaucracy and government R&D funding. The former, if fixed would better the industry in a number of ways, and the latter, if fixed would make firms far more efficient and less of a strain on the taxpayer.
Bureaucracy is fixed by operational changes that can be implemented relatively easily. Reducing reliance on government R&D is far harder, but we believe we have the solution: improvement of PR.
PR improvement goes beyond the superficial. If the general public can see that defence is not only valuable but virtuous, they won't be financially or ethically adverse to it. If that is the case, then financial institutions will have the green light to invest in defence firms and defence projects. This will increase defence firm cash reserves and allow for more self-reliant R&D, which will reduce bureaucracy given reduced need to meet government funding requirements. The government would be under less financial and organisational pressure, defence firms would have more freedom and better access to funding (improving efficiency and innovation,) financial institutions make a good return on their money and can invest in something tangible, and the general public watches as the defence industry innovates product and process to improve ESG and efficiency (making the nation both better and safer.) Furthermore, the general public have less tax money spent on R&D that can be facilitated in better ways.
Government spending on defence is essential, but the burden must be (at least slightly relieved.) It should complement free market innovation, rather than being the fundament of that innovation.
EMC Operations proposes a win-win-win-win situation.
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