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Forces Shaping the US Defense Industry

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With the US military’s technological edge eroding, the US Department of Defense (DoD) has embarked on a path to renew its superiority through the implementation of its Third Offset Strategy. Implementation will require a vibrant and innovative industrial base; however, external forces are actively shaping the US defense industrial base and limiting its capabilities. This brief explores some of these forces―including continued budgetary pressure, downward trends in research investment, a growing regulatory burden, and a reluctance to embrace globalization―and offers suggestions for a course of action for policymakers.

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