While commercial technology companies will be critical to delivering cutting-edge military capabilities that Australia and the United States seek under AUKUS Pillar II, longstanding deterrents exist to the sector’s full engagement with defence markets details a new report by the United States Studies Centre (USSC) at the University of Sydney.

Expanding the National Security Innovation Base: How Australia and the United States can collaborate to harness their commercial technology ecosystems outlines novel areas of collaboration between Australia and the United States that could support greater integration of the commercial technology sector into the defence industrial base, to comprise a broader national security innovation base.

The report’s author, USSC Research Associate Sophie Mayo writes how Australia and the United States must essentially become easier customers for commercial technology companies, traditionally deterred by poor economic incentives and financing, acquisition and procurement challenges.

“Commercial companies that are leading advances in fields like artificial intelligence and quantum will be important to AUKUS Pillar II,” said USSC CEO Dr Michael Green.

“This report shows how Australia and the United States can work together to offer incentives and expand their market size to become more attractive to commercial tech companies.”

Expanding the National Security Innovation Base: How Australia and the United States can collaborate to harness their commercial technology ecosystems is now available for download.

Key recommendations include:

  • ‘Bilateralise’ or ‘trilateralise’ the United States’ Blue sUAS program. Blue sUAS has bolstered the US-drone market and expanded sales for US-made drones across the US Government, and could be bilateralised or trilateralised via AUKUS to increase the economic incentive of the defence market for dual-use drone companies.
  • Better inform the tech sector about contracting opportunities. Build on the AUKUS Advanced Capabilities Forum and supplement it with US-India Defence Acceleration Ecosystem (INDUS-X)-style industry and academia workshops.
  • Establish a multi-sovereign public-private innovation fund for AUKUS Pillar II. This would allow for the creation of a uniform investment strategy and create greater coherence among investors about what technology readiness level to invest in and on what timeline.
  • Accelerate the assessment of innovation proposals. The Advanced Strategic Capabilities Accelerator and the Defense Innovation Unit should direct solicited and unsolicited proposals related to AUKUS Pillar II to a common pool managed under the Pillar II Innovation Working Group.

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