AUKUS Pillar II is focused on accelerating advanced capabilities, but innovation in technology is dominated by tech companies and financed through private finance. In order advance this technology for defence new funding sources, collaboration and mindset shifts across government and industry is essential. Over 2023 USSC Director of Economic Security Hayley Channer and Senior Economic Advisor Dr John Kunkel hosted a series of workshops with leaders in defence innovation, tech companies and private finance from Australia and the United States to look for solutions to unlocking private sector investment to drive Australia’s defence capability and innovation.

If the government provides billions of dollars to the Department of Defence, why do they need financing from the private sector? How does the current defence – tech – finance ecosystem threaten AUKUS Pillar II? What does private sector finance stand to gain from investing in defence innovation?

Tune in to this episode to get the readout from Hayley Channer and John Kunkel following their workshops with government, the tech sector and private finance.

Read the UPSCALE report here.