Energy May 31, 2024

Powering America’s Future: Policy, Investment, And Collaboration for A Sustainable Energy Sector

As the United States seeks to transition to carbon-free energy sources to mitigate the impacts of climate change, which the 2022 U.S. National Security Strategy describes as an existential threat, it faces many opportunities and challenges. In an era of substantially growing energy needs, the United States is a leader in the development of a range of carbon-free energy technologies that can play a central role in ensuring that U.S. industry, the U.S. military, and the American people have reliable access to the energy sources they need for security and prosperity. However, successfully securing investment in costly cutting-edge technologies and obtaining permission to deploy them is challenging in a regulatory environment designed for fossil-fuel sources and slow to adapt to carbon-free energy providers.

Energy: May 30, 2023

Maximizing the First 5% of GDP: An Optimistic Assessment of the United States Energy Sector and Policy Recommendations for the Future

Currently, there is considerable pessimism in the United States. Inflation, political polarization, debt brinksmanship, and protracted conflict dominate headlines. However, the mood is noticeably different in the energy sector. Energy is one of America’s greatest strengths, and after decades of languish and underinvestment (in certain parts of the industry), the sector may now be positioned to lead a new era of American leadership and growth. For the first time in decades, there is significant investment from the federal government, and the private sector and academia are eager to accept the challenges the administration has articulated.

Energy: May 30, 2022

Energy Industry Study Report

This paper documents a top-level exploration of the global energy industry and its ramifications for the United States’ enduring interests and national security. Prior scholars at National Defense University conducted similar research and documented their results within publicly available reports. Current students examined reports from 2009 and 2018 to find gaps in the research and analyze trends within the energy industry. Previous reports conducted a point-in-time analysis of the energy industry and are therefore ripe for an update.

Environment May 31, 2024

Environment Industry Study

The Environment and Climate Industry Study Group Report highlights the escalating challenges posed by climate change and environmental degradation across the United States and throughout the world. As these impacts intensify, they intersect with economic and security vulnerabilities, creating cascading effects that disproportionately impact marginalized nations and communities. The U.S. faces a pivotal decision in defining its role in shaping global responses to climate change – whether as an obstructive force, a facilitator, or a leader. This report delves into the complex interplay between environmental issues and U.S. industry, emphasizing the urgent need for the country to mobilize political will to not only respond to but leverage the opportunities presented by the evolving global environmental landscape. The report advocates a strategic pivot towards sustainability that integrates economic vitality and environmental integrity, proposing a path forward that harnesses innovation and leadership in response to one of the most pressing global challenges of our time.

Environment: May 30, 2022

Environment and Climate Industry Study

The overarching purpose of the Environment & Climate Industry Study is to assess U.S. and international competitiveness in the environmental and climate sector(s) of industry within the context of national security, broadly defined. The environmental industry includes firms providing a wide array of goods and services, all with an environmental aim — from waste management and environmental protection to water utilities and regulatory compliance. The related climate change industry includes those activities aimed at minimizing the negative impacts of human activity on the climate, like renewable energy, green buildings, and adaptation and mitigation efforts designed to help society cope with climate-related events without sacrificing quality of life. Firms operating in this “industry of industries” face numerous challenges, not the least of which is ideological. Widely identified as a national security threat, climate change is altering the way many on the planet live and contributing to geopolitical flashpoints that affect human, national, and global security. The U.S. government must recognize (a) the dependency of its economic strength on global environmental security, and (b) its leadership role in shaping environmental, climate, and economic policies, both domestically and internationally. By leveraging the strength of U.S. environmental firms that are already shaping market and consumer behavior, government can accelerate mitigation and adaptation efforts, embrace innovation that increases efficiency, sustainability, and resilience, and produce stronger domestic and global economies, with attendant benefits to human, environmental, national, and global security.

Finance (Formerly Financial Services) May 31, 2024

U.S. Finance Industry & National Security: A Source of Both Strength and Vulnerability

This paper examines the intersection of the U.S. financial industry and national security in the context of Great Power Competition, especially with the rise of China (PRC). It highlights three key areas: capital markets, financial innovation, and financial statecraft. The PRC's economic strategies challenge U.S. dominance, while domestic issues like political polarization and economic inequality threaten internal stability. The U.S. capital markets, crucial for economic strength and national security, face challenges due to shifts towards private capital and changes in market dynamics. The paper calls for a more strategic approach by the Department of Defense (DoD) in using financial tools to advance national security, particularly through economic statecraft. It also advocates for regulatory reforms to address vulnerabilities in capital markets, like cybersecurity risks, and urges stronger public-private sector collaboration. To maintain global leadership, the U.S. must adapt its economic strategies to safeguard national interests and navigate evolving geopolitical dynamics. The paper provides a roadmap for integrating economic power with national security to ensure U.S. resilience amid global competition.

Financial Services: May 30, 2022

Optimizing the Financing of Innovation to Accelerate National Security Capabilities

The U.S. finance industry is robust and well-resourced, offering a range of commercial and consumer banking, lending, and investment services to individuals and institutions across the country and the globe. Innovation within the finance industry is usually financed by risk capital firms seeking innovation with the potential for commercial success and high returns on investment. Financing innovation is considered a high-risk endeavor due to high startup failure rates, unproven technology, and the challenges of scaling to market production. Finding and applying innovation funding for potential defense market products is even more difficult, given the single buyer in the form of the DoD, the consolidated nature of the private defense industry, and the draw of higher, faster returns in the commercial sector. These factors limit private investment in national security-oriented start-ups. They also resulted in a divergence between the high technology capabilities in the commercial marketplace and the outmoded technology often found within the DoD and the broader U.S. Government (USG). To correct this imbalance, the DoD must take the following actions: increase and expand the investment tools within the innovation ecosystem, scale innovation ecosystem products to operations, and support America’s continued innovation advantage to be more relevant, complementary, and agile.

Ground Combat Systems (Formerly Land Combat Systems and Land Domain) May 31, 2024

Ground Combat Systems

The U.S. ground combat vehicle industry faces a critical decision between continuing the production of legacy systems and developing new autonomous, attritable vehicles. With budget constraints and rising international insecurity, the Department of Defense's Replicator initiative aims to accelerate the adoption of large numbers of autonomous systems. The U.S. Army, along with Congress and the defense industry, is working to address technological challenges and develop systems for this initiative. The study recommends the U.S. Army focus on autonomous systems, engage Congress on Replicator's implications, and allocate additional funding for Robotic Combat Vehicles (RCVs) to foster technological diversity. It suggests the Next Generational Combat Vehicle Cross-Functional Team take more risks in RCV development to get them into the hands of warfighters sooner. Further, the study advocates for rapid prototyping efforts and continued support for modular open systems approaches. Key technologies like machine learning and AI are vital for the success of RCVs, requiring additional R&D to ensure they can effectively integrate into military formations and enhance all six Army warfighting functions.

Land Combat Systems (formerly Land Domain): May 30, 2023

Land Domain Platforms

Opportunities exists to boost innovation in the Land Domain Platforms (LDP) industry, which consists of markets for combat tracked maneuver/fires vehicles, wheeled sustainment vehicles, and medium/heavy vehicles. The end of the wars in Afghanistan and Iraq brought about a downturn in the industry as occurred during the post-Cold War era. However, due to a combination of factors that include rapid technological change, the U.S. strategic competition with China, and the Russo-Ukrainian War, the domestic and international context are in alignment to enact policies that will have long-term, positive effects on the LDP industry. Congress and DoD must work together to set conditions that foster innovation across the LDP industry to improve the production of systems necessary to dominate land domain threats out to 2040 and beyond.

Maritime (Formerly Maritime Domain and Shipbuilding) May 31, 2024

A Calculated Intervention: Practical Actions to Revitalize the U.S. Maritime Industry

The report, developed by a seminar of students and professionals, identifies key challenges in the U.S. maritime industry, including issues with affordability, production capacity, and resilience. These stem from aging infrastructure, labor shortages, outdated manufacturing, and restrictive policies. The industry’s focus on defense over commercial competitiveness has further worsened its global standing. The report proposes policy recommendations to address these problems, aiming to revitalize the industry, enhance national security, and improve global competitiveness, particularly through efforts focused on commercial shipping and U.S. allies.