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The purpose of this study is to evaluate Department of Defense (DoD)-backed innovation programs as a means of enhancing the adoption of new technology throughout the armed forces.

The distribution of 1.29 million defense contract awards over seven years was analyzed across a data set of more than 8,000 DoD-backed innovation program award recipients. Surveys and interviews of key stakeholder groups were conducted to contextualize the quantitative results and garner additional insights.

Nearly half of DoD innovation program participants achieve no meaningful growth in direct defense business after program completion, and most small, innovative companies that win follow-on defense contracts solely support their initial sponsor branch. Causes for these program failures include the fact that programs do not market participants’ capabilities to the defense community and do not track participant companies after program completion.

Because the DoD does not market the capabilities of its innovation program participants internally, prospective DoD customers conduct redundant market research or fail to modernize. Program participants become increasingly unwilling to invest in the DoD market long term after the programs fail to deliver their expected benefits.

Limited scholarship evaluates the efficacy of DoD-backed innovation programs as a means of enhancing force readiness. This research not only uses a vast data set to demonstrate the failures of these programs but also presents concrete recommendations for improving them – including establishing an “Innovators Database” to track program participants and an incentive to encourage contracting entities and contractors to engage with them.