Space Acquisition - Air Force Space Command

Book Review
Arms and Innovation: Entrepreneurship and Alliances
in the Twenty-First-Century Defense Industry
Arms and Innovation: Entrepreneurship and Alliances in
the Twenty-First-Century Defense Industry. By James Hasik.
New York: University of Chicago Press, 2008. Bibliographical
References. Index. Pp. 224. $35.00 Hardcover ISBN-13: 978-0-
226-31886.
Author James Hasik, a consultant and student of current
defense industry trends, writes a compelling book based
on the proposition that defense industry businesses not only can,
but must join together creatively in this century to provide military
forces with pro-active, innovative and timely solutions to
the problems and conditions of the modern battlefield. Hasik
describes two wars that are going on. The first is the fight against
terrorism, the second is the battle among the various defense
contractors, both great and small, for a share of the Department
of Defense funding toward providing solutions needed by
warfighters.
Hasik uses several decisive examples of collaborative efforts
that have been successful in helping DoD support warfighters
around the globe. Rather than take a monolithic view of, for
example, the space arena, he tackles areas as varied as marine
catamarans, armored vehicles and smart munitions. He asks
the question; are small, innovative, agile businesses in a better
situation than their larger brethren to provide solutions within
the framework of a fluid requirement set. His premise is that
smaller companies can innovate extremely well because they are
not so bureaucracy and paradigm bound as larger companies.
Additionally, he examines the advantages of alliances, not the
either-or aspect of the question. He uses his case studies to examine
a number of different alliances, proving that there is no set
model, but that, on a case by case examination, defense contractors
need to examine the potential for creative
alliances that will solve the problem at hand,
satisfy the government customer and leave the
allied companies better off at the completion
of the contract.
Hasik argues that small firms have made
exceptional contributions to the force in the
last decade. He describes a number of alliance
potentials, including several small firms coming
together to bid on substantial government
contracts. He also explores the effectiveness
of small, agile firms teaming with larger, more
bureaucratic companies so that the advantage
of outside-the-box thinking and quick turnaround
of prototypes can be enhanced by the
financial capabilities of a much larger firm.
Finally, he examines the advantages of two
large firms with differing capabilities partnering
on a particular project. In this instance, he believes the
melding of different skill sets and knowledge bases can make an
effective team.
The layout of the case studies is of particular interest. His examination
of the original problems, historical backgrounds and
the following analysis make the flow of the case studies particularly
reader friendly, even when the reader is not familiar with
the technological issue. Additionally, his case studies cover a
broad and diverse set of problems and solutions. From the Space
Based Infrared Satellites which were designed to provide early
warning of missile launches; to seagoing catamarans capable of
extremely high speeds and platform variety for a number of littoral
missions, Hasik addresses problems of the warfighting community,
creatively solved by contractor innovation.
The case studies examined all have the ability to embroil supporters
of one solution over another, however, Hasik remains
aloof from partisanship and keeps his focus on his thesis. Defense
contractors and the governments that employ them are
faced with a new set of challenges and a requirement for a new,
fluid set of paradigms in meeting them.
The conclusion offers sound advice to both companies and
government officials who deal with contractors. He explains
why the government should foster and maintain sound relationships
with small companies because “smaller firms thrive in industries
where progress is evolutionary rather than revolutionary
… continuous, incremental and recombinative.”
Hasik’s warning that “small firms should choose their friends
carefully” is a clear reminder of the second battlefield where
companies jockey for position in a volatile and infinitely dangerous
economic combat zone. This is an arena where alliances
shift and change as need requires and there are dangers as well as
rewards for the smaller companies that might
not have the experience or the fiscal endurance
of larger, more established firms.
Finally, Hasik’s analysis of the modern defense
contracting market, his studies of what
worked well and what worked badly are explicit
examples of the nature of the contracting
industry. This book is excellent reading
for defense contractors, those who think they
might want to become defense contractors
and for military and government civilians
who work with the defense industries. This
volume offers clear strategies for providing
positive, intelligent and timely solutions to air,
ground and marine warfighters in today’s and,
more importantly, tomorrow’s war on terror.
Reviewed by Mr. Edward T. White, author and
historian.
High Frontier 70